Asia-Pacific Tire Market Research Report Forecast: (2022-2027)

Market Definition

The tire industry in the Asia-Pacific is quite vast and projecting swift expansion in the coming years due to improving economic conditions & living standards and growing inclination toward private ownership of vehicles. Besides, the abundance of raw materials like rubber & cheap labor is another crucial aspect attracting several prominent tire manufacturers to set up their production facilities across the region and contribute to the notably growing tire industry during the forecast period.

Market Insights

The Asia-Pacific Tire Market is projected to grow at a CAGR of around 10% during the forecast period, i.e., 2022-27. The growth of the market is likely to be driven primarily by the rapidly increasing vehicle fleet across Asia-Pacific due to the increasing inclination of people toward private vehicle ownership on account of their swiftly improving economic conditions, increasing purchase power, & changing living standards. 

Besides, the mounting demand for secondhand vehicles, especially across countries like India, Malaysia, & Indonesia, is also anticipated to drive the market in the coming years owing to the growing need for replacement tires entwined with greater awareness about timely maintenance of tires & vehicles. 

Moreover, with various ongoing & upcoming construction projects associated with roads, bridges, tunnels, & airports, among others, in line with extensive infrastructural developments across different countries, the demand for heavy commercial vehicles & construction equipment is surging at a rapid pace and, as a result, positively impacting the overall market growth.

Impact of Covid-19 on the Asia-Pacific Tire Market

The advent of Covid-19 in 2020 had a decelerating effect on most industries, and the automotive & tire industries across Asia-Pacific were no exception. The tire industry got catastrophically affected when governments of different regional countries imposed stringent movement restrictions & lockdowns to curb the spread of this dreadful disease.

The leading players in the industry faced several challenges like disruptions in the supply chain for raw materials, hampered transportation & logistics, shortage of labor, increased demand & supply gaps, & shutdown of manufacturing units.

Consequently, the prominent players witnessed substantial financial losses, which led to a temporary decline in the growth of the tire market. On the other hand, while the agriculture sector remained operational amidst the crisis, the demand for agriculture equipment & tires escalated swiftly and, in turn, projected a temporary hike in the market.

Nonetheless, governments uplifted the restrictions and allowed the recommencement of business operations with the gradually declining number of Covid-19 cases. As a result, the leading players have now resumed their business operations with increased production capacities to meet the burgeoning tire requirements. It, in turn, would lead the Asia-Pacific Tire Market to regain its usual pace, recover from losses, and witness steady growth during the forecast period.

Market Segmentation

Based on Tire Type:

• Radial
• Bias

Of them all, Radial tires are expected to observe the fastest growth in the Asia-Pacific Tire Market during the forecast period. It owes principally to the surging need for agriculture vehicles & equipment, i.e., directly impacting the demand for radial tires due to their capabilities like lower rolling resistance, reduced fuel consumption, better grip, stability, & durability, among others.

Radial tires run cooler and dissipate heat better than bias tires, owing to which they offer enhanced durability & become more suitable for daily use. Moreover, the mounting focus of governments of different countries across Asia-Pacific on strengthening the agriculture sector is another crucial aspect projected to spur the demand for radial tires while contributing to the overall market growth over the coming years. It, in turn, would encourage the leading tire manufacturers to increase their production capacities & meet the burgeoning end-user requirements.

Based on the Vehicle Type:

• Passenger Car
• Light Commercial Vehicle (LCV)
• Medium & Heavy Commercial Vehicle (M&HCV)
• Two-Wheeler
• Three-Wheeler
• Off the Road Tire (OTR)

Here, Off-the-Road (OTR) vehicles are anticipated to significantly contribute to the growth of the Asia-Pacific Tire Market during the forecast period. It owes principally to the increasing number of large-scale construction projects for roads, power plants, industrial facilities, airports, commercial & residential complexes, etc., across different countries across the region, i.e., surging the need for OTR vehicles and positively influencing the tire market. The demand for OTR tires in the construction sector is seen majorly for equipment like loaders, bulldozers, excavators, trenchers, etc.

Besides, increasing exploration & production activities for metal, minerals, & coal, especially across countries like China, India, Australia, & Indonesia, are other crucial aspects fueling the demand for OTR vehicles & their tires. Moreover, the swiftly expanding agriculture sector and the advent of farm mechanization trends are also propelling the demand for OTR vehicles & tires across Asia-Pacific. Furthermore, the growing inclination of people toward adventure sports like dirt bikes & quads for recreational purposes shall further augment the production & sales of OTR tires and drive the market through 2027.

Country Landscape:

Geographically, the Asia-Pacific Tire Market expands across:

• China
• India
• Japan
• South Korea
• Malaysia
• Indonesia
• Philippines
• Pakistan
• Bangladesh
• Vietnam
• Australia
• New Zealand
• Singapore
• Thailand
• Nepal
• Myanmar

Here, of all countries in Asia-Pacific, China acquired the largest share in the Tire Market in the previous few years, and this dominance is likely in the coming years as well. It owes principally to the rapidly growing number of small & large-scale automakers & tire producers establishing their manufacturing facilities in the country and actively participating in the market by increasing their production capacities.

Due to the extensive presence of prominent players in China, the rising number of OEMs (Original Equipment Manufacturers) is generating growth opportunities for them to develop & distribute High-Performance tires and expand their foothold in the country.

Moreover, the young population of China is projecting a greater inclination toward sporty vehicles to drive on challenging terrains. Hence, it is instigating the leading players to develop compatible tires to offer robust grips, minimal rolling resistance, reduced tread wear, & improved traction and, consequently, drive the Asia-Pacific Tire Market across China through 2027.

On the other hand, the growing adoption of technologically advanced agriculture equipment for farming activities shall soar the demand for tires across Japan and contribute to the overall market growth through 2027. Moreover, the swift change in the living standards and rapid industrialization across Japan is also likely to play a crucial role in stimulating the Japan Tire Market over the forecast years.

Nonetheless, countries like Indonesia, Thailand, Australia, etc., are immensely focusing on expanding their respective agriculture sectors and, in turn, propelling the requirements for equipment like tractors & harvesters. Hence, the demand for agriculture equipment tires is rapidly surging across these countries, which would boost the overall growth of the Asia-Pacific Tire Market during the forecast period.

Key Questions Answered in the Market Research Report:

1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Asia-Pacific Tire Market?
2. What are the country-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Asia-Pacific Tire Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Asia-Pacific Tire Market based on the competitive benchmarking matrix?
5. What are the key results derived from surveys conducted during the Asia-Pacific Tire Market study?