Global Commercial Vehicle Tire Market Research Report: Forecast (2023-2028)

Market Insights & Analysis: Global Commercial Vehicle Tire Market (2023-28)

The Global Commercial Vehicle Tire Market is projected to grow at a CAGR of around 5.29% during the forecast period, i.e., 2023-28. The market has shown significant growth in the past few years due to factors, including the high demand from end-users like mining, oil & gas, logistics, e-commerce, public transportation, etc. With the high degree of digitalization and improving transportation networks, the demand for both LCVs & MHCVs has emerged significantly in regions like North America, Europe, & the Asia Pacific, which, with their high growth rate and fast-paced industrialization & urbanization, have pushed the sales of commercial vehicle tires.

The increasing production of pickup trucks, pickup vans, light buses, and heavy trucks & buses has led to the significant popularity of commercial vehicle tires. The rapid expansion of public transit and the increasing proliferation of EVs (Electric Vehicles), particularly in countries like India, Brazil, & Japan, is also widening the market size. In addition, the strong presence of leading players like BFGoodrich, Pirelli, Michelin, Goodyear, & Continental continues to benefit the industry. Besides, Apollo, Ceat, JK, & MRF have started gaining pace in Asia-Pacific after the pandemic.

A rapid surge in government investments in public transportation and the high cargo transportation demand are creating lucrative prospects for the industry. Trends like the extensive adoption of telematics technology for real-time diagnosis of commercial vehicle tires have garnered the attention of manufacturers. Besides, the increased adoption of green tires in commercial vehicles is another prominent aspect projected to fuel the growth of the commercial vehicle tire market in the years to come.

Global Commercial Vehicle Tire Market Driver:

Mounting Sales of Agricultural Vehicle Tires, Pushed by Farm Mechanization Trends: Agriculturally deprived economies have begun to incorporate farm machinery equipped with the IoT and automation techniques in order to ramp up their yields. Due to labor shortages and the increased need for enhanced agricultural productivity, farm mechanization trends are gaining traction in various countries worldwide and, in turn, augmenting the demand for heavy agricultural machinery, such as tractors, combines, & harvesters, among others, which require reliable & durable tires for heavy-duty operations.

Moreover, the growing proliferation of precision farming that involves the use of GPS & various sensors to collect data on the exactness of water, fertilizers, pesticides, & herbicides required to achieve the most yield-per-acre of land is another prominent aspect accelerating the demand for agricultural vehicle tires, such as IF (Increased Flexion) & VF (Very-High Flexion) farm tires, which are equipped with features to facilitate precise movements & farming operations, help decrease soil compaction, and increase yields, consequently driving the Global Commercial Vehicle Tire Market.

Global Commercial Vehicle Tire Market Trend:

Multi-Brand Tire Stores Remain the Most Preferred Purchase Point: Multi-brand tire stores have gained traction in the past few years owing to the extensive presence of companies like MRF, Bridgestone, etc., around numerous countries. The absence of a legal framework to govern the e-commerce industry in the region has resulted in marginal sales of tires through online platforms. Moreover, the lack of awareness among individuals about the variety of tires & specifications that suit their operational requirements is another prominent factor that has promoted tire sales from multi-brand outlets & not online platforms.

Global Commercial Vehicle Tire Market (2023-28): Segmentation Analysis

The Global Commercial Vehicle Tire Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the analysis, the market has been further classified as:

Based on Tire Type,

• Radial
• Bias

Among the two, Radial Tires dominate the Global Commercial Vehicle Tire Market, and the same trend is likely during 2023-28, backed by their multiple functional benefits, such as better traction, improved stability at high speeds, better load handling, and enhanced heat dissipation over cross-ply/bias tires, which is one of the major causes of the degradation of commercial tires.

The tread & sidewall of radial tires work independently, and since the power transfer from the vehicle to the ground is more, it allows for lower fuel consumption. These tires hold the highest market share in developed countries like the US, China, the UK, France, etc. However, their penetration is also rising dramatically in emerging countries, creating more opportunities for the leading manufacturers in the commercial vehicle tire market over the coming years.

Based on the Application,

• Cargo Transportation
• Public Transportation
• Oil & Gas Transportation
• Others (Construction Material Transportation, Towing, etc.)

Here, Cargo Transportation acquired a sizable market share in the historical period. It owes principally to the rapidly expanding logistics industry worldwide, one of the largest sectors with a high requirement for commercial vehicles of all categories to transport goods across different geographies. With the booming e-commerce sector, backed by the increasing number of exclusive online stores, the logistics sector has further strengthened through the high acquisition of cargo fleets. Thus, the high level of integration of both LCVs & MHCVs has helped the cargo transportation application maintain a smoother growth pace in the commercial vehicle tire market.

Global Commercial Vehicle Tire Market Regional Projection:

Geographically, the Global Commercial Vehicle Tire Market expands across:

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

Of all regions globally, Asia-Pacific is expected to emerge as the largest Commercial Vehicle Tire Market during 2023-28. The region has emerged as an automotive hub in recent years, backed by the expansion of manufacturing units by auto giants like BMW AG & Volkswagen Group, owing to the availability of economic labor, lenient emission & safety norms, low production costs, and various government initiatives for FDIs.

Further, a large influx of public investment in developing countries like China, India, South Korea, & Japan in order to address issues like the aging transportation infrastructure, population density, & traffic congestion is another prominent aspect that drives the regional market. Besides, with the electrification of commercial vehicles in these countries, manufacturers are making active efforts toward bringing advancements in tire technologies to cater to the widening user base for EVs, thereby creating new directions for the Asia-Pacific Commercial Vehicle Tire Market.

Regulatory Landscape in the Global Commercial Vehicle Tire Market

• The US

Commercial Truck and Trailer Tire Regulations

Checking and maintaining tires goes beyond a quick check before heading out on-road. Per the FMSCA and DOT tire regulations, certain codes under the Code of Federal Regulations (CFR) require strict compliance. Section 393.75 in the eCFR specifically addresses tires. The section details the primary issues to be aware of when checking tires, including specific regulations about overall tire condition, tire tread and grooves, and types of tires permitted.

Tread Depth

Per code section 393.75 (c), “tires shall have a tread groove pattern depth of at least 2/32 of an inch when measured in a major tread groove.” It also states that the measurement area should not lie around tie bars, humps, or fillets. DOT steer tire regulations state that depth is at least 4/32 of an inch. 

Another consideration is the regulations set by the Commercial Vehicle Safety Alliance (CVSA). Any out-of-service vehicle is subject to FMSCA citations, and each violation must be addressed before the vehicle is put back in service.

• European Union

The EC passed Regulation 1222/2009 in order to enhance the safety and economic & environmental efficiency of road transport by promoting fuel-efficient and safe tires with low noise levels. The label specifications are aligned with the standards specified in UN ECE R-117. The scope of the regulation is the same as that of UN ECE R-117. The rules apply to all tires produced on July 1, 2012, or later. The fuel efficiency is indicated using grades between A to G, with A representing the best performance and G the worst.

• India

Tire standards issued by BIS and AIS specify requirements for parameters such as safety, durability, marking, etc. They do not require tires to be tested for performance parameters such as RR and wet grip. However, UN ECE R117 has specified minimum standards and test protocols for RR, wet grip, and noise.

• Japan

Tires must have at most 0.012 dimensionless RRC (expressed as 12.0 N/kN) and meet minimum wet grip requirements to qualify for the labelling programme described. Tires with at least 0.009 RRC (expressed as 9.0 N/kN) also qualify for the low-energy tire logo. Durability and winter tire requirements have not been included. Tires graded ‘C’ in fuel efficiency do not pass the specifications of UN ECE R-117

Global Commercial Vehicle Tire Industry Recent Developments:

• In May 2023, Yokohama Off-Highway Tires (YOHT) launched Agri Star II R – I, a radial tire equipped with SLT (Stratified Layer Technology) that ensures higher lug competency, and after 40% wear, a multi-angle profile layer of the lug comes in contact with the ground, resulting in increased contact area at the central portion, enhanced grip, and better roadability of the tire.

• In February 2023, Continental launched its largest tractor tire to date, the VF TractorMaster in size VF900/60R42. With a diameter of 2,147 millimeters, the tire is larger than a door frame and weighs 450 kilograms with a load index of 189 (10,300 kilograms). The tire size has been developed by the company specifically to be able to carry the weight of agricultural machinery with over 300 horsepower.

Gain a Competitive Edge with Our Global Commercial Vehicle Tire Market Report

1. Global Commercial Vehicle Tire Market Report by Markntel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
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4. This report would help in understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.