Global Commercial Vehicle Tire

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

By Vehicle Type (Light Commercial Vehicle (Light Truck, Light Bus, Pickup Trucks and Vans), Medium & Heavy Commercial Vehicle (Truck, Bus), By Tire Type (Radial, Bias), By Price Category (Budget, Econ Read more

  • Tire
  • Dec 2022
  • 201
  • TR10257

Market Insights

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 due to factors such as high demand from end-users such as mining, oil & gas, logistics, e-commerce, public transportation, etc. With the high degree of digitalization and improving transportation networks, the demand for both LCV & MHCV has emerged in the regions such as North America, Europe, and the Asia Pacific. These regions, with their high growth rate, fast-paced industrialization & urbanization, have pushed the sales of commercial tires.

Moreover, the increasing production of pickup trucks, pickup vans, light buses, and heavy trucks & buses has infused significant popularity of CV tires. Further, the rapid expansion of public transit and the increasing use of electric vehicles in the countries like India, Brazil, and Japan is also driving the market. The strong presence of leading players such as BFGoodrich, Pirelli, Michelin, Goodyear, and Continental has furthered the industry's growth in the historical period. Besides, Apollo, Ceat, JK, and MRF have started gaining pace after the pandemic in the Asia-Pacific region.

Report Coverage Details
Study Period Historical Data: 2018-21
Base Year: 2022
Forecast Period: 2023-28
CAGR (2023-2028) 5.29%
Regions Covered North America: The US, Canada, Mexico
Europe: Germany, The UK, France, Italy, Spain, Rest of Europe
Asia-Pacific: China, Japan, India, South Korea, Australia, Rest of Asia Pacific
South America: Brazil, Argentina, Rest of South America
Middle East & Africa: UAE, Saudi Arabia, South Africa, Egypt, Rest of MEA
Key Companies Profiled

Bridgestone Corporation, Compagnie Générale des Établissements Michelin SCA, Continental AG, The Goodyear Tire & Rubber Company, The Yokohama Rubber Company Ltd., Pirelli & C. S.p.A, Hankook Tire & Technology, Kumho Tire, Sumitomo Rubber Industries, Ltd., Zhongce Rubber Group Co. Ltd., CEAT Limited, MRF Tyres, JK Tyre & Industries, Apollo Tyres Limited, Others

Unit Denominations USD Million/Billion

 

Further, a rapid surge in government investments in public transportation paired with high cargo transportation demand has again pushed the market forward in recent years. Additionally, the extensive adoption of telematics technology for real-time diagnosis of commercial vehicle tires has garnered the attention of key players. Besides, the increased adoption of green tires in commercial vehicles is expected to propel market growth further in the forecast period.

Key Trends in the Market

  • Multi-Brand Stores Remain the Most Preferred Point of Purchase

Multi-brand 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.

Market Segmentation

Based on Tire Type,

  • Radial
  • Bias

Between the two, the Radial Tires segment is expected to dominate the Commercial Vehicle Tire Market during the forecast period. The dominance is backed by the fact that these tire offer multiple functional benefits such as better traction, improved stability at high speed, better handling of loads as well as enhanced heat dissipation over cross-ply/bias tires, which is one of the major causes of the degradation of commercial tires. Additionally, radial tires hold the highest market share in developed countries such as the US, China, the UK, France, etc. However, the penetration is rising in emerging countries. With the improved functional benefits & higher cost, the segment is expected to thrive in the coming years.

Based on the Application,

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

Amongst them, Cargo Transportation Segment acquired a sizable market share in the historical period. It owes principally to expanding Logistics, one of the largest sectors with a high requirement for commercial vehicles of all categories to transport goods in different geographies. With the emergence of e-commerce & exclusive online stores, the logistics sector has further strengthened through the high acquisition of cargo fleets. Thus, the high level of integration of vehicles of both LCV & MHCV has helped the segment to maintain a smoother growth pace in the market for commercial tires.

Regional Projection

Geographically, the Global Commercial Vehicle Tire Market expands across:

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

Here, Asia Pacific is expected to emerge as the largest market for commercial vehicle tires in the forecast period. The expanding manufacturing units by the auto giants such as BMW AG and Volkswagen Group have instigated the region to emerge as a hub for automotive production in recent years. The factors favoring the expansion of production units here are the availability of economic labor, lenient emission and safety norms, low production costs, and government initiatives for FDIs. Further, a large influx of public investment in developing countries like China, India, South Korea, and Japan in order to address issues such as aging transportation infrastructure, population density, and traffic congestion. Besides, commercial vehicles being electrified wholly in these countries has led to advancement in the tire types surfacing across the region. For instance,

  • Continental Tires, a global premium tire manufacturer, commenced manufacturing various new articles at its Modipuram plant in India for the passenger and commercial vehicles segment. The brand introduced Digital Solutions, an added value to the Conti360 fleet solutions for commercial vehicles in India.

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

Recent Developments in the Global Commercial Vehicle Tire Market

  • In November 2022, Continental Tires, a leading premium tire producer, inaugurated Its First commercial vehicle alignment center in Jaipur, India. Along with displaying all-new continental commercial vehicle tires, the center offers services like truck/bus wheel alignment, nitrogen inflators, tire changers, wheel balancing, and fully automated alignment.

Market Dynamics

Key Driver: Farm Mechanization Trend Pushing the Sales of Agriculture Commercial Tires

Agriculturally deprived economies have begun to incorporate machinery equipped with IoT, GPS, and Automation techniques in order to ramp up their yields. As such, the farm mechanization trend in developing countries like China has been speeding up in the past few years. The advent of large-scale farming equipment rental has called for increased adoption of tractors in farming techniques. Further, with new entrants willing to make the most out of the agricultural land, the need for more heavy commercial tires is expected to emerge in the coming years.

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 Global Commercial Vehicle Tire Market?
  2. What are the region-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Commercial Vehicle Tire Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Global Commercial Vehicle Tire Market based on the competitive benchmarking matrix?
  5. What are the key results derived from surveys conducted during the Global Commercial Vehicle Tire Market study?

Frequently Asked Questions

A. The Commercial Vehicle Tire Market is projected to grow at a CAGR of around 5.29% during 2023-28.

A. Rapid expansion of public transit and the increasing use of electric vehicles in the countries like India, Brazil, Japan is also driving the market.

A. The prominent players in the market are Bridgestone Corporation, Compagnie Générale des Établissements Michelin SCA, Continental AG, The Goodyear Tire & Rubber Company, The Yokohama Rubber Company Ltd., Pirelli & C. S.p.A, Hankook Tire & Technology, Kumho Tire, Sumitomo Rubber Industries, Ltd., Zhongce Rubber Group Co. Ltd., CEAT Limited, MRF Tyres, JK Tyre & Industries, Apollo Tyres Limited, Others.

A. Radial Tire is anticipated to emerge as an area of remunerative opportunities for the leading players in the Commercial Vehicle Tire Market during the forecast period.

A. Globally, Asia-Pacific would provide lucrative prospects for the Commercial Vehicle Tire Market in the years ahead.

A. Surging use of telematics technology for real-time diagnosis of commercial vehicle tires is likely to shape the growth of market during 2023-28.

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. Impact of COVID-19 on Global Commercial Vehicle Tire Market
  5. Global Commercial Vehicle Tire Market Regulations & Policy
  6. Global Commercial Vehicle Tire Market Trends & Developments
  7. Global Commercial Vehicle Tire Market Dynamics
    1. Growth Drivers
    2. Challenges
  8. Global Commercial Vehicle Tire Market Hotspots & Opportunities
  9. Global Commercial Vehicle Tire Market Supply Chain Analysis
  10. Global Commercial Vehicle Tire Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
      2. By Units Sold (Thousand Units)
    2. Market Share & Analysis
      1. By Vehicle Type
        1. Light Commercial Vehicle
          1. Light Truck
          2. Light Bus
          3. Pickup Trucks and Vans
        2. Medium & Heavy Commercial Vehicle
          1. Truck
          2. Bus
      2. By Tire Type
        1. Radial
        2. Bias
      3. By Price Category
        1. Budget
        2. Economy
        3. Premium
      4. By Sales Channel
        1. Multi-brand Stores
        2. Exclusive Outlets
        3. Online
      5. By Demand Type
        1. OEM
        2. Aftermarket
      6. By Application
        1. Cargo Transportation
        2. Public Transportation
        3. Oil & Gas Transportation
        4. Others (Construction Material Transportation, Towing, etc.)
      7. By Tire Size
        1. Light Commercial Vehicle
          1. 225/75R16
          2. 245/75R16
          3. 245/75R17
          4. 265/70R17
          5. Others (265/75R16, 285/70 R17, etc.)
        2. Medium & Heavy Commercial Vehicle
          1. 295/75R22.5
          2. 225/70R19.5
          3. 295/90R20
          4. 295/80R22.5
          5. Others (11R22.5, 11R24.5, 245/70R19.5, etc.)
      8. By Region
        1. North America
        2. South America
        3. Europe
        4. Middle East & Africa
        5. Asia-Pacific
      9. By Company
        1. Competition Characteristics
        2. Revenue Shares
  11. North America Commercial Vehicle Tire Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues
      2. By Units Sold
    2. Market Share & Analysis
      1. By Vehicle Type
      2. By Tire Type
      3. By Price Category
      4. By Sales Channel
      5. By Demand Type
      6. By Application
      7. By Tire Size
      8. By Country
        1. The US
        2. Canada
        3. Mexico
    3. The United States Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
    4. Canada Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
    5. Mexico Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
  12. South America Commercial Vehicle Tire Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues
      2. By Units Sold
    2. Market Share & Analysis
      1. By Vehicle Type
      2. By Tire Type
      3. By Price Category
      4. By Sales Channel
      5. By Demand Type
      6. By Application
      7. By Tire Size
      8. By Country
        1. Brazil
        2. Argentina
        3. Rest of South America
    3. Brazil Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
    4. Argentina Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
  13. Europe Commercial Vehicle Tire Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues
      2. By Units Sold
    2. Market Share & Analysis
      1. By Vehicle Type
      2. By Tire Type
      3. By Price Category
      4. By Sales Channel
      5. By Demand Type
      6. By Application
      7. By Tire Size
      8. By Country
        1. Germany
        2. The UK
        3. France
        4. Italy
        5. Spain
        6. Rest of Europe
    3. Germany Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
    4. The UK Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
    5. France Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
    6. Italy Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
    7. Spain Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
  14. Middle East & Africa Commercial Vehicle Tire Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues
      2. By Units Sold
    2. Market Share & Analysis
      1. By Vehicle Type
      2. By Tire Type
      3. By Price Category
      4. By Sales Channel
      5. By Demand Type
      6. By Application
      7. By Tire Size
      8. By Country
        1. UAE
        2. Saudi Arabia
        3. South Africa
        4. Egypt
        5. Rest of MEA
    3. UAE Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
    4. Saudi Arabia Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
    5. South Africa Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
    6. Egypt Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
  15. Asia-Pacific Commercial Vehicle Tire Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues
      2. By Units Sold
    2. Market Share & Analysis
      1. By Vehicle Type
      2. By Tire Type
      3. By Price Category
      4. By Sales Channel
      5. By Demand Type
      6. By Application
      7. By Tire Size
      8. By Country
        1. China
        2. India
        3. Japan
        4. South Korea
        5. Australia
        6. Rest of Asia-Pacific
    3. China Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
    4. India Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
    5. Japan Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
    6. South Korea Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
    7. Australia Commercial Vehicle Tire Market Outlook, 2018-2028F
      1. Market Size & Analysis                
        1. By Revenues
        2. By Units Sold
      2. Market Share & Analysis
        1. By Vehicle Type
        2. By Tire Type
        3. By Demand Type
        4. By Application
  16. Global Commercial Vehicle Tire Market Key Strategic Imperatives for Success & Growth
  17. Competition Outlook
    1. Competition Matrix
      1. Product Portfolio
      2. Target Markets
      3. Research & Development
      4. Strategic Alliances
      5. Strategic Initiatives
    2. Company Profiles (Business Description, Product Segments, Business Segments, Financials, Strategic Alliances/ Partnerships, Future Plans)
      1. Bridgestone Corporation
      2. Compagnie Générale des Établissements Michelin SCA
      3. Continental AG
      4. The Goodyear Tire & Rubber Company
      5. The Yokohama Rubber Company Ltd.
      6. Pirelli & C. S.p.A
      7. Hankook Tire & Technology
      8. Kumho Tire
      9. Sumitomo Rubber Industries, Ltd.
      10. Zhongce Rubber Group Co. Ltd.
      11. CEAT Limited
      12. MRF Tyres
      13. JK Tyre & Industries
      14. Apollo Tyres Limited
      15. Others
  18. Disclaimer
Commercial Vehicle Tire Market Segmentation