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 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,
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,
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:
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,
Regulatory Landscape in the Global Commercial Vehicle Tire Market
The US
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.
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
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:
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.
