The concept of Electric Vehicles (EVs) came into the picture principally to address the rapidly increasing carbon emission levels & depleting fossil fuels. These vehicles are well-equipped with exceptional features as well as batteries that require minimal maintenance & do not impact the environment. Therefore, governments of different countries worldwide are making active efforts toward encouraging people to adopt EVs and, in turn, contribute to environmental sustainability.
As a result of the growing traction of EVs globally, the need for robust & reliable tires is rapidly surging. It, in turn, is instigating the leading players to introduce EV-compatible tires, which projects lucrative growth prospects for the global tire industry in the coming years.
The Global Electric Vehicle Tire Market is projected to grow at around 7.5% CAGR during 2021-26. The growth of the market is likely to be fueled by the growing adoption of EVs across different countries worldwide on account of the various government initiatives for reducing the alarming carbon emission levels. Since fossil fuels are becoming a prominent cause of air pollution and are deteriorating the environmental conditions, there's a burgeoning need for fuel alternatives, which, in turn, is promulgating the EV adoption and encouraging the leading tire companies to manufacture EV-compatible tires.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Regions Covered||North America: USA, Canada, Mexico|
|Europe: Germany, The UK, France, Italy, Spain, Others|
|Asia-Pacific: China, India, Japan South Korea, Australia Others|
|South America: Brazil, Other|
|Middle East & Africa: UAE, Saudi Arabia, South Africa Others|
|Key Companies Profiled||Continental AG, Bridgestone Corporation, Yokohama Rubber Company Ltd., Hankook Tire & Technology Group, The Goodyear Tire & Rubber Company, Michelin Group, Kumho Tire Company Inc., Pirelli & C. S.p.A, Toyo Tire Corporation, GITI Tire etc.|
|Unit Denominations||USD Million/Billion|
Besides, as heavy batteries used in EVs increase their overall vehicle weight & put extra strain on tires, it is crucial to deploy tires with such load-carrying capacities that promote the overall vehicle performance. Moreover, growing consumer awareness about the various benefits of EV tires like lower rolling resistance, enhanced durability, improved tread patterns, & enhanced load capacity is playing a crucial role in driving their demand worldwide. Furthermore, other capabilities like greater average vehicle life, longer range, low maintenance, & high safety, among others, are also contributing to the notably expanding Electric Vehicle Tire Market.
Impact of Covid-19 on the Global Electric Vehicle Tire Market
The Covid-19 pandemic in 2020 had significant impacts on the automotive & tire industries, which introduced several unprecedented challenges for the Global Electric Vehicle Tire Market as well. Governments of different countries worldwide imposed lockdowns & stringent movement restrictions and suspended all business operations associated with the market to curb the spread of this dreadful disease.
Consequently, the leading players faced massive financial losses owing to supply chain disruptions, shortage of raw materials, delivery & production delays, & fluctuations in the price of raw materials & tires amidst the crisis.
Due to these factors, several market leaders had to temporarily halt the research & development activities associated with EV tires. To sustain themselves in the market, they adopted online platforms to sell their products via e-commerce websites and provide door-step delivery & installation to their customers. Later, with the decline in Covid-19 cases, lockdowns & other restrictions were uplifted, which enabled EV tire manufacturers to resume their usual business operations & cater to different end-user requirements.
Based on the Vehicle Type:
Amongst these three, passenger cars are anticipated to dominate the Global Electric Vehicle Tire Market with the largest share during 2002-27. It attributes principally to favorable government policies and incentives for EV adoption, coupled with the growing disposable income of people, i.e., driving their interest in private vehicle ownership for the daily commute, i.e., depicting an escalating fleet size of EVs worldwide and flourishing Electric Vehicle Tire Market for passenger cars.
On the other hand, commercial EVs are expecting swift traction in the coming years, which, in turn, would significantly contribute to the market growth for EV tires. It owes principally to the increasing focus of governments on bringing green mobility solutions to the transportation & logistics sectors as a step toward reducing carbon emissions. Hence, the expected rise in the sales of commercial EVs would promulgate the demand for compatible tires and augment the overall market growth in the years to come.
Based on the Type of Tire:
Here, radial tires are anticipated to gain swift momentum in the global market over the forecast years. It owes to the active participation of prominent tire manufacturers in the research & development of radial tires with advanced features that can complement EV capabilities & enhance their overall performance.
Geographically, the Global Electric Vehicle Tire Market expands across:
Amongst all regions globally, North America would significantly contribute to the growth of the Electric Vehicle Tire Market during 2022-27. The rapidly increasing adoption of EVs, coupled with the extensive presence of prominent automakers & tire manufacturers, are creating growth opportunities to introduce new varieties of EV tires, which, in turn, would drive the market across North America in the coming years.
Besides, stringent regulations laid by governments of different countries across countries like the US & Canada to curb carbon emissions are also contributing to the growing EV fleet size and, in turn, positively influencing the regional market. Moreover, strategic mergers & collaborations of tire manufacturers with automakers further project a pool of remunerative prospects for the regional market growth through 2027.
On the other hand, Europe is anticipated to demonstrate the fastest market growth during 2022-27, owing to stringent government regulations for curbing the alarming levels of carbon emissions, i.e., instigating a growing adoption of EVs and flourishing sales of EV tires across the region.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Electric Vehicle Tire Market is projected to grow at around 7.5% CAGR during 2021-26.
A. The growing government focus on encouraging the adoption of EVs to curb carbon emissions is showcasing a swift escalation in the EV fleet size, i.e., a prominent factor driving the Global Electric Vehicle Tire Market.
A. The growing sales of commercial EVs for public transportation is a key trend across different countries worldwide, i.e., playing a crucial role in stimulating the demand for EV tires.
A. Commercial vehicles are anticipated to emerge as an area of remunerative opportunities for the leading players in the Global Electric Vehicle Tire Market over the forecast years.