Global Run Flat Tire Market Research Report: Forecast (2023-2028)

Market Definition

Run flat tire are specially designed tire which allows a vehicle to continue driving safely for a limited distance at reduced speeds after a puncture or loss of air pressure. It runs efficiently after the puncture due to the reinforced sidewalls that support the weight of the vehicle & prevents the tire from collapsing & losing its shape when air pressure reduces.

Market Insights & Analysis: Global Run Flat Tire Market (2023-28)

The Global Run Flat Tire Market size was valued at around USD 480 million in 2022 and is projected to grow at a CAGR of about 4% during the forecast period, i.e., 2023-28. The upsurge in the manufacturing of luxury & premium vehicles, including passenger cars, light commercial vehicles, and medium & heavy commercial vehicles, has been the prime factor in enhancing the Flat Run Tire Market outlook. The demand for luxury & premium vehicles is growing worldwide, owing to the rising disposable income among consumers & high demand for VIP cars.

The popularity of these vehicles has also been enhanced due to the growing requirement for comfort, convenience, entertainment, and safety features in the vehicles. Luxury cars integrated with advanced connectivity elements, autonomous-driving options, powertrain electrification technologies, and run-flat tires have been able to fulfill the customer requirement leading to a luxurious traveling experience.

Additionally, the rising defense budgets among countries across the globe, such as the US, China, India, Russia, and others, have also led to the requirement for mobility vehicles like light utility vehicles, tactical trucks, etc. According to the Stockholm International Peace Research Institute (SIPRI), the global military budget reached around USD2.2 trillion from nearly USD2.1 trillion in 2021. These vehicles have been utilized by the defense sector for the mobility of the militaries, including reconnaissance, patrolling, and transportation of small teams in rugged terrain.

As defense vehicles are prone to traveling in difficult geographical regions like deserts, mountainous terrain, forests, etc., which necessitate the integration of run-flat tires in them, for improving the safety of the military personnel. The integration of run-flat tires enables vehicles to travel a certain distance even after sustaining damage, allowing them to reach a service location for necessary maintenance & ensuring the vehicle's continued functionality.

Thus, owing to its properties, the flat run tire has been an emerging trend in the tire industry & is gaining traction for its adoption in passenger cars, light commercial vehicles, and medium & heavy commercial vehicles, further inflating the Global Run Flat Tire Market size. Further, to catalyze the demand for vehicles with improved safety features, it is estimated that the market would witness significant growth in the forthcoming period.

Global Run Flat Tire Market Driver:

Surging Tourism Industry Across the Globe to Lead the Market Growth - The tourism industry across the globe has been on the rise, further leading to the sale of automobiles as the tourism industry relies heavily on transportation services, including car rentals & bus services. The development of transportation networks, airports, roads, and other facilities has also facilitated the increase in number of tourists across various nations like the UAE, Saudi Arabia, Indonesia, and others. According to the United Nations World Tourism Organization (UNWTO), the number of international tourist arrivals has increased to 102% in 2022 over 2021.

Infrastructure improvements encourage tourism growth by making it easier for tourists to access different destinations. Moreover, the strong support by the government of countries across the globe for developing the tourism sector & increasing the country’s economy would lead to the sale of automobiles in the country, further augmenting the demand for run-flat tires in the forecast period.

The UAE Tourism Strategy 2031, announced in 2022 by the UAE, aims to raise the tourism sector’s contribution to the GDP to around USD122 billion, with an annual increase of nearly USD7.35 billion. Hence, the significant increase in the tourism industry across different countries would improve the Global Run Flat Tire Market outlook in the forecast period.

Global Run Flat Tire Market Restraint:

High Cost of Manufacturing Run Flat Tire to Restrict the Market Growth –  Run-flat tires are designed with reinforced walls & require additional manufacturing materials & processes, which contribute to higher production costs compared to conventional tires. In addition, the development of the run-flat tire requires significant research & development and refining technology that also leads to the sale of run-flat tires across the globe.

The presence of a vast population with average & low spending in Asia-Pacific, Africa, and South America regions find it hard to adopt run-flat tires in vehicles. The availability of limited tire OEMs supported by shorter lifespan have also contributed to the overall expense of the tire, further resulting in the constraining of the Run Flat Tire Market expansion.

Global Run Flat Tire Market Growth Opportunity:

Rising Manufacturing of Electric Vehicles to Enhance the Product Demand – Rising stress among the United Nations & governments of global countries regarding greenhouse emissions has led to the penetration of electric vehicles across the globe. The mound in greenhouse gasses, including carbon dioxide, carbon monoxide, etc., from traditional internal combustion engine vehicles has led to a surge in demand for cleaner transportation alternatives, i.e., electric vehicles. According to International Energy Agency, in 2022, global CO2 emissions from the transport sector grew by more than 250Mt CO2 to nearly 8Gt CO2, 3% more than in 2021.

Thus, governments across the nations have set different targets to achieve zero carbon emissions from the automotive sector by restricting the sale of fossil fuel-based automobiles & increasing the adoption of electric vehicles. In 2021, the UK announced a ban on the sale of new petrol & diesel cars & vans from 2030, and between 2030-2035, new cars & vans would only be available if they offer significant zero-emission capability. Therefore, the rising sale of electric vehicles across the globe would create an opportunity for the Global Run Flat Tire Market in the future years.

Global Run Flat Tire Market Key Trend:

Integration of Tire Pressure Monitoring Systems (TPMS) – Integration of Tire Pressure Monitoring Systems (TPMS) in the automotive tire has been an emerging trend in the historical years for monitoring air pressure & providing real-time information to the driver. TPMS uses individual sensors mounted inside the tire to monitor & measure tire pressure & transmit the data to a central receiver in the vehicle. The processed information is displayed to the drivers allowing them to take necessary actions regarding air refilling.

Also, the lowering of air pressure to a certain level triggers a warning light or alert on the dashboard to inform the driver about the low-pressure condition. The integration of TPMS ensures proper tire inflation, which is crucial for safety, fuel efficiency, and tire longevity. Thus, the integration of TPMS has improvised the safety & fuel efficiency of the vehicle, further leading to the extended life of the run-flat tire.

Global Run Flat Tire Market (2023-28): Segmentation Analysis

The Global Run Flat Tire Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–28. Based on the analysis, the market has been further classified as:

Based on Vehicle Type:

• Passenger Cars
• Light Commercial Vehicle
• Medium & Heavy Commercial Vehicle

The Passenger Car segment is estimated to increase the market size of Flat Run Tire in the coming years owing to the rising sale of premium & luxury cars. Luxury & premium vehicles are often associated with prestige, status, and social standing. Thus, the surge in the disposable income of the population, along with an individual desire to avail higher levels of comfort & luxury, would lead to an increase in the adoption of these vehicles in the coming years.

In addition, luxury & premium passenger car is engineered to deliver exceptional performance, handling, and driving performance. Therefore, consumers with high disposable income & VIPs prefer buying these types of vehicles, further increasing the share of passenger cars in the Global Run Flat Tire market during the forecast period.

Based on Application:

• Military
• VIP Cars
• High Value Cargo Carriers
• Others

The market share of the Military segment would grow at a considerable rate in the coming years due to the rising demand for safe & continuous mobility of vehicles. Run-flat tires enable military vehicles to continue moving even after sustaining tire damage, reducing the risk of being stranded in hostile environments & ensuring continuous operations. In addition, military vehicles often operate in diverse environments, including rough terrains, off-road conditions, and urban settings, creating an opportunity for the growing adoption of run-flat tires, which offers versatility and can handle various challenges.

Additionally, the military spending by the government of countries across the globe has been constantly rising to increase the country's security due to rising geopolitical tensions. Thus, a surge in the number of military vehicles is projected to push the Run Flat Tires Market growth in the coming years.

Global Run Flat Tire Market Regional Projection:

Geographically, the Global Run Flat Tire Market expands across:

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

North America held a dominant share in Global Flat Tire Market during the past period & is anticipated to grow at a significant rate due to the presence of high disposable income among the population & rising military spending by regional countries like the US, Canada, and Mexico. According to the Stockholm International Peace Research Institute (SIPRI), the military spending of North American countries, including the US, Canada, and Mexico has reached around USD912.5 billion from around USD836.1 billion in 2021.

The rise in military spending has led to an accumulation of military vehicles like light utility vehicles, trucks, etc. In addition, rising disposable income among the population of the regional countries owing to the presence of a strong economy in the country, high employment rates, thriving entrepreneurship, and other factors would augment the demand for luxury & premium vehicles, subsequently leading to the expansion of the market in coming years.

Global Run Flat Tire Industry Recent Development

• 2022: Bridgestone launched all-new DriveGuard Plus premium touring tyre with run-flat technology that allows driver to continue their journey up to nearly 80.6km at up to 129km/hr speed after puncture.

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