The tire industry across South East Asia is highly diverse and is experiencing rapid sales of passenger vehicles & two-wheelers. Besides, the region is highly rich in natural rubber, i.e., the primary raw material used in manufacturing tires. Hence, with the easy availability of these raw materials, low-cost labor, and mounting tire requirements, several prominent automakers & tire manufacturers are establishing their production facilities in South East Asia while generating remunerative growth opportunities for the tire industry.
The South East Asia Tire Market is projected to grow at a CAGR of around 8% during the forecast period, i.e., 2021-26. The growth of the market is likely to be driven primarily by the abundant availability of raw materials like natural rubber across South East Asia, i.e., generating lucrative growth opportunities for the leading tire manufacturers to establish their production facilities across different countries in the region and meet the increasing consumer requirements.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Country Covered||Malaysia, Indonesia, Singapore, Cambodia, Vietnam, Thailand, Philippines, Others|
|Key Companies Profiled||Hankook, Bridgestone, Goodyear, Michelin, Continental, Pirelli, Kumho, Apollo, Dunlop|
|Unit Denominations||USD Million/Billion|
Besides, improving economic conditions, changing living standards, and growing adoption of private vehicles like two-wheeler motorbikes & passenger cars, among others, are other crucial aspects expected to boost the tire market through 2026.
Moreover, massive government support through various initiatives & favorable policies to strengthen the automotive sector & import-export business and promote the establishment of new facilities across the region shall also play a crucial role in augmenting the overall market growth in the coming years.
Impact of Covid-19 on the South East Asia Tire Market
The advent of Covid-19 in 2020 had a decelerating impact on most industries across South East Asia, where the Tire Market was no exception. With the imposition of stringent movement restrictions & lockdown by governments of different countries across the region to curb the spread of this dreadful disease, the market underwent a significant decline while introducing several challenges for the leading players.
The cross-border trade restrictions significantly hampered tire imports & exports, while on the other front, unavailability & fluctuation in the prices of raw materials further constrained tire production. It, in turn, resulted in the expensive manufacturing of tires. Besides, the severely disrupted supply chain, transportation, & logistic sector further affected the distribution of tires across different countries and increased the demand-supply gaps.
As a result, several manufacturers had to reduce their production capacities & eventually shut down facilities. However, with the gradual improvement in the pandemic situation displaying a reducing number of cases, trade barriers & other restrictions were uplifted, and business operations recommenced. Consequently, tire imports & exports were back on track. Tire manufacturers have increased their production capacities to meet the burgeoning requirements of different end-users. As a result, the South East Asia Tire Market is expecting steady growth and recovery from revenue losses in the coming years.
Based on the Vehicle Type:
Amongst them all, Passenger Cars are anticipated to display the fastest growth in the South East Asia Tire Market during 2021-26. It owes principally to the growing inclination of people toward private vehicle ownership owing to their improving economic conditions & changing lifestyles, which, in turn, is boosting the sales of passenger cars & directly impacting the demand for tires.
Besides, rapid developments in infrastructure & road connectivity are also boosting the sales of passenger cars and driving the tire market. Moreover, various government initiatives for promoting the adoption of Electric Vehicles (EVs) to reduce carbon emissions are also projected to generate profitable opportunities for the leading tire manufacturers to make & distribute tires for EVs.
Furthermore, with the abundant availability of raw materials & increasing establishment of prominent automakers & tire manufacturers across the region, the introduction of new product offerings shall also stimulate the sales of passenger cars & drive the market through 2026.
On the other hand, Two-Wheelers are anticipated to witness a surging demand for tires across South East Asia & augment the overall growth of the tire market during 2021-26. It attributes principally to the large low-income population entwined with immense traffic across different countries in the region. It is displaying a growing inclination of consumers toward buying two-wheelers for easy commutation, which, in turn, would be driving the South East Asia Tire Market in the coming years.
Geographically, the South East Asia Tire Market expands across:
Amongst all countries, Thailand is expected to generate significant growth opportunities for the South East Asia Tire Market during 2021-26. It has been gaining swift traction in the automotive sector over the previous few years, owing to the extensive presence of prominent tire manufacturers with their production units and abundant availability of natural rubber. Besides, the country is among the world's largest natural rubber producers, i.e., the primary raw material used in tire production. All these aspects, in turn, are directly impacting the demand for tires and fueling the overall growth of the tire market across South East Asia.
Furthermore, the consistently increasing tire prices and expanding automobile fleet are other crucial aspects supporting the market growth in Thailand. Moreover, the industry is also getting a significant boost from transportation infrastructure developments & burgeoning vehicle exports. In addition, the government of Thailand is putting various efforts to promote green automotive production, which is another key factor expected to positively impact the tire market in the country over the coming years.
Key Driver: Government Efforts for Encouraging the Adoption of Electric Vehicles (EVs)
With the growing need to address the adverse effects of carbon emissions on the environment, the governments of different countries in South East Asia are encouraging the adoption of EVs. It, in turn, is generating growth opportunities for the leading players to develop & distribute tires for EVs and, in turn, drive the Tire Market across South East Asia during 2021-26.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The South East Asia Tire Market is projected to grow at a CAGR of around 8% during 2021-26.
A. Passenger Cars & Two-Wheelers are anticipated to emerge as an area of remunerative opportunities for the leading players in the South East Asia Tire Market during the forecast period.
A. Increasing sales of passenger cars, coupled with various initiatives by governments of different countries across South East Asia toward encouraging the adoption of EVs, are the key growth opportunities anticipated to drive the South East Asia Tire Market in the coming years.
A. In the coming years, the South East Asia Tire Market is anticipated to witness a steady growth owing to the resumption in trade across borders entwined with increasing production capacities of tire manufacturers to meet the burgeoning consumer requirements for tires.