Market Definition
The tire industry across Thailand is one of the prominent sources of financial fluidity in the country as it is one of the leading tire exporters on the global scale. With the extensive presence & active participation of prominent tire brands introducing various new models in large volumes, the growth prospect of the tire industry of Thailand is quite remunerative in the coming years.
Market Insights
The Thailand Tire Market is projected to grow at a CAGR of around 3% during the forecast period, i.e., 2022-27. The market growth would be driven principally by the expansive automotive sector of Thailand, i.e., instigating the prominent tire manufacturers to boost their production capacities to cater to the burgeoning consumer requirements worldwide.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR(2022-27) | 3% |
| Region Covered | South, East, West, Central |
| Key Companies Profiled | Continental, Bridgestone, Yokohama, Hankook, Goodyear, Michelin, Sumitomo, Kumho, Pirelli, Toyo |
| Unit Denominations | USD Million/Billion |
Besides, with an extensive presence of prominent tire manufacturers like Goodyear, Bridgestone, & Michelin and gradually growing new brands like Toyo tires, Nokian, Apollo, etc., Thailand has become a leading tire exporter globally.
Moreover, with the improving disposable income of people & their mounting inclination toward private ownership of vehicles, i.e., demonstrating an extensive car fleet, the tire industry is projected to observe lucrative growth across Thailand in the coming years.
Impact of Covid-19 on the Thailand Tire Market
in 2020, the automotive & tire industries underwent significant impacts OF the Covid-19 pandemic, which introduced several unprecedented challenges for the leading players in the Thailand Tire Market. Since the government imposed lockdowns & stringent movement restrictions to curb the spread of this dreadful disease & suspended all business operations associated with the market, the leading players faced massive financial losses. Challenges like shortage of raw materials, supply chain disruptions, delivery & production delays, & price fluctuations were the prominent factors behind the decline of the market growth amidst the crisis.
However, as Covid-19 cases started decreasing gradually, the government of Thailand uplifted the restrictions & allowed the recommencement of industrial operations. In turn, the leading market players resumed their usual business to cater to the growing tire demands of end-users. Moreover, in light of the pandemic, several tire manufacturers adopted digital platforms to sell their products via e-commerce websites while offering door-step delivery & installation services to their customers.
Market Segmentation
Based on the Type of Vehicle:
Amongst them all, two-wheelers are anticipated to demonstrate the fastest growth in the Thailand Tire Market during 2022-27. It attributes principally to the growing traffic congestion and a higher population of middle-class people. Besides, since two-wheelers are affordable and make commutation easy at places of high traffic, their fleet size is growing swiftly across the country and positively influencing the demand for tires.
On the other hand, passenger cars are expected to remain dominant in the market throughout 2027, principally due to the improved economic status of people, i.e., portraying their increased interest in purchasing vehicles for personal use. It, in turn, is driving the demand for tires and fueling the overall market growth.
Besides, with the rising influx of tourists & migrants in the country, the sales of passenger cars for commercial applications like taxi/cab services are rising rapidly throughout Thailand. Since these vehicles are driven for longer hours, their tires show early signs of wear & tear, i.e., another prominent aspect driving the demand for replacement tires and augmenting the overall market growth.
Moreover, increased consumer awareness about the significance & benefits of timely replacement of tires to ensure vehicle safety & enhance driving experience are other crucial aspects projected to accelerate tire sales for passenger vehicles and drive the market through 2027.
Based on the Type of Tire:
Here, radial tires are projected to acquire the largest market share through 2027, principally due to the growing awareness among people about their benefits like flexible sidewalls, stable surface contact, reduced fuel consumption & rolling resistance, and greater efficiency in driving. It, in turn, is generating growth opportunities for the leading players to accelerate their production capacities to suffice the burgeoning radial tire demands and drive the market through 2027. On the other hand, Bias tires, with steadily growing demand for two-wheelers across Thailand, are likely to contribute considerably to the overall market growth over the forecast years.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Thailand Tire Market is projected to grow at a CAGR of around 3% during 2022-27.
A. The growing passenger vehicle fleet, coupled with the mounting awareness among people about the need for timely replacement of tires for vehicle safety & enhanced driving experience, are the prime aspects projected to drive the Thailand Tire Market through 2027.
A. Favorable government policies for attracting tire manufacturers like Nokian, Toyo Tires, and Apollo, among others, to establish their production facilities across the country is the key trend in the Tire Market of Thailand.
A. Radial tires are anticipated to emerge as an area of remunerative opportunities for the leading players in the Thailand Tire Market over the forecast years.
