With the growing inclination of people toward sports vehicles and speedy driving, the leading tire manufacturers worldwide are developing Ultra-High Performance (UHP) tires specifically to cater to these requirements and compliment the vehicle's efficiency. Various sports vehicle enthusiasts are increasingly adopting these tires to attain benefits like better handling, traction, & fuel efficiency, among others.
The Global Ultra-High Performance (UHP) Tire Market is expected to register around 9% CAGR during the forecast period, i.e., 2022-27. The growth of the market is likely to be driven primarily by the hiking prices of crude oil & its depleting availability, i.e., instigating consumers to adopt fuel-efficient mobility options. As a result, the leading companies in the tire industry are investing massively in manufacturing tires that offer lower rolling resistance, minimal fuel consumption, and hence enhanced mileage, thereby promoting the demand for Ultra-High Performance (UHP) Tires globally.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: The US, Canada, Mexico|
|Europe: Germany, France, The UK, Russia, Italy, Poland, Rest of Europe|
|Asia-Pacific: China, India, Japan, South Korea, Australia, Rest of Asia Pacific|
|South America: Brazil, Argentina|
|Middle East & Africa: Saudi Arabia, UAE, South Africa, Rest of Middle East|
|Key Companies Profiled||Bridgestone, Michelin, Pirelli, Continental, Goodyear, Toyo, Kumho, Hankook|
|Unit Denominations||USD Million/Billion|
These tires provide improved road grip and superior vehicle control at ultra-high speeds. The increasing consumer inclination toward SUVs & luxury cars and the mounting penetration of racing competitions/events in many countries shall further benefit the market growth through 2027.
Nevertheless, the soaring consumer awareness about the significance & benefits of timely tire replacement also projects remunerative growth prospects for the Global Ultra-High Performance (UHP) Tire Market in the coming years.
Impact of Covid-19 on the Global Ultra-High Performance (UHP) Tire Market
The automotive & tire sectors worldwide witnessed severe impacts of the Covid-19 pandemic in 2020, which led to several unprecedented challenges for the leading players in the Global Ultra-High Performance (UHP) Tire Market. The lockdowns & strict movement restrictions imposed by governments of different countries worldwide resulted in the suspension of all business operations associated with the tire industry.
As a result, it introduced massive revenue losses for the leading tire manufacturers worldwide due to supply chain disruptions, a shortage of raw materials, delays in deliveries & production, & volatile tire prices amidst the crisis.
However, as Covid-19 cases started diminishing gradually, restrictions were uplifted & business operations got recommenced, which helped tire manufacturers resume their business operations to cater to the burgeoning end-user requirements. Moreover, in light of the pandemic, several tire manufacturers adopted online sales channels to offer their products through e-commerce platforms, along with door-step delivery & installation.
Based on Tire Type:
Amongst these three types of tires, all-season tires are projected to dominate the Global Ultra-High Performance (UHP) Tire Market with the largest share during the forecast period. It owes principally to the growing awareness among people about their benefits like enhanced durability & reliability throughout the changing seasons and minimized need for replacing tires every season.
Besides, more and more customers are becoming aware of the capabilities of all-season tires, including flexibility in cold weather, excellent tread designs that allow vehicles to cut through snow, better grip on wet & dry roads, and improved performance in warm temperatures. These benefits of all-season tires, in turn, are playing a crucial role in augmenting their demand worldwide & contributing to the overall market expansion.
Moreover, with the rising competition among tire manufacturers, the easy availability of an extensive range of all-season UHP tires ranging from different budgets is attracting a massive consumer base from different corners of the world and, consequently, propelling the growth of the global market.
Based on Demand:
Here, the mounting demand for aftermarket UHP Tires is anticipated to generate lucrative growth opportunities for the global market through 2027. It attributes principally to the rapidly increasing investments by tire manufacturers in offering a wide variety of UHP tires, with different budgets & features, coupled with the rising inclination of vendors toward expanding their product portfolio, brand visibility, and customer base worldwide.
Since these tires are used for rigorous driving and are driven majorly on uneven roads or at high speeds, they tend to have faster wear & tear. Hence, the increasing frequency of tire repairs & replacement for enhanced vehicle safety is further augmenting the demand for aftermarket UHP tires from numerous companies & different budgets across various multi-brand tire shops globally.
Geographically, the Global Ultra-High Performance (UHP) Tire Market expands across:
Of all regions globally, Europe is expecting the fastest growth in the Ultra-High Performance (UHP) Tire Market during 2022-27. It owes principally to the surging number of racing competitions across countries like Germany, France, & the UK, among others. Besides, the improving living standards of people & their mounting inclination toward racing events, i.e., portraying growing sales of sports vehicles, is positively influencing the regional market.
Additionally, the active participation of prominent tire manufacturers in introducing new varieties of tires, coupled with their sponsorships in racing events, are also likely to promote the sales of UHP tires across the region.
Across Europe, Germany is anticipated to emerge as an area of substantial opportunities for the market expansion. It owes to the mounting interest of tire manufacturers in developing sustainable, innovative, & excellent technology-driven UHP tires on account of the growing government focus on strengthening the automotive sector & emerging as a leader in UHP tire production.
Key Driver: Increasing Number of Racing Championships Worldwide
As the trend of racing championships is escalating rapidly worldwide, the surging demand for UHP tires for sports vehicles is contributing significantly to the Global Ultra-High Performance (UHP) Tire Market. In addition, the active participation of the leading players in sponsoring & advertising racing championships is another crucial aspect playing a crucial role in promulgating the demand for UHP tires and fueling the overall growth of the global market.
Growth Restraint: Fluctuations in raw Material Prices & International Trade Tensions
With the constantly fluctuating prices of raw materials required for manufacturing UHP tires, several prominent manufacturers are facing severe difficulties while settling down to a fixed cost of the final product. As a result, it is affecting the expansion of the product portfolio of the market leaders and demonstrating significant price hikes, which, consequently, is affecting the growth of the Global Ultra-High Performance (UHP) Tire Market.
Besides, tensions between countries & their effect on trade relations are other prominent factors causing disputes & price hikes in raw materials & finished products, thereby hampering the overall growth of the global market.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Ultra-High Performance (UHP) Tire Market is expected to register a CAGR of around 9% during 2022-27.
A. The prime driver for the Global Ultra-High Performance Market UHP Tire Market is the rapidly growing number of racing championships worldwide, i.e., resulting in rising sales of UHP tires. On the other hand, the fluctuations in the prices of raw materials & barriers in international trade due to tensions between countries are leading to the increasing overall cost of UHP tires, i.e., a prominent aspect projected to restrain the market growth in the coming years.
A. The rapidly increasing consumer inclination toward racing competitions and increasing championships is the key trend in the Global Ultra-High Performance (UHP) Tire Market.
A. The mounting demand for aftermarket UHP tires is anticipated to emerge as an area of remunerative opportunities for the leading players in the Global Ultra-High Performance (UHP) Tire Market over the forecast years.