Automotive Tire Industry Overview:
The global automotive tire market size is projected to reach $306 billion by 2022, growing at a CAGR of 7.6% from 2016 to 2022. Automotive tire covers the wheel’s rim, externally to protect it and withstand the tractive force between the road surface and vehicle. Since, it is manufactured from rubber, it provides flexible cushion, thereby, reducing the impact of vibrations and absorbing shock. The demand for tire has exponentially increased due to rise in demand for vehicles, supplementing the growth of automotive tires market.
Moreover, intense competition between tire manufacturers to produce highly sustainable, durable, and affordable tires as well as adoption of advanced technology in the manufacturing processes is anticipated to propel the growth of this market.
However, growth in retreading tires market in which tread are replaced by worn out tires may inhibit the growth of this market; as the material cost required for the process of retreading tires is much less than manufacturing new tire. Therefore, surge in industries reclining on the retreading process of tires could prove to be a threat to this market. In addition, the fluctuation in prices of raw material such as natural rubber and reinforcing materials could hinder the growth of tire market.
Source: AMR Analysis
Asia-Pacific leads the automotive tire market
Asia-Pacific holds nearly 42% of the global market share and is expected to grow at a notable CAGR. Owing to improving economy of most of the emerging countries in this region, the manufacturing sector of automotive tires and components is enjoying growth phase.
Top Factors Impacting the Global Automotive Tire Market
Increase in automotive sales across different segments
Rapid industrialization, rise in the disposable income & standard of living has led to increase in sales of luxurious passenger cars and premium segments bikes. Thus, increase in demand for vehicles has led to rise in the production of automobiles, catalyzing the growth of automotive tire industry. Moreover, mergers and acquisitions among the international and domestic vehicles manufacturers boost the growth of automotive sector, influencing the automotive tire market.
Rise in competition among the tire manufacturers
Owing to less product differentiation in tire industry, manufacturers find it difficult to maintain the brand loyalty. Thus, they compete on pricing for occupying large market share and generate revenue. This results in high competition among the key players.
Top Winning Strategies
The market is principally driven by business expansion strategy; however, joint venture, merger & acquisition, product launch, and partnership are some other major strategies adopted by key players to gain competitive advantage.
The major players profiled in this report include Bridgestone Corporation, Continental AG, Pirelli & C. S.p.A, Michelin, The Goodyear Tire & Rubber Co., Sumitomo Rubber Industries, Ltd., Madras Rubber Factory Limited, The Yokohama Rubber Co. Ltd., JK Tyre & Industries Ltd., and CEAT Ltd.
AUTOMOTIVE TIRE MARKET KEY BENEFITS
- The study provides an in-depth analysis of the global automotive tire industry, with current trends and future estimations to elucidate the imminent investment pockets.
- The report offers a quantitative analysis from 2014 to 2022 to enable the stakeholders to capitalize on prevailing market opportunities.
- Competitive intelligence highlights the business practices followed by leading players across various regions.
AUTOMOTIVE TIRE MARKET KEY SEGMENTS
- Radial Tire
- Bias Tire
BY VEHICLE TYPE
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Two Wheeler
- North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Middle East
MARKET PLAYERS IN VALUE CHAIN
- Bridgestone Corporation
- Continental AG
- Pirelli & C. S.p.A.
- The Goodyear Tyre & Rubber Co.
- Sumitomo Rubber Industries Ltd.
- Madras Rubber Factory Limited The Yokohama Rubber Co. Ltd.
- JK Tyre & Industries Ltd.
- CEAT Ltd.