A tire is a ring-shaped component that surrounds a wheel's rim on a vehicle. It is made of rubber and provides traction and cushioning when a vehicle is in motion. Tire is essential for keeping a vehicle stable on the road, and this also help absorb shock from bump and pothole. A commercial vehicle tire is designed for use on commercial vehicles such as buses, trucks, and vans. This is typically designed to be durable and able to withstand the heavy load, high speed, and frequent braking of commercial vehicle. Commercial vehicle tires are also designed to provide better traction and stability than passenger car tires, which are designed for lighter loads and less frequent braking.
The growth of the market is mainly attributed to the increasing demand for commercial vehicles from the industries such as transportation, construction, and logistics, along with the growing demand for tires with improved performance and longer life cycle. In addition, the increasing demand for fuel-efficient tires in commercial vehicles is expected to boost the market growth during the forecast period. The rising demand for commercial vehicles in developing countries, such as India, China, and Brazil, is also expected to create opportunities for the tire manufacturers globally.
However, the fluctuations in raw material prices are expected to restrict the market growth during the forecast period. The major raw materials used to manufacture tires are natural rubber, synthetic rubber (poly butadiene rubber, styrene butadiene rubber), nylon cord fabric and wire, carbon black and others. The negative effects of COVID-19 pandemic and Russia-Ukraine war can be seen in tire raw material prices. In 2022, the natural rubber prices rose by around 20% and crude-based raw material (carbon black, nylon) prices surged by around 45%. These two raw materials accounted for more than 60% share in tire manufacturing. Hence, increasing cost is hitting the overall profitability of tire manufacturers.
Technological Advancements and Augmenting Demand for Retreaded Tires
Retreaded tires are tires that have been worn down and then had new rubber applied to the treads. This process is done to extend the life of the tire and reduce the cost of purchasing new tires. They are generally considered safe to use, but they may not have the same performance as new tires. Retreaded tires are becoming increasingly popular among commercial vehicle operators due to their low cost and improved performance. Companies such as Continental, Michelin, and others offer these tires in the global market. For instance, in June 2021, Michelin North America launched two premold retreads namely X Multi T-SA and X One Line Energy T2 to expand its portfolio of retread technologies.
Segment Overview
By type: The commercial vehicle tire market is categorized by type; radial and bias.
By rim size: The commercial vehicle tire market is segmented by rim size namely; 15 to 17 inches, 18 to 20 inches, and greater than 20 inches.
By vehicle type: The commercial vehicle tire market is divided by vehicle type; light commercial vehicles, medium, and heavy commercial vehicles.
By sales channel: The commercial vehicle tire market is divided by sales channel; OEM and aftermarket.
Regional Overview
North America has a significant market share in commercial vehicle industry. According to the International Organization of Motor Vehicle Manufacturers, in 2021, the region accounted for around more than 50% share in total commercial vehicle sales globally. Government in this region is focusing on increasing safety of vehicles and cargo. Moreover, increasing demand for replacement tires is also gaining traction in the market. For instance, in December 2021, Goodyear Tire and Rubber Company launched first replacement tire for electric vehicles in North America. This tire was specifically designed for the Tesla Model Y, a crossover, which was launched in 2019 by Tesla.
Competitive Analysis
Competitive analysis and profiles of the major players in commercial vehicle tire market such as Apollo Tyres Limited, Bridgestone Corporation, Continental AG, Goodyear Tire and Rubber Company, JK Tyre & Industries, Michelin, MRF Tyres, Pirelli & C. S.p.A., Sumitomo Rubber Industries, Ltd., and The Yokohama Rubber Company are included in the report. This section includes the key financial metrics, operating segmentation, business description, geographical coverage, and recent developments by the company in the area of commercial vehicle tire market. There are some other important players in the market such as BFGoodrich, Cooper Tire & Rubber Company, and others.
With the increased focus on safety, the market is becoming increasingly competitive. Companies are vying for market share, creating a highly competitive landscape. This has led to competitive prices, as well as an increase in the number of features and services being offered. The companies are competing on various grounds like price, geographical presence, automation, innovation, and others and implementing different strategies like acquisition, new product development to expand their businesses. For instance, in January 2021, Bridgestone India launched a new commercial vehicle tire namely V-Steel M721, which is specially designed for long haul, general cargo, and highway application. It provides enhanced tire fuel mileage and cut-chip resistance. In addition, the company announced to launch radio-tagged tires for commercial vehicles in 2024. This technology will link these tires to a cloud-based system, which will maximize the tires life and minimize their carbon footprint.
The growth of the market is mainly attributed to the increasing demand for commercial vehicles from the industries such as transportation, construction, and logistics, along with the growing demand for tires with improved performance and longer life cycle. In addition, the increasing demand for fuel-efficient tires in commercial vehicles is expected to boost the market growth during the forecast period. The rising demand for commercial vehicles in developing countries, such as India, China, and Brazil, is also expected to create opportunities for the tire manufacturers globally.
However, the fluctuations in raw material prices are expected to restrict the market growth during the forecast period. The major raw materials used to manufacture tires are natural rubber, synthetic rubber (poly butadiene rubber, styrene butadiene rubber), nylon cord fabric and wire, carbon black and others. The negative effects of COVID-19 pandemic and Russia-Ukraine war can be seen in tire raw material prices. In 2022, the natural rubber prices rose by around 20% and crude-based raw material (carbon black, nylon) prices surged by around 45%. These two raw materials accounted for more than 60% share in tire manufacturing. Hence, increasing cost is hitting the overall profitability of tire manufacturers.
Technological Advancements and Augmenting Demand for Retreaded Tires
Retreaded tires are tires that have been worn down and then had new rubber applied to the treads. This process is done to extend the life of the tire and reduce the cost of purchasing new tires. They are generally considered safe to use, but they may not have the same performance as new tires. Retreaded tires are becoming increasingly popular among commercial vehicle operators due to their low cost and improved performance. Companies such as Continental, Michelin, and others offer these tires in the global market. For instance, in June 2021, Michelin North America launched two premold retreads namely X Multi T-SA and X One Line Energy T2 to expand its portfolio of retread technologies.
Segment Overview
By type: The commercial vehicle tire market is categorized by type; radial and bias.
By rim size: The commercial vehicle tire market is segmented by rim size namely; 15 to 17 inches, 18 to 20 inches, and greater than 20 inches.
By vehicle type: The commercial vehicle tire market is divided by vehicle type; light commercial vehicles, medium, and heavy commercial vehicles.
By sales channel: The commercial vehicle tire market is divided by sales channel; OEM and aftermarket.
Regional Overview
North America has a significant market share in commercial vehicle industry. According to the International Organization of Motor Vehicle Manufacturers, in 2021, the region accounted for around more than 50% share in total commercial vehicle sales globally. Government in this region is focusing on increasing safety of vehicles and cargo. Moreover, increasing demand for replacement tires is also gaining traction in the market. For instance, in December 2021, Goodyear Tire and Rubber Company launched first replacement tire for electric vehicles in North America. This tire was specifically designed for the Tesla Model Y, a crossover, which was launched in 2019 by Tesla.
Competitive Analysis
Competitive analysis and profiles of the major players in commercial vehicle tire market such as Apollo Tyres Limited, Bridgestone Corporation, Continental AG, Goodyear Tire and Rubber Company, JK Tyre & Industries, Michelin, MRF Tyres, Pirelli & C. S.p.A., Sumitomo Rubber Industries, Ltd., and The Yokohama Rubber Company are included in the report. This section includes the key financial metrics, operating segmentation, business description, geographical coverage, and recent developments by the company in the area of commercial vehicle tire market. There are some other important players in the market such as BFGoodrich, Cooper Tire & Rubber Company, and others.
With the increased focus on safety, the market is becoming increasingly competitive. Companies are vying for market share, creating a highly competitive landscape. This has led to competitive prices, as well as an increase in the number of features and services being offered. The companies are competing on various grounds like price, geographical presence, automation, innovation, and others and implementing different strategies like acquisition, new product development to expand their businesses. For instance, in January 2021, Bridgestone India launched a new commercial vehicle tire namely V-Steel M721, which is specially designed for long haul, general cargo, and highway application. It provides enhanced tire fuel mileage and cut-chip resistance. In addition, the company announced to launch radio-tagged tires for commercial vehicles in 2024. This technology will link these tires to a cloud-based system, which will maximize the tires life and minimize their carbon footprint.
Commercial Vehicle Tire Market Report Highlights
| Aspects | Details |
 By Type |
|
 By Rim size |
|
 By Vehicle type |
|
 By Sales channel |
|
 By Region |
|
 Key Market Players | The Yokohama Rubber Company, Bridgestone Corporation, Pirelli & C. S.p.A., Michelin, Apollo Tyres Limited, JK Tyre & Industries, MRF Tyres, Sumitomo Rubber Industries, Ltd, Goodyear Tire and Rubber Company, Continental AG |
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