According to a recent report published by Allied Market Research, titled, “Automotive tire Market by Season Type, Vehicle Type, Rim Size, and Distribution Channel,: Opportunity Analysis and Industry Forecast, 2020–2027.” The global automotive tire market was valued at $112.16 billion in 2019, and is projected to reach $154.40 billion by 2027, registering a CAGR of 4.1% from 2020 to 2027. By vehicle type, the passenger car segment was the highest revenue contributor in 2019, for $80.33 billion, and is estimated to reach $110.47 billion by 2027, registering a CAGR of 4.1% during the forecast period. In 2019, Asia-Pacific was anticipated to account for the major market share.
The Asia-Pacific region is dominating the market in term of revenue, followed by Europe, North America, and LAMEA. In Asia-Pacific, China dominated the automotive tire market in 2019, whereas India is expected to grow at a significant rate during the forecast period.
Tires are important for the vehicles, as they protect the wheel rim. The rapid growth of the automobile sector across all segments fuels the growth of the automotive tire market. There are prominent key factors that drive the growth of the automotive tire market such as rise in the competition among global tire manufacturers and an increase in the operating life of automobiles.
The market economy is also responsible for the growth of the automotive tire market. Countries such as China, India, Brazil, and South Africa are growing economies. Thus, the manufacturing sector is witnessing prominent growth in these countries, which is expected to provide lucrative opportunities for the growth of the automotive tire market. Moreover, improving economy results in an increase in the standard of living of consumers, which is why people consider vehicles as a necessary mode of transport. This change in the perception of consumers indirectly governs the tire market worldwide, especially in the developed countries. Also, in some undeveloped countries, there is an increase in the automobile sales, which is expected to boost the automotive tire market. In addition, an increase in the operating life of vehicles is anticipated to create after market opportunities for the growth of the global automotive tire market.
The global automotive tire market is driven by increase in automotive production & sales across different vehicles segment and rise in competition among tire manufacturers. In addition, introduction of advanced technology in the manufacturing process is anticipated to propel the growth of the automotive tire market. However, factors such as volatile prices of raw materials and growing market of retreading tires are expected to hamper the growth of the market. Further, advancement in technology and fuel efficiency and safety concerns coupled with the government support are expected to create numerous opportunities for the growth expansion.
Moreover, automobile manufacturers are inclining toward electric and alternative fuel vehicles due to implementation of vehicle emission regulations. The rise in production of commercial and passenger cars along with the new advanced technology creates a demand for the tire business globally. For instance, Bridgestone came up with new innovative tires “Ecopia EP500 ologic”. These tire are based on “Ologic technology”, which uses synergies of large diameter in conjunction with smaller width. Furthermore, this solution improves fuel efficiency by reducing rolling resistance and environmental impacts. In addition, the Continental started offering different categorized tire as their product such as winter, all seasoned and summer to boost the sales of tire in the global market.
Key Findings Of The Study
In 2019, by season tire type, the all season type segment generated the highest revenue.
In 2019, by vehicle type, the passenger car segment was the highest revenue contributor.
In 2019, by rim size, the 15-20 inch segment was the highest revenue contributor.
In 2019, by distribution channel, the aftermarket segment was the highest revenue contributor.
In 2019, by region, Asia-Pacific contributed the highest revenue, followed by Europe, North America, and LAMEA.
The key players analyzed in the report include Bridgestone Corporation, Continental corporation, MICHELIN, Pirelli Tyre C. S.p.A. (China National Chemical Corporation), The Goodyear Tire & Rubber Company, Toyo Tire Corporation, Sumitomo Rubber Industries Ltd, The Yokohama Rubber Co., Ltd, Hankook Tire & Technology Co., Ltd and Nokian Tyres plc.