Tires are a part of the automobiles which carry the vehicle load providing the vehicle a better road grip. Globally, automotive tires are made up of synthetic rubber, wire, natural rubber and fabric. Automobile market is the major consumer of tires due to the demand for light weight vehicle tires in industrializing countries. Commercial trucking activity contributes towards the sales of medium and heavy vehicle tires fuelling the market growth. The increase in sales of four wheelers and two wheelers is boosting the global automotive tire industry. Expanding and emerging economies are the major contributors towards the increase in sale of automobiles with the need for average annual vehicle mileage. On a global scale, aircraft, tractors and industrial vehicles contribute to the tire sales at a healthy pace. The increasing vehicle life drives the demand for replacement tires propelling the growth opportunities for aftermarket tires. The average life of a tire is 3 years after which it needs to be replaced. It is estimated that the vehicles on the road will be either new or with a life span of 3 to 4 years which need new tires.
According to the study “Global Automotive Tire Market Research Report: Forecast to 2023”, industrialization has boosted the global tire market and China accounts for a largest share within the global tire market followed by India, Indonesia and Thailand. Japan holds the world’s fourth position; however, the demand is limited for only some period of time. Above average growth is observed in the developing countries such as Africa, Middle East, Central and South America regions. North America and Western Europe will witness a steady growth over the next few years. This trend is either due to new purchases or due to replacements, as vehicle ownership rates are already very high.
The automotive tire market is segmented based on type such as radial and bias segments. Radial tire segment accounts for a larger share in the market due to wide and rigid construction as well as applications. Radial tires possess long tread life offering excellent steering control that is suitable for cars, mid-size SUVs and some light trucks. The automotive tire market manufactures tires for all vehicle types such as passenger cars and commercial vehicles. Geographically, the automotive tire market is spread across North America, Europe, Asia-Pacific and Rest of the world.
The leading players in global automotive tire industry are Bridgestone Corporation (Japan), Michelin Group (France), Toyo Tire & Rubber Co. Ltd (Japan), Cooper Tire & Rubber Company (U.S.), and Continental AG (Germany), Hankook Tire Co. Ltd. (South Korea), The Goodyear Tire & Rubber Company (U.S.), Sumitomo Rubber Industries, Ltd. (Japan), Pirelli & C. S.p.A (Italy) and Yokohama Rubber Co. Ltd (U.S.). Global automotive tires market is highly fragmented due to the presence of several international, regional and local players supplied tires to OEM’s as well as aftermarket. Large and medium vendors in the tires market compete intensely to attain major market share.
New automobiles are integrated with radio frequency identification (RFID) within tires as it benefits both the truck fleets and manufacturers. RFID systems on tires enables easy tracking of manufacturing process of tire, inventory, shipping to the final point of sale, end-user and tire performance. Advanced technological development in the tire market is the introduction of tubeless tires, which does not require inner tubes and possess low durability. Manufacturers in the automotive tire industry are investing heavily to develop highly durable and affordable tires. Consumers demand low rolling resistance tires, tire retreading and recycling and cost-effective durable tires. The demand for tires is projected to increase over the next few years due to industrialization, increase in disposable income in developing regions and increase in purchase of more vehicles over the next few years.
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Ankur Gupta, Head Marketing & Communications