ID: MRFR/AM/5445-CR | 133 Pages | Published By Swapnil Palwe on July 2021
Airless Tires Market is expected to be valued at USD 63.6 Million with a CAGR of 9% Forecast by 2030
Size of Airless tires market is estimated to reach USD 63.6 million by 2026, registering a 4% CAGR during the forecast period 2022-2030.
The global airless tires market has been segmented based on type, material, tire size, vehicle type, and sales channel.The global airless tires market is driven by factors such as increasing demand for fuel-efficient tires, government regulations regarding tire labeling, and adoption for eliminating the requirement of spare tires. However, the increasing raw material prices and less reliable options are expected to restrain the market growth. The growing demand forairless tires in fleets is expected to create growth opportunities for the market players.
Airless tires are not supported by air pressure and are flat-free. In addition, industry participants and manufacturers are designing eco-friendly tires through recycled materials since airless tires have a longer life compared to conventional tires. Various features offered by airless tires are higher durability, puncture-proof, higher usage in strenuousactivities, and many more.The global automotive tires market is driven by factors such as increasing demand for fuel-efficient tires, government regulations regarding tire labeling, and adoption for eliminating the requirement of spare tires. However, the increasing raw material prices and less reliable options are expected to restrain the market growth. The growing demand forairless tires in fleets is expected to create growth opportunities for the market players.
These companies compete in terms of availability, quality, price, and technology and consider product development as their key strategy in the global airless tires market. Although the international players dominate the global market, regional and domestic players with small shares also have a significant market presence. The international players may strengthen their presence in the airless tires market by heavily investing in product development during the study period.
The growth of the vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their services. Continental AG (Germany), Bridgestone Corporation (Japan), Michelin (France), The Hankook Tire & Technology (South Korea), and The Goodyear Tire & Rubber Company (US) are some of the key players operating in the global market.
Economic Impact On Automotive Industry
With the continuous spread of the Novel Coronavirus across the world, automakers are taking extreme measures in the form of plant closures to halt the spread of COVID-19. The situation remains uncertain as more European companies suspend work, and the US and Asia-Pacific automakers extend shutdown periods. The automakers' new plans on North American production are an effort to contain the spread of the COVID-19 virus; however, the region is currently the global epicenter of the outbreak, with the daily number of confirmed cases surpassing the number in any other region. In the US and Canada, the government response has been a combination of state or provincial, federal, and local measures. In other regions, the countries' governments are applying more stringent conditions on social interaction, travel, and workplace attendance than ever before. These regions are experiencing similar situations, which have a marked effect on the economy as well as society and causing massive economic disruption, with the automotive industry at the center of this turmoil.
Impact on Supply Chain
All countries across the globe are trying to strikea fine balance between protecting health, lessening economic and social disruption, and respecting human rights. The rising spread of the Coronavirus leads to disruption in the markets. Restrictions to shipping and industrial production are affecting multiple supply chains. Distribution of components is the key process in manufacturing industries, which is facing challenges such as staffing of warehouses, a need for direct distribution, and more intelligent and responsive allocation across channels due to pandemic which led to pressure on supply chains. The impact on the US and countries across Europe from the disruptions will be significant, which will greatly affectthe world economy and badly disrupt global supply chains.
Impact on Raw Materials
Automotive manufacturing possesses complex processes, with subcomponents required to assemble a single product sourced from several countries across the world. Additionally, the raw materials required to manufacture these subcomponents could come from different countries and continents.The finished products will again be transported all over the globe. Rubber is the main raw material used to produce airless tires, so the demand for raw rubber for processing is rapidly increasing. Some rubber processing plants that had previously shutdown are now opened. The dependency on airless tires makes the import & export of raw material and the finished product more complex due to disruption in the supply chain.
Over the past decade, crude oil prices per barrel have been rapidly increasing, and the availability of crude oil is decreasing with each passing day. The ongoing wars in the Middle East have reduced oil supply from oil-producing countries, leading to the recent surge in oil prices. As stated by the Organization of the Petroleum Exporting Countries (OPEC), in the 1st quarter of 2020, the spot prices for crude oil per barrel increased by around 56% compared to 2019.The major airless tire companies are working to capitalize on this opportunity. They manufacture tires specially designed and developed to achieve low rolling resistance, decrease fuel consumption, and increase vehicle mileage. For instance, Bridgestone Corporation (Japan) developed its ECOPIA tire series to minimize energy wastage and reduce fuel consumption by up to two gallons every month. Moreover, it has worked on developing a tire, which has provided a 25% reduction in tire rolling resistance in 2020. In 2017, the company developed a tire that offered a 19% reduction in rolling resistance.
Governments and other regulatory organizations worldwide are developing and proposing regulations and programs for labeling tires to increase vehicle efficiency, decrease the adverse effects of conventional tires on the environment, and raise awareness about airless tires. For instance, in 2010, Japan began implementing a voluntary tire labeling system for passenger cars. In November 2016, South Korea also beganimplementing mandatory tire labeling regulations. The European Parliament,along with the European Council, proposed the regulation (EC) No. 1222/2009 for labeling tires in terms of essential parameters like fuelefficiency to increase safety, promote fuelefficiency, decrease noise levels, and enable consumers to make informed purchasing decisions.
The operational efficiency and reliability of tires substantially depend upon the raw material or the compound used for its production. However, the rising raw material prices required to manufacture airless tires limit product growth during the forecast period.Airless tire manufacturing companies are investing in developing tires that work efficiently with both internal and external factors, such as temperature, road surface, humidity, and raw materials. Industry players import raw materials from foreign countries to maintain product quality and reliability and increase their customer base Countries, including the US and China, are some of the leading importers and exporters across the globe.However, the rising tension in international trade is considerably affecting raw material prices.
According to Rubber Division ACS, a Division of the American Chemical Society, the rolling resistance of truck tires constitute about one-third of the power required to move a heavy-duty truck. Airless tire manufacturers, considering the potential of commercial vehicles, have started focusing on them by investing in the development of tread compounds that can reduce tire rolling resistance while maintaining the treadwear and durability of truck tires. For instance, The Goodyear Tire & Rubber Company is developing tires that provide maximum fuel saving with low heat generation and low rolling resistance for long-haul applications. In 2018, it planned to launch its most fuel-efficient tire range. According to the data provided by the company, these new tires are manufactured using compounds that can help save fuel costs of more than USD 338,000 per 100-vehicle fleet annually and help truck manufacturers meet future emission targets.Thus, the growing demand forairless tires, especially in fleets, is likely to create a growth opportunity for the players operating in the global airless tires market during the forecast period.
The global airless tires market has been segmented based on type, material, tire size, vehicle type, and sales channel.
Airless Tires Market Segmentation
|CAGR||9% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product, Vehicle, Material Type, Tire Size, Sales Channel|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Bridgestone Corporation (Japan), Hankook Tire (South Korea), The Goodyear Tire and Rubber Company (U.S.), Pirelli (U.S.), Sunitomo Rubber Industries (Japan), Amerityre Corporation (U.S.), Michelin (France), Toyo Tire and Rubber Co. Ltd. (Japan), Cooper Tire (U.S.), Tannus Ltd. (Korea)|
|Key Market Opportunities||Increase in the industrial vehicles sector and the increasing need for advanced tires|
|Key Market Drivers||
The largest share in the airless tires market is held by the North American region and hence it dominates the global market.
The airless tires market is expected to grow at a high CAGR of 9% during the forecasted period.
The top players in the airless tires market in the global market are Bridgestone Corporation (Japan), The Goodyear Tire and Rubber Company (US), Hankook Tire (South Korea), and many others.
The higher adoption of airless tires for heavy commercial vehicles from military sector is to escalate the demand in the forecast period.
The product, by vehicle, by material, by size, and by sales channel are segments included in the study of global market.