Airless Tires Market Research Report: Information by Type (Radial Tires and Bias Tires), Vehicle Type (Two-Wheeler, Passenger Cars, Light/Heavy Industrial/Commercial, and Trucks & Buses), Material Type (Rubber and Plastic), Tire Size (<20 inches, 21–25 inches, 26–30 inches, 31–35 inches, and >35 inches), Sales Channels (OEM and Aftermarket), and Region - Forecast to 2030

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.

Key Competitors:

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.

COVID-19 Analysis:

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.

Airless Tires Market Dynamics:

• 
  Drivers:
  
  
  
  • Increasing Demand For Fuel-efficient Tires
  
  
  
  

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.

• Government Regulations Regarding Tire Labeling

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. 

• 
  Restraint:
  
  
  
  • Increasing Raw Material Prices
  
  
  
  

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.

• 
  Opportunity:
  
  
  
  • Growing Demand in Fleets
  
  
  
  

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.

Airless Tires Market Segmentation:

The global airless tires market has been segmented based on type, material, tire size, vehicle type, and sales channel.

• Based on the tire size, the global airless tires market is segmented into<20 inches, 21–25 inches, 26–30 inches, 31–35 inches, >35 inches.Passenger cars thatfall under this category include Hatchback, sedan, SUV, and MUV. The passenger car types using these tire sizes are leading in sales in Asian countries and other parts of the globe. Hence, the demand for <20 inches size tires is second highest.When one must move to a larger wheel diameter (from 21 to 25 inches), they need new tires to match. These tires require a lower profile (or sidewall height) to maintain adequate clearance when they go over bumps and potholes, making the suspension fully compress and rebound.Bigger wheels with tire sizes ranging from 26 to 30 inches cost more money. The bigger the wheels & tires, the more expensive they get.Reducing downtime is a crucial factor for OEMs in the heavy-duty equipment industry; thus, many have begun offering airless tires of sizes ranging from 31 to 35 inches on their machinery. For instance, Michelin North America Inc. introduced its X TWEEL airless radial tire for compact construction applications, which is also available for the UTV market, and a factory option on all construction equipment, such as skid steer loaders.Tires with size >35 inches are used for all kinds of off-road and earthmoving vehicles.


• Based on type, the global airless tires market has been segmented into radial and bias.Radial tires utilize a series of cords that extend from the beads and across the tread. This allows the cords to be laid at approximately right angles to the centerline of the tread and parallel to each other and belts directly beneath the tread.This network gives the tire strength and shape.Bias tires have nylon belts that run at a 30 to 45-degree angle with the tread line. The multiple overlapping rubber plies in the tire connect the sidewall and tread.Bias tires have various benefits, such as providing smoother rides on rough surfaces and tougher sidewalls.


• Based on material, the global airless tires market is divided into rubber and plastic.Rubber is a cost-effective material and has a high load capacity. Rubber compounds constituting rubber components for airless tires, such as vulcanized rubber compounds used inside a tire such as a bead apex, must have high rigidity to improve the steering stability.Plastic materials are recyclable and are preferred by manufacturers for airless tire production. Increasing usage of recyclable plastic for manufacturing two-wheelers tires with plastic spokes will boost the market growth.


• By sales channel, the global airless tires market is divided into OEM and aftermarket. The rise in transportation and the distances covered by the vehicles lead to an increase in the demand for airless tires integrated by original equipment manufacturers (OEMs) and those available with aftermarket providers to support the weight of the vehicle, absorb road shocks, and maintain & change the direction of travel.


• By vehicle type, the global airless tires market is segmented into two-wheelers, passenger cars, light/heavy industrial/commercial vehicles, and trucks & buses.Airless two-wheeler tires promise better durability than rubber pneumatic tires. Airless two-wheeler tires are made from proprietary foams extruded into different shapes. There is an increase in the demand for passenger vehicles, owing to the increase in population, high purchasing power, and favorable regulations.Light commercial vehicles (LCVs) include mini-vans, pickup trucks, and buses. The rise in the processing, manufacturing, and logistics sectors and the continuous growth in the tourism and hospitality industries are increasing the demand for light commercial vehicles.The growth in the use of combination vehicles, such as truck trailers and semi-trucks, raises the demand for good quality airless tires. Airless tires used in trucks are a simpler design that keeps the tire shape steady and reduces rolling resistance.

• Based on region, the report on the airless tires markethas been divided into North America, Europe, Asia-Pacific, and the rest of the world.


• Asia-Pacific has one of the largest automotive aftermarkets due to the automotive industry's rapid growth in countries such as China, India, and Japan. The increased demand for airless tires in the region can be credited to factors such as the growing construction activities, industrial development, and the rise in demand for fuel-efficient technologies. Asia-Pacific has abundant raw material suppliers, low labor costs, and favorable government guidelines in countries such as Japan, China, and South Korea. These countries also have a strong focus on agriculture, and hence the demand for airless tires in the agriculture sector is also expected to be high.China is the leading market in terms of global vehicle sales. Itoffers one of the most attractive markets for tire manufacturers who are investing by forming joint ventures with local vehicle brands.For instance, in 2016, The Hankook Tire & Technology (South Korea) developed its Enfren Eco tire, which combines a special silica compound and structural design to minimize energy loss and optimize fuel efficiency in electric vehicles.


• The demand for airless tires in construction and industrial equipment vehicles is expected to drive the growth of the airless tires market in North America. Furthermore, the rising demand for high-performance industrial-grade tires, especially in the replacement market, is expected to offer lucrative opportunities to the airless tires market during the forecast period. Moreover, governments and other organizations in the region are continuously working on decreasing vehicular emissions by encouraging the use of fuel-efficient components in automobiles. For instance, in August 2018, the US Department of Transportation (DOT) and the Environmental Protection Agency (EPA) proposed the Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule to revise the existing Corporate Average Fuel Economy (CAFE) and tailpipe carbon dioxide (CO2) emission standards for passenger cars and light trucks.

Recent Developments:

• February 2020: Bridgestone launched the concept version of an air-free commercial truck tire during the annual meeting of the American Trucking Associations’ Technology and Maintenance (TMC) council in Atlanta.


• January 2020: Bridgestone has developed and is preparing to market large airless tires that can support 5,000 pounds of weight, especially for commercial truck owners.


• June 2019: Michelin signed an agreement with General Motors to develop and validate the tire supplier's Unique Puncture-proof Tire System, or Uptis, with plans to introduce the tires on passenger vehicles as early as 2024.


• May 2018: Hankook Tire established a USD 250 million "Technodome” research and development center in Daejeon, South Korea, for developing tires suitable for not only electric vehicles but also hybrids and plug-in hybrids.


• Mach 2018: Tannus developed airless tires that claim flat-free riding without drawbacks and provide a similar weight and ride feel compared to pneumatic tires.

Airless Tires Market Segmentation

• Radial Tires


• Bias Tires

• Rubber


• Plastic

• <20 inches


• 21–25 inches


• 26–30 inches


• 31–35 inches


• >35 inches

• Two-wheelers


• Passenger Cars


• Light/Heavy Industrial/Commercial Vehicles


• Trucks & Buses

• OEM


• Aftermarket