ID: MRFR/AM/1655-CR | December 2020 | Region: Global | 106 pages
Global Automotive Tire Market was valued at USD 1,58,766.4 Million in 2019, which is expected to grow further at 12.12% CAGR during the forecast period(2020-2027).
Currently, many automotive tire market players are substantially investing in product development and to increase production capacities. Also, substantial investments are poured into the R&D centers of various tire manufacturing companies and universities to test innovative prototypes.
Governments constantly update norms & regulations related to passenger safety. Therefore, tyre manufacturers are innovating new technologies that can help manufacturing tires that can instill vehicle safety. Moreover, increased accident rates across the globe foster the demand for advanced tires.
COVID 19 hit the global automotive tire market, severely affecting the overall automotive industry. The coronavirus pandemic has caused a steep decline in the tyre sector, forcing tire manufacturers to reduce the output at their production plants. The disruption caused by the epidemic prompted various key raw material suppliers to cut back production in some areas.
While many companies had to consolidate and reduce staff, some tire market players intensively started working on countermeasures in order to minimize the impact. These tire manufacturing companies extended their relationships, driving tie-ups with automotive original equipment manufacturers (OEMs) with a global presence.
Besides, they adopted bold approaches, such as aggressive online presence and responsive customer service. This initiative to adopt digital channels to engage with prospective buyers proves to be a game-changer. Resultantly, the automotive tire market is rapidly returning to normal.
Due to the growing road accident rates, the governments have updated significantly more rigorous safety rules, which in turn, drive the market growth. To minimize escalating accident rates, monitoring bodies in developed regions are making it compulsory to install advanced automotive tires in vehicles. Moreover, increasing vehicle production and sales propel the growth of the market. The increase in vehicle sales across the world leads to high automotive tire demand.
Price volatility and the demand-supply gap in the raw materials required for tire production are the major factors anticipated to hamper the growth of the market. Besides, the requirement for achieving a duty-free process poses commercial and compliance challenges for both vehicle and parts manufacturers.
The rising awareness of the importance of high-quality tires is projected to offer significant opportunities for market growth. Moreover, increasing numbers of OEMs and MRO services are major automotive tire market trends expected to foster market growth. Furthermore, regular MRO activities of agriculture tractors and construction vehicles would support the market growth throughout the review, suggesting the need to change tires due to wear & tear.
Global Automotive Tire Market is segmented on the basis of Rim Size, Distribution Channel, Vehicle Type, Season Propulsion Type and Region.
The rim size segment is bifurcated into 13”–15", 16”–18", 19”–21", and >21". The 13"–15" rim size segment accounts for the largest market share due to the increasing use in passenger cars with GVWR <3.0 tons. Automotive tires with rim sizes ranging from 16" to 18" are used in wheels that need a lower sidewall height to maintain adequate clearance when they go over bumps and potholes, making the suspension fully compress and rebound.
The distribution channel segment is sub-segmented into OEM and aftermarket. Among these, the OEM segment accounts for the largest market share, including production, procurement, and installation of automotive tires. Many automotive tire manufacturing companies worldwide are working on enhanced safety and comfort using advanced production techniques.
The vehicle type segment is sub-segmented into passenger cars, light commercial vehicles (LCV), and heavy commercial vehicles (HCV). Among these, the passenger car accounts for the largest segment due to the increasing production of passenger vehicles due to the increasing demand and sales of these vehicles.
Light commercial vehicles (LCVs) include minivans, pickup trucks, and buses. Continuous growth in manufacturing, processing, logistics, and tourism & hospitality sectors creates a substantial demand for LCVs. On the other hand, growth in heavy commercial vehicles (HCVs) is driven by the growing use of heavy trucks, tractors, and trailers in the rapidly growing transportation & logistics industry across the globe.
The Season segment is bifurcated into winter, summer, and all-seasons. Among these,
the winter Tires segment accounts for the significant market share. Winter/snow tires can endure in nerve-wracking winter driving conditions. On the other hand, summer tires with their special tread patterns and tread compounds guarantee a high grip on wet and dry roads.
All-season tires are available in a range of many types/models, load capacities, sizes, and speed ratings and are used in a wide variety of vehicles, from economy cars and sedans to minivans and pickup trucks.
The propulsion type segment is bifurcated into Electric vehicles and internal combustion engines (ICE). The EV segment is further sub-segmented into battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs). BEVs are fully EVs without an internal combustion engine or fuel tank and runs on a fully electric drivetrain powered by rechargeable batteries. HEVs combine an IC engine system with an electric system.
Asia Pacific holds the largest share in the global automotive tire market. APAC is one of the largest automotive aftermarkets. In 2019, the region accounted for the largest market share with a valuation of USD 57,932.4 million. Factors such as the rapid increase in the automotive industry and economy, especially in China, India, and Japan, drive the automotive tire market growth.
The increased automotive tire market demand in the region can be accredited to the increasing construction activities, rapid industrial development, and the rise in demand for fuel-efficient technologies. Besides, the presence of several raw material suppliers and favorable government guidelines boost the automotive tire market size. Countries such as Japan, China, and South Korea have a strong focus on agriculture, and hence the demand for automotive tires for agricultural vehicles is also expected to be high.
The worldwide automotive tire industry appears extremely fragmented, considering the presence of well-established tire manufacturers, OEMs, and distributors. They seek opportunities to integrate across the extensive value chain while focusing on R&D investments, production facility expansion, and M&A activities to gain impetus. New automotive tire industry players enter the market with aggressive pricing to undercut the established providers and gain footholds in international markets.
Bridgestone is a Japanese automotive parts manufacturer and a leading global tyre and rubber manufacturing company. Bridgestone undertakes constant upgrades in production level to satisfy the ever-increasing demand of the global automotive market. It also initiates various marketing programs to increase brand presence across the world. Bridgestone offers a wide range of automotive tire types, including B-SERIES, S-SERIES, ECOPIA, DUELER, ALENZA, POTENZA, and others for all types of vehicles and CUVs & SUVs.
The automotive tire market report features unique and relevant factors expected to significantly impact the market growth during the anticipated period. The detailed market information in the report would help industry players understanding the market better. The MRFR automotive tire market analysis elaborates on the historical and current trends boosting the automotive tire market growth.
Additionally, the analysis of COVID-19 impact on the automotive tire market is also included in the report. Regional assessment in this report unlocks several untapped opportunities in regional and international markets. Detailed company profiling enables users to evaluate company shares, emerging product lines, the scope of the product in new markets, pricing strategies, innovation possibilities, and much more.
|Market Size||2019: USD 1,58,766.4 Million|
|CAGR||12.12% CAGR (2020-2027)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Rim Size, Season, Propulsion Type, Vehicle Type|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Michelin (France), Bridgestone (Japan), Continental AG (Germany), Hankook Tire (South Korea) , Pirelli & C. S.p.A. (Italy) , Toyo Tire Corporation (Japan) , Kumho Tire (South Korea) , Giti Tire (Singapore) , Maxxis International (Taiwan) , Nexen Tire Corporation (South Korea)|
|Key Market Opportunities||
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The global market for automotive tire is expected to reach a valuation in excess of USD 260 Bn in 2023 up from USD 203.14 Bn in 2017, reflecting an above-average growth rate.
Michelin Group, Bridgestone, Continental, The Goodyear Tire & Rubber, Toyo Tire & Rubber, Hankook Tire, Pirelli, Cooper Tire & Rubber Company, Rubber, Sumitomo Rubber Industries, and Yokohama.
Global Automotive Tire Market Report: Information by Type, Section Width, Vehicle Type, End Market – Forecast till 2027.
The tire covered are: Radial and Bias.