Automotive Tire Market

Global sales of automotive tire will continue to rise at a steady pace over the next couple of years. The market for automotive tire is expected to surpass a valuation of USD 260 Bn by the year 2023. With the ever-increasing vehicle parc and longer lifecycle of vehicles, tire industry is finding opportunities in new vehicles and the aftermarket segment. The total number of vehicles in the world, measured as the number of passenger cars and light commercial vehicles, rose by 3.9% from 2016 to 2017 reaching approximately 1.3 Bn and the average vehicle age increased slightly to 9.5 years in 2017 from an approximate 9.3 years in 2016.

Fast-developing countries in Asia Pacific and Latin America are spearheading the market as vehicle sales pick up steam in these countries. The automotive manufacturing sector has expended relentlessly in countries such as China, India, Mexico and Indonesia. Carmakers are setting up manufacturing facilities in these countries due to cost benefits as well as to capture untapped market opportunities.

Increased demand for high-performance tires likely to drive growth of the market during the forecast period (2018-2023). High-performance tires have gained widespread popularity among original equipment manufacturers (OEMs) and car owners looking to upgrade tires. As a result, tire manufacturers are focusing on the OEM segment to boost sales. The U.S. Tire Manufacturers Association revealed that in 2017, the demand for high-performance tires in the country increased for the eighth straight year, accounting for nearly 56% of OEM and 44% of tire replacement shipments.

Global Automotive Tire Market: Segmental Analysis

The global market for automotive tire is segmented on the basis of type, section width, vehicle type and end market. By type the market has been segmented into radial pedal and bias. The former currently holds the dominating share of the market and is expected to exhibit a relatively higher CAGR during the assessment period.

By section width, the market has been segmented into <200 Mm, 200-230mm, and >230mm. Among these, the 200-230 mm segment is expected to remain highly lucrative throughout the assessment period and capture an impressive CAGR. There is a strong demand for 200-230 mm tire in the automotive manufacturing sector, which is providing an impetus to the segment’s growth.

By vehicle type, the market is segment into passenger car and commercial vehicle.  In 2017, passenger car segment accounted for more than 65% market share. This is partly due to the increased production of passenger car, which is leading to a greater demand for automotive tires.

By end market, the market is segmented into OEM and aftermarket. The aftermarket segment accounted for nearly 61.3% share of the market in 2017 and is likely to remain highly profitable in 2018 and beyond. Meanwhile, the OEM segment is also expected create growth opportunities for the market during the forecast period.

 Global Automotive Tire Market: Regional Analysis

Asia Pacific (APAC) is the largest market for automotive tire followed by North America and Europe. The expansion of the automotive manufacturing sector in APAC countries such as China, Japan, and India is supporting the growth of market in the region. The upsurge in production volume of passenger cars and two-wheelers is propelling the demand for tires in the region. Factors such as growing per capita income, amplified infrastructure spending, initiatives to increase the amount of FDI and policy reforms have positively influenced the sales of automobiles in the region. Asia-Pacific region has abundant number of tire manufacturing plants on account of huge rubber production, low labor cost and favourable government frameworks. The tires market in China, is expected to grow from a market size of USD 43.79 billion in 2017 to USD 58.28 billion in 2023 with a CAGR of 4.98%. After APAC, North America is most profitable market for automotive tire market and is projected to witness a CAGR of 4.46% during the forecast period. Automobile companies operating in North America will continue to record an increase in sales of the passenger cars and commercial vehicles in the forthcoming years. The stable growth of the automobile sector will fetch more investments in the region. Such aforementioned factors will drive the market for automotive tires in the region.

Competitive Dashboard

MRFR, in its report has profiled companies such as Bridgestone Corporation(Japan), Michelin Group (France), The Goodyear Tire & Rubber Company (U.S.), Continental AG (Germany), Hankook Tire Co., Ltd. (South Korea), Cooper Tire & Rubber Company (U.S.), Sumitomo Rubber Industries, Ltd. (Japan), Toyo Tire & Rubber Co., Ltd (Japan), Yokohama Rubber Co. Ltd (Japan) and Pirelli (Italy).

1    Executive Summary

2    Research Methodology

2.1   Scope of the Study

2.1.1     Definition

2.1.2     Research Objective

2.1.3     Assumptions

2.1.4     Limitations

2.2   Research Process

2.2.1     Primary Research

2.2.2     Secondary Research

2.3   Market size Estimation

2.4   Forecast Model

3    Market Dynamics

3.1   Market Drivers

3.2   Market Inhibitors

3.3   Supply/Value Chain Analysis

3.4   Porter’s Five Forces Analysis

4    Global Automotive tire market, By Type

4.1   Radial

4.2   Bias/cross ply

5    Global Automotive tire market, By Section width

5.1   Introduction

5.2   <200 mm

5.3   200-230 mm

5.4   >230mm

6      Global Automotive tire market, By End market

6.1   OEM’s

6.2   After market

7    Global Automotive tire market, By Application

7.1   Passenger cars

7.2   Commercial vehicle

8      Regional Market Analysis

8.1           Introduction

8.2    North America

8.2.1    U.S.

8.2.2    Canada

8.3    Europe

8.3.1    U.K

8.3.2    France

8.3.3    Germany

8.3.4    Spain

8.3.5    Rest of Europe

8.4    Asia-Pacific

8.4.1    China

8.4.2    Japan

8.4.3    India

8.4.4    Rest of Asia-Pacific

8.5    Rest of the World  

9             Competitive Analysis

9.1    Introduction

9.2    Competitive Scenario

9.2.1    Market Share Analysis

9.2.2    Market Development Analysis

9.2.3    Type/Service Benchmarking

9.3    Continental AG (Germany)

9.3.1    Overview

9.3.2    Type/Service Offering

9.3.3    Strategy

9.4     Cooper & Rubber Company (U.S.)

9.4.1    Overview

9.4.2    Type/Service Offering

9.4.3    Strategy

9.5    Hankook Co. Ltd. (South Korea)

9.5.1    Overview

9.5.2    Type/Service Offering

9.5.3    Strategy

9.6    Goodyear & Rubber Company (U.S.)

9.6.1    Overview

9.6.2   Type/Service Offering

9.6.3    Strategy

9.7    Michelin Group(France)

9.7.1    Overview

9.7.2    Type/Service Offering

9.7.3    Strategy

9.8    Pirelli & C. S.p.A.(Italy)

9.8.1    Overview

9.8.2    Type/Service Offering

9.8.3    Strategy

9.9    Sumitomo Rubber Industries, Ltd (Japan)

9.9.1    Overview

9.9.2    Type/Service Offering

9.9.3    Strategy

9.10   Bridgestone Corporation (Japan)

9.10.1    Overview

9.10.2    Type/Service Offering

9.10.3    Strategy

9.11    Toyo Tire & Rubber Co., Ltd. (Japan)

9.11.1    Overview

9.11.2    Type/Service Offering

9.11.3    Strategy

9.12    Yokohama Rubber Co. Ltd.(Japan)

9.12.1    Overview

9.12.2    Type/Service Offering

9.12.3    Strategy

LIST OF TABLES

TABLE 1    GLOBAL AUTOMOTIVE TIRE MARKET, BY TYPE

TABLE 2    GLOBAL AUTOMOTIVE TIRE MARKET, BY SECTION WIDTH

TABLE 3    GLOBAL AUTOMOTIVE TIRE MARKET, BY END MARKET

TABLE 4    GLOBAL AUTOMOTIVE TIRE MARKET, BY APPLICATION

TABLE 5     GLOBAL AUTOMOTIVE TIRE MARKET, BY REGIONS

TABLE 6    NORTH AMERICA AUTOMOTIVE TIRE MARKET, BY TYPE   

TABLE 7    NORTH AMERICA AUTOMOTIVE TIRE MARKET, BY SECTION WIDTH

TABLE 8    NORTH AMERICA AUTOMOTIVE TIRE MARKET, BY END MARKET

TABLE 9    NORTH AMERICA AUTOMOTIVE TIRE MARKET, BY APPLICATION

TABLE 10    U.S. AUTOMOTIVE TIRE MARKET, BY TYPE

TABLE 11    U.S. AUTOMOTIVE TIRE MARKET, BY SECTION WIDTH

TABLE 12    U.S. AUTOMOTIVE TIRE MARKET, BY END MARKET

TABLE 13    U.S. AUTOMOTIVE TIRE MARKET, BY APPLICATION

TABLE 14    CANADA AUTOMOTIVE TIRE MARKET, BY TYPE  

TABLE 15    CANADA AUTOMOTIVE TIRE MARKET, BY SECTION WIDTH

TABLE 16    CANADA AUTOMOTIVE TIRE MARKET, BY END MARKET

TABLE 17    CANADA AUTOMOTIVE TIRE MARKET, BY APPLICATION

TABLE 18    EUROPE ENGINEERING PLASTICMARKET, BY COUNTRY

TABLE 19    EUROPE AUTOMOTIVE TIRE MARKET, BY TYPE

TABLE 20    EUROPE AUTOMOTIVE TIRE MARKET, BY SECTION WIDTH

TABLE 21    EUROPE AUTOMOTIVE TIRE MARKET, BY END MARKET

TABLE 22    EUROPE AUTOMOTIVE TIRE MARKET, BY APPLICATION

TABLE 23    GERMANY AUTOMOTIVE TIRE MARKET, BY TYPE

TABLE 24    GERMANY AUTOMOTIVE TIRE MARKET, BY SECTION WIDTH

TABLE 25    GERMANY AUTOMOTIVE TIRE MARKET, BY END MARKET

TABLE 26    GERMANY AUTOMOTIVE TIRE MARKET, BY APPLICATION

TABLE 27    FRANCE AUTOMOTIVE TIRE MARKET, BY TYPE

TABLE 28    FRANCE AUTOMOTIVE TIRE MARKET, BY SECTION WIDTH

TABLE 29    FRANCE AUTOMOTIVE TIRE MARKET, BY END MARKET

TABLE 30    FRANCE AUTOMOTIVE TIRE MARKET, BY APPLICATION

TABLE 31    U.K. AUTOMOTIVE TIRE MARKET, BY TYPE

TABLE 32    U.K. AUTOMOTIVE TIRE MARKET, BY SECTION WIDTH

TABLE 33    U.K. AUTOMOTIVE TIRE MARKET, BY END MARKET

TABLE 34    U.K. AUTOMOTIVE TIRE MARKET, BY APPLICATION

TABLE 35    REST OF EUROPE AUTOMOTIVE TIRE MARKET, BY TYPE

TABLE 36    REST OF EUROPE AUTOMOTIVE TIRE MARKET, BY SECTION WIDTH

TABLE 37    REST OF EUROPE AUTOMOTIVE TIRE MARKET, BY END MARKET

TABLE 38    REST OF EUROPE AUTOMOTIVE TIRE MARKET, BY APPLICATION

TABLE 39    ASIA-PACIFIC AUTOMOTIVE TIRE MARKET, BY TYPE

TABLE 40    ASIA-PACIFIC AUTOMOTIVE TIRE MARKET, BY SECTION WIDTH

TABLE 41    ASIA-PACIFIC AUTOMOTIVE TIRE MARKET, BY END MARKET

TABLE 42    ASIA-PACIFIC AUTOMOTIVE TIRE MARKET, BY APPLICATION

TABLE 43    MIDDLE EAST & AFRICA AUTOMOTIVE TIRE MARKET, BY TYPE

TABLE 44    MIDDLE EAST & AFRICA AUTOMOTIVE TIRE MARKET, BY SECTION WIDTH

TABLE 45    MIDDLE EAST & AFRICA AUTOMOTIVE TIRE MARKET, BY END MARKET

TABLE 46    MIDDLE EAST & AFRICA AUTOMOTIVE TIRE MARKET, BY APPLICATION

LIST OF FIGURES

FIGURE 1    RESEARCH TYPE

FIGURE 2    GLOBAL AUTOMOTIVE TIRE MARKET: BY TYPE (%)

FIGURE 3    GLOBAL AUTOMOTIVE TIRE MARKET: BY SECTION WIDTH (%)

FIGURE 4    GLOBAL AUTOMOTIVE TIRE MARKET: BY END MARKET (%)

FIGURE 5    GLOBAL AUTOMOTIVE TIRE MARKET: BY APPLICATION (%)

FIGURE 6    GLOBAL AUTOMOTIVE TIRE MARKET: BY REGION

FIGURE 7    NORTH AMERICA AUTOMOTIVE TIRE MARKET, BY TYPE (%)

FIGURE 8    NORTH AMERICA AUTOMOTIVE TIRE MARKET, BY SECTION WIDTH (%)

FIGURE 9    NORTH AMERICA AUTOMOTIVE TIRE MARKET, BY END MARKET (%)

FIGURE 10    NORTH AMERICA AUTOMOTIVE TIRE MARKET, BY APPLICATION (%)

FIGURE 11    NORTH AMERICA AUTOMOTIVE TIRE MARKET, BY COUNTRIES (%)

FIGURE 12    EUROPE AUTOMOTIVE TIRE MARKET, BY TYPE (%)

FIGURE 13    EUROPE AUTOMOTIVE TIRE MARKET, BY SECTION WIDTH (%)

FIGURE 14    EUROPE AUTOMOTIVE TIRE MARKET, BY END MARKET (%)

FIGURE 15    EUROPE AUTOMOTIVE TIRE MARKET, BY APPLICATION (%)

FIGURE 16    ASIA-PACIFIC AUTOMOTIVE TIRE MARKET, BY TYPE (%)

FIGURE 17    ASIA-PACIFIC AUTOMOTIVE TIRE MARKET, BY SECTION WIDTH (%)

FIGURE 18    ASIA-PACIFIC AUTOMOTIVE TIRE MARKET, BY END MARKET (%)

FIGURE 19    ASIA-PACIFIC AUTOMOTIVE TIRE MARKET, BY APPLICATION (%)

FIGURE 20    ROW AUTOMOTIVE TIRE MARKET, BY TYPE (%)

FIGURE 21    ROW AUTOMOTIVE TIRE MARKET, BY SECTION WIDTH (%)

FIGURE 22    ROW AUTOMOTIVE TIRE MARKET, BY END MARKET (%)

FIGURE 23    ROW AUTOMOTIVE TIRE MARKET, BY APPLICATION (%)

Global Automotive Tire Market: Competitive Landscape

Bridgestone Corporation, Michelin Group, Goodyear Tire & Rubber Company, Continental AG, and Hankook Tire Co., Ltd are the major five players operating in the global automotive tire market in 2017. Bridgestone Corporation held the largest share among top five players with a share of 13.90% as of 2017 followed by , Michelin Group and Goodyear Tire & Rubber Company with the respective shares of 11.580%  and 7.20%. These companies continue to retain their strong global presence through expansion, merger & acquisition, partnership & collaboration, and extensive product portfolio.

Bridgestone Corporation is one of the leading companies in the automotive tire market. It offers a range of products that increases the value and performance of the company. The company developed the world’s first polymer using advanced synthetic technology for making hybrid polymer. The company offers various products for passenger tires, motorcycle tires, commercial tires, and specialty tires. The company also offers vehicle parts, polyurethane foam, civil engineering and construction materials and equipment, industrial materials related products, electronic precision parts, and other products. Bridgestone Corporation is headquartered in Japan. The company has more than 180 manufacturing plants and R&D services, around the globe. The firm had an employee strength of approximately 142,669 as of 2016. Bridgestone Corporation has adopted product expansion has its key strategy to cater to a wider customer requirements. The company also adopts innovation, and development in research and technologies to provide eco-friendly tires and fuel efficiency.

Michelin manufactures tires for automobiles, space shuttles, motorcycles, aircraft, bicycles, and heavy equipment. The company is engaged in both manufacturing and sales for all types of vehicles in the market. The company product portfolio is passenger cars tires, SUV tires, off-road tires, on-road tires, off the road tires, motorsport tires. Michelin is headquartered in France. The company has more than 68 manufacturing plants and R&D services, around the globe. The firm had an employee strength of approximately 112,300 as of 2016. The company strategizes to increase the sales of tires by offering innovative and high-performing products. The company has adopted new product development as their strategy to cater to a wide range of customers. Michelin Group launched X Multi Energy, a tire that offers a distinct product choice for regional haulage operators.

The Goodyear Tire & Rubber Company provides various types of tires such as aviation tires, commercial truck tires, off the road tires, racing tires, and RV tires. The company with its subsidiaries, develops, manufactures, distributes, and sells tires and related products and services worldwide.  The company operates in different business segments such as automobiles, trucks, buses, aircraft, motorcycles, earthmoving and mining equipment, farm implements, industrial equipment. The company’s product portfolio is Goodyear Assurance All-Season, Goodyear Integrity, Goodyear Eagle LS-2, Goodyear Eagle RS-A, Goodyear Ultra Grip Winter, Goodyear Eagle LS, Goodyear Assurance Triplet red. Product innovation is the main strategy of the company to expand its position in the tire segment, further internationalize the business segments, strengthen its sales base and brand, and innovate their product line. The company has adopted new product development as a strategy, the company also promotes research and marketing analysts for identifying market trends, thereby using new technologies for developing next-generation products.

Continental AG provides various types of tires that are used in Car / Van, motorcycle tires, truck & bus tires, specialty tires. Continental AG is present across Europe, North America, and others. Continental AG provides various types of tires, which are used in Passenger and light truck tire original equipment, passenger, and light truck tire replacement business. The group has approximately 235,000 employees across 18 countries. Continental introduced new crack and abrasion resistant compound, which prolongs tire life in the toughest conditions. The company has adopted value creation as a strategy to deliver the long term value. The company has expanded its strong position in the tire segment through brand positioning and continuous development of the products. The company focusses on continually improving their management and processes by establishing the planning and management system for the entire company.

Hankook Tire Co., Ltd offers tires for passenger cars, SUVs, light trucks, buses, and trucks. Hankook is also engaged in the manufacture and sales of tire and tube manufacturing machinery, tire molds, and vehicle parts selling activities.  The company is the largest manufacturer of tires in South Korea with a workforce of approximately 22000 employees. Laufenn was introduced in strategic markets including North & Latin America, Europe, Middle East and Asia-Pacific, where it operates as the company's second global brand. Aurora, a brand for customers outside Korea, has a product brand named Route Master. The company has adopted new product development as their strategy to cater to a wide range of customers.  Hankook believes in overhauling its global marketing communication strategy to further build on its premium brand value and equity, which in turn will strengthen partnerships with premium car companies and boost sales of ultra-high-performance tires.

The growth of the market vendors is dependent on market conditions, government support, and industry development. Players focus on strengthening their presence worldwide through partnership & collaboration followed by mergers and acquisitions during the forecast period. These strategies are widely adopted to increase their presence and the customer base. The competitive environment in the market is likely to intensify further due to new product developments and business expansions.