Global Market for Tires is Projected to Reach 2.5 Billion Units by 2020
Projected Rise in Automotive Production and Launch of New
Tire Models Drive the Global Tires Market, According to New Report by Global Industry Analysts, Inc.
GIA announces
the release of a comprehensive global report on Tires markets. Global market for Tires is projected to
reach 2.5 billion units by 2020, driven by projected rise in automotive
production in developing markets and introduction of advanced tire models.
Global market
for tires is heavily dependent on the automotive industry, which in turn is a
barometer of general economic health in a country. While automobile production
trends influence demand patterns in the OEM tire market sector, vehicle
population, replacement cycles, and emergence of disruptive technologies
influence demand patterns in the replacement tire sector. GDP growth,
employment levels, consumer discretionary spends, and average vehicle operating
life influence demand in the passenger car tires market. Expansion of
commercial vehicle fleets and overall health of public transportation, mining,
construction, and agriculture end-user industries, influence demand for truck,
bus, aircraft, industrial & utility vehicle, and farm implement tires.
Increase in
automobile demand in line with cautiously improving global economy and
subsequent rise in automotive manufacturing will drive considerable demand for OEM
tires in the short to medium term period.
Continued rise in demand for passenger cars in developing markets such
as India and China and projected rise in automotive ownership over the next few
years in Non-BRIC emerging nations such as Colombia, Indonesia,
Vietnam, Egypt, Turkey and South Africa will also help sustain growth prospects for OEM tires
in the coming years. Replacement tires market on the other hand, is
expected to benefit from the rising average vehicle life worldwide. Increase in
vehicle age results in greater need for replacements thus translating into
higher demand for replacement tires. Additionally, overloading of vehicles, extreme weather conditions and
poor road conditions are helping spur replacement demand for tires.
Growth in the
tires market will also be driven by technology developments and introduction of
new advanced models that promise better performance. Poised to score the highest gains are tires
with performance features such as increased grip on wet surfaces, reduced noise
levels, higher traction, comfort, and safety levels. Future growth in the world
tires market will be driven by ultra high-performance (UHP) tires that offer
superior driving control; and run-flat tires that assure safer driving despite
a flat tire problem.
As stated by
the new market research report on Tires, Asia-Pacific represents the
largest and the fastest growing market worldwide. Growth in the region is led
by strong demand for automobiles and presence of well established automotive
manufacturing industry in countries such as China and India. While Passenger
Car tires represent the largest product segment accounting for a majority share
in total volume sales, Two-Wheeler tires represent one of the fastest growing
product markets with sales waxing at a CAGR of 5.4% over the analysis period.
Major players
in the market include Apollo Tyres Ltd., Bridgestone Corporation, Continental
AG, Cooper Tire & Rubber Company, Goodyear Tire & Rubber Company,
Hankook Tire Co. Ltd., Maxxis International, Michelin, Pirelli & C. S.p.A.,
Sumitomo Rubber Industries Ltd., Techking Tires Ltd., and Yokohama Rubber Co.,
Ltd., among others.
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