The Global Market for Tires is Projected to Reach 2.5 Billion Units by 2022

Growing Focus on Fuel Efficiency Drives Demand for Low Rolling Resistance Tires, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Tires market. The global market for Tires is projected to reach 2.5 billion units by 2022, driven by the strong focus on fuel efficiency and the resulting demand for low rolling resistance tires coupled with stringent environment regulations and the ensuing consumer preference for eco-friendly green tires.

As the most important part of any automobile, tires not only act as a load bearer of vehicle weight, but also ensures grip with the road surface to keep the vehicle moving in the intended direction. Tires also have enormous influence on the safety and stability of the vehicle. Given the sheer size of demand generated from cars, buses and trucks, both as factory fitments in new vehicles and as replacements in the aftermarket, the global tires market is heavily dependent on the health of automotive industry. While automobile production trends influence demand patterns in the OEM tire market, vehicle population, replacement cycles, and emergence of disruptive technologies influence demand patterns in the replacement tire sector. Demand for tires in passenger cars is primarily influenced by prevailing GDP growth, employment levels, consumer discretionary spends, and average vehicle operating life. Expansion of commercial, industrial and specialty vehicle fleet and overall health of public transportation, mining, construction, agriculture, trade, cargo and freight influence demand for truck, bus, industrial & utility vehicle, and farm implement tires.

Stringent fuel efficiency norms are bringing tires to the foreground, with OEMs focusing on tire performance and efficiency as vital engineering parameters that add value to an automobile brand. Innovation in tread pattern design such as streamlined ribs, blocks, and lugs; lightweight tires; and lower rolling resistance are resulting in the launch of ultra-fuel efficient tires. Low rolling resistance tires can help save approximately 10% to 15% of fuel consumed, the environmental advantages of which can be thrown into sharp relief by the fact that for every one gallon of unburned fuel, 8.2 kilograms of carbon dioxide is prevented from entering the atmosphere. Development of lightweight, nano-fiber materials will further the development of energy efficient tires in the coming years. The market is also benefiting from the growing popularity of green tires against the backdrop of rapidly growing concerns over the environmental burden caused by inadequate recycling efforts, and overflowing landfills of scrap tires.     

As stated by the new market research report on Tires, Asia-Pacific represents the largest and the fastest growing market worldwide. The growth in the region is led by strong demand for automobiles; rising automobile per capita ownership among the growing base of middle class population; emergence of China, India, Thailand and Indonesia as global hubs for automobile component manufacturing; growing consumer preference for high quality, energy efficient tires; and increase in R&D investments and innovation in tire technologies as a result of stringent tire labeling legislations. Passenger Car tires represents the largest market accounting for a majority share of volume sales, both in OEM and replacement markets. Off-the-Road Vehicle Tires and Passenger Car Tires rank as fastest growing product markets.

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.

The research report titled “Tires: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of major companies worldwide. The report provides market estimates and projections for OEM & Replacement Tires in Units for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, and Rest of Asia-Pacific), Middle East & Africa, and Latin America. Product segments analyzed in the report include Tires for Passenger Cars, Trucks (Light Trucks, Medium/Heavy Trucks), Buses, Two-Wheelers, and Off-The-Road Vehicles (Industrial & Utility Vehicles, Farm Implements).

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