The global automotive tire market was valued at US$ 115.07 billion in 2019 and is expanding around US$ 157.43 billion by 2027, poised to grow at a notable CAGR of 4.2% from 2020 to 2027.
Tires are the most crucial component of an automotive vehicle. The demand of automotive tire is significantly driven by the rise in production and sales of automotive vehicles globally. In 2019, the global automotive production was 92 Mn. In addition, introduction of electric vehicles have significantly surged the vehicle demand across the globe. Declining prices of various electric vehicle parts for example transmission, battery, and alternator fuel the adoption of electric vehicles across the globe. Safety regulations along with technological advancements in the manufacturing process propel market growth. Use of advanced materials for automotive tires to enhance their performance and life are the prime motive of tire manufacturers. For instance, in November 2019, Bridgestone developed first polymer ‘Susym’ that bonds resins and rubber on their molecular level. The company aimed to increase the application of polymer in tire making owing to its advanced and attractive features.
On the contrary, volatile prices along with stringent government regulations for the availability of the raw materials projected to restrict the market growth. Nonetheless, integration of sensor technology in the tire manufacturing has uplifted the tire market to the next level. Intelligent tires have created numerous opportunities for industry players to boost their market position.
Vehicle Type Insights
Passenger vehicles led the global automotive tire market with a significant revenue share of nearly 45% in the year 2019. A significant rise in passenger vehicle production and sales is the prime factor that drives the segment growth. As per International Organization of Motor Vehicle Manufacturers (OICA) statistics 2019, passenger vehicles captured nearly 74% of the total vehicle production. In addition, several advancements such as driver assistance system, sensors, and other vehicle technology boost the demand for passenger vehicles worldwide. Furthermore, increasing demand for semi-luxury and luxury cars due to rise in purchasing power of people is predicted to boost the demand for passenger vehicles over the forecast period.
Meanwhile, accelerating demand of online and retail business have triggered the sales of light commercial vehicles. In addition, the current trend of the recreational vehicle along its increased adoption for travel & tourism in western countries expected to uplift the market for light commercial vehicles. Improves logistics & transportation sector have also created prominent growth in demand for light commercial vehicles. The aforementioned factors projected to boost the sales of light commercial vehicles during the forecast period.
In 2019, the Asia Pacific is the major automotive tire market with revenue contribution of around 40% in 2019 and analyzed to exhibit accelerating growth during the forecast period. Some of the fastest developing countries in the region such as India and China drive the market growth significantly in the region. Low labor cost, increased standard of living, high domestic consumption, and large population base are the prime factors behind the lucrative growth of automotive tire in China and India. In addition, increased number of accidents also triggers market for aftermarket sales of tire. According to The Economic Times article published on June 2019, tire replacement is likely to witness better growth of nearly 7-8% compared to Original Equipment Manufacturers (OEMs) in the coming years particularly in passenger vehicle segment.
Europe is the most prominent region in automotive and automotive parts sales. Strong demand from larger markets is likely to drive the sales of new cars in the region. Furthermore, the region is famous for sports activities such as car racing that again propels the demand for advanced and intelligent tires for sports cars.
Key Companies & Market Share Insights
Even though there are numerous international as well as regional players present in the global automotive tire market, the market is highly consolidated in nature. Top four companies that include Michelin Group, Goodyear Tire & Rubber Company Bridgestone Corporation, and Continental AG capture nearly half of the market revenue. The manufacturers face intense competition in terms of price owing to presence of several regional players in the market. Furthermore, cheaper tires offered by the Chinese players likely to negatively impact the profit margin of other industry players. Thus, major players are largely focused towards offering advanced tires that offer excellent driving experience and enhanced safety. Apart from this, leading tire manufacturers are also investing prominently in the developing countries because of low labor cost that further decreases the overall production cost.
Some of the prominent players in the automotive tire market include:
Report Scope of the Automotive Tire Market
|Market Size||USD 157.43 Billion by 2027|
|Growth Rate||CAGR of 4.2% from 2021 to 2027|
|Largest Market||Asia Pacific|
|Fastest Growing Market||Europe|
|Forecast Period||2021 to 2027|
|Segments Covered||Season Tire Type, Rim Size, Vehicle Type, Distribution Channel, Regional Outlook|
|Companies Mentioned||Continental corporation, Bridgestone Corporation, Pirelli Tyre C. S.p.A. (China National Chemical Corporation), MICHELIN, Toyo Tire Corporation, Hankook Tire & Technology Co., Ltd., The Goodyear Tire & Rubber Company, The Yokohama Rubber Co.|
Segments Covered in the Report
This report analyses and projects market revenue and growth trend at global, regional, and country levels and offers an analysis of the modern industry developments in each of the sub-segments from 2016 to 2027. The global automotive tire market report categorized on the basis of season tire type, rim size, vehicle type, distribution channel, and region:
By Season Tire Type
By Rim Size
By Vehicle Type
By Distribution Channel
By Regional Outlook
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