Transparency Market Research has published a new report titled, “Tire Market for Automotive – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018 – 2026”. According to the report, the global tire market for automotive is anticipated to surpass US$ 190 Bn by 2026, expanding at a CAGR of more than 3 % during the forecast period.
Rise in sales of vehicles in developing countries in Asia Pacific and Latin America is anticipated to drive the global tire market for automotive. Rise in sales of SUVs and crossover vehicles, due to change in consumer preference for high clearance and sporty vehicles, is fueling the demand for automotive tires. SUV and crossover vehicles contributed to 34% of total vehicle sales in China and 42% of total vehicle sales, respectively, in 2017.
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Increase in competition among automakers is compelling them to increase the number of models and offer numerous tire options based on rim size and aspect ratio. Rise in consumer demand for SUVs and higher rim size vehicles is shifting the demand from low rim sizes to high rim size tires. Increase in disposable income of consumers is boosting the sales of luxury and premium vehicles, which in turn is fueling the demand for low profile or tires with aspect ratio between 35 and 55. Europe & North America being developed regions are lucrative markets for low profile or tires with aspect ratios between 35 and 55. Low profile tires that have aspect ratios between 35 and 55 are esthetically appealing, as they have larger rims and thinner tire walls. Low profile tires also provide better braking and cornering and hence, are gaining increasing popularity among premium car manufactures. Development of infrastructure and rapid economic expansion in Asia Pacific and Latin America are expected to fuel the demand for luxury vehicles and low profile tires.
In developing regions such Asia Pacific and Latin America, commercial vehicles are undergoing a radialization, i.e., shift in preference toward deployment of radial ply tires. Commercial vehicles in these regions are predominantly incorporated with bias ply tires; however, they are shifting to radial ply tires. Therefore, demand of radial ply tires in commercial vehicles is estimated to rise significantly.
North America & Europe are lucrative markets for winter tires, as winter tires are mandatory in several countries in Europe such as Norway, Russia, and Latvia. North America, Japan, and China also witnessed significant increase in sales of winter tires sales and hence, are anticipated to witness a steady demand. Automotive tires in Europe, Japan, Brazil, and South Korea are required to be labeled according to noise, fuel efficiency, and rolling resistance. A similar labelling is likely to be adopted by other regions, which in turn is expected to boost the tire market for automotive.