The Global Automotive Tyre Market
The global automotive tire market in 2019 was estimated at $112,16 billion and by 2027, a CAGR of 4 and 1 per cent between 2020 and by 2027 is expected to hit $154,40 billion. The passenger automobile sector was the largest contributor to 2019, representing $80.33 billion, with a projected CAGR of 4.1 percent for the forecast period of $110.47 billion by 2027.
Auto tyre is a circular part of a vehicle made of rubber, used externally to cover the wheel’s surface. The main role of the tire is to protect the wheel rim and to provide traction between the asphalt and the car. Since it is made of rubber, it also offers a flexible coil, reducing the vibration effect and absorbing the vehicle’s shock. Tyre consists of tread, piles of jointless caps, perforations and other components, including plastic rubber, carbon black.
The demand for tires is increasing rapidly as vehicle manufacturing demands increase to cope with the increase in vehicle demand across all segments. Thus, automotive manufacturing essentially regulates tire demand. The demand dynamics for automotive tires are determined based on the 2020 to 2027 forecast. Increased car manufacturing & distribution across various vehicle segments and increased competition between pneumatic producers drives the global automotive tire markets. In order to promote automotive tire market development, advanced technologies are also expected to be introduced in the manufacturing process. Factors including volatile commodity prices and retrofitting tire industry trends, however, are expected to hamper market growth. In addition, advances in technology, fuel efficiency and protection and government funding are expected to generate multiple opportunities for business growth and expansion.