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.
OEM segment demand is driven by new car sales trends, while substitute markets are related to the pattern of use and to substitution cycles. The tyre industry in India is highly concentrated, with about 80% of the total market representing the top 10 manufacturers. The key players on the market today are MRF, Apollo Tyres and JK Tyres. IMARC is looking forward to cross 211 Million Units by 2026 in the Indian pipeline industry.
Tyre demand is derived from two groups of end-users – the OEMs and the substitute category. The Indian tyre’s market dominates the substitute market, accounting for approximately 44 percent and accounts for approximately 56 percent of total value.
In the total unit sales of tyres, the trade segment accounts for about 21 per cent, while the remainder is from the selling of passenger cars, two and three wheelers.
For the next few years, the following trends are emerging and will affect the industry:
- In decades, the industry has experienced its greatest volume decreases, and the conditions are “extraordinarily soft.”
- Recovery will be slow with global virus resolution lagging.
- A decrease in car sales and aftermarket tire sales has resulted from an economy which weakened consumer confidence and high global unemployment rates.
- Consumption of pneumatic materials decreased in the supply chain, resulting in lower prices for natural and synthetic rubber and other key commodities.
- Budgets for R&D and new technology investments are being cut to further important business functions.
- A permanent influence on practices in the tire industry is likely to be achieved by changing trends, such as working from home or e-commerce.
- Long-term consequences for global supply chains would be affected by industry production levels.
Technology – Innovation
Industry experts claim that the pneumatics made for cars, two and three-wheels do not have to bear the load as much as the commercial vehicle. Since the majority of car sales are in these segments, increased use of less dangerous raw materials like silica will help considerably reduce the amount of pollution.
Due to rapid technological improvements, automation is used by most manufacturing enterprises to improve efficiency and profitability. The introduction of rimless tires, green tires and the use of light weight elastomers and metals such as carbon fibers, alloy or composites as nickel aluminum bronze and manganese bronze in the production of tires would drive the growth of the world market in automotive tires as a result of technical developments in the global tire industry. Leading tire OEMs often make various types of tires with the application of nanotechnology and other technologies or software.