Tire Materials Market

Tire Materials Market: Consistently Increasing Tire Replacement Rate to Benefit Revenue Growth: Global Industry Analysis 2013 - 2017 and Forecast 2018 - 2028

  • 2019-03-22
  • REP-GB-9242
  • 52 Tables
  • 172 Figures
  • 352 pages
  • Format: PDF/PPT/Excel

An Incisive, In-depth Analysis on the Tire Materials Market

This study offers a comprehensive, 360 degree analysis on the Tire Materials market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Tire Materials market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.

Global Tire Materials Market – Key Research Findings

  1. Global tire materials market value in 2018 – Nearly US$ 67 Bn 

  1. Tire materials market revenue estimated to expand at a moderate 4% CAGR over 2018–2028 

  1. In terms of consumption, East Asia and South Asia are anticipated to register high value and volume growth in the tire materials market.

    • Increasing Tire production and rising tire replacement activities in countries, such as China, India and Brazil, is the key driving factor for the growth of the tire materials market.

    • Moreover, easy availability of materials, low labor cost, and lenient environmental and government regulations in these regions are encouraging the tire manufacturers to expand their manufacturing facilities in these regions, which in turn, is expected to drive the demand for tire materials. 

  1. North America and Europe are estimated to register moderate growth in the tire materials market over the forecast period.

    • Slowdown in automotive production and availability of economic tires imported from China are key factors responsible for moderate growth of tire materials market in these regions, despite predominance of key tire manufacturers. 

  1. Silica has been widely used as a reinforcing filler material, effectively replacing carbon black.

    • Tire makers have switched to silica-made tires to cut down rolling resistance by 20% and increase fuel efficiency by 5%. Road transport contributes ~20% to CO2 emissions in the EU and other developed countries. Thus, reducing emission has been critical to reducing greenhouse effect and the resulting climate change

    • The adoption of silica as a reinforcing filler material for the development of green tires reduces the CO2 emissions by almost 7%.

  2. In recent years, a serious downfall in tire retreading activities has been registered across the globe

  • Retread tires has significant benefits that impact global warming, resource reduction, COand particle emissions and even land usage.

  • The retread market has continued to decline in recent years with more ultralow-cost tires being purchased that are generally used only once. The number of retreaded tires dropped to 14.3 million in 2017 from 15.3 million in 2014

Top 3 factors driving the growth of Tire Materials Market

Expanding Vehicle Parc and Increasing Automotive Production

Tires are an important part of the automobile industry and thus, production and sales of vehicles directly affect the dynamics within the tire industry. Over the recent past, the automotive industry has registered significant growth of 3%-3.5% and is expected to grow at the same rate over the projected period. This growth is expected to be comparatively higher in Asian countries, such as China and India, which can be attributed to better economic conditions and growing inclination of population towards comfort-travelling, and this in turn, is expected to fuel the demand for tires.

In a vehicle, a tire is one of those parts that must be replaced frequently -- after every 2-3 years -- as tires experience maximum wear and tear. Further, it is estimated that in the FY2017, the global vehicle parc was about 1.3 billion. Thus, it can be easily concluded that the growing vehicle parc and production will augment the market of automotive tires. Rising automotive production and ever-increasing automotive fleet size will also increase the consumption of tires and increasing tire consumption will up surge the demand for tire materials

Shifting Trends in the Global Demographics

According to Federal Reserve and United Nations research forecast, the middle class population will grow worldwide from 5 percent to 25 percent between 2005 and 2030. Increasing middle class population coupled with rising urbanization in developing countries will increase the number vehicle owners as many people will be able to afford a vehicle.

Apart from this, increasing youth population has also led to increased sales of automotive, which is a positive sign for the tire materials market. Similarly, changing lifestyle and increased standard of living have increased the adoption of high performance tires as well as branded tires and thus, increasing demand for such tires will positively impact the tire materials market. Increasing number of vehicle owners will push the growth of both original equipment manufacturers (OEM) as well as aftermarket segments and thus, growing demand for tires will give a boost to the tire materials market.

Robust Industrial Growth Driving HCV and LCV Sales

Due to the flourishing industrial sector, including manufacturing, mining, construction, utilities and oil & gas, the sales of HCVs and LCVs has increased in the global market and is expected to further increase during the forecast period. Due to this, many tire companies are entering the market in the Asia-Pacific and MEA regions with the hope of capitalizing on increased sales and expanding their geographical footprint.

Companies in the tire materials market are focusing on developing products that comply with safety norms of the local market. Through effective research, development and innovation, global manufacturers will find opportunities to capture the unexploited market and increase their market share. Thus, increasing tire production activities to cater to this increasing demand will positively influence the tire materials market

Global Tire Materials Market Structure:

  • Synthetic rubber, natural rubber, and filler materials, such as Silica or specialty silica, are prime tire materials used in the production of tires. The market pertaining to such materials is highly consolidated and the key manufacturers hold the maximum share in these raw materials market

  • Long term supply agreements between key raw material suppliers engaged in synthetic rubber, natural rubber or silica market and the tire manufacturing companies is the prime factor helping the global raw material manufacturers to dominate the respective markets

  • On the other hand, other raw materials markets, such as Carbon Black, are moderately fragmented owing to the presence of unorganized local market players. This will have a decent impact on respective regional markets

  • Tire Materials manufacturers are emphasizing on expansion of their production capabilities to sustain in the market and meet with increasing market demand 

This tire materials market research analysis by Future Market Insights (FMI) on the global tire materials market delivers a ten year forecast of the tire materials market for the forecast period 2018-2028. To evaluate the market value of Tire Materials, FMI considered FY2017 as the base year and market values have been determined by keeping in mind the trends, driving factors and important developments by key market participants.

Raw materials used in the manufacturing and processing of tires are known as tire materials, a combination of different raw materials and processes used by different tire manufacturers leads to different performance characteristics in different tires. Tire materials include different types of materials, such as natural rubber, synthetic rubber, carbon black, silica, steel and textile cords, plasticizers, and anti-degradants.     

This global tire materials market report consists of more than 20 sections that describe market numbers in terms of volume in Kilo tons (KT) and value in US$ Mn at regional and global levels. The first section of the global tire materials Market report covers executive summary that elaborates on the trends being witnessed in the market from demand side as well as supply side.

The following section covers the global tire materials market introduction, including market definitions of the segments considered, market taxonomy by material type, tire type, vehicle type and regions, and other information relevant to the market.

In the next section of the global tire materials market report, readers can find information about market viewpoints, including macroeconomic factors, forecast factors, porter’s analysis, value chain analysis along with the list of distributors, manufacturers and end-users, import-export analysis of tire materials and supply-demand scenario of tire materials.

The next section of the global tire materials market report comprises the global industry analysis by volume and value, along with pricing analysis for North America, Middle East & Africa, Europe, East Asia, South Asia, Oceania, and Latin America. The Fifth section of the global tire materials market report includes qualitative as well as quantitative analysis of the tire materials market for every segment of the market.

This tire materials market report focuses on analysing the market opportunities and getting a detailed understanding of the tire materials market. The tire materials market report elaborates on the regional analysis, market dynamics and market structure and competition landscape of the tire materials market for the next ten years i.e. 2018-2028. 

Each section of the tire materials market report includes qualitative and quantitative assessment of the market on the basis of historical data or developments and facts and key opinions collected from various end-use industry participants through primary interviews, annual reports, newsletters, press releases, etc.

The report on the global tire materials market analysis studies some of the major players in the tire materials market, such as Solvay SA, Evonik Industries AG, Cabot Corporation, Birla Carbon, Exxon Mobil Corporation and Lanxess AG, among others.

Research Methodology

The preliminary stage of research analysis included company mapping pertaining to the each type of tire material, which is necessary for understanding the market scenario. Further, the composition of each type of tire was determined through primary and secondary research. Further stages of research involved counter validation of data collected using top-down and bottom-up approaches. To analyse the global tire materials market trends and opportunities for Tire materials manufacturers, the global tire materials market has been segmented on the basis of material type, tire type, vehicle type and regions.   

For the analysis of consumption, FMI considers FY 2017 as the base year. Basic data was collected from manufacturers’ annual reports, newsletters, public reports published by government as well as private agencies, World Bank’s sources, Trade Map sources and by tracking tire production activities, etc. Further, the collected data was validated through primary research techniques that involved manufacturers, distributors, end-user procurement agencies and regional representatives.

For final analysis of market data, FMI has considered demand side as well as supply-side drivers and trends in various regional markets. Analysts have forecasted the market data on the basis of key developments, regional trends and production – consumption scenario of tire materials.

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