The global tire materials market is estimated to create an incremental opportunity of USD 99.99 Billion by the end of 2028. Shifting preference towards the production of sustainable green tires is expected to complement the growth in the market.
| Attribute | Details |
|---|---|
| Tire Materials Market Estimated Size in 2022 | USD 78.96 Billion |
| Tire Materials Market Projected Size in 2028 | USD 99.99 Billion |
| Tire Materials Market Historical CAGR (2013 to 2021) | 3.5% |
| Tire Materials Market Value-based CAGR (2022 to 2028) | 4% |
As per a detailed study by Future Market Insights (FMI), the global tire materials market is projected to reach USD 78.96 Billion by 2022, exhibiting growth at a CAGR of 4% during the forecast period.
Among the tire type, the retreated tires segment is anticipated to account for a significant share in the global market. East Asia is expected to register the fastest growth in the market, accounting for more than 28.9% of the total revenue share between 2022 and 2028.
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| Market Statistics | Details |
|---|---|
| H1,2021 (A) | 4.0% |
| H1,2022 Projected (P) | 3.9% |
| H1,2022 Outlook (O) | 3.6% |
| BPS Change : H1,2022 (O) - H1,2022 (P) | (-) 30 ↓ |
| BPS Change : H1,2022 (O) - H1,2021 (A) | (-) 40 ↓ |
FMI provides a half-yearly comparison analysis and review of market growth rates for Tire Material. Certain innovation aspects, such as new product development and innovations in automotive industry, had a substantial influence on the market. Increased sales of electric vehicles, as well as growing demand for customized product is expected to uplift the product sales.
The global market for Tire Material is witnessed a growth rate of 4.0% during first half of 2021. However, this growth varies across several regions all over the globe, with certain developing markets recording higher growth rates of near to 5.0%.
Thus, leaving the gap of 30 BPS points between expected and projected growth during H1 2022. Also, a decline of 40 BPS is also observed between H1, 2022 (O) and H1, 2021 (A) However, when compared to historical CAGRs production of automobiles has declined at steady pace. However, high vehicle PARC of comparative old vehicles is expected to promote the sales of tire materials sales in aftermarket.
Rubber, fillers, cables, process chemicals, and other polymers used in tire manufacture are examples of tire materials. As a result, rising tire manufacturing as well as increased tire replacement and retreating operations in nations like India, China, and Brazil are expected to improve sales in the next years.
Demand in the global tire materials market totaled USD 75.85 Billion in 2021, expanding at a CAGR of 3.5% between 2013 and 2021. As per FMI, sales of tire materials are estimated to rise at 4.10% year-over-year in 2022.
Tire materials are polymers used during manufacturing tires such as rubber, fillers, cords, process chemicals, and others. Hence, growing tire production and increasing tire replacement & retreating activities across countries such as India, China, and Brazil are projected to boost sales in the forthcoming years.
In addition to this, growing emphasis on the introduction of novel high-performance and ultra-high-performance tires is anticipated to bolster the sales of tire materials. As per FMI, tire materials accounted for more than 37% of the revenue share in the global tire market in 2020.
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Increasing customer inclination towards comfort-traveling and the introduction of advanced automobiles has resulted in a significant rise in sales of automotive vehicles such as passenger cars and commercial vehicles.
For instance, according to the India Brand Equity Foundation, around 2.71 Million passenger cars, 15.11 Million two-wheelers, and 0.56 Million commercial vehicles were sold across India in the year 2021. In addition to this, rapidly growing automotive resale market and increasing tire replacement and retreating activities in older vehicles are augmenting the growth in the market
As per FMI, the sales in the global tire materials market are expected to expand by 1.31x over the forecast period.
With rising concerns regarding sustainability and growing vehicular emission, governments in several countries are increasingly focusing on implementing numerous emission norms for automotive industry players to curb the surging emission rate.
For instance, the European Union has implemented the Tire Energy Label, mandating all the tire manufacturers to label every single tire on the basis of standards such as eco-friendliness, noise levels, wet surface braking, and fuel efficiency.
Thus, leading manufacturers are focusing on using sustainable materials for manufacturing tires such as natural rubber, silica, and others. This is expected to bolster the sales of eco-friendly tire materials in the market.
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Surging Demand for High Performance Tires to Bolster the Sales of Tire Materials
FMI states that the USA is projected to exhibit the fastest growth in the North America market through 2029, supporting the region to account for over 24.2% of the tire materials demand by 2022.
Increasing automotive sports activities and growing interest in motor racing events such as NASCAR, Formula 1, MotoGP, and IndyCar is spurring demand for ultra-high performance tires. Thus, leading tire manufacturers are using high-performance materials such as carbon black, synthetic, steel wire, and others to manufacture tires with excellent durability, which is in turn, boosting the USA market.
Growing Production of Automotive Vehicles to Augment the Sales of Tire Compound
As per Future Market Insights, Germany is expected to register growth at a robust CAGR in the Europe tire materials market between 2022 and 2028.
Growing production of automotive vehicles is a primary factor driving the growth in the market. According to the Federal Road Transport Authority (KBA), nearly 3.60 Million passenger cars, 1.68 Million motorcycles, and 0.45 Million of commercial vehicles were manufactured across Germany in 2019.
This is expected to propel the demand for all the automotive components including tires, thereby fueling sales of tire compounds in Germany. The Europe tire materials market will account for nearly 20.1% of the total revenue share in 2022.
Increasing Introduction of Advanced Eco-friendly Tires to Fuel the Tire Materials Demand
Japan is forecast to emerge as an attractive pocket in the East Asia market, assisting the region to account for nearly 28.9% of the tire material sales by the end of 2022.
With increasing implementation of stringent norms and standards regarding the adoption of sustainable tires and rising environmental concerns, prominent companies in the market are focusing on launching eco-friendly tires.
For instance, Bridgestone, a Japanese multinational tire manufacturer launched its new eco-friendly range of tires under the brand name Ecopia - EP850 for SUVs and EP150 for passenger cars. These tires provide 10% better fuel efficiency as compared to conventional ones. A slew of such product launches is estimated to bolster the demand in the Japan market.
Rising Governmental Initiatives for Green Tires Adoption to Favor the Tire Materials Market Growth
Based on material type, the fillers segment is expected to register robust growth in the global tire materials market over the forecast period 2022 to 2028.
Implementation of labeling initiatives and rising environmental concerns have led to a rise in the production of eco-friendly or green tires. In addition to this, numerous initiatives taken by regulatory bodies for manufacturers and consumers with a preference towards performance tires are bolstering the use of silica as an effective replacement carbon black for filler materials. This is expected to favor the growth in this segment.
Shifting Customer Preference Towards Pneumatic Tires to Elevate the Tire Materials Sale
On the basis of tire types, the global tire materials market is segmented into solid tires, pneumatic tires, and retreated tires. FMI projected the pneumatic tires segment to expand at a considerable pace over the forecast period.
Rising customer preference towards using pneumatic tires, owing to their favorable attributes such as fuel economy, superior traction, braking efficiency, and capability to allow for a smoother ride experience with lesser shaking and bumping is spurring the sales of tire materials across the segment.
Passenger Car Segment to Garner Maximum Tire Component Sales
In terms of vehicle type, sales in the passenger cars segment are expected to remain high over the forecast period.
Increasing government-backed investments in the production of passenger cars, and the introduction of advanced passenger car models are the factor accelerating the sales of passenger cars. In addition to this, increasing introduction of eco-friendly and ultra-high-performance tires for passenger cars is facilitating the sales of tire component in the segment.
Key players operating in the global tire materials market are adopting inorganic strategies such as collaboration, acquisition, merger, agreement, and partnership with other companies to expand their production capacity and increase their market share. For instance:
| Attribute | Details |
|---|---|
| Forecast Period | 2022 to 2028 |
| Historical Data Available for | 2013 to 2021 |
| Market Analysis | USD Billion for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; Middle East & Africa |
| Key Countries Covered | USA, Canada, Germany, UK, France, Italy, Spain, Poland, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Vietnam, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, South Africa |
| Key Segments Covered | Material Types, Tire Types, Vehicle Types and Region |
| Key Companies Profiled | Solvay SA; Lanxess AG; Exxon Mobil Corporation; JSR Corporation; Cabot Corporation; Birla Carbon; Evonik Industries AG |
| Report Coverage | Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The tire materials market is expected to surpass a valuation of USD 78.96 Billion in 2022
The global tire materials market grew at a 3.5% CAGR over the past assessment period 2013 to 2021.
The tire materials market is expected to register steady growth, expanding at 4.0% CAGR between 2022 and 2028.
East Asia currently leads the global tire materials market, holding more than 28.9% of the total market share.
North America tire materials market will hold a significant share accounting for nearly 24.2% of the revenue share in 2022.
In terms of vehicle type, the passenger car segment is expected to account for maximum sales in the global tire materials market through 2028.
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