The automotive tire market is an ever-increasing space due to the constant growth in the automotive industry. Production and sales of automobiles is rising steadily, led by the demand for efficient vehicles. Simultaneously, the proliferation of electric vehicles is increasing too. These trends are likely to continue in the future, leading to strengthening market demand throughout the forecast period. Increasing numbers of OEMs and aftermarket vendors create huge market demand.
According to Market Research Future (MRFR), the global Automotive Tire Market is expected to accrue over USD 260 BN by 2023. During the review period (2017-2023), the market would register a phenomenal CAGR, states MRFR. The year 2017, had been a profitable year for automotive tire manufacturers with much of the growth coming from emerging markets in the Asia Pacific (APAC) region.
The demand for the high-performance tire is growing due to its extended uses to mid-range vehicles. Previously, high-performance tires were exclusively used in premium-priced cars, but now they are used in mid-range vehicles as well, due to the stringent automotive safety regulations. This surge of the high-performance tire segment is also substantiating the growth of the market.
Over the past decade, automotive tires have evolved significantly witnessing further betterments in their quality due to the technological advancements. This, in turn, has escalated the market to ascending heights and increased their sales as well. In emerging markets, the growth trends remain influenced by the large pools of price-sensitive consumers, which continue to prompt manufacturers to focus on lower-priced tires segments.
Other factors propelling the market, include rapid urbanization, industrialization, and growing economic conditions. Substantial investments transpired by key market players into the R&D activities to bring more novelties in the product & technological innovations, are resultantly, driving the market.
Conversely, challenges in the introduction of various government regulations are hindering the market growth. Also, volatility in the prices and demand-supply gap in the raw materials required for the production of automotive tires is a major challenge manufacturers are confronting at present.
Segmentation
The report is segmented into five key market dynamics to widen the scope of understanding,
By Type : Radial and Bias.
By Section Width : <200 Mm, 200-230mm, and >230mm.
By Vehicle Type : Passenger Car and Commercial Vehicle, among others.
By End Market : OEM and Aftermarket, among others.
By Regions : Europe, North America, Asia Pacific, and the Rest-of-the-World.
Regional Analysis
The Asia Pacific would retain its dominance over the global automotive tire market with the largest market share. The expansion of the auto-manufacturing industry in APAC countries such as China, Japan, and India are supporting the growth of the regional market. Moreover, the increasing production of passenger cars and two-wheelers is driving the market demand in the region.
Factors, such as the initiatives to increase the amount of FDI and policy reforms and the improving economic conditions in the region are influencing the sales of automobiles in the region, positively. The APAC region already has a huge number of tire manufacturing plants due to the large rubber production. Also, the availability of cost-competitive labor and raw materials required for the production is fostering the regional market growth, prompting the leading market players to shift their manufacturing units to this region.
After the APAC, North America is the most profitable market for automotive tire market, globally. The market would witness a CAGR over 4.46% throughout the forecast period. Automakers in the region would continue to record an increase in sales of the passenger cars and commercial vehicles in the years to come, fetching more investments in the region.
Competitive Analysis
Highly competitive, the automotive tire market appears to be fragmented due to the presence of several well-established players. These players incorporate strategic initiatives such as collaboration, acquisition, expansion, and product & technology launch in order to maintain their market position. These players are committed to deliver reliable, leading-edge products, and services.
Major Players
Players leading the global automotive tire market, include Bridgestone Corporation (Japan), Michelin Group (France), Continental AG (Germany), Toyo Tire & Rubber Co., Ltd (Japan), The Goodyear Tire & Rubber Company (US), Hankook Tire Co., Ltd. (South Korea), Cooper Tire & Rubber Company (US), Pirelli (Italy), Rubber Co. Ltd (Japan), Yokohama, and Sumitomo Rubber Industries, Ltd. (Japan), among others.
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