Asia-Pacific Tire (Tyre) Market Outlook, 2027

Asia-Pacific Tire (Tyre) Market Outlook, 2027

The Asia-Pacific tyre market is a rapidly developing market. As the economies in the region are rapidly growing and infrastructure development is taking place throughout the region; the Asia-Pacific tyre market finds itself on a suitable pedestal to grow upon. As per the research conducted by Bonafide Research, under the title, “Asia-Pacific Tire Market Outlook, 2027”, the market is evaluated to be worth more than USD 80 Billion as of 2021 and is expected to grow at a CAGR of more than 5% in terms of volume during the period of 2021 to 2027. In order to assess and study the regional trends and patterns in the Asia-Pacific tyre market, the research has been approached by looking at the market through appropriate segments and classification. The segments that were made during the comprehensive evaluation of the markets were based on vehicle types, end-use demand, and the demand of tyres on the basis of their construction design. The vehicle types include vehicles such as passenger cars, light commercial vehicles, medium and heavy vehicles, 2 wheeler vehicles, 3 wheelers, and other vehicles including bicycles. The categorization based on end-use demand includes demand for replacement tyres and OEM demand for tyres. Based on design types, the tyre market is segmented as radial tyres and bias-ply tyres. To have a broader understanding of the landscape of the tyre market in Asia-Pacific, further segmentation has been made on the basis of countries, and the sales channels through which the products are made available to the distributors and customers.

The tire industry in the Asia-Pacific is quite vast and projecting swift expansion in the coming years due to improving economic conditions & living standards and growing inclination toward private ownership of vehicles. Besides, the abundance of raw materials like rubber & cheap labor is another crucial aspect attracting several prominent tire manufacturers to set up their production facilities across the region and contribute to the notably growing tire industry during the forecast period. Besides, the mounting demand for second hand vehicles, especially across countries like India, Malaysia, & Indonesia, is also anticipated to drive the market in the coming years owing to the growing need for replacement tires entwined with greater awareness about timely maintenance of tires & vehicles. Moreover, with various ongoing & upcoming construction projects associated with roads, bridges, tunnels, & airports, among others, in line with extensive infrastructural developments across different countries, the demand for heavy commercial vehicles & construction equipment is surging at a rapid pace and, as a result, positively impacting the overall market growth.

The increasing demand for tires in the Asia Pacific region is also being driven by the increasing automobile production along with the expanding fleet size. In addition to this, the rising consumer living standards supported by their growing disposable income levels have also boosted automobile sales, thereby propelling the demand for tires in the region. Furthermore, the increasing usage of both light and heavy commercial vehicles in logistics have driven the demand for the market in recent years. Additionally, the growing popularity of next-generation and high-performance tires for luxury and premium cars is also driving the market growth. Apart from this, the increasing demand for replacement tires owing to the large consumer base of passenger cars and the high replacement rate of tires after certain usage limit, is further bolstering the demand of tires in the region.

The Asia-Pacific tyre market is majorly driven by China, Japan, and India having a combined share of little shy than 65%. Australia contributes the lowest share in the overall Asia-Pacific tyre market as of 2021. As many of the major national markets in the region are rapidly growing, Japan is the only market that is showing signs of maturity. Japan grew at a CAGR of roughly 2% during the historical period of 2016 to 2021. It has been further forecasted that its tyre market will be progressing towards maturity by growing at a CAGR of little over 3% during the 2022 to 2027 period. However, during the same period, the rest of the Asia-Pacific regional markets combined excluding the major economies are projected to be registering a growth rate of more than 9%. As of 2021, it was derived that about 134.67 Million units of 2 wheeler tyres were sold in the region, making it one of the major drivers of the tyre market in the region. 3 wheeler and other tyres are expected to be the fastest-growing category during the 2022 to 2027 period, expected to grow at a CAGR of more than 11%. As the region is a major global hub for vehicle manufacturing and assembly, the OEM demand for tyres is more promising in the Asian Pacific market than anywhere else in the world.

COVID-19 Impact
The advent of Covid-19 in 2020 had a decelerating effect on most industries, and the automotive & tire industries across Asia-Pacific were no exception. The tire industry got catastrophically affected when governments of different regional countries imposed stringent movement restrictions & lockdowns to curb the spread of this dreadful disease. The leading players in the industry faced several challenges like disruptions in the supply chain for raw materials, hampered transportation & logistics, shortage of labor, increased demand & supply gaps, & shutdown of manufacturing units. Consequently, the prominent players witnessed substantial financial losses, which led to a temporary decline in the growth of the tire market. On the other hand, while the agriculture sector remained operational amidst the crisis, the demand for agriculture equipment & tires escalated swiftly and, in turn, projected a temporary hike in the market.

Key Players: Apollo Tires, Bridgestone, CEAT Tires, Continental, Giti, Goodyears Tires, Hankook, JK tires, Kenda Kumho, Maxxis International, Michelin, MRF, Nexen Tire Corp, Pirelli, Sailun Group Co., Ltd, Sumitomo Rubber Industries, Titan International , Toyo Tire Corporation, Triangle Tire Co, Zhongce Rubber Group Co, Yokohama, Doublestar Tire, Linglong, Nankang

Considered in the report
• Geography: Asia Pacific
• Base Year: 2021
• Historical year: 2016
• Forecasted Year: 2027

Countries covered
• China
• Japan
• India
• Australia
• Rest of Asia-Pacific

Aspects covered in the report
• Market Size by Value (2016-2027F)
• Market Size by Volume (2016-2027F)
• Market Share by Vehicle Type
• Market Share by End Use
• Market Share by Design
• Market Share by Sales Channel
• Market Share by Country

The approach of the report:
We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

Intended Audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Automotive and Transport industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.