Global Tire (Tyre) Market Outlook, 2027

Global Tire (Tyre) Market Outlook, 2027

The Global tyre market is an allied market to the rapidly shifting automotive market. As vehicles are getting more efficient, infrastructure is getting smoother; the tyre market finds itself a suitable pedestal to grow upon. According to the report titled, “Global Tire Market Outlook, 2027”, published by Bonafide Research the global tyre market is expected to grow to more than 2700 Million tyres by the year 2027. The global tyre market report has been segmented on the basis of vehicle types they are used on which include vehicles such as passenger cars, light commercial vehicles, medium and heavy vehicles, 2 wheeler vehicles, 3 wheelers, and other vehicles including bicycles. The market is also categorized based on end-use demand which includes demand for replacement tyres and OEM demand for tyres. On the basis of design types, the tyre market is segmented as radial tyres and bias-ply tyres. In order to have a broader understanding of the global landscape of the tyre market, further segmentation has been made based on regions, countries, companies, and the sales channels through which the product is made available to the distributors and customers.

Increasing sales of passenger, luxury, and electric vehicles (EVs) on account of rapid urbanization and expanding purchasing power of individuals represent one of the major factors positively influencing the demand for tires around the world. In addition, the rising focus on driver and passenger safety and the growing number of fatal road accidents are catalyzing the demand for premium quality tires that have a longer operational life, enhanced stability and reliability, and high puncture resistance. Apart from this, key players are launching eco-friendly, lightweight, and airless three-dimensional (3D) printed variants. They are also focusing on recovering and recycling used tires to minimize their environmental impact and save a considerable amount of energy required to manufacture new ones. Besides this, there is a rise in the number of logistics and transportation activities to deliver packages on time. This, in turn, is propelling the market growth.

Furthermore, increasing numbers of farming activities in the agricultural industry are anticipated to create lucrative growth opportunities for the market. Many countries are implementing strict tire performance regulations, including fuel savings and wet grip-related braking distance reduction, in response to growing safety concerns. As a result, there is much potential for tire manufacturing businesses to develop tires that can comply with standards. As a result of increased technological breakthroughs, suppliers are developing extremely effective tires that improve automobiles' overall fuel efficiency. Self-inflating technology and Low Rolling Resistance (LRR) technology are used by tire manufacturers to enhance safety and increase fuel efficiency. These developments are fueling the market growth.
The manufacturers that make tires are developing a system called Contact Area Information Sensing (CAIS), which consists of a sensor mounted to the internal wall of the tire and monitors the sensor's interactions with the road's surface. The technology analyzes the state of the road to determine whether it is dry, wet, slushy, fresh snow, or icy, and then transmits that information in real-time to the driver via a digital screen. The ability to exchange data with other vehicles that are similarly networked would allow CAIS technology, which is currently used by tire manufacturers, to become more advanced. This might enable the vehicle to foresee the actions of the automobile in front. In the future, CAIS may connect air pressure data with air pressure sensors and provide information on tread wear. To improve performance and productivity on the one hand and to lessen the miner's exposure to risks, BKT has also implemented automated equipment and monitoring systems. The SPOTech (Satellite Performance Optimization Technology) monitoring system is designed to take measurements of variables such as average/maximum speed, cycle times, lateral/vertical/longitudinal forces, percent grade, and other relevant data that can be used to optimize haul road construction and resolve problems with tire operation such as uneven wear, belt contour separations, and heat buildup. These advancements in technology which provide better and convenience use to the consumer will drive the market in the forecast period.

Globally it has been observed that the different regions have different share patterns depending on the stage of the economy and the penetration of the automotive market and its allied tyre market. In highly developed regions in the globe, such as North America and Europe, where vehicle per 1000 inhabitants metric stands relatively higher than the rest of the world. In regions such as the Asia Pacific, which has become the hub for automotive manufacturing and assembly due to highly competitive labor rates, the productions, as well as sales of tyres, are growing rapidly. South America on the other hand is a major avenue for tyre production and assembly of automotive in the western hemisphere.

However, the South American markets are a little far from the Asian Pacific market which is poised with suitable demographics and economic outlook trends. However, a common characteristic of both these regional markets is that the global trend of using radial tyres is still penetrating these markets. Growing economic metrics like GDP per capita, personal disposable income in these regions suggest that their spending habits on the use of personal vehicles will be different from that in developed countries. Therefore the vehicle tyre consumptions on the basis of vehicle types also show slightly inconsistent patterns in some of the segments. However, irrespective of that, it has been observed that globally, passenger cars are the biggest driver for the global tyre market contributing to roughly 60% of the market size in value terms. However, due to the greater scope of penetration 3 wheelers and other vehicle tyres were the fastest growing tyre segment and are expected to continue a strong growth momentum by growing at a CAGR of more than 9% during the forecast period of 2022 to 2027.

COVID-19 Impact
The market was heavily influenced by the pandemic and the spread of the virus. Firstly the market experienced decline in demand with the shutting down of automobile production plants across the globe. Along with this, the travel restriction around the world caused in decreased wear and tear of tires which decreased the demand for replacement tires in the market. The market was heavily affected by the economic distress created by the pandemic. The fluctuation of prices for crude oil, an important raw material for tire manufacturing hampered the market significantly.

Key Players
Apollo Tires, Bridgestone, CEAT Tires, Continental, Giti, Goodyears Tires, Hankook, JK tires, Kenda Kumho, Maxxis International, Michelin, MRF, Nexen Tire Corp, Nokian Tires, 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: Global
• Base Year: 2021
• Historical year: 2016
• Forecasted Year: 2027

Regions & Countries covered
• North America (US, Canada, Mexico)
• Europe (UK, France, Germany, Italy, Spain, Russia)
• Asia Pacific (China, Japan, India, Australia)
• South America (Brazil, Argentina, Columbia)
• Middle East (UAE, Saudi Arabia, Qatar, South Africa)

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