Global Advanced Tire Market - 2022-2029

Global Advanced Tire Market - 2022-2029

Market Overview

The advanced tire market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX % during the forecast period (2022-2029).

Advanced tires are fitted with sensors that monitor variables such as strain, temperature, acceleration and air pressure to improve vehicle safety. Multi-chamber, chip-embedded, self-inflating or all-in-one tires are advanced tire technologies available. With real-time tire pressure monitoring, these technologies provide greater appropriateness and assistance to the driver, increasing the tire's sturdiness.

The focus on reducing carbon footprints is one of the significant reasons predicted to promote the growth of the advanced tire market in the forecast future. Furthermore, the increased desire for convenience and driver assistance is expected to fuel the advanced tire market's expansion. According to numerous statistics, poor road conditions and tire flaws substantially influence traffic accidents. As a result, advanced tires with a warning system for road conditions, maximizing control on poor surfaces. A lot of innovative tire sensor systems are in progress right now.

Market Dynamics

The global advanced tire market is driven by the need for technological advancements in tires.

Need for technological advancements in the tires

Advanced car technologies such as tire pressure monitoring systems and self-inflating tire technologies enhance the safety of vehicles. Advanced tire technologies, such as chip-embedded tires and self-inflating tires, significantly increase vehicle convenience. Furthermore, the technologies above help increase the tire's durability through real-time tire pressure monitoring. Advanced tires are equipped with sensors for monitoring quantities such as air pressure, temperature, acceleration, applied strain, wheel loading, friction and tread wear will enhance the reliability of tire control systems such as anti-lock braking systems.

In 2019, The new ABB FIA Formula E featured the most advanced tires to grace the all-electric series. For the 14-race 2019-20 championship, Michelin has embedded a sensor inside the Pilot Sport racing rubber. Michelin Track Connect for Formula E is the only connected solution adopted by an FIA-sanctioned race series. It enables tire pressures to be monitored reliably and automatically, whatever the temperature. The sensor is set in a container glued inside the tire.

Fluctuating raw material prices

Fluctuating raw material prices restrain the worldwide advanced tire market due to increasing input costs due to the low supply of natural rubber and oil prices. Furthermore, practically all essential materials are crude derivatives, making crude oil prices a factor. Furthermore, the raw materials required to make advanced tires account for nearly 75% of the total cost of manufacture, with synthetic and natural rubber being the most common.

Crude oil prices have been rising in recent years all across the world. As with any commodity or bond, the laws of demand and supply caused oil prices to change. As a result, synthetic rubber and other crude derivatives used in tire manufacturing are projected to grow in price in the future years.

COVID-19 Impact Analysis

The market for advanced tires has declined exponentially during the COVID-19 outbreak. According to the OICA report, the automotive industry faced a production decline of 16% in 2020, to less than 78 million vehicles, equivalent to 2010's sales levels. Europe as a whole witnessed a drop of over 21% on average. All contributing countries had sharp declines, ranging from 11% to 40%. Europe represented an almost 22% share of global production.

The negative effect of COVID-19 on the tire industry and its materials suppliers has been global, with the sector being shut down for much of H1 2020. In the U.S., there was a 25.5% total reduction in passenger tire production with full stoppages in March, April and May. COVID-19 has had a global impact on the tire business and its materials suppliers, with the industry being closed for much of H1 2020. The total reduction in passenger tire production in the U.S. was 25.5 percent, with full stoppages in March, April2020-2029 May.

With an estimated value of $150 billion and 2.3 billion units manufactured in 2020, the tire business is a key contribution to the world economy. Because of COVID-19, these figures were around 7% lower than in 2019. Although the demand is expected to increase in 2021, supply chain interruptions have produced raw material challenges for manufacturers, causing production ramp-up to be impeded.

Segment Analysis

The advanced tire market is segmented into passenger vehicles and commercial vehicles by vehicle.

Growing sales and production of cars are expected to boost the market for advanced tires

Various regions have boosted their production and import & export of passenger vehicles, intensifying the advanced tire market. According to the European Automobile Manufacturers Association, 23% of passenger cars produced worldwide are made in Europe. The European automobile industry exports 5,803,090 motor vehicles every year with a trade balance of 2,091,919 units. The significant tire sales in the aftermarket have also boosted the demand for the advanced tire market in passenger cars.

The manufacturers are also tapping into innovations towards advanced operations. For instance, in 2021, Continental has launched its innovative Conti GreenConcept tire concept. It leverages current and emerging technological approaches to sustainable engineering tires for passenger cars as another example of Continental's wide-ranging activities in pursuit of sustainability. The company's integrative and sustainable concept aims to minimize resource consumption across every tire's value chain link.

Geographical Analysis

Essential economy from tire production sector is expected to boost the sales in North America

The significant need for all types of vehicles will boost the advanced tire market in the region. For example, in 2020, the auto industry in the U.S. sold around 14.5 million light vehicle units. The figure includes retail sales of about 3.4 million autos and over 11 million light truck units. Moreover, during 2018, almost 896,007 personal vehicles were sold in California, ranking first in U.S. car sales. Approximately 200 million replacement passenger tires are purchased in the U.S. annually. Retail sales of automotive part and tire stores in Canada grew by a significant 21% in 2020 compared to 2019. The region has witnessed the rising demand for minivans, buses and light and heavy trucks. For instance, Canadian customers purchased around 1.2 million commercial vehicles in 2020, which will be vital for market growth.

According to U.S. Tire Manufacturers Association (USTMA), the disruption in U.S. tire manufacturing can cause harm to the economy and threaten national security. The country needs a consistent tire supply for maintaining its commerce needs. An economic impact study done by USTMA found that the tire manufacturing industry promotes around 737,000 U.S. jobs and $150 billion in total economic output.

In 2021, Bridgestone Americas planned to expand its Americas Technology Center campus to have a new vehicle dynamics test track to develop future tire technologies. The tire testing facility will support ongoing research and play an essential role in tire development across the Akron campus. The company has almost completed its advanced tire production center, slated to open next summer, where Bridgestone will manufacture Firestone race tires for the NTT INDYCAR SERIES.

Competitive Landscape

The advanced tire market is highly competitive with the presence of global companies. In addition, some of the players contributing to the market's growth are Bridgestone Corporation, Continental AG, Michelin, The Goodyear Tyre & Rubber Company, Yokohama Tire Corporation, Sumitomo Corporation, Nokian Tyres plc, CEAT Ltd., Toyo Tire Corporation, Hebei Huichao Machinery Parts Co., Ltd and others. The players are adopting various techniques to expand the market demand, such as collaborations, acquisitions and expansions, contributing to the global growth of the advanced tire market.

Bridgestone Corporation

Overview: Bridgestone Corporation is one of the largest tire and rubber companies globally. Headquartered in Tokyo, the company employs over140,000 people globally and conducts business in almost 150 countries and territories worldwide. Bridgestone offers a diverse product portfolio of advanced solutions and premium tires backed by innovative technologies.

Product Portfolio: The company provides a wide range of advanced tires to customers, such as tires for passen­ger cars, trucks and buses, const­ruction and mining vehicles, motorcycles, etc.

Key Development: In 2019, In April 2019, Bridgestone took part in a space exploration mission with the Toyota Motor Corporation and Japan Aerospace Exploration Agency. In the recent development project, the company is focused on using its expertise in technology and tire performance to develop an advanced tire solution that delivers traction on the harsh surface of the moon.

Why Purchase the Report?

Visualize the advanced tire market segmentation by type, material, vehicle and region, highlighting the key commercial assets and players.

Identify commercial opportunities in the advanced tire by analyzing trends and co-development deals.

Excel data sheet with thousands of advanced tire market-level 4/5 segmentation points.

PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.

Product mapping in excel for the key product of all major market players

The global advanced tire market report would provide an approximate 61 market data table, 54 figures and 200 pages

Target Audience

Buyers

Industry Investors/Investment Bankers

Governments

OEM

Aftermarket

Education & Research Institutes

Research Professionals

Emerging Companies

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