Global Tire Materials Market - 2023-2030

Global Tire Materials Market - 2023-2030

Market Overview

The global tire materials market reached US$ XX million in 2022 and is projected to record significant growth by reaching up to US$ XX million by 2030, growing at a CAGR of XX% during the forecast period (2023-2030).

A tire is a crucial component of the car that accommodates a footprint designed to support the car's weight. Most tires, including those on cars and bicycles, are pneumatically inflated structures that provide a resilient cushion to absorb shock as the tire rolls over surfaces with sharp edges. Synthetic rubber, natural rubber, fabric, steel cords, carbon black and other chemical compounds are used to make tires. Butadiene rubber and styrene-butadiene rubber are the two main synthetic rubber polymers used to make tires.

These rubber polymers are combined with natural rubber in rubber products. Halogenated polyisobutylene rubber (XIIR), also referred to as halobutyl rubber, is another important synthetic rubber. This material makes the inner liner impermeable, which aids in maintaining tire pressure. Tires made from rubber and additional chemicals have high durability and can be used on any agricultural or passenger vehicle. Tires are used in numerous vehicles, such as automobiles, motorcycles, buses, trucks and heavy machinery.

Market Dynamics

The growth in tire manufacturing and the rising demand for tire replacements from emerging nations are the main factors driving the global tire material market. The focus in tire production has shifted to carbon black, wire and synthetic rubber due to the demand for containment and traction in vehicles. The tire-making process has involved the manufacturing and testing materials by the automotive industry. This factor has boosted demand for tire materials and fueled the expansion of the tire material market.

The market is also fueled by rising auto manufacturing and production rates, as well as an increase in demand for passenger cars on a global scale. OICA estimates that 80 million new commercial and passenger vehicles will be produced in 2021, representing a 3% CAGR over the year before. The market is anticipated to be driven by an increase in the average vehicle lifespan and rising safety and maintenance concerns.

Additionally, it is anticipated that increased attention on developing high-performance and ultra-high-performance tires will support tire material sales during the forecasted period.

Growing adoption of low rolling resistance (LRR) tires among consumers to drive the tire materials market globally

The global demand is anticipated to be driven by manufacturers' growing use of Low Rolling Resistance (LRR) and self-inflating technology due to growing consumer awareness of fuel efficiency. LRR tires decrease the rolling effort needed and wasteful energy. All manufacturers were compelled to use these tires due to mounting pressure to increase fuel efficiency. Low rolling resistance tires are made to decrease the energy loss as a tire rolls, which lowers the required rolling effort. Tires with low rolling resistance have the potential to be significantly more fuel-efficient than regular tires. According to U.S. Department of Energy research, low-rolling resistance tires can help consumers save up to 10% on fuel. However, the average vehicle only saves about 3% in fuel. Therefore, the factor mentioned above uplifts the demand for tire materials at a global scale.

Increased Use of advanced eco-Friendly tires to increase the demand for tire materials

Rising emphasis on reducing vehicular emissions is expected to drive the sales of eco-friendly tire materials. Governments in several countries are focusing more on implementing various emission standards for players in the automotive industry to reduce the surging emission rate due to growing concerns about sustainability and rising vehicular emissions. For instance, the Tire Energy Label was implemented by the European Union, which requires all tire manufacturers to label every tire as per the criteria like fuel efficiency, wet surface braking, noise levels and eco-friendliness. As a result, top manufacturers emphasize using sustainable materials like silica and natural rubber to produce tires. This is anticipated to increase market demand for environmentally friendly tire materials.

However, ongoing fluctuations in raw material prices and ineffective supply and demand management are some restraints that could hinder the market from expanding.

COVID-19 Impact Analysis

The tire industry was primarily shut down due to COVID-19 and its raw materials suppliers were also negatively influenced. With complete shutdowns, passenger tire production in the US decreased by 25.5%. Preliminary figures from the US Tire Manufacturers Association show that production was at its lowest level since 1955, with a loss in production of light and medium truck tires of 18.5% and 21%, respectively. Major tire manufacturers have been greatly impacted economically by COVID-19, with the majority reporting a sharp decline in earnings. For instance, after 60 years, Bridgestone reported its first net loss. Due to the pandemic's financial impact, many tire manufacturers have reviewed their operations strategically. Hence, the tire industry has witnessed a significant downfall in sales during the pandemic, which impacts the global tire materials market.

Segment Analysis

The global tire materials market is segmented based on type, vehicle type and region.

The ability to offer features such as tear & abrasion resistance and slip resistance propels the demand for elastomers in the tire materials market

Owing to properties such as abrasion and tear resistance and slip resistance, the elastomers segment is anticipated to hold the largest market share over the forecast period. Natural rubber and synthetic rubber are both used in elastomers. The need for transportation and rising global vehicle sales are attributing to the expansion of the global tire materials market. Furthermore, elastomer as a type segment dominates the global tire material market.

Geographical Analysis

The global tire materials market is segmented based on type, vehicle type and region.

Higher consumption and production in countries like China and India lead to the expansion of the tire materials market in the Asia-Pacific

Owing to the easy raw material availability and skilled & cheap labor costs, Asia-Pacific is producing the tires in a larger amount. Therefore, the market in this region is expected to dominate the global tire materials market. According to OICA, in the year 2021, Asia-Pacific manufacturers the 58.3% of the total global automotive production, with China at the top, Japan at 3rd and India at 4th position. The higher automotive production in the region generates a huge demand for tire materials and is expected to bolster future demand.

As per IRSG (Internation Rubber Study Group), it is estimated that the total production of tires in the world in 2021 was 16.87 million tons, an increase of 9% from the previous year. By region, it is estimated that Asia-Pacific accounts for 70% of the total world’s tire production, out of which China and Japan account for 41% and 6% of the world’s production, respectively. Therefore, the stats mentioned above depict that the Asia-Pacific tire market is driving the global market. Hence the Asia-Pacific will present an excellent growth prospect for the tire materials manufacturers in the region.

Competitive Landscape

Manufacturers are making several strategic decisions in the global tire materials market to develop effective technologies and increase production rates to meet market demand. The primary focus areas include product launches, collaborations, strategic mergers and acquisitions. The key players in the market are Lanxess, Cabot Corporation, Phillips Carbon Black Limited, The Goodyear Tire and Rubber Company, Sinopec, Kurarey, JSR Corporation, Thai Carbon Black Public Company Limited (Birla Carbon), Orion Engineered Carbons S.A. and Royal Dutch Shell.

Cabot Corporation

Overview: With its headquarters in Boston, Massachusetts, U.S., Cabot Corporation is one of the world's top specialty chemical and performance material companies. Its businesses serve important industries like transportation, infrastructure, environment and consumer while providing a wide variety of products and solutions to clients worldwide. Its business segment includes reinforcement materials and performance chemicals. Cabot Corporation operates in regions including the Americas, Asia-Pacific, Europe, Middle East & Africa. Its product portfolio consists of advanced carbons, aerogel, carbon blacks for elastomer reinforcement, engineered elastomer composites, inkjet colorants & inks, fumed metal oxides, specialty carbons and conductive compounds and masterbatches. The company serves major applications like consumer rubber products, coatings, constructions, electronics, food & beverages, pharmaceuticals, oil & gas, mining, printing, packaging, personal care, tires and adhesives and sealants.

Product Portfolio

VULCAN and PROPEL: Cabot's reinforcing carbon blacks are used in treads, tires and other industrial rubber products that need highly durable elastomer components. A variety of tires, automotive parts and non-automotive parts can use its VULCAN carbon black product line. Furthermore, the PROPEL carbon black product line was developed specifically to give tire manufacturers the necessary resources to improve tire performance. PROPEL carbon black products are specifically designed for next-generation tire tread compounds to improve tire durability and rolling resistance.

Key Development: On October 26, 2022, Cabot Corporation announced the addition of two new products, E2CTM FX9570 and E2CTM EX9620 solutions, to its Engineered Elastomer Composites (E2CTM) product line. These products offer rubber manufacturers more flexibility to develop products that sustain challenging operating conditions while maintaining high levels of durability. Additionally, they provide advancements in heat reduction and durability that are favorable for truck tires used on rough surfaces, aircraft and port tires and other industrial rubber products exposed to tough wear conditions or high operating temperatures. Three performance series: Durability, Efficiency and Foundation, are part of the E2C solutions group. The EX9620 is best used in applications where rubber products are exposed to high heat loads brought on by rapid operation, heavy loads, extended duty cycles and high temperatures.

Why Purchase the Report?
• To visualize the global tire materials market segmentation based on type, vehicle type and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the global tire materials market by analyzing trends and co-development.
• Excel data sheet with numerous data points of tire materials market-level with two segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as excel consisting of key products of all the major market players.

The global tire materials market report would provide approximately 53 tables, 51 figures and 230 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies