A recent study by the strategic consulting and market research firm; BlueWeave Consulting revealed that the Global Tire Market was worth USD 276.36 billion in 2022 and is anticipated to reach USD 712.56 billion by 2029 at a CAGR of 8.05% (2023-2029). Rising vehicle production and sales are propelling the global Tyres Market. Rising profits in emerging economies are fueling the tire industry’s rise by increasing the number of cars in use. Because increased automobile ownership leads to increased demand for light-weight vehicle tyres, the Tyres Market benefits from an expansion of the middle class in nations undergoing modernization. Rubber cost reductions have resulted in increased tire output. The replacement tire sector, in particular, may expect considerable growth in the next years due to its high profit margins. The Global Tyres Market is predicted to expand due to rising demand for vehicles, buses, and trucks, as well as increased need for low-resistance tyres.
Rapid Urbanization, Expanding Population
Rapid urbanization, expanding population, and robust expansion in the automobile sector are all driving global tyre sales. Furthermore, increased construction spending and rising vehicle motorization rates are having an influence on commercial vehicle manufacturing, boosting market development. With an increase in consumer awareness of road safety and an increase in the incidence of road accidents, OEMs have been pushed to focus on tire efficiency and performance. Several significant players are pioneering novel product designs such as lightweight tyres, streamlined ribs, blocks, and lugs. The expansion of this market is aided by stable output in the automobile sector. Rapid population development, rising population, and major expansion in the vehicle sector all have an impact on global tyre sales.
Global Tires Market: By Demand Category
Based on demand category, the market is classified into OEM, and replacement. The Original Equipment Manufacturer (OEM) segment in the tires market has been experiencing significant growth in recent years. The OEM segment refers to tires that are directly supplied by tire manufacturers to vehicle manufacturers for installation on new vehicles during the production process. The global automotive industry has been expanding, with a growing number of vehicles being produced each year. This has led to a higher demand for OEM tires as automakers require tires to equip their newly manufactured vehicles.
Global Tires Market: By Region
The global Tires Market is divided into five regions: North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. Asia-Pacific is the leading player and holding more than half of the market share. China is the central hub for business through industries and one of the firmest rising economies in the world. The request for materials like coal, iron ore, gold, and copper is growing. As a result, the demand for mining truck tires has gone up as well. Besides, investments in the mining sector are predictable to help as a good opportunity for heavy-duty tire manufacturers. The surge in the mining production is likely to push demand for new building machinery in fields by replacing old machinery, which is additionally powering the mining tires’ demand.
Impact of COVID-19 on the Global Tire Market
The automobile and transportation industries are among the most vulnerable to the ongoing Covid-19 eruption and are presently experiencing unprecedented instability. COVID-19 is expected to have a substantial influence on the automotive supply chain and product requirements. The industry’s concern has shifted from supply chain disruptions from China to a general drop in demand for automotive items. With the suspension of all non-essential services, demand for commercial cars is expected to fall. Furthermore, changes in consumer purchasing behavior owing to uncertainty surrounding the pandemic may have serious ramifications for companies with near-term growth.
Some of the leading players operating in the Global Tire Market are Bridgestone Corporation (Japan), Goodyear Tire & Rubber Company (United States), Continental AG (Germany), Michelin (France), and Sumitomo Rubber Industries (Japan) and other prominent players. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
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