Automotive Tire Market to Develop at a 12.12% CAGR & Valuation USD 260 Billion by Forecast by 2027

Market Research Future (MRFR) has published a research report about the global automotive tire market that anticipates enlargement for this market with 4.48% CAGR (Compound Annual Growth Rate) between 2022 and 2027. In terms of cash, the worth of this market has been estimated to be US $ 262.72 bn by the end of forecast period.

COVID-19 Impact on the Global Automotive Tire Market

COVID 19 wreaked havoc on the global automotive tire market, wreaking the entire automotive industry. The coronavirus pandemic has caused a sharp drop in the tire industry, prompting tire producers to cut production at their manufacturing plants. As a result of the epidemic's destruction, some primary raw material suppliers reduced production in some regions.

While several companies were forced to merge and reduce employees, some tire industry players immediately began working on countermeasures to mitigate the effect. These tire manufacturers expanded their partnerships, building alliances with major automotive original equipment manufacturers (OEMs).

Furthermore, they took risky tactics, such as an active online presence and attentive customer service. This plan to use digital platforms to communicate with prospective buyers is a game-changer. As a result, the automotive tire industry is quickly returning to normal.

The factors leading to the growth of the global automotive tire market include government-mandated improvements in emission standards, growing number of vehicles on the road, improvement of the durability and reliability of vehicles, increasing disposable income of the middle class, popularity of high performance tires, more investment on research & development (R&D), and increasing use of automotive tire in premium sport utility vehicles.

Market Segmentation

The global automotive tire industry has been segmented on the basis of rim size, distribution channel, vehicle type, and season propulsion type.

By rim size, the global automotive tire market has been segmented into 13"–15", 16"–18", 19"–21", and >21". The 13"–15" rim size segment holds the largest market share due to the growing use in passenger cars with GVWR <3.0 tons. Automotive tires with rim sizes varying from 16" to 18" are used in wheels that require a lower sidewall height to maintain adequate clearance when they go over potholes and bumps and, making the suspension fully compress and rebound. 

By distribution channel, the global automotive tire market has been segmented into OEM and aftermarket. Among these, the OEM segment holds the largest market share, including production, procurement, and installation of automotive tires. Many automotive tire manufacturing companies around the world are working on enhanced safety and comfort using advanced production techniques.

By vehicle type, the global automotive tire market has been segmented into passenger cars, light commercial vehicles (LCV), and heavy commercial vehicles (HCV). Among these, the passenger car holds for the largest segment due to the increasing production of passenger vehicles due to the growing demand and sales of these vehicles. Light commercial vehicles (LCVs) include pickup trucks, minivans, and buses. Continuous development in the manufacturing, processing, logistics, and tourism & hospitality sectors creates a substantial demand for LCVs. On the flip side, growth in heavy commercial vehicles (HCVs) is powered by the increasing use of tractors, heavy trucks, and trailers in the quickly growing transportation & logistics industry across the globe. 

By season propulsion type, the global automotive tire market has been segmented into winter, summer, and all seasons. Of these, the winter tires segment accounts for a substantial market share. Winter/snow tires can endure nerve-wracking winter driving conditions. On the flip side, summer tires with their special tread patterns and tread compounds guarantee a high grip on wet and dry roads. All-season tires are available in a variety of many types/models, load capacities, sizes, and speed ratings and are used in a broad variety of vehicles, from economy cars and sedans to minivans and pickup trucks.

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The regional segmentation of the global automotive tire market segments the market into continent-based regional markets known as North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa (MEA). The Asia Pacific is the largest regional market due to the rise in the automotive industry in nations such as China, India and Japan. The markets for passenger cars as well as two-wheelers are growing in these countries. In this region, the market is rising due to bigger infrastructure spending, increasing per capita income, and initiatives to grow the amount of economic production cost & Foreign Direct Investment (FDI). Other important country specific markets in this region are Indonesia and Thailand. During the forecast period, this market is expected to grow at a CAGR of 4.66%.

North America is the second largest regional market that is expected to grow at 4.46% CAGR during the forecast period. In this region, the market is growing due to amplified sales of vehicles, demand for fuel efficient products, investments from many top giants owing to stringent government regulation, and upsurge in demand for the new vehicles. The most important country-specific markets in this region are the United States of America (USA) and Canada. US market is expected to grow at 4.60% CAGR during the forecast period and its worth is expected to be US $ 44.87 bn.

Europe is significant as a regional market because due to high density of population, high disposable income & purchasing power of people, and technological advancement that is second only to North America. The crucial country-specific markets in this region are France, Germany, and the United Kingdom (UK), followed by the rest of Europe.

In Latin America, the strong economies that can be ideal markets are Argentina and Brazil, followed by the rest of Latin America. The MEA region shows limited market with slow and steady growth. The reasons for the slow market growth in this region are lack of awareness, lack of education, lack of technological development, political instability.

Key Players

The key players in the global automotive tire market include Bridgestone Corporation(Japan), Continental AG (Germany), Cooper Tire & Rubber Company (USA), The Goodyear Tire & Rubber Company (USA), Hankook Tire Co. Ltd. (South Korea), Michelin Group (France),  Pirelli (Italy), Rubber Co. Ltd (Japan), Sumitomo Rubber Industries, Ltd. (Japan), Toyo Tire & Rubber Co., Ltd (Japan), and Yokohama (Japan).

Industry News

January 6, 2021, Michelin North America, Inc., a global tire manufacturing corporation, reported that Purcell Tire & Rubber Company would join the MICHELIN Commercial Service Network (MCSN), Michelin Retread Technologies, Inc. (MRTI), and Oliver Rubber Company, LLC (Oliver) retreading networks. The collaboration will enable Michelin to secure a relationship across our entire line of business-to-business on- and off-road products and services.

October 12, 2020, Continental AG, a German multinational automotive parts manufacturer, has won a tire technology award for its CARE tire concept for electric robotaxis. The European Rubber Journal presented the "Journey to Automation" award (ERJ). The Conti CARE tire concept is cloud-based connectivity that provides fleet operators with especially efficient solutions for managing electric mobility.

September 14, 2020, Telle Tire & Auto Centers Inc., a St. Louis-based auto repair dealership, announced the purchase of J&W Automotive. Telle Tire & Auto Centers made nearly USD 11.3 million in sales in 2018. Telle Tire will have 16 locations in the Americas after the J&W purchase.

September 13, 2020, Alliance Tire Group (ATG), a Yokohama Rubber Manufacturing firm, reported a $ 165 million investment in its third plant in Visakhapatnam (India). The proposed plant would increase rubber production by over 20,000 tonnes per year.

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Key Questions Addressed by the Report

• What was the historic market size?
• Which segmentation (Product/ Capacity) is driving market?
• What will be the growth rate?
• How are the key players in this market?
• What are the strategies adopted by key players?

TABLE OF CONTENTS

1 EXECUTIVE SUMMARY

2 SCOPE OF THE REPORT

2.1 MARKET DEFINITION

2.2 SCOPE OF THE STUDY

2.2.1 DEFINITION

2.2.2 RESEARCH OBJECTIVE

2.2.3 ASSUMPTIONS

2.2.4 LIMITATIONS

2.3 RESEARCH PROCESS

2.3.1 PRIMARY RESEARCH

2.3.2 SECONDARY RESEARCH

2.4 MARKET SIZE ESTIMATION

2.5 FORECAST MODEL

3 MARKET LANDSCAPE

3.1.1 THREAT OF NEW ENTRANTS

3.1.2 BARGAINING POWER OF BUYERS

3.1.3 THREAT OF SUBSTITUTES

3.1.4 SEGMENT RIVALRY

3.1.5 BARGAINING POWER OF BUYERS

3.2 VALUE CHAIN/SUPPLY CHAIN ANALYSIS

4 MARKET DYNAMICS

4.1 INTRODUCTION

4.2 MARKET DRIVERS

4.3 MARKET RESTRAINTS

4.4 MARKET OPPORTUNITIES

4.5 MARKET TRENDS

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