The global pneumatic tire market size was valued at USD 192.40 billion in 2014 and is expected to witness significant growth over the forecast period on account rising demand from automotive industry. Increasing vehicle production in various countries including China, Mexico, Indonesia, Japan, U.S., South Korea, Germany and India along with ageing of vehicles is the major driver for the market growth.
Rapid economic growth, increasing government spending, advancements in road infrastructure coupled with increasing consumer inclination towards personal conveyance are expected to propel demand. Asia Pacific is projected to fuel pneumatic tire demand over the next seven years on account of increasing joint ventures among various key participants and the local manufacturers in the region.
Pneumatic tires are increasingly being used in the automobile industry due to improved performance characteristics in terms of efficiency, good traction and fuel economy. Increased automobile production and sales in Asia Pacific has led significant growth of pneumatic tire sector. Rapid increase in the automotive production primarily in India and China on account of growing population, changing lifestyle and increasing disposable income of consumers is expected to have a positive impact on the market over the forecast period.
Regulations governing the use of pneumatic tires and their disposal are major challenges for the industry. The U.S. Centers for Disease Control and Prevention recommends removing discarded tires from housing properties as they can become a breeding ground for mosquitoes. In addition, The EPA classifies tires as municipal solid waste rather than hazardous waste. Nevertheless, tires that are thrown away instead of recycled cause serious environmental problems.
Product substitutes include airless and semi-pneumatic tires that provide high rolling resistance, less suspension and are filled with compressed polymers. However, these tires generate heat while driving and increase wheel weight. Hence numerous manufacturers recommend the use of pneumatic tires as opposed to its substitutes which in turn is expected to augment industry growth over the forecast period.
Replacement was the largest segment, accounting for over 70.0% of global revenue in 2014 on account of its growing industry particularly in Asia Pacific countries including India and China. Emergence of numerous disruptive technologies, replacement cycles and rising number of vehicles has been influencing demand patterns in this sector. In addition, poor road conditions, overloading of vehicles and weather conditions is expected to augment replacement sector demand over the next seven years.
OEM was the second largest segment and accounted for over 25.0% of revenue in 2014. Original equipment tires are those supplied to the vehicle producers’ assembly plant and are the used on the automobile when it comes off the end of the assembly line. Increasing automotive manufacturing particularly in China and India is expected to augment product demand over the next seven years.
Four-wheelers was the largest application segment, accounting for over USD 150.00 billion of global revenue in 2014. Four-wheelers are increasingly gaining acceptance as an effective means of transportation, especially in developing countries of Asia, Africa and Latin America. Global four-wheeler market is primarily concentrated in the Asia-Pacific, which accounted for a 65% share, in terms of revenue. Growing four-wheeler demand in Europe is expected to be a key factor propelling product growth over the next seven years.
Global pneumatic tire revenue in aircrafts is expected to grow at a CAGR over 10.0% from 2015 to 2022. Composite material is mainly employed in the manufacturing of pneumatic tires particularly for aerospace application. Increasing aerospace growth in U.S. is expected to have a positive impact on the market over the next seven years.
Radial was the largest product segment, accounting for over USD 130.00 billion of global revenue in 2014. Radial tires are used globally for its ability to deliver numerous benefits that cross ply tires cannot. In the agricultural industry, radial technology has numerous benefits including long tire life, resistance to cuts, punctures and tears, excellent traction, improved handling and fuel economy & smooth ride and operator comfort. Growth of the agricultural sector is expected to augment product demand over the next seven years.
Asia Pacific dominated the market accounting for over 40.0% in 2014. Positive automotive outlook in China, India and Japan in light of growing consumer spending coupled with rising R&D investment for development of new automotive types is expected to have a positive impact on industry.
North America is expected to witness significant rise with CAGR of over 6.0% from 2015 to 2022 on account of strong demand for four-wheelers. The region has major companies such as Ford Motors Co., and General Motor Co., which have been at the forefront of technological advancements and innovations. Automotive growth in the region primarily U.S. is expected to spur product growth over the forecast period.
Several companies manufacture tires with superior features and grip properties suitable for the surface tires. Key players in the industry include Michelin, Continental AG, Bridgestone, Cooper Tire & Rubber Company, Hankook Tire, Yokohama, Sumitomo Rubber Industries, Pirelli & C.S.p.A and Kumho Tire Co., Inc. Continental AG launched a new product called radial tire ContiRT20 that provides high stability during lifting. Bridgestone serves 8 inch diameter tires that have wide application scope in industrial vehicles.
Avail customized purchase options to meet your research needs:
Speak to the report author to design an exclusive study to serve your research needs.
A testimonial for service excellence represented in the form of BBB "A" Accreditation.
Your personal and confidential information is safe and secure.