Tire Cord Fabrics Market Size, Share & Trends Analysis Report By Material (Nylon, Polyester), By Tire Type, By Vehicle Type (Passenger Car, Commercial Vehicles), By Application, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global tire cord fabrics market size was valued at USD 5.5 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 3.4% from 2020 to 2027. Growing demand for passenger cars in the developing economies coupled with rising demand for durable fuel-efficient tires is expected to drive the product demand over the forecast period. The growing penetration of electric vehicles is expected to have a positive impact on demand. Traditional tires wear about 30% faster on electric vehicles (EV) than on conventional vehicles. Thus, manufacturers are using aramid fibers to produce extremely lightweight and wear-resistant tires specific for the electric vehicles industry. The nylon tire cord fabric is dominating the U.S. market. Wide-ranging product utilization in the manufacturing of lightweight, wear-resistant tires for passenger cars, Sports Utility Vehicles (SUV), trucks, and aircraft are expected to be the primary factor driving the growth in the forthcoming years.

Tire cord fabrics are primarily used are as a reinforcing material in the tire manufacturing process to provide controlled deformation, high strength, abrasion resistance properties to the end product. Additionally, these fabrics are employed in the production of rubber hose, air springs, expansion joints, and conveyor belts, among others.

In 2012, the European Union began the implementation of the EU Tire Label system. This graphical labeling system provides performance ratings for tires based on three main criteria, namely fuel efficiency, wet braking, and noise levels. Implementation of similar consumer awareness initiatives is expected to propel the demand for fuel-efficient tires and thereby the cord fabrics.

Growing focus on reducing the greenhouse gas emission coupled with the rising demand for the economic fuel-efficient cars are some of the factors that are anticipated to drive the market growth over the forecast period. However, the preference for retreading in the commercial vehicles segment is projected to have a negative impact on market growth over the forecast period.

Material Insights

The nylon segment merged as the largest segment in the global market with a 56.3% revenue share in 2019. Factors such as superior fatigue resistance, high tenacity, and improved adhesion to rubber attributes offered by the product were some of the primary factors fueling the segment share.

Nylon tire cord fabrics are widely used in the production of high wear resistance tires require for commercial applications. Aircraft tires, agricultural tires, truck tires are some of the tire types made using nylon. Furthermore, it preferred the production of wet condition tires owing to its lower moisture regain the property.

The other materials segment consists of steel and aramid based tire cord fabrics. The segment is projected to expand at a CAGR of 6.1% over the projected period. The growing use of the aramid fibers based fabrics for manufacturing high-performance racing tires and aircraft tires is projected to boost the segment growth.

The polyester segment held a significant share in the global tire cord fabrics market in 2019. The polyester tire cords find a wide-ranging application in the production of passenger car tires owing to its low shrinkage, high strength, and low-cost property. The product is also witnessing growing adoption as a constituent for the manufacturing of hybrid tire cord fabrics.

Application Insights

The replacement application segment dominated the market with a share of around 64.0%, in terms of both revenue and volume in 2019. Increased consumer awareness about the rolling resistance and growing demand for the radial tires were some of the major factors driving the replacement segment growth.

Commercial vehicles are one of the major categories driving the growth of the replacement segment. Commercial vehicles such as trucks, container carriers, and buses carry heavy loads over a longer distance thereby exhibiting comparatively more wear than the passenger cars. Thus, commercial replacement tires are generally made of nylon fabrics owing to wear resistance.

The OEM segment is projected to grow at a significant pace over the forecast period. Growing emphasis on reducing the vehicular emissions coupled with the adoption of stringent emission norms are driving the demand for the fuel-efficient tires with lower rolling resistance. Furthermore, demand for motorcycles in Asia and Africa continents is further expected to boost the market.

The growing popularity of SUV vehicles also has a favorable impact on the growth of the OEM segment. Major SUV manufacturers include high-performance sports tires as a part of standard original equipment. These tires are manufactured with the use of aramid tire cord fabric owing to its superior strength to weight ratio.

Tire Type Insights

The radial tire segment is projected to attain 65.7% of the overall market share in terms of volume by 2027 while expanding at a CAGR of 3.5% over the forecast period. The radial tires are witnessing higher adoption owing to their longer durability, stability, temperature performance, wear resistance, and superior fuel efficiency.

In radial tires, the steel belts are aligned at a 90-degree angle with the tread line thereby allowing the sidewall and the tread of the tire to function independently of each other. As a result, the radial tires exhibits low sidewall flex and more contact with the ground. Radial tires are widely used in passenger cars and light commercial vehicle applications.

The bias tires consist of nylon belts that run at a 30 to 45-degree angle with the tread line. The multiple, overlapping rubber plies in these tires provide them with a tough and rugged build and improved sidewall puncture protection. Bias tires are widely used in construction, agricultural and marine application settings.

The bias tire segment is projected to expand at a CAGR of 3.2% over the forecast period owing to its low-cost property and its suitability to rough terrain and ability to carry heavy loads. However, the high rolling resistance value and reduced wear resistance, and susceptibility to overheating properties associated with the product are expected to restrain the segment growth.

Vehicle Type Insights

The passenger car segment emerged as the leader in the market with 62.4% of the revenue share in 2019. Factors such as growing demand for passenger cars in the developing economies coupled with the rising demand for the durable, fuel-efficient tires are primarily responsible for the segment growth.

Growing regulatory support for the adoption of electric cars is anticipated to have a positive impact on demand for the tire cord fabrics over the forecast period. For instance, the Government of Canada under the Incentives for the Zero-Emission Vehicles (iZEV) Program offers rebates up to USD 5,000 on the purchase of designated electric vehicle models.

The commercial vehicle segment is projected to expand at a CAGR of 3.3% over the projected period. Commercial vehicles such as buses, trucks, and trailers carry heavy loads and exhibit higher tire replacement rate. Thus, longer lifecycle and durability associated with the use of tire cord fabric are anticipated to drive product penetration in the commercial vehicle segment.

Tire replacement costs account for a major portion of the overall operating costs of the major transport organizations and fleet operators. Thus, even a small improvement in the tire lifecycle has the potential to generate significant cost savings. Thus, growing product utilization in the production of commercial vehicle tires is projected to have a positive impact on the overall market growth.

Regional Insights

Asia Pacific region emerged as the largest market for tire cord fabrics in 2019 with a revenue share of over 47%. The region is at the forefront of tire production in terms of volume. Factors, such as local availability of major raw materials such as natural rubber coupled with a significant increase in demand for passenger cars in the past decade were primarily responsible for the regional segment growth.

The tire cord fabric demand within Brazil is expected to expand at a CAGR of 3.5% over the forecast period. Growing demand for fuel-efficient cars is anticipated to be the major driving factor. Furthermore, increasing mining and logging activity is projected to generate significant demand for the replacement tires thereby favorably impacting the market.

North America was the third-largest regional segment while accounting for about 16.3% of the market revenue in 2019. Growing penetration of electric cars was the primary factor driving product demand. Furthermore, the growing regulatory support for reducing vehicular emissions projected to have a favorable impact on growth.

In Europe, countries such as Germany, France, and the U.K. are expected to drive the demand for tire cord fabric over the forecast period. The presence of major automotive and tire manufacturing companies along with a rising focus on reducing greenhouse gas emissions are some of the major factors that are propelling product demand.

Key Companies & Market Share Insights

These players compete based on product pricing and their geographical reach. Furthermore, these players are adopting environmentally formaldehyde-free adhesives to reduce their environmental footprint. The key players in the market are making significant investments in R&D activities to reduce the product weight and to improve its wear resistance. They are actively collaborating with major tire manufacturers to develop application-specific products. Additionally, they are also focusing on the acquisition of smaller players to increase their market share. Some of the prominent players in the tire cord fabrics market include:

• Indorama Ventures Public Company Limited

• Kolon Industries Inc.

• SRF Ltd.

• Teijin Ltd.

• Century Enka Limited

Tire Cord Fabrics Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global tire cord fabrics market report on the basis of material, tire type, vehicle type, application, and region:

• Material Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Nylon

  • Polyester

  • Rayon

  • Others

• Tire Type Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Radial

  • Bias

• Vehicle Type Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Passenger Cars

  • Commercial Vehicles

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • OEM

  • Replacement

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

    • France

    • Italy

  • Asia Pacific

    • China

    • Japan

    • South Korea

    • India

  • Central & South America (CSA)

    • Brazil

  • Middle East & Africa (MEA)

    • Saudi Arabia

    • UAE