Tire cord market is directly influenced by the growth of the tire industry. Increasing vehicle production across the globe on account of the changing consumer lifestyle and urbanization is expected to propel tire industry growth, which thereby is likely to have a positive impact on the tire cord market growth. Furthermore, rising demand for mining and construction equipment such as excavators, cement mixers, road rollers and crushers across the globe are also likely to fuel the market growth over the forecast period.
The product is used as a reinforcing material for tires and is primarily designed to retain tires in shape. These fabrics support the impact associated with the vehicle weight, thus elongating the tire performance significantly. It also helps in maintaining the tires dimension under several adverse physical conditions and subsequently offers comfortable riding.
The factors such as volatile raw material cost and stiff competition among key producers are the key factors impacting the profit margins of the players within the market space. Increasing investments in R&D to improve tire performance and innovation to produce bio-degradable tire materials is expected to open new avenues for market growth.
Commercially these products are manufactured either using polyester or nylon. The nylon-based tire cord fabrics have emerged as a dominant segment and are expected to grow at a significant rate over the projected period. Nylon tire cord fabric offers high breaking strength and excellent resistance to impact. Thus are gaining high demand for bias-ply tires such as off-road vehicles, bus, and trucks. Furthermore, these materials offer good adhesion strength with rubber and superior fatigue proof strength. The aforementioned factors are expected to have a positive impact on market growth over the projected period.
Based on the tire type, the industry is categorized into bias tires and radial tires. Radial tire segment accounted for a major revenue share of the industry on account of their greater productivity. These tires offer longer service life and less ground compaction and damage. Furthermore, these tires help the users to gain greater comfort, better traction, and reduced machine maintenance cost. As a result, this segment is expected to witness significant growth over the projected period.
Based on application, the industry is categorized into replacement and OEM. The replacement application segment accounted for a major share. As the vehicle ages, the quality of tires degrades. Thus, replacement of tire is an appropriate option to increase vehicle durability and performance. As a result, the demand for tires from the replacement segment is expected to grow over the projected period, thus impacting the market positively.
The Asia Pacific emerged as a dominant region and is expected to witness the highest growth rate over the forecast period. The region is a leading manufacturing hub for the automotive industry on account of rising passenger vehicle production in India and China. The vehicle production in this region is growing at a rapid pace owing to the presence of key automotive manufacturers in the region such as Nissan, Honda, Hyundai, and Toyota. The growing automotive sector, which demands better quality tires are expected to have a positive impact on the tire cord market growth over the forecast period.
North America is a major manufacturer of commercial vehicles and is expected to be a key consumer for the product. The U.S. is one of the biggest light commercial vehicle producers in the world and dominates the North American Market with a share of over 60%. However, declining vehicle production statistics in the country are likely to hamper demand for tires, thereby impacting the industry negatively.
Europe has emerged as the second-largest automotive manufacturer in the world, with Germany, France, and Russia being the key markets. Growing demand for high-performance luxury cars in the region is likely to have a propel industry growth. High consumer attention towards car performance and durability is expected to have a positive impact on industry growth over the projected period.
The prominent players of the tire cord market are Toray Industries Inc.; Indorama Ventures Company Limited (IVL); Teijin Limited; Kolon Industries Inc.; Kordsa Teknik Tekstil A.S.; Hyosung Corporation; and SRF Limited. The market players are likely to adopt the merger and acquisition strategies to integrate into the business. For instance, in October 2018, Indorama Ventures Public Company Limited announced the acquisition of Kordarna Plus S.A., the largest producer of tire cord fabrics in Europe, to strengthen its position in the market.
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