VINACHEM

Rubber Tire Market was valued at US$ 141.27 Bn . in 2021 and is expected to grow at a CAGR of 3.99% during the forecast period 2022-2027, thanks to the growing trend of passanger vehicle use, which has boosted demand for rubber vehicles.

Rubber Tire Market Overview:

A tire is a rubber ring around the rim of an automobile wheel and it is made of 19% natural rubber and 24% synthetic rubber and the rest is metal and other compounds. The main function of the tire is to support the weights of the vehicle, absorb road shocks, torque, and braking forces to the road. These rubber tires had a wide range of applications in the areas of automobiles, light industrial vehicles, carts, trailers, construction vehicles, and more. Tires are segmented based on their tire, vehicle type, and season. The global tire market is expected to reach US$ of 178.65 Bn. by 2027.

The report has covered the market trends from 2015 to forecast the market through 2027. 2021 is considered a base year however 2021’s numbers are on real output of the companies in the market. Special attention is given to 2021 and effect of lockdown on the demand and supply, and also the impact of lockdown for next two years on the market. Some companies have done good in lockdown also and specific strategic analysis of those companies is done in the report.

Rubber Tire Market Dynamics:

Factors attributing to rubber tire market growth are urbanization, according to the UN Department of “Economic and Social affairs” report 68 % of the world population is projected to live in urban areas by 2050, this urban settlement will boost the production and usage of the passenger vehicles in underdeveloped and developing countries. Increased timely maintenance of the vehicles by the consumers for safety purposes added an advantage for the tire industry. Many countries are focusing on their economic expansion by investing in their infrastructure projects like construction of roads, rails, mega-dam projects so on which needs a large number of construction vehicles, Example - china’s “ BELT AND ROAD INITIATIVE” which covers 70 countries, creating a huge demand for rubber tire market and also increase the GDP of recipient countries by up to 3% says “World Bank”.

The government of India's “duty-free” import of natural rubber will fulfill its domestic need for rubber so that an increase in a number of tire production and also increased industrialization, availability, and cost of credit, a network of roads, etc are expected to drive the rubber tire market.

Innovation of new technology like by converting waste from processing rice husk ash into silica to use in tires, manufacturing of puncture-proof airless tires and use of “TECHSYN” i.e a new compound made of rubber and silica in manufacturing of tires creates a huge market in the coming years.

Some of the factors that affect the rubber tire market are a sudden change in the price of raw materials, low availability of natural rubber, high import taxes, changing geopolitical structure of countries, etc. The recent pandemic also hindered the rubber tire market by the decline of a 4% growth rate.

Some of the opportunities for the rubber tire market are increased investment by tire manufacturing companies in R&D, largely untapped market, an initiative of “commerce & industry ministry “ by the Indian government that manufacturers investing in northeast states to grow natural rubber to meet its domestic needs.

Rubber Tire Market Segment Analysis:

Based on Tire Type Segment, the Rubber tire market segmented based on tire type are radial and bias tire, in which radial tire allows sidewall and tread to function as two independent features of the tire, so it is more in contact with the ground. Growth of e-commerce sector, transportation & logistics, safety concerns, and huge after market demand made the expansion of radial tire market. Radial tires have a higher demand in the countries like Czech Republic, Germany, Poland, Italy and it is used in all kinds of vehicles like passenger vehicles, commercial vehicles, electric vehicles. But bias tire is used in farm machinery, construction vehicles, large drag racing tires, etc and these tires do not provide a smoother ride.

Based on Vehicle Type Segment, the Rubber tire market segmented based on vehicle types are passenger vehicles, commercial vehicles, electrical vehicles. The number of vehicles produced across the globe in the year 2020 is 28.2 Mn. passenger vehicles, 6.1 Mn commercial vehicles, 5.6 electric vehicles. The increased purchasing power of the people causing the demand for vehicles, report of “society of Indian automobile manufacturers”(SIAM) says the sale of passenger vehicles rose to 45%. so there is a higher demand for rubber tires in countries with a high population.

Rubber Tire Market

Based on the Season Type Segment, the Rubber tire market segmented based on the season are summer and winter tires. Summer tires are used when the temperature of the environment is more than 7 degrees C, used in high-performance vehicles, designed for year round usage, because of these factors summer tire market is growing fastly and Increased use of passenger vehicles boosting the summer tire market. The Asia Pacific counties like India, Japan, China, have the maximum demand.

Rubber Tire Market Regional Insights:

Asia-Pacific region is majorly driven by the countries like China, India, Japan having a share of 65% of total rubber tire demand. China is the largest consumer of tires i.e 25% followed by India and Japan. According to 2020 passenger vehicle production details China tops by producing 16.94 Mn. units that account for 38% of the world’s passenger vehicle production. Increasing demand for vehicles, reducing the price of rubber, increasing production rate, high usage of second-hand vehicles in the Asia-Pacific region driving the demand for rubber tires, infrastructure development, connectivity between countries added the additional advantage to the tire market.

The United States dominates the North American tire market, accounting for about half of the total market share. The United State’s annual vehicle production is around 10 million units, which is strengthening the tire market in this region. The combined market share of Canada and Mexico is above 14%, leaving little room for the rest of the North American tire market. The United States and Canada are more developed economies than Mexico, with a more saturated tire market

The objective of the report is to present a comprehensive analysis of the global rubber tire market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market has been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The report also helps in understanding the rubber tire market dynamics, structure by analyzing the market segments and projecting the rubber tire market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the global rubber tire make the report investor’s guide.