Tire Retreading Market in the US 2017-2021
About Tire Retreading
Tire retreading is a remanufacturing process, where old tires are made serviceable by replacing the old treads on worn tires with new treads. Apart from natural and synthetic rubber as the primary raw materials, textile reinforcements, such as rayon, aramid, nylon, and polyester, are also used to manufacture treads. The production of retread tires is capital-intensive and requires a modular plant. In addition, it requires highly trained and skilled manpower for engineering and manufacture. The manufacturer must also adhere to the stringent industry standards at every stage of the retreading process while delivering a superior performance like the new tires. Therefore, retread tires undergo various quality, durability, and speed testing.
Technavio’s analysts forecast the tire retreading market in the US to grow at a CAGR of 13.55% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the tire retreading market in the US for 2017-2021. To calculate the market size, the report considers the revenue of the retreaded tires fitted on the CVs in the US.Technavio's report, Tire Retreading Market in the US 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
Technavio Announces the Publication of its Research Report – Tire Retreading Market in the US 2017-2021
Technavio recognizes the following companies as the key players in the tire retreading market in the US: Bridgestone, Continental, Goodyear Tire & Rubber Company, Marangoni, and MICHELIN
Other Prominent Vendors in the market are: Hawkinson, Les Schwab Tire Center, McCarthy Tire Service, Purcell Tire & Rubber, and Southern Tire Mart.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Development of LRR retreads. Most tire manufacturers are focusing on tires as means to reduce fuel consumption. The emergence of certain regulatory programs promotes tires that assist in reducing fuel consumption and greenhouse gas emissions by CVs. For instance, the SmartWay program was started by the US EPA to help companies advance their supply chain sustainability by measuring and benchmarking and freight transportation efficiency. The retreads are classified as fuel efficient if they are SmartWay verified.”
According to the report, one of the major drivers for this market is Lower cost of retreading compared with new tires. Fleet operators consider tires as an important contributor to their expenses of operating fleet. The cost of tires contributes to one-third of the annual expenditure incurred by fleet operators. Therefore, the adoption of cost-cutting measures in tires is the best way to streamline financial resources. Hence, retreads witnessed developments in the mid-19th century and gained significant adoption in the CVs market.
Further, the report states that one of the major factors hindering the growth of this market is Availability of low-cost new tires posing threats to retread tires. In the last decade, the demand for tires increased with supply remaining the same. This led to a shortage of new tires in the market, which had propelled the retreading tire industry significantly. However, recession reduced the tire demand, while new factories increased the supply of new tires. This reversed the scenario with plenty of new tires in the market at historically lower cost. Additionally, imports from China further reduced the price of new tires and bridged the price gap between new tires and retreads significantly. For instance, the price gap reduced to $130 in 2016 from more than $150 in 2013. In the coming years, this gap is expected to reduce further, challenging retread players to optimize the operation and manufacturing to reduce the prices of retreads.
Bridgestone, Continental, Goodyear Tire & Rubber Company, Marangoni, MICHELIN, Hawkinson, Les Schwab Tire Center, McCarthy Tire Service, Purcell Tire & Rubber, and Southern Tire Mart.
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