Global Automotive Tires Market
The Automotive Tires Market is expected to grow at a CAGR of 7.47% by the end of 2022. The market from Asia-Pacific is expected to contribute about 27% of the global market by 2022.The automotive tire market in the Asia-Pacific is expected to drive the growth during the forecast period.
A tire should be critical to support the weight of the vehicle, transmit vehicle propulsion & braking, reduce the impact of weird road conditions and at the same time help to maintain the vehicle's direction. The tire manufacturers need to modify the existing technology and introducing new manufacturing concepts to the marketplace to meet the increasing demands, especially from the OEMs.
Emerging trends in the market such as the increased use of bio-oils in the manufacturing process of tires would help to boost the growth in the light of demand for ecological tire manufacturing process. Orange oils, extracted from orange peels, are used in the process to help reduce the amount of petroleum used in tires. In addition, the tire market has also witnessed an increase in R&D investments. The use of nanotechnology is a recent invention used in the manufacture of tires. In addition, the demand of retreading of tires is increasing by a considerable rate. The retreading of tires helps to reduce the operating cost significantly in the aftermarket, as it helps to prevent the tires from a complete replacement, and thereby is a cost effective option. The casings can help to provide multiple life cycles, saving a significant amount especially for the fleet operators in the commercial vehicle market.
Suppliers to the tire industry are mainly classified into three sub-groups: rubber suppliers, filler suppliers (for tire reinforcement), and chemical suppliers. Suppliers play an important role in the supply chain of the tire manufacturer as raw material costs account for about 60% of the total costs incurred in manufacturing a tire. Raw rubber suppliers can be further segmented into two types: natural and synthetic rubber suppliers. Natural rubber suppliers are primarily concentrated in Asia because of the favorable climatic conditions for rubber tree plantations. Synthetic rubber is also used in tire manufacturing process, and it is purely an industrial product where price is determined by the price of oil. A dip in crude oil prices has benefited synthetic rubber manufacturers to a significant extent.
OEMs, have an approved list of tire manufacturers from whom they source tires and other components. The approval process carried out by OEMs is comprehensive and has defined and prescribed standards. Tire manufacturers are required to cater all these conditions to qualify as an approved vendor for the OEMs. The vendor approval process tests tire manufacturers on a variety of parameters, including quality of products, packaging standards, and on-time delivery. Tire manufacturers face several risks including operational, financial, and legal and political risks. Most tire manufacturers usually get their raw material supplies from countries such as China and India. In addition, logistics issues can disrupt raw material supplies to tire manufacturers. Almost all tire manufacturers practice the lean management principle in their manufacturing process, where the companies tend to emphasize increased focus on high-quality production by cutting down on waste at each possible step.
The automotive tires market report classifies and defines the market size, in terms of value. It provides a comprehensive analysis and insights (both, qualitative and quantitative) into automotive tires segments. The market is segmented on the basis of tire type-summer, winter, all-season tires; end consumers- OEMs and Aftermarket; vehicle type- Passenger, LVs, HCVs, Ultra-high Performance tires, Two-wheeler and others. The report showcases potential growth opportunities in the forecast period, while also reviewing the market drivers, restraints, opportunities, market dynamics, competitive landscape, and other key aspects like supply chain with respect to automotive tires. The report also covers qualitative aspects such as value chain analysis, Technological Roadmap, and Porter’s five force analysis for the global market. The key players in this market have also been identified and profiled. Some of the key players mentioned in the report are Bridgestone Group, Continental Group, Goodyear Tire & Rubber Company, Michelin Group, Sumitomo, and Pirelli.
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