Global Automotive Tires Market - Industry Analysis, Trends and Forecast (2018 - 2023)
Research and Development Investments in Manufacturing
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.
Aftermarket Sales of Tires Improving
The aftermarket segment of Automotive Tires market constitutes of a bigger share than the OE market. Aftermarket of tires is being driven by the factor that the average age of vehicles on road is gradually increasing and the replacement tires needed due to the increased longetivity of the age of the vehicle. The average age of vehicles on the road in the U.S. is rising, even as consumers snap up more new vehicles - a paradox attributable to substantial increases in reliability. The typical car on the road in the U.S. is a record-high 11.5 years old. Even though the average age is skewed by the fact that the average age of vehicles decreases due to new vehicle purchases, the old vehicles on road last even longer and need more tires in their lifetime.
Americans are buying cars at an annualized rate of more than 17 million vehicles, but are still reluctant to get rid of their old vehicles and are continuing to use them. U.S. vehicle owners bought 42% more cars than they scrapped in 2015, according to IHS. The number of light vehicles registered in the U.S. hit an all-time high of 257.9 million units. Meanwhile, the number of vehicles that are 16 to 24 years old is 44 million. That's up from 26 million in 2002, according to IHS.Since tires need to be optimally changed after every 25,000 miles and an average person in U.S drives 13,476 miles in a year on average, there’s a need for the tires to be changed every 1.8 years approximately.
Since the average age of vehicles is increasing gradually and has reached a peak of 11.6 years in 2016, there’s a need for tires to be changed more number of times in its lifetime. This is going to positively impact the aftermarket segment of Tires.The average age of light vehicles, which constitute of a major part of vehicles in US, increased from 9.9 years in 2006 to 11.6 years in 2016. The same phenomenon is being observed in Europe as well, as the average age of cars has risen from 8.6 years in 2009 to a record high 10.7 years in 2015.Since there are 834 cars per 1000 people in US and is increasing due to boom in new sales of cars, the OE and aftermarket tire market is expected to be positively growing in the near future.
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.
Key Developments in the market
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