Automotive Tires Market - Growth, Trends, and Forecast (2020 - 2025)

The Automotive Tires Market is segmented by Tire Type (Winter Tires, Summer Tires, All-Season Tires, and Other Tire Types), By Manufacturing (Radial Tire, Bias Tire), End User (OEM and Replacement/Aftermarket), Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, and Other Vehicle Types (All-terrain Vehicles and Recreational Vehicles)) and Geography.

Market Snapshot

Study Period:

2020-2025

Base Year:

2019

Fastest Growing Market:

Asia Pacific

Largest Market:

Asia Pacific

CAGR:

6.84 %

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Market Overview

The automotive tires market is expected to register a CAGR of 6.84%, during the forecast period, 2020-2025. APAC is the fastest growing region during the forecast period.

  • One of the major reasons for growth of tire market is the growth in sales of automotive vehicles across the globe. However, some geographies like China and India has shown a decrease in sales, countries in South America such as Brazil, European countries such as France and Romania and majority of developing economies such as Uzbekistan and Egypt have shown increased sales figures in 2018 compared to 2017.
  • Growing focus toward fuel economy, rising demand for convenience and high maintenance or replacement costs of conventional tires is driving the growth of the automotive tires market. Another factor that is responsible for the growth of the industry is the adoption of cutting-edge manufacturing technology by OEMs to offer product differentiation through sustainability, durability and affordability.
  • The demand for retreading of tires is increasing at a significant 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, resulting in significant cost saving, especially for the commercial fleet operators.
  • Prices of rubber continuously fluctuates. Nylon and Polyester are petroleum reinforcing materials that are used in the manufacturing of tires. The crude oil market has an effect on tire market because of the fluctuating nature of oil prices (source of petroleum products).

Scope of the Report

The automotive tires market covers the latest trends and technological development in the automotive tires market, demand of the tire type, end user type, manufacturing type, vehicle type, geography and market share of major automotive tires company across the world.

 

By Tire Type
Winter Tires
Summer Tires
All Season Tires
Other Tire Types (Luxury Touring and Racing/Sport (Usually Non-grooved Tires))
By End User
OEM
Replacement/Aftermarket
By Vehicle Types
Passenger Cars
Light Commercial Vehicles
Heavy Commercial Vehicles
Other Vehicle Types (All-terrain Vehicles, Recreational Vehicles))
By Manufacturing
Radial Tire
Bias Tire
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
Germany
United Kingdom
France
Italy
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
Middle East & Africa
South Africa
Saudi Arabia
United Arab Emirates
Rest of Middle East & Africa
South America
Brazil
Argentina
Rest of South America

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Key Market Trends

Production of Automobiles

Vehicle production across the world saw a decline of 1.1% across the globe in 2018. In 2017, the global passenger cars production accounted for 97,302,534 units which came down to 95,634,593 units in 2018. In 2019, the production and sales of vehicles in major economies slumped but the market is expected to perform well in the coming years of forecast period. China has the largest share in the passenger car market, followed by the United States, Japan, Germany, South Korea, and India. Improving road infrastructure and rising disposable income of the middle-class consumers are driving the vehicles market in the developing countries. Competitive pricing of vehicles by automotive manufacturers has also created a huge demand for passenger cars in developing countries. Electric vehicle market is also expected to exhibit a CAGR of 20% during the study period. Main objective of electrification of vehicles is to reduce vehicular emission and increase safety. Recent developments in tire technology has helped manufacturers to produce tires with increased life, fuel efficiency and improved safety.

Additionally, the demand for commercial vehicles has been continually increasing (expected CAGR of 5% during the study period), owing to the growing e-commerce (resulting in growth in the logistics industry), construction, and mining industries. In 2017, freight transportation (between 50 km and 1,999 km) accounted for 89.1% of the total freight transportation, and as the market continues to expand, the demand for pick-up vans, small trucks, and other LCVs is also likely to increase.

 

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Increased demand for high performance tires

The automotive high-performance tire market is expected to exhibit a growth rate of 6.7% during the forecast period. The growth is driven by numerous factors such as increasing inclination of people towards sports like car and bike racing and extreme terrain rallies. OEMs use these events as a platform to market their products and increase brand visibility. Increasing disposable income of customers living in emerging economies is leading to a growth in demand for higher capacity vehicles such as SUVs and crossover vehicles. Rapid infrastructure development in developing economies, especially India and China, has caused a growth in sales of commercial vehicles and construction vehicles. Replacement and aftermarket tire market presents a huge opportunity for vehicle manufacturers to generate revenue. Customers are choosing high performance tires over traditional rubber tires because rubber tires are subjected to wear and tear easily.

OEMs exist as a symbol of brand loyalty. Therefore, tire manufacturers try very hard to get the partnership contract with OEMs that will use their tires in various models of vehicles. This move helps tire manufacturers to reduce costs on distribution network.

Europe has shown a strong demand for high performance tires due to presence of large number of OEMs such as BMW, Volkswagen, Ferrari, Daimler and Renault. These OEMs regularly participates in motor sports events held in the continent and showcase their new line of innovative products that caters to the customer’s need of safe, cleaner and cost-effective vehicles and components.

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Competitive Landscape

Major players such as Bridgestone, Continental, Michelin, Pirelli, etc. dominates the global market for automotive tires. However, when it comes to supplying to the developing markets, such as China and India, the market is fairly fragmented with the presence of regional players.

Tire manufacturers constantly try to expand their business and distribution network. Manufacturers also tends to adopt strategies such as partnerships, joint ventures and mergers and acquisitions.

The demand for high-quality and safe tires was the main reason for the automakers and end users to prefer products from renounced manufacturers than the smaller regional players. Furthermore, these big players have increased their R&D spending exponentially to integrate innovation with performance excellence. This, in turn, has resulted in the production of premium quality tires for off-road and on-road applications.

 

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Tire Type

      1. 5.1.1 Winter Tires

      2. 5.1.2 Summer Tires

      3. 5.1.3 All Season Tires

      4. 5.1.4 Other Tire Types (Luxury Touring and Racing/Sport (Usually Non-grooved Tires))

    2. 5.2 By End User

      1. 5.2.1 OEM

      2. 5.2.2 Replacement/Aftermarket

    3. 5.3 By Vehicle Types

      1. 5.3.1 Passenger Cars

      2. 5.3.2 Light Commercial Vehicles

      3. 5.3.3 Heavy Commercial Vehicles

      4. 5.3.4 Other Vehicle Types (All-terrain Vehicles, Recreational Vehicles))

    4. 5.4 By Manufacturing

      1. 5.4.1 Radial Tire

      2. 5.4.2 Bias Tire

    5. 5.5 Geography

      1. 5.5.1 North America

        1. 5.5.1.1 United States

        2. 5.5.1.2 Canada

        3. 5.5.1.3 Mexico

        4. 5.5.1.4 Rest of North America

      2. 5.5.2 Europe

        1. 5.5.2.1 Germany

        2. 5.5.2.2 United Kingdom

        3. 5.5.2.3 France

        4. 5.5.2.4 Italy

        5. 5.5.2.5 Rest of Europe

      3. 5.5.3 Asia-Pacific

        1. 5.5.3.1 China

        2. 5.5.3.2 Japan

        3. 5.5.3.3 India

        4. 5.5.3.4 Australia

        5. 5.5.3.5 Rest of Asia-Pacific

      4. 5.5.4 Middle East & Africa

        1. 5.5.4.1 South Africa

        2. 5.5.4.2 Saudi Arabia

        3. 5.5.4.3 United Arab Emirates

        4. 5.5.4.4 Rest of Middle East & Africa

      5. 5.5.5 South America

        1. 5.5.5.1 Brazil

        2. 5.5.5.2 Argentina

        3. 5.5.5.3 Rest of South America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Bridgestone Corp.

      2. 6.2.2 Continental Automotive AG

      3. 6.2.3 Cooper Tire & Rubber Company

      4. 6.2.4 Goodyear Tire & Rubber Company

      5. 6.2.5 Hankook Tires Group

      6. 6.2.6 Michelin Tires

      7. 6.2.7 MRF (Madras Rubber Factory Limited)

      8. 6.2.8 Pirelli & C SpA

      9. 6.2.9 Apollo Tires

      10. 6.2.10 Yokohama Rubber Co. Ltd

  7. *List Not Exhaustive
  8. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  9. 8. DISCLAIMER

** Subject to Availability

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