Market Trends of Nylon Tire Cord Fabrics Industry
This section covers the major market trends shaping the Nylon Tire Cord Fabrics Market according to our research experts:
Increasing Usage in the Radial Tire Industry
- A radial tire is widely adopted in the automotive industry owing to improved driving comfort, better road contact, and lower fuel consumption in tires at high speed. It is widely used in light commercial vehicles and passenger cars. The radial tire is constructed in such a way that it has much more flexible sidewalls, thus generating less heat.
- Increasing investments in electric vehicles coupled with new incentives and regulations introduced by various governments globally to fuel electric vehicle sales are expected to drive the automotive tire market. Besides, the growing demand for fuel-efficient vehicles to lower carbon footprint in the environment is expected to boost the demand for electric vehicles and other related products used in vehicles such as tires.
- The global electric vehicle sales stood at 6.7 million units in 2021 as compared to 3.1 million units in 2020, according to International Energy Agency (IEA). This will stimulate the demand for the radial tire industry in the electric vehicle segment.
- Superior properties of radial tires such as high breaking strength, improved impact resistance, and good adhesive strength with rubber, enhance their usage in the automotive sector. As per the International Organization of Motor Vehicle Manufacturers (OICA), global automotive sales amounted to 82.68 million units in 2021 as compared to 78.77 million units in 2020, registering a growth of 4.9%.
- The growing demand for passenger cars due to the rise in the middle-class population and disposable income are the factors driving the automotive industry. The global passenger car sales reached 56.39 million units in 2021 as compared to 53.92 million units in 2020, registering a growth of 4.6%, which in turn stimulates the demand for the radial tire market.
- Owing to all these factors, the market for radial tires is likely to grow globally during the forecast period.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to dominate the market studied. In the region, China is the largest economy, in terms of GDP.
- Commercial and passenger vehicle sales in Asia-Pacific amounted to 42.66 million units in 2021 as compared to 40.32 million units in 2020, registering a growth of over 5.8%. China and India are among the fastest emerging economies in the region.
- China dominates the automotive industry in the Asia-Pacific region. The Chinese automotive industry depicted significant growth over the years. Strong government support through subsidies and strategic government policies such as made in China 2025 are the factors supporting the domestic automotive industry growth in the country.
- As per the China Association of Automobile Manufacturers (CAAM), the production of both passenger and commercial cars in China amounted to 26.08 million units in 2021, as compared to 25.23 million units in 2020. However, major government spending, especially focused on infrastructure has resulted in a rebounding of construction activity in 2021.
- Rising middle-class income coupled with low-interest rates provided by banks on vehicle purchases is driving the automotive industry during the forecast period. Furthermore, the increasing introduction of new models of vehicles featuring fuel efficiency and design appeal will boost the automotive market.
- In India, FDI in the automobile sector stood at USD 30.78 billion between April 2000 to September 2021, according to the Indian Brand Equity Foundation (IBEF). The annual automobile production in India amounted to 22.65 million in 2021 which was dominated by the two-wheeler segment due to the high percentage of the young population.
- Increasing policy initiatives for the automobile sector by the Indian government such as the PLI (Production Linked Incentive) scheme for automobile and auto components, automotive mission plan and 100% FDI allowed under automatic route. These initiatives are expected to drive the automotive industry in the coming years.
- Due to all such factors, the market for nylon tire cord fabrics in the region is expected to have a steady growth during the forecast period.
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