The
global automotive tire market is anticipated to develop at a steady CAGR of 6.8% from 2015 through 2021, by which year it will reach a value of US$298.15 billion. The automobile industry is booming at present, with focus on passenger comfort and safety. The steady economic recovery all over the world has led to stable growth of the automobile industry. This has naturally led to growth of the global tire market.The global tire market is quite mature in some regions. However, there is considerable growth potential for the global automotive tire market, due to amplified production of passenger and commercial vehicles in developed as well as developing economies.
Investment in R&D for Technologically-Advanced Tires Drives Growth
There is augmented demand for eco-friendly tires and such advanced ‘green’ tires are expected to witness substantial growth in the coming years. Modern tires are safer than conventional tires and are equipped with features such as better grip and durability.OEMs and system integrators are investing heavily in research and development for engineering technologically advanced and enhanced tires. Top companies such as Bridgestone and Continental are investing up to 4.5% of total sales in research.
Radial Tires in Demand due to Advances in Technology
Growth of the automotive sector in emerging markets will affect the global automotive tire market positively and the industry is anticipated to expand substantially in the next few years. On the basis of tire safety systems, the global automotive tire market is segmented into bias tire and radial tires. Due to advances in the technological background of radial tires, this category has recorded substantial growth in the global automotive tire market. Radial tires are used in light commercial vehicles, heavy commercial vehicles, and in passenger cars. Bias tires are used in two wheelers.
Demand for Passenger Vehicles in Asia Pacific and Europe Drives Market
On the basis of application, the automotive tire market is segmented into light commercial vehicles, passenger cars, two wheelers, and heavy commercial vehicles. Passenger vehicles held the largest share of the global tires market in 2014 and this segment is anticipated to expand substantially due to demand for passenger cars in regions such as Asia Pacific and Europe.This segment is also anticipated to boost the automotive tire market considerably in developed nations such as Germany, the U.S., and France. The increased demand for passenger vehicles can be attributed to high per capita income and lifestyle changes.
By geography, the Asia Pacific segment accounted for the highest market share in 2014, due to heightened demand for vehicles in Japan, India, China, and Australia. The upsurge in demand for passenger vehicles and two wheelers due to improved lifestyles and demand for luxury vehicles in these regions are expected to propel the automotive tire market over the next few years.The APAC and Rest of the World (RoW) regions have greater GDP gains and higher car production and are thus primed for growth in the automotive tire market. Europe has several major automobile manufacturers based in the region and is the second largest market for tires, due to rising car production. Key players in the automotive tire market are Michelin, Continental AG, Bridgestone, Pirelli, Goodyear, and others.
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