Automotive Tire Market size is projected to grow exponentially over the coming years propelled by burgeoning demand for advanced high-performance tires over conventional rubber tires. Recent years have seen a significant rise in disposable incomes of consumers across the globe, particularly in emerging economies, leading to a surge in demand for high capacity cars such as crossover vehicles and SUVs. This upsurge is anticipated to accelerate demand for suitable tire technologies, designed to adapt to various terrains and uses.
The emergence of advanced manufacturing technologies is projected to assert a considerable impact on market share. With the technological landscape progressing at a rapid rate, most manufacturing facilities are adopting novel technologies, such as automation, in order to enhance profitability and productivity. Technological advancements in the automotive tire industry range from the advent of green tires, rimless tires, to the use of lightweight metals and elastomers such as carbon fiber, to composites and alloys such as manganese bronze and nickel aluminum bronze.
Furthermore, the use of nanotechnology and other software or technologies to develop smarter tire solutions is also gaining prominence in recent years. For instance, Goodyear is focusing on researching autonomous and electric vehicles at the Michigan Mcity Test Facility, for sensor-based intelligent tires. The company has initiated the supply of intelligent tires with sensors embedded, for service and delivery vehicles to collect data in a pilot program, via Rubiwin, the shared services platform of Redspher.
Radial tires are among the most common types of automotive tires. Also known as two-part construction tires, they consist of pliers placed radially from the center. These tires are designed specifically to offer benefits such as heat resistance, sidewall flexibility, less tire vibration, ability to withstand heavy loads, strong suitability to powerful vehicles and rigid chassis as well as a longer lifecycle. These properties, alongside the extensive usage of these tires in passenger vehicles is expected to augment radial market penetration over the forthcoming years.
With regards to end use, the aftermarket is set to emerge as a lucrative revenue source for the industry over the forecast spell. This is characterized by the steady improvement in the lifespan of vehicles, which has in turn led to a significant rise in tire replacement demand throughout the vehicle’s lifecycle.
The automotive tire market is bolstered by the presence of key tire manufacturers, such as Bridgestone Corporation, Aeolus Co. Ltd., CEAT (RPG Group), Barez Industrial Group, Carlisle Companies, Bangkok Metropolis Motor Co. Ltd., Banteng Industrial Group, DMACK, Casumina and Danang Rubber Company.
These industry players are involved in various efforts to expand their scope and attain a strong position in the global market, including strategic partnerships, product innovations and business expansions.
For example, Michelin and General Motors (GM) have recently collaborated in an effort to commercialize an airless tire, dubbed UPTIS (Unique Puncture-Proof Tire System), in the North American market, expected in 2024.
Meanwhile, Indian tire manufacturer Ralco is undertaking various expansion efforts to double installed capacity across two Ludhiana-based production plants. The company will increase the installed capacity to nearly 5 million units per annum, from the existing capacity of 2.81 million units per annum, by July 2020 end.
The ongoing crisis stemming from the COVID-19 pandemic has caused upheaval across the automotive industry and its peripherals, including the automotive tire market. Several tire manufacturers are facing stockpiling issues, as stick lifting and transport from facilities to auto manufacturers came to halt, amid nationwide lockdowns across the globe. To ease the storage burden and mitigate these stockpiling issues, several tire producers have initiated drastic production cuts.
However, the situation could ease up, once demand starts to normalize post July 2020, as per projections, with some tire manufacturers resuming production activities, albeit at reduced levels and with stringent protocols in place.