Passenger Tire Market size is foreseen to augment at a considerable pace through the coming years, driven by escalating passenger car sales and production worldwide. According to OICA statistics, the passenger vehicles sales in 2020 surpassed 53 million units, generating increased demand for tires, augmenting the market space.
Ongoing research and developments in the tire sector are as well expected to augment the position of market globally. For instance, in 2021, Nokian launches its all-season passenger tire, named the One. The product features an aramid sidewall to withstand pothole strikes and other road hazards, thus increasing its puncture resistance.
Passenger tire market trends would further be propelled by the rising technological advancements in space. Deployment of AI, machine learning and other technologies to analyze the condition of tire in passenger cars would surge the demand for these. Various companies are investing in developing highly advanced tire mechanisms to enhance the passenger experience. Say for example, in 2020, Bridgestone announced partnering with Microsoft to bring forth a novel monitoring system for sensing tire damage issues in real-time. This development was aimed at increasing road safety and alleviating accidents caused by technical failures.
Furthermore, inclining preference towards electric vehicles as a result of increasing toxic carbon emission for IC engine vehicles is as well stimulating the growth dynamics of passenger tire market over the recent years.
Growing trend of deployment of green tires in passenger vehicles would further bolster the passenger tire industry sphere through 2028. Green tires support large scale improvement in tire energy efficiency. According to the International Council on Clean Transportation research, enhancements in tire energy efficiency could bring down the global fuel consumption from passenger vehicles by 5%, relating to a reduction in GHG emission of more than 100 million metric tons yearly.
Based on the source, passenger tires made of synthetic polymers are gaining traction globally. Two main synthetic rubber polymers used in tire production are styrene butadiene rubber and butadiene rubber. These polymers are used in combination with natural rubber to enhance the overall performance of the tire. Another important synthetic rubber being used is halogenated polyisobutylene rubber. The material causes innerliner of the tire to be impermeable, keeping it inflated.
Geographically, Asia Pacific passenger tire market, led by Japan and China is touted to grow considerably over 2022-2028. This can be credited to the outgrowing passenger vehicle production and sales in these economies. Factors like growing disposable incomes, rising standard of living, and expanding urbanization in the region are contributing to the sales of passenger vehicles, leading to a potential surge in the demand for passenger tires. Additionally, presence of leading tire manufacturers in the APAC would further add to the growth spectrum of APAC.
Some of the prominent players operating in passenger tire market are Goodyear Tire and Rubber Company, Bridgestone, Roadbot, Micheline, Continental, and Pirelli, amongst others. These companies are engaged in offering novel solutions to customers and are also involved in a competitive landscape through strategic initiatives like mergers and acquisitions, partnerships, and more to attain a position in the global marketplace.
The valuation for passenger tire industry had significantly dropped down during 2020 owing to the global outbreak of coronavirus pandemic. Temporary halt in production lines of different industries, including the automotive and automobile industry, and disruptions in raw material supply chain put the tire production at standstill, negatively impacting the passenger tire market growth. Big companies like Bridgestone and Goodyear were also forced to pause their manufacturing operations, leading to degraded sales of passenger tires worldwide.