Pneumatic Tires Market size will exhibit considerable CAGR during 2023-2032. Increasing production and demand for commercial and passenger vehicles in countries like the U.S., China, Indonesia, India, Germany, and others and growing preference for personal transport are the key factors that will drive the industry's expansion in the foreseeable future. According to the statistics by India Brand Equity Foundation (IBEF), India manufactured over 22.93 million vehicles in 2021.
Escalating product applications in the replacement market and the rapid surge in demand for improved and cost-effective products will propel the market outlook over the next ten years. Pneumatic tires are known for their efficiency, superior traction, fuel economy, and capability to allow a smoother ride experience with lesser bumping and shaking. Moreover, these tires are ideal for industrial applications due to their excellent shock absorption, floor protection, utilization in both on/off-pavement road applications, and reduced loud noises improving the working conditions.
Increasing government expenditure in defense aircraft and improving the road infrastructure, and emerging R&D investment and activities for new product innovations will support the pneumatic tires market forecast by 2032. Other factors like growing population, strong economic growth, increasing disposable incomes, and urbanization have led to the proliferation of public and private transport, thus contributing to industry expansion between 2023 and 2032.
The industry is anticipated to witness a mixed impact due to the ongoing global inflation that has been taking a toll on every business for the last two years. On the one hand, the automotive sector is dealing with pumping up material costs and supply chain constraints caused due to sanctions imposed on Russia in response to Russia's invasion of Ukraine. This has resulted in increased inflationary pressures and dampened consumer spending, limiting the uptake of pneumatic tires, thus, impacting the market growth. While on the other hand, people have been replacing their existing tires and automotive parts instead of buying a new vehicle, which may favor the pneumatic tires market dynamics through 2032.
With regard to the product type, radial tires may register significant gains during 2023-2032 in the pneumatic tires industry owing to their growing prevalence in agricultural and industrial applications. These tires offer better handling on wet surfaces and are resilient to punctures, tears, and scratches. Furthermore, they are long-lasting and have good traction, providing them a competitive edge over other tires, thereby fostering their adoption in the forthcoming years.
Motorcycles and bicycles are anticipated to hold a significant share considering the product application by 2032. Escalating demand for two-wheelers in developing nations leading to an upsurge in the production and supply of these products will propel the pneumatic tires market growth during the prediction period. In addition, increasing preference for private vehicles, availability of vehicle loans at low interest, and improving socio-economic conditions will further boost the segment expansion.
North America pneumatic tires market will bring about lucrative growth opportunities through 2032, driven by the proliferating automobile and defense industry and the existence of prominent market players in the region. Furthermore, increasing R&D activities leading to the production of technologically advanced products will further support the regional outlook over the prediction period.
Some of the significant players in the pneumatic tires industry include Camso Solideal, Trelleborg Group, Continental AG, and Hankook Tire & Technology Co., Ltd. These players are focusing on several growth strategies and new product innovations to boost their sales and propel the demand for these products to safeguard their market position.
For instance, in October 2022, Michelin announced expanding its Tweel UTV product range by introducing the 26X11N14 Tweel UTV tire, which is designed to cater to the heavier carrying capabilities of construction, landscaping, and rental vehicles. The tire is 2.8 inches wider, has a 100km/h speed rating, and can carry up to 600 Kg, thus, allowing a higher load capacity for UTVs.