Pneumatic Tires Market size will exhibit considerable progression during the forecast of 2022-2028. 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 26 million vehicles and sold over 21 million vehicles during FY20, registering a CAGR 2.36% growth rate.
Escalating product applications in the replacement market and the rapid upsurge in demand for improved and cost-effective products will propel the market outlook over the projected timeframe. Pneumatic tires are known for their efficiency, superior traction, fuel economy, and capability to allow for 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 in the years ahead.
Other factors like growing population, strong economic growth, increasing disposable incomes, urbanization, led to an upsurge in demand for public and private transport and will contribute to industry expansion during the analysis timeframe.
With regards to the product type, radial tires may register significant gains in the pneumatic tires market, 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.
Motorcycles and bicycles will hold a significant share considering the product application in the forthcoming years. Escalating demand for two-wheelers in developing nations leading to an upsurge in the production and supply for these products will propel the industry 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.
Regarding the regional landscape, the North America pneumatic tires market will offer lucrative growth opportunities in the upcoming years driven by the proliferating automobile and defense industry and the existence of prominent market players in the region. Increasing R&D activities leading to the production of technologically advanced products will further support the regional outlook.
Some of the significant players of the pneumatic tires market include Camso Solideal, Trelleborg Group, Continental AG, 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.
The advent of the pandemic last year had a profound effect on the pneumatic tires industry. Stringent lockdowns leading to travel and movement restrictions significantly reduced the demand and production of automobiles all over the world. Imposed restrictions on import activities substantially hiked replacement tires prices, hindering the industry growth. Furthermore, declining economic growth and disposable incomes further hampered the market expansion.
However, with the diminishing effects of the pandemic and adoption of new growth strategies by the companies, the pneumatic tires market may soon regain its path to recovery and register significant growth.