Tire Cords and Tire Fabrics Market size to surpass $7bn by 2026
Published Date: November 12, 2019 Authors: Kiran Pulidindi, Soumalya Chakraborty
Tire Cord and Tire Fabrics Market size will likely exceed USD 7 billion by 2026; according to a new research report by Global Market Insights, Inc.
Steel cords will have significant contribution to the market
On the basis of product type the global market share has been segmented into steel cords, polyester, nylon dipped cord, rayon cord, and others (aramid, fiberglass, etc.). Among the various aforementioned segments, the steel cord product type generated the highest revenue in 2018 and is projected to continue leading throughout the forecast. Steel tire cord accounted for more than 50% of the global tire cord market demand in 2018. The growing application of the product in radial tires in the automotive industry shall further surge the growth of the steel tire cord segment throughout the review period.
Polyester and nylon tire cord materials are the other main products holding considerable market share. Nylon dipped tire cords are expected to grow at a CAGR of over 6.5% throughout the forecast period. Nylon dipped tire cords are considered to be optimum reinforcing materials especially for bias ply tires that are widely used in off road vehicles, bus and heavy and medium commercial vehicles. These tire cord exhibit attributes such as enhanced tenacity, fatigue resistance and provides with excellent adhesion to rubber.
Get more details on this report - Request Free Sample PDF
Polyester tire cords are mostly used in radial tires of personal vehicles. Polyester type cords held a revenue share of over 20% in 2018 and is projected to grow at a CAGR of over 5% throughout the review period. This growth can be attributed to the growing demand for personal cars in the developing regions across the globe. However, declining automobile sales in the developed regions across the globe is considered to be one of the major downside to the market growth.
Browse key industry insights spread across 250 pages with 309 market data tables & 29 figures & charts from the report, “Tire Cord And Tire Fabrics Market Size By Product (Steel Cord, Polyester, Nylon Dipped Cord, Rayon Cord), By Vehicle Type (Heavy Commercial Vehicles, Light Commercial Vehicles, Passenger cars, Off-road vehicles and two wheelers), Industry Analysis Report, Regional Outlook, Application Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2026” in detail along with the table of contents:
Latin America shall exhibit an encouraging CAGR over the forecast timespan
Latin American market of tire cords and tire fabrics held a share of around 6% in 2018 in terms of revenue and is projected to grow at a CAGR over 5.5% throughout the review period. Brazil and Mexico are the major automobile manufacturers attributing to the growth of the overall market in the region. According to International Organization of Motor Vehicle Manufacturers, Brazil manufactured 2,307,443 units of personal cars in 2017 which increased by 3.4% to reach 2,386,758 units by the end of 2018. This growing production of automobile shall positively affect the market growth during the assessment period. Moreover, the ongoing plans of major automobile manufacturers to invest in the Latin American region shall further propel the product demand in the coming years. For instance, in March 2019 General Motors announced its plants to invest over USD 2.5 billion in its Brazilian manufacturing plants (São Caetano do Sul and São José dos Campos plants) for the launch of new products from 2020 to 2024.
The encouraging government initiatives especially in Mexico shall also generate substantial demand for the product during the forecast period. The government of Mexico in 2018 signed an agreement with United States and Canada (USMCA) which is directed towards improving the trade between the countries. This agreement is anticipated to bring about 20% higher local content requirement (from 62.5% to 75% in 2023) in the automotive industry and reduce political tensions through diminishing U.S. sanction threats. The agreement is also aimed in incentivizing production of personal as well as commercial vehicles in the all three countries involved. These positive indications in the Latin American automotive market is projected to compliment the tire cords and tire fabrics market in the region throughout the review period.
Manufacturers focusing on technological dominance to gain competitive edge
The major participants in the tire cords and tire fabrics market share are Teijin Ltd, Cordenka GmbH & Co. KG, Hyosung Corporation, Kordsa Global, Inc, SRF Ltd., Kolon Industries, Inc., Bekaert Corporation, Firestone Fibers & Textile Company, Kordarna Plus A.S., , Tokusen U.S.A., Inc, Milliken & Co. Inc. and others.