The automotive segment is one of the booming sectors presently and it is expected to grow significantly in the next few years prioritizing more on customer safety and comfort. With the gradual decrease of recession, the automotive sector has witnessed a strong positive growth. The tire industry is also been noticing a steady improvement in the automotive sector. Product innovation is one of the essential strategies implemented by the companies to sustain in the global market. In order to do so, the leading players in the automotive tire market are investing heavily on a continued basis on research and development activities. Green tires with high durability and energy efficiency are being largely demanded by the consumers and automobile manufacturers. Therefore, there has been increasing efforts by the automotive tire manufacturers to meet such demands by bringing innovation in their products. In the dynamic business environment where numerous technological advancements are taking place each day, it is necessary for the automotive tire companies to align its strategies with the technological shifts. Presently, self inflating tire and low rolling resistance technologies are becoming very popular. Such advancements are expected to take the tire market to a new level. In the automotive tire market, it is essential for all companies to adhere to the safety standards and regulations set up by governments of respective countries. Superior quality of products ensures long term business profitability through customer satisfaction. Adherence to the quality standards also creates goodwill and a positive brand image of the company.
Based on the type of tire safety systems, the market is segmented into two types: radial tire and bias tire. Due to advancements in technology, the market for radial tires is growing significantly. Based on applications of tire, the market is segmented in passenger cars, light commercial vehicle, heavy commercial vehicle and two wheelers. Radial tires dominated the automotive tire market. High penetration of radial tires in passenger cars, light commercial vehicle and heavy commercial vehicle boosted the market of radial tires.
Asia pacific accounted for the largest market share in 2014, which is expected to lure heavy investment and at the same time high end research is expected to be carried out in the field of tires. In addition, improving lifestyles, and luxury vehicle demand and changing buyer’s preferences have ensured its dominance. Tire industry is facing some intense competition from the China and South East Asian countries in tire exports. Passenger cars dominated the automotive tire market. High penetration of passenger cars in countries such as India, China, Russia and the U.S is expected to drive the demand for passenger cars, globally. Passenger car tires have highest penetration rate in Asia Pacific in 2014.
Due to the rise in production of passenger vehicles and increase in the purchasing power of consumers, the passenger vehicle segment is expected to witness huge growth during the forecast period from 2015 to 2021 .The U.S. and China are the leading markets in this segment.
The global demand for luxury cars and sports utility vehicle are expected to drive the growth of automotive tire market, further. In addition, massive urbanization in some of the developing countries, strong replacement demand, moderate share of financed purchase and favorable demographic profile are set to provide provides a huge scope and opportunity for the two-wheelers segment. Moreover, increasing focus on consumer safety and stringent government regulations coupled with reliability and cost-effectiveness of the technology are other factors driving this market. The rise in economic prosperity, GDP gains and increased rate of car production in developing countries of Asia Pacific and Rest of the World (RoW) are poised to uplift the automotive tire market in the aforementioned regions.
Major industry participants include Bridgestone, Goodyear, Continental AG, Pirelli, Michelin and among others.
Despite being a mature market, the global automotive tire market is a booming segment and has the potential for strong growth over the next few years. The overall automotive industry has been picking up pace after the recent global economic downturn and this has had a positive impact on the automotive tire market as well.
With the help of the latest research tools, the report sheds light on the key aspects of the automotive tire market and its growth trajectory for the coming years. The market’s driving and restraining factors have been highlighted and analyzed and the impact of global and regional trends has also been assessed. A list of tables has been included in the report, giving readers a statistical understanding of where the automotive tire market stands and where it is headed.
The global automotive tire market has been segmented based on type, application, and region. On the basis of type, the automotive tire market is divided into bias tires and radial tires. By application, the automotive tire market is categorized into light commercial vehicles, passenger vehicles, two wheelers, and heavy commercial vehicles. In terms of geography, the global market comprises Europe, North America, Asia Pacific, and Rest of the World.
Overview of the Automotive Tire Market
The global automotive tire market is estimated to expand at a CAGR of 6.60% from 2015 to 2021, the report’s forecast period. The value of the market was US$188.3 bn in 2014 and is predicted to increase to US$298.1 bn by the end of the forecast period.
Radial tires make up the largest product segment of the automotive tire market thanks to the rising advancements in technology. Passenger cars formed the largest application segment in 2014 owing to the high demand stemming from Asia Pacific and Europe. Developed as well as developing countries have been witnessing a rapid surge in demand for passenger cars due to high per capita income. Asia Pacific is the dominant regional market for automotive tires with strong demand from countries such as Japan, China, Australia, and India.
Some of the key factors driving the global automotive tire market are the rise in commercial and passenger vehicles, the growing demand for ecologically viable tires, the improving economic conditions around the world, and the rapid advancement in technology. Apart from this, the change in buyer preferences, evolving lifestyles, and the demand for luxury and sports utility vehicles are projected to propel the market for automotive tires in the coming years. The growing focus on consumer safety, the availability of cost-effective and reliable technologies, and strict government rules have also helped the growth of the automotive tire market.
Companies Mentioned in the Report
Pirelli, Yokohama, MRF Tyre, Michelin, Goodyear, Bridgestone, and Continental are some of the noteworthy companies featured in the automotive tire market report. This section covers key aspects such as company and financial overview, recent developments, and business strategies. A SWOT analysis carried out by analysts highlights the strengths, weaknesses, opportunities, and threats of each company.
Automotive Tire Market, by Types
- Radial tires
- Bias tires
- Automotive Tire Market, by Application
- Light commercial vehicles
- Heavy commercial vehicles
- Two wheelers
Automotive Tire Market, by Geography:
- North America
- Asia Pacific
- Rest of the World
This report gives you access to decisive data such as:
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for the coming years
Key highlights of this report
- Overview of key market forces propelling and restraining market growth
- Up-to-date analyses of market trends and technological improvements
- Pin-point analyses of market competition dynamics to offer you a competitive edge
- An analysis of strategies of major competitors
- An array of graphics and SWOT analysis of major industry segments
- Detailed analyses of industry trends
- A well-defined technological growth map with an impact-analysis
- Offers a clear understanding of the competitive landscape and key product segments