Tire Market - Snapshot

Automotive tires are pneumatic structures mounted on vehicle’s rims to transfer the vehicle drive to the ground. A tire is made of natural rubber, synthetic rubber, wire and fabric.

Increase in demand for vehicles is expected to boost the tire market for automotive. Several automakers are offering numerous models in order to diversify their product portfolio. The vehicle models often come with variety of rim size options. Rise in demand for individualization by customers and diversification of tire sizes as per models is expected to boost the tire market for automotive. In 2017, SUV sales contributed to 34% of total vehicle sales in China. Demand of high clearance and sport appeal vehicles has led to evolution of tire market towards higher rim sizes. Rise in global demand for SUVs is expected to boost the tire market for automotive. Increase in penetration of premium and luxury vehicles is fueling the demand for low profile or low aspect ratio tires. Rapidly growing economies of China, India, Mexico & Brazil are boosting luxury vehicle sales, which in turn is fueling the demand for low profile or low aspect ratio tires.

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Demand for automotive tires in 18’’-21’’ rim size segment is anticipated to witness a high demand during the forecast period. In 2017, SUVs and crossovers accounted for 42% of vehicle sales in the U.S., and 26% of vehicle sales in Europe. Shift in passenger vehicle demand from sedans to SUVs is expected to propel the demand for 18’’-21’’ rim size tires. In Europe, Japan, South Korea and Brazil, vehicle tires are required to be labelled according to their noise performance, rolling resistance, and fuel efficiency. Automakers are choosing to opt for tires labelled between A and C, as they improve fuel efficiency and also offer better road handling. Rising popularity of homologation and similar plans of China and U.S. to implement tire labelling are expected to drive the tire market for automotive.

During winter, some countries in Europe such as Iceland, Russia, Latvia, and Norway have enacted regulations that make it mandatory to fit winter tires. Countries in Europe that experience mild winters and in some provinces of Canada, winter tires are partly mandatory when the weather permits. Therefore, the Europe and North America region are very lucrative for winter tire sales and is estimated to witness a steady expansion during the forecast period.

In developing countries the commercial vehicles still dominantly run on bias ply tire. The commercial vehicle segment is however undergoing a rapid radialization or shift of market epicenter from bias ply to radial ply. The developing region such as Asia Pacific and Latin America are thus estimated to witness a high growth of radial tires.

The automotive tire is a major aftermarket replacement part due to its nature to undergo wear and tear. Improvement in infrastructure is raising the number of miles driven, which in turn is boosting the replacement demand for automotive tires.

The global tire market for automotive can be classified by rim size, aspect ratio, tire material, ply, tube, vehicle, sales channel and region. The tire market for automotive is classified as 12’’-17’’, 18’’-21’’ and more than 22’’ under the rim size category. The 18’’ 21’’ segment is estimated to witness the highest demand owing to rise in sales of SUV’s and growing preference of higher rim size vehicle. By aspect ratio, the tire market for automotive is classified as 35-77, 60-70, and 75-85. The 35-77 aspect ratio tires are considered low profile and are witnessing high demand in Europe & North America due to rise in demand for premium vehicles. The tire market for automotive is segmented by natural rubber and synthetic rubber owing to the high utilization of these two materials along with other materials. By tube, the tire market for automotive is divided under tube tire and tubeless tire. By season, the tire market for automotive is segmented under winter tire and summer/ all season tire. By ply, the tire market for automotive is classified under radial ply tire and bias ply tire. Rising demand of radial tires for commercial vehicles is expected to boost the tire market for automotive. By tube, the tire market for automotive is segmented under tube and tubeless tire. By vehicle, the tire market for automotive is segmented under passenger vehicle, light commercial vehicle and heavy commercial vehicle. By sales channel, the tire market for automotive is segmented under OEM and aftermarket By region, the tire market for automotive is classified under North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Key players operating in the global tire market for automotive include Bridgestone Corporation, Continental AG, Michelin, The Goodyear Tire & Rubber Company, Pirelli & C.S.p.A., Apollo Tyres Ltd., CEAT Ltd., China National Tire & Rubber Co., Ltd., Cooper Tire & Rubber Co., Ltd., Giti Tire, Hangzhou Zhongce Rubber Co., Ltd., Hankook Tire, JK Tyre & Industries Ltd., Kumho Tire Co., Inc., Nexen Tire Corporation, Nokian Tyres plc, Qingdao Fullrun Tyre Corp., Ltd., Sumitomo Rubber Industries, Ltd., Toyo Tire & Rubber Co., Ltd., and Yokohoma Tire Corporation.

Tire Market - Overview

This report analyzes and forecasts the tire market for automotive at the global and regional level. The market has been forecasted, based on revenue (US$ Mn) and volume (Million Units) from 2018 to 2026. The study involves the effect of all the factors that can contract or expand the tire market, globally as well as regionally. The report also highlights opportunities in the tire market for automotive at the global and regional level.

The report contains value chain analysis, which provides a comprehensive view of the global tire market for automotive. The Porter’s Five Forces analysis for the tire market for automotive has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein end-users are benchmarked based on their market size, growth rate, and general attractiveness.

The study provides a decisive view of the global tire market for automotive by segmenting the market in terms of rim size, aspect ratio, material, season, tube, ply, sales channel, vehicle, and region. These segments have been analyzed, based on present and future trends. Regional segmentation comprises current scenario along with forecast of the tire market for automotive. The forecast provided is based on the compilation of current trends as well as expected scenario in the future, due to change in technological, geographical, political, and economic factors such as rising preference toward sports utility vehicles, globally, is expected to boost the demand for tires between 18” to 21” rim sizes during the forecast period.

The study includes profiles of major companies operating in the global tire market for automotive. The global tire market for automotive is dominated by a few major tire manufacturers which include Bridgestone Corporation, Continental AG, Michelin, The Goodyear Tire & Rubber Company, Pirelli & C.S.p.A., Apollo Tyres Ltd., CEAT Ltd., China National Tire & Rubber Co., Ltd., Cooper Tire & Rubber Co., Ltd., Giti Tire, Hangzhou Zhongce Rubber Co., Ltd., Hankook Tire, JK Tyre & Industries Ltd., Kumho Tire Co., Inc., Nexen Tire Corporation, Nokian Tyres plc, Qingdao Fullrun Tyre Corp., Ltd., Sumitomo Rubber Industries, Ltd., Toyo Tire & Rubber Co., Ltd., and Yokohoma Tire Corporation. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments. The tire market for automotive is primarily driven by rising production of vehicles and high dependency of society on vehicles, which is booting the aftermarket of the tires due to rapid wear and tear of tires.

The report provides the estimated market size of tire market for automotive 2017 and forecast for the next nine years. The global market size of tire market for automotive has been provided in terms of revenue (US$) and volume (Million Units). Market figures have been estimated, based on rim size, application, vehicle type, and regional segments of the tire market for automotive. Market size and forecast for each major segment have been provided in terms of global and regional/country markets.

In order to compile the research report, we conducted in-depth interviews and discussions with a number of key industry participants and opinion leaders. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. We reviewed key players’ product literature, annual reports, press releases, and relevant documents for competitive analysis and market understanding. Secondary research also includes a search of recent trade, technical writing, internet sources, and statistical data from government websites, trade associations, and agencies. This has proven to be the most reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.

Secondary research sources that are typically referred to include, but are not limited to company websites, annual reports, financial reports, broker reports, investor presentations, and SEC filings, internal and external proprietary databases, and relevant patent and regulatory databases, national government documents, statistical databases, and market reports, news articles, press releases, and webcasts specific to companies operating in the market, National government documents, statistical databases, and market reports, American Automobile Association, European Automobile Manufacturers Association, Automotive Research Association of India, Organisation Internationale des Constructeurs d'Automobile (OICA), Factiva, etc.

Primary research involves e-mail interactions, and telephonic interviews for each market, category, segment, and sub-segment across geographies. We conduct primary interviews on an ongoing basis with industry participants and commentators in order to validate the data and analysis. Primary interviews provide firsthand information on market size, market trends, growth trends, competitive landscape, and outlook, etc. These help validate and strengthen secondary research findings. These also help develop the analysis team’s expertise and market understanding.

The Tire Market for Automotive has been segmented as follows:

Global Tire Market for Automotive, by Rim Size

  • 12”- 17”
  • 18”-21”
  • >22”

Global Tire Market for Automotive, by Aspect Ratio

  • 35 - 55
  • 60 – 70
  • 75 – 85

Global Tire Market for Automotive, by Material

  • Natural Rubber
  • Synthetic Rubber

Global Tire Market for Automotive, by Season

  • Winter Tire
  • All-season Tire

Global Tire Market for Automotive, by Ply

  • Radial ply
  • Bias Ply

Global Tire Market for Automotive, by Tube

  • Tubed Tire
  • Tubeless Tire

Global Tire Market for Automotive, by Vehicle Type

  • Passenger Vehicle
  • Light Commercial Vehicle
  • Heavy Light Commercial Vehicle

Global Tire Market for Automotive, by Sales Channel

  • Original Equipment Manufacturer
  • Aftermarket

Global Tire Market for Automotive, by Region/Country/Sub-region

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa
.