Rubber Tire Market: Players Incorporate Technology into Manufacturing Process for Safety & Efficiency
Efforts being made by players in the global rubber tire market to stay relevant in terms of innovation, specifically with reference to sustainability, have led to a surge in R&D as far as rubber tires are concerned. Some of the key developments on this front in recent years include smart connected tires to aid in preventive maintenance and improve durability, and low rolling tires that help achieve improved fuel efficiency.
The global rubber tire market saw sales of ~1.5 Bn units in 2018, a number that is expected to rise over the forecast period to hit the 2.3 Bn units mark. This is due to a rise in the sales of vehicles in the commercial and construction sector, propelled by investments toward infrastructure. Analysts at TMR have conducted a detailed study on the rubber tire market space, which is projected to reach a valuation of ~US$ 195 Bn by the year 2027.
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Innovation in Designs and Materials to Provide Momentum
There has been increasing investments in research & development into the use of a variety of materials for the manufacture of rubber tires, so as to enhance the efficiency, performance, and product life of these tires. This comes specifically on the back of the demand for tires that are made to be stronger, while being lighter and offering better safety and performance features.
The push to vary materials has led to the development of synthetic rubber with considerable benefits over natural rubber. In May 2018, Bridgestone Corporation, one of the frontrunners in the global rubber tire market, announced the development of a High Strength Rubber (HSR) tire, which is the world's first polymer tire. It is touted as being the next-generation tire material that combines rubber and resin, which has strength and abrasion resistance that is better than natural rubber.
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As lower maintenance costs and longer life of tires have become a high priority, innovations in designs in the global rubber tire market have also had a positive impact on the market. This is particularly true for electric cars, where lighter tires are being deemed a necessity. This has led to design innovation such as the development of airless tire technology that is being put forth by various key players in the business. For instance, Goodyear Tire and Rubber Company’s non-pneumatic tires TurfCommand with DuraWeb™ Technology is being used for commercial lawn mowers, and as a strategy, is also being developed for passenger and commercial vehicles.
Sustainability: A Focal Point for Manufacturers
Manufacturing processes across industries around the world are becoming increasingly sustainable and environmentally-friendly, as players are taking an active interest in promoting the sustainable usage of raw materials and processing. This has resulted in collaborations within and outside the rubber tire landscape for the development of better materials, techniques, and technologies that use all four Rs: Reduce, Reuse, Recycle, and Renew. To this end, players in the rubber tire landscape are also looking at incorporating bio-based materials into the raw materials, making them sustainable without sacrificing on the efficiency and performance of the tires.
Rubber Tire Market: Competitive Landscape
The presence of established players in the market who account for ~40% share of the total market, alongside smaller and emerging players, makes the global rubber tire market a fairly fragmented space. This can be attributed to the high degree of competition due to the market being highly brand-driven. Smaller and regional players in the market are increasingly giving stiff competition to the top four players in the market, a factor that can be credited to the aftermarket demand for rubber tires.
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Analysts’ View on the Rubber Tire Market
Authors of this report on the global rubber tires market estimate that, the market is set to grow at a steady pace in the foreseeable future, i.e. ~5% CAGR. With the global push for sustainability also impacting the rubber tire market, manufacturers should focus on innovation in production materials to align with this goal. This manufacturing of environmentally-friendly tires has become the forefront of R&D, which is set to shape the rubber tire landscape.
The regional market in Asia Pacific is expected to hold the maximum share in the global market by the end of the forecast period. However, the market in Latin America is expected to grow the fastest among all. These regions offer bright prospects for manufacturers to make inroads to acquire a high market share and further strengthen their global presence.
With technology moving at a rapid pace, the future is set to be bright for manufactures leveraging it to improve the manufacturing process of rubber tires.
Rubber Tire Market - Overview
- The global rubber tire market is expected to expand at a CAGR of ~5% between 2019 and 2027, to reach a value of ~US$ 195 Bn by the years 2027.
- Rubber tires perform well in demanding conditions, can take heavy loads, and can withstand large amount of wear and tear. Tires are a crucial component of vehicles, and hence, the high demand for rubber tires across the globe.
- The solid tire segment is projected to expand at a steady pace, owing to a rise in the sales of forklifts.
- The passenger vehicles segment accounted for a notable share of the rubber tire market, and is estimated to expand at a growth rate of ~5%, in terms of revenue.
Drivers of Rubber Tire Market
- The rubber tire market is expanding rapidly, as rubber tires are lightweight and possess superior thermal and molding characteristics.
- Increased mechanization of farming activities, consolidation of subsistence farms, and rise in commercial farming are driving the sales and usage of agricultural activities, and thereby, boosting the rubber tire market.
- Reconstruction projects are on the rise in developed countries, and recovery of the global commodity market has improved the performance of the mining industry. Consequently, the sales of construction & mining vehicles are estimated to rise, and thereby, boost the rubber tire market.
- Rising consumer affordability, growing awareness about vehicle maintenance, and expansion of aftermarket dealerships are boosting the rubber tire market.
Challenges to Rubber Tire Market
- Raw material usually accounts for 35% of the total tire cost. Volatility in the prices of raw material affects the costing of tires. The prices of commodities such as natural rubber and synthetic rubber have been rising due to a shortage in supply and rising demand.
- Uncertainties over the prices of crude oil, pertaining to supply between OPEC and non-OPEC countries, affect the production of synthetic rubber, which requires Brent crude for its production.
Rubber Tire Market: Segment Analysis
- The global rubber tire market has been segmented based on rim size, tire type, technology, vehicle, sales channel, and region.
- Based on rim size, the market has been classified into <11", 12" - 17", 18" - 21", 22" - 25", 29" - 49", and 51" - 63". In terms of volume, the 12" - 17" segment held a prominent share of the rubber tire market in 2018. The segment held a dominant position owing to its usage in passenger vehicles. The 18" - 21" segment is expanding at a significant pace, due to a rise in the production of sports utility vehicles, crossovers, and light commercial vehicles. The rising preference for SUVs among consumers, and expansion of small and medium enterprises are anticipated to boost the 18" - 21" segment during the forecast period.
- In terms of tire type, the radial segment accounted for a leading share of the market, owing to the higher sales of passenger vehicles. Shift in the trend from bias to radial in OTR tires, such as of agricultural tractors and construction & mining equipment vehicles, is estimated to further boost the adoption of radial tires and propel their market share.
- In terms of sales channel, the aftermarket segment is expected to hold a leading share of the global rubber tire market, owing to the necessity of the periodic replacement of rubber tires. The OEMs segment is estimated to expand at a steady pace during the forecast period, owing to a rise in the sales of vehicles.
- Based on vehicle, the passenger vehicles segment dominated the rubber tire market, and is expected to maintain its dominant position during the forecast period, owing to the higher production of passenger vehicles, globally. Increased demand for commercial vehicles in developing countries is estimated to further propel the production of light commercial vehicles and truck & buses, which, in turn, is estimated to propel the rubber tire market.
Asia Pacific a Prominent Rubber Tire Market
- In terms of region, Asia Pacific accounted for a leading share of the global market, owing to high volume production of vehicles in China, India, and Japan.
- Rising domestic demand and low cost exports have fueled the automotive industry in Asia Pacific significantly.
- Economic expansion and entry of foreign automakers are boosting automotive production in the region, which, in turn, is driving the rubber tire market in Asia Pacific.
Global Rubber Tire Market: Competition Landscape
- Key players operating in the global rubber tire market include
- Apollo Tyres Ltd.
- Bridgestone Corporation
- CEAT Ltd.
- China National Tire & Rubber Co., Ltd.
- Continental AG
- Cooper Tire & Rubber Company
- Giti Tire
- Hangzhou Zhongce Rubber Co., Ltd.
- Hankook Tire
- Kumho Tire Co., Inc.
- Nexen Tire Corporation
- Nokian Tyres plc
- Pirelli & C.S.p.A.
- Qingdao Fullrun Tyre Corp., Ltd.
- Sumitomo Rubber Industries, Ltd.
- The Goodyear Tire Rubber Company
- Toyo Tire & Rubber Co., Ltd.
- Yokohomo Tire Corporation
- Trelleborg AB.
Rubber Tire Market – Scope of the Report
Transparency Market Research’s recent report on the rubber tire market, with the help of a comprehensive outlook, provides readers with an assessment of the global market landscape. This study on the rubber tire market analyzes the scenario for the period of 2019 to 2027, wherein, 2018 is the base year and 2017 and before is historical data. This report enables readers to make important decisions with regard to their business, with the help of a wealth of information enclosed in the study.
This TMR study on the rubber tire car market also provides data on the developments made by important players and stakeholders in the market, along with a competitive analysis. The report also provides an understanding of the strengths, weaknesses, threats, and opportunities, along with the trends and restraints in the landscape. Presented in a clear sanctioned manner, this report on the rubber tire market gives readers an individual understanding of the market.
This study also discusses the underlying trends and the impact of various factors that are driving the rubber tire market, along with their influence on the evolution of the market.
This study also offers Porter’s Five Point Analysis, value chain analysis, regulatory scenario, and a SWOT analysis of the rubber tire market, in order to elaborate the crucial growth tactics and opportunities for market players contributing to the market.
Key Questions Answered in the Rubber Tire Market Report
- How much revenue will the rubber tire market generate by the end of the forecast period?
- Which segment of the market is likely to have the maximum market share by 2027?
- What are the other materials that are likely to impact the market for rubber tires?
- What regions currently contribute the maximum share to the overall rubber tire market?
- What are the indicators expected to drive the rubber tire market?
- What region is likely to be a lucrative market during the forecast period?
- What are the essential strategies incorporated by key stakeholders in the rubber tire market to expand their geographic presence?
- What are the major advancements witnessed in the rubber tire market?
- How are regulatory norms affecting the market for rubber tires?
This report answers these questions and more about the rubber tire market, aiding stakeholders and players in making the right decisions and strategizing for the advancement of their business.
Rubber Tire Market: Research Methodology
This TMR report on the rubber tire market is based on a complete and comprehensive evaluation of the market, backed by secondary and primary sources. The competitive scenario of the rubber tire market is supported by an assessment of the different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data, current trends with model mapping, and announcements by OEMs for rubber tires, researchers of the rubber tire market arrive at predictions and estimations, and calculate the forecasts for the market.
This report uses an analytical triangulation method to estimate the numbers and figures of the rubber tire market, with both, a bottom-up and top-down approach.
This detailed assessment of the rubber tire market, along with an overview of the landscape, is provided based on careful examination of the avenues related to this industry. Analysts’ conclusions on how the rubber tire market is set to grow are based on carefully-vetted primary and secondary sources.
Rubber Tire Market: Segmentation
This report on the rubber tire market provides information on the basis of rim size, tire type, vehicle, sales channel, technology, and region.
12" - 17"
18" - 21"
22" - 25"
29" - 49"
51" - 63"
Light Commercial Vehicles
Trucks & Buses
Construction & Mining Vehicles
Motorcycles & Scooters
Middle East & Africa