Tire Material Market Size, Share Report, Analysis, Trends, Growth 2032

Industry Prospective:

The global tire material market was valued at about USD 76.21 billion in 2021 and is expected to increase to around USD 98.11 billion by 2028, with a CAGR of roughly 4.3 percent over the forecast period. The study examines the market's drivers, constraints, and challenges, as well as the impact they have on the demand throughout the forecast period. The study also looks into the new potential in the tire material market.

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Tire Material Market: Overview

A tire is an essential element of a vehicle since it matches a footprint that is designed to match the vehicle's weight. The majority of tires, including those on bicycles and cars, are filled pneumatically, creating a tough cushion which engrosses shock when the tire rolls over tough terrain. Carbon black, steel wires, fabric, natural rubber, synthetic rubber, and other chemical materials are used in the manufacturing of tires. Styrene-butadiene and butadiene rubber are the two most commonly used synthetic rubber polymers in tire manufacture.

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COVID-19 Impact:

The Covid-19 pandemic had a severe impact on market growth. COVID-19 outbreak had a significant detrimental impact on FDI investments in a variety of manufacturing industries. Because of the global pandemic, tires material manufacturers were concerned about the supply of raw materials. A serious demand-supply imbalance has emerged from the shortage of raw materials from diverse businesses throughout the world. Manufacturers are also likely to be stuck on raw material orders as a result of the logistics industry being severely disrupted by the COVID-19 lockdown. The global trade prohibition has hampered the application industries by prohibiting the import of different components, including raw materials essential in the manufacturing and operation of tires materials. However, post-covid-19 era, the market is expected to grow at a healthy rate as the business operations have gained traction and working smoothly across the globe.

Tire Material Market: Growth Drivers

Rising manufacture of automotive to spur the market growth

Increased customer preference for comfortable travel and the incorporation of new automobiles has resulted in a major increase in automotive vehicle sales, including commercial cars and passenger vehicles. As per the India Brand Equity Foundation, in 2021, 0.56 million commercial vehicles, 15.11 million two-wheelers, and 2.71 million passenger cars were sold in India. Furthermore, the rapidly expanding automobile resale market, as well as increased tires replacement and retracting operations in older cars, are boosting market development. In addition to this, an increase in disposable income in emerging countries, rising spending power, and rise in tourism have led to increase in sales of automotive. Thus, key players are majorly emphasizing the production of automotive which in turn is driving the global tire material market growth.

Report Scope:

Tire Material Market: Restraints

Fluctuating prices of raw materials hamper the market growth

The prime factor that is impeding the growth of the market is the volatile cost of the raw material required for the manufacture of tires. In addition to this, the rise in competition, high energy & operating cost, and market disagreement with globalization are some of the additional factors that may hinder the market growth.

Tire Material Market: Opportunities

Growing inclination towards use of biodegradable materials to fuel the market during the forecast period.

Green tires are manufactured from recyclable materials such as nylon rubber using a low-energy technique. Tires are traditionally comprised of rubber, however, with rising energy concerns, tires are increasingly being produced from –eco-friendly materials such as resins and plasticizers. Such ecologically sustainable raw materials are increasingly being preferred over traditional products due to benefits including being lighter than traditional items, resulting in a drop in the total weight of the vehicle. This also requires lesser fuel and reduces rolling resistance. Green tires are predicted to rise at a profitable pace over the forecast period, owing to benefits such as retractable tires and long life. Moreover, as energy costs rise, government restrictions tighten, and customers become more environmentally conscious about fuel use, the usage of the green tire in automobiles will rise throughout the projection period.

Tire Material Market: Challenges.

The environmental consequences of tires may pose a challenge to market growth    

The massive amount of solid trash generated by the tires is a big problem. Old tire consists of heavy metals and compounds that leach into the environment as they degrade, a process called leaching. Some of these substances have been shown to be carcinogenic and mutagenic. The pollution of the soil is another threat posed by leaching. The toxic chemicals discharged into the environment can swiftly poison the soil around such old tires. Groundwater is also at danger of contamination. Furthermore, if these chemicals contaminate the water in the soil, the toxic water will come into touch with animals and humans, putting their lives in jeopardy. Moreover, one of the major concerns with the discarded tires is the elevated danger of fire. Nearly half of the recycled waste tires are utilized for making fuel. Tire fires, on the other hand, will be tougher to cope with and extinguish. All such factors act as major challenges to the global tire material market growth.

Tire Material Market: Segmentation

The global tire material market is divided based on type, vehicle type, and region. Based on the type, the market is characterized by plasticizers, reinforcing fillers, elastomers, textile reinforcements, metal reinforcements, and chemicals. The vehicle type segment is split into LCV, trucks, buses, and passenger cars.

Recent Developments

• In January 2022, the Goodyear Tire & Rubber Company unveiled a demonstration tire that contains 70% sustainable materials and has industry-leading technologies. Thirteen featured ingredients are spread over nine distinct tire components in the 70 percent sustainable-material tire.
• In February 2021, Michelin revealed that it would partner with Enviro to build the world's first tire recycling facility, which uses proprietary technology to recover gas, steel, pyrolysis oil, carbon black, and other commodities.

Tire Material Market: Regional Landscape

Asia Pacific to hold the maximum share in the market

In the global tire material market, Asia Pacific is likely to hold the highest share during the forecast period. Changing standards of living and lifestyles have increased the use of high-performance and branded tires, which is likely to have a favorable influence on the Asia Pacific tire material market. Further, the growing number of vehicle users will drive growth in both the aftermarket and OEM segments, as well as the tire material market. China is the world's largest automobile market, according to the International Trade Administration, with the Chinese government anticipating car manufacturing to reach 35 million by 2025. North America and Europe are also estimated to grow at a healthy growth rate during the forecast period.

Tire Material Market: Competitive Landscape

Some of the prominent players that are functioning in the global tire material market include JSR Corporation, Exxon Mobil Corporation, Cabot Corporation, Birla Carbon, Bekaert, Sinopec, PetroChina Company Limited, Orion, LANXESS, and Kuraray Co., Ltd., among others.

Global tire material market is segmented as follows:

By Type

• Elastomers
• Reinforcing Fillers
• Plasticizers
• Chemicals
• Metal Reinforcements
• Textile Reinforcements

By Vehicle Type

• Passenger Cars
• Buses
• Trucks
• LCV

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa