Tire Material Market - Global Industry Analysis

Tire Material Market By Type (Elastomers, Reinforcing Fillers, Plasticizers, Chemicals, Metal Reinforcements, and Textile Reinforcements), By Vehicle Type (Passenger Cars, Buses, Trucks, and LCV), and By Region – Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022 – 2028

Published Date: 29-Apr-2022 Category: Heavy Industry Report Format : PDF Pages: 166 Report Code: ZMR-3380 Status : Published

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.

Description

 

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.

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.

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:

Report Attribute Details
Base Year 2020
Historic Years 2016 - 2020
Forecast Years 2021 - 2028
Segments Covered By Product Type, By Application, and By End Use
Forecast Units Value (USD Billion), and Volume (Units)
Quantitative Units Revenue in USD million/billion and CAGR from 2021 to 2028
Regions Covered North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World
Countries Covered U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others
Number of Companies Covered 10 companies with scope for including additional 15 companies upon request
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.
Customization Scope Avail customized purchase options to meet your exact research needs.

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

Table Of Content

Methodology

Free Analysis

A tire is a strong, tough, flexible rubber covering attached to the rim of a wheel. Tires are used in the trucks, aircraft, tractors, buses, industrial vehicles, motorcycles, bicycles, and others. Most of the tires for vehicles are pneumatic. Pneumatic tires are designed in such a way that air is held under pressure inside the tire. The inner tube in the tires is designed to hold the air pressure. Tires are the only contact between the vehicles and ground, thus it plays a vital role in ensuring that the vehicle is in control. The designing and material composition of the tires is significant to ensure optimum performance. 

Increase in the automotive production is the major factor driving the market. The tire materials used in the automotive tires provide better traction, stability, and greater adhesive properties. These materials help in preventing internal damages, carry the extra load, and also offer a longer life than normal tires. Rising environmental concerns lead to the governmental regulations on emissions of vehicles. Thus, the preference for the electronic vehicles has witnessed an increase in the past years, which, in turn, is propelling the demand for tire materials. Moreover, an increase in the number of automotive vehicles and passenger vehicles leads to the rising demand for the tire materials. Therefore, such factors are anticipated to fuel the market growth during the forecast period.

Global Tire Material Market

On the basis of type, tire material market is classified into elastomers, chemicals, reinforcing fillers, plasticizers, metal reinforcements, and textile reinforcements. Based on the vehicle type, the market is classified into light-weight commercial (LCV), passenger car (PC), heavy trucks, and buses.

Geographically, Asia Pacific is estimated to grow at the highest rate during the upcoming years in terms of both volume and value. The growth in this region is attributed to the easy availability of raw material. India and China are considered to be the major countries in contributing to the growth of the tire material market. Infrastructural facilities and skilled & cheap labor force are the aspects attracting the international automotive manufacturers to invest in the Asia Pacific. Thus, such factors are anticipated to boost the tire material market in this region. Moreover, Europe is expected to see a considerable growth rate during the forecast period. Increasing demand for the eco tires in the region is estimated to positively influence the market growth in upcoming years. 

The strong players operating in the tire material market are JSR Corporation, Cabot Corporation, Lanxess, Thai Carbon Black, Bekaert, Columbian, The Goodyear Tire & Rubber Company. The other players in the market are Royal Dutch Shell, Orion Engineered Carbons, American Zinc Recycling LLC, Chevron Corporation, Exxon Mobil Corporation, China Petroleum & Chemical Corporation, Umicore SA, DMACK Tyres, and Exxon Mobil Corporation. 

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FrequentlyAsked Questions

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. Furthermore, the rapidly expanding automobile resale market, as well as increased tires replacement and retracting operations in older cars, are boosting market development.

According to the Zion Market Research report, the global tire material market was worth about 76.21 (USD billion) in 2021 and is predicted to grow to around 98.11 (USD billion) by 2028, with a compound annual growth rate (CAGR) of around 4.3 percent.

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 tires materials 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.

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.

 

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