Growth time for cords and fabrics
The automobile industry’s return to better times in 2014 marks the growth possibility of tyre cords and fabrics segment. The demand for automotives is on the surge in the Asia Pacific region. The North American market is also showing signs of revival.
Riding on this trend, global tyre cord and tyre fabrics industry is expected to grow at a CAGR of 5.5 per cent between 2014 and 2020 to reach $5.06 billion, says Sayan Mukherjee, Research Analyst at Transparency Market Research.
The global demand for tyre cord and tyre fabrics was valued at $ 3.48 billion in 2013. However, the sluggish demand in the European market and over-capacity in the Asia Pacific region remain major concerns for the industry, Mukherjee told Polymers & Tyre Asia in an interview.
Mukherjee said: “Dynamics of tyre cord and tyre fabric market is driven by automotive market. The estimated global growth rate of 5.5 per cent for the tyre cord and tyre fabric is largely attributed to Asia Pacific region, mainly China, Japan and India. In the region, the demand for personal and commercial vehicles is being fuelled by improving economy and rise in purchasing power in China and India , which have resulted in a surge in demand for tyres and eventually for tyre cord and tyre fabric. ”
By Sharad Matade
(Full text in PTA October/November issue)