Tyre materials market sees surge

Tyre materials market sees surge

The growing vehicle parts and production will augment the market of automotive tyres. Expansion of the tyre industry is expected to fuel the demand for tyre materials while the growing fleet size will add to tyre replacement activities and indirectly influence the demand for tyre materials, says a report by Future Market Insights

TA News Bureau
The global tyre materials market has been envisaged to approach the valuation of US$ 100 billion towards the end of forecast period, a report by Future Market Insights says. The recently published report titled “Tyre Materials Market: Global Industry Analysis 2013–2017 and Opportunity Assessment 2018–2028” offers decisive insights pertaining to the global tyre materials market and provides extensive information through organised market research.

Synthetic rubber and fillers used in automotive tyres have significantly changed over the past decade. Attributing to the rising environmental concerns, many regions have formed regulations that mandate tyre labeling. The implementation of labeling initiatives and growing environmental concerns has led to an increase in the production of high-performance tyres or green tyres. Regulatory bodies have also laid incentives for manufacturers and consumers with a preference for performance tyres.

Due to the adoption of green technology, silica is extensively being used as a filler material as an effective replacement for carbon black in the recent years. The adoption of silica in the production of green tyres has reduced CO2 emissions almost by 7% and increased fuel efficiency. Thus, increasing focus towards the reduction of carbon footprint and greenhouse gas effects is driving the demand for silica in tyre production.

Tyres are a vital part of the automotive industry and thus, the production and sales of vehicles directly affect the dynamics within the tyre industry. Increasing automotive production in emerging economies has been driving the demand for tyres from OEM manufacturers, which has led to an increase in tyre production activities. Growing tyre production is driving the demand for tyre materials. In a vehicle, a tyre is one such part that must be replaced frequently, after every 2-3 years.

A tyre experiences maximum wear and tear. Further, it is estimated that in FY2017, the global vehicle parc was about 1.3 billion. Thus, it can be easily concluded that the growing vehicle parts and production will augment the market of automotive tyres. Expansion of the tyre industry is expected to fuel the demand for tyre materials while the growing fleet size will add to tyre replacement activities and indirectly influence the demand for tyre materials.

Increasing middle-class population, coupled with rising urbanisation in developing countries, is expected to increase the number of vehicle owners as many people will be able to afford vehicles. Apart from this, the increasing youth population has also led to an increase in the sales of automotive, which is a positive sign for the tyre materials market.

Also, changing lifestyle and increased standard of living have increased the adoption of high-performance tyres as well as branded tyres, which is expected to positively impact the tyre materials market. The increasing number of vehicle owners will push the growth of both OEM as well as aftermarket segments and thus, the growing demand for tyres is expected to boost the tyre materials market in the coming period.

East Asia market

The global tyre industry has been witnessing a shift in tyre manufacturing activity, with East Asia and South Asia accounting for more than 50% of tyre manufacturing facilities. Easily available raw materials, economic & political stability, and availability of skilled & cheap labor have attracted key tyre manufacturers to invest in East Asia and South Asia.

China and Japan are prominent tyre manufacturing countries wherein China is estimated to be the leading tyre producer and the presence of companies such as Bridgestone Corporation and Yokohama Rubber Company makes Japan a promising tyre manufacturing country, owing to which East Asia is estimated to be the prominent market for tyre materials.

North America and Europe tyre industries are estimated witness a slowdown in the coming years, due to the increasing competition from Chinese tyre manufacturers and their low-ranged products. However, North America and Europe are anticipated to be potential markets for tyre materials, owing to the predominance of key tyre manufacturers in the region.

Due to the flourishing industrial sector, including manufacturing, mining, construction, utilities and oil & gas, the sales of HCVs and LCVs has increased in the global market and is expected to further increase during the forecast period. Due to this, many tyre companies are entering the market in the Asia-Pacific and MEA regions with the hope of capitalising on increased sales and expanding their geographical footprint.

Companies in the tyre materials market are focusing on developing products that comply with safety norms of the local market. Through effective research, development and innovation, global manufacturers will find opportunities to capture the unexploited market and increase their market share. Thus, increasing tire production activities to cater to this increasing demand will positively influence the tire materials market

Solvay SA, Lanxess AG, Exxon Mobil Corporation, JSR Corporation, Cabot Corporation, Birla Carbon, and Evonik Industries AG are among the key players identified in the tyre materials market.

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