Northbrook, IL -- (SBWire) -- 10/05/2020 --The Tires Replacement Market is projected to grow at a CAGR of 1.8% to reach a market size of USD 113.1 billion by 2025 from 101.7 billion in 2019. The key factors driving the replacement tire market are increased average life of vehicles, growing miles are driven per year, increasing concern towards maintenance and safety, technological advancements leading to longer life of tires, and other factors.
13"-15" rim size segment be the largest segment, by vehicle type
This rim size is usually used in passenger cars with GVWR <3.0 tons. Passenger cars which fall in hatchbacks, & compact sedan segment are equipped with these rim sized tires. For instance, models such as Hyundai Avante, Volkswagen Polo, VW Rapid, Hyundai Accent, and others are equipped with 13"-15" rim size tires. These passenger car types are leading in terms of sales in Asian countries as well as other parts of the globe. Hence, the demand for 13"-15" rim size tires is the highest. For instance, top-selling passenger cars in China are Hyundai Avante, Nissan Bluebird, Toyota Corolla, Ford Escort VW Santana among others and they are equipped with 13"-15" rim size tires. Hence, an increasing number of hatchbacks and compact sedans on the road is driving the aftermarket for 13"-15" rim size tires
Retreading of Light Commercial Vehicle (LCV) segment is the fastest-growing market
Retreaded tires give the same mileage compared to new replacement tires, with 30%-50% less cost, and are supplied with the same warranties as that of new tires. For light commercial vehicle manufacturing of a single tire consumes on an average 26 liters of oil, however, retreading of the same tire consumes only 9 liters of oil which is almost 34% of the new manufacturing process. On the other hand, according to Retread Tire Association, for pickup trucks, a new set of four tires cost almost double to that of retreaded tires. Few of the leading tire manufacturers have entered the tire retreading business; for instance, the Goodyear Tire and Rubber Company (U.S.) have more than 1,700 tire retreading and service centers globally for commercial trucks. Hence, to cut down the cost, the trend of tire retreading in LCV is increasing gradually.
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A tire with >70 aspect ratio is estimated to be the largest market in the tires replacement market
This aspect ratio has maximum penetration in the heavy trucks and buses segment. In heavy trucks, tires with higher aspect ratio give better protection to the cargo and in buses, these tires offer a more comfortable ride and protection from road potholes. Around the globe, around 80%-90% of the heavy commercial vehicle is equipped with >70 aspect ratio tires and the replacement cost of these tires is also high as compared to other aspect ratio tire. Hence, with the growing demand for trucks & buses in the next few years, the demand for tires with aspect ratio >70 is projected to hold the lion's share.
Asia-Pacific is estimated to be the largest market in the tires market for original equipment (OE)
Asia-Pacific has emerged as a hub for automotive production as manufacturers such as BMW AG (Germany) and Volkswagen Group (Germany) have already set up manufacturing units in this region. The factors such as low production costs, availability of economic labor, lenient emission and safety norms, and government initiatives for FDIs have led the significant investment in the Asia Pacific. Additionally, Asia-Oceania is a hub of considerable tire manufacturers such as Bridgestone Corporation (Japan), Kumho Tire Co. (South Korea), Toyo Tire & Rubber Co., Ltd. (Japan), The Yokohama Rubber Co., Ltd. (Japan), Sumitomo Rubber Industries Ltd. (Japan), Hankook Tires (South Korea) and other Tier-1 suppliers. The factors mentioned above are likely to drive the tires OE market in the Asia Pacific region
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Key questions addressed by the report:
How the OE and Aftermarket demand varies by region and vehicle type?
What would be the demand for tire rim size by vehicle type and region?
What are the current and future tire material trends in the market?
How the penetration of season tires varies by region (summer, winter, and all-season)?
Which are the key players in the global tire market?
How Will Tires Retreading Market Shape Up in the Future?
Some of the key manufacturers operating in the market are Bridgestone Corporation (Japan), Continental AG (Germany), The Goodyear Tire & Rubber Company (The U.S.), Michelin (France), and Pirelli & C. S.p.A (Italy). There are certain key innovators gaining attention in the tires market including CODA Development (Czech Republic), Kumho Tires (South Korea), and Nokian Tyres (Finland).