Fast Market Research announces the availability of the new Markets and Markets report, "Tires Market for OE & Replacement - Global Forecast to 2021", on their comprehensive research portal
Boston, MA -- (SBWIRE) -- 05/04/2017 -- Tires Market for OE & Replacement by Rim Size (13-15,16-18,19-21,22-26 inch), Replacement Market, Aspect Ratio (35-55, 60-70, 75-85), Section Width (<200,200-230,>230 mm), Retreading Market and OHV Tires Market, Application, and Region - Global Forecast to 2021
"Increasing demand for low rolling resistance tires driving the tires OE (Original Equipment) market"
The tires OE market is projected to grow at a CAGR of 5.48% from 2016 to 2021, to reach a market size of USD 30.26 billion by 2021. Rolling resistance of tires affects the fuel economy of a vehicle. According to Continental Corporation, 16% of the total fuel consumption of a vehicle is attributed to rolling resistance. Thus, decreasing the rolling resistance will lead to significant amount of fuel saving. According to Exxon Mobil Chemical analysis, a 10% decrease in the rolling resistance can lead to 1-2% increase in the fuel economy of passenger cars and light trucks. This will further lead to 2-4% increase in the miles per gallon (mpg) of a vehicle. Thus, the demand for low rolling resistance tires is increasing. However, the market growth is restrained by factors such as fluctuating raw material prices of natural rubber and synthetic rubber.
Get More Details on this Report and a Full Table of Contents at Tires Market for OE & Replacement - Global Forecast to 2021
"Section width of >230 mm is the fastest growing segment in the tires replacement market"
Demand for low-profile tires is increasing, as they have wider section width than section height. Wider section width gives increased vehicle stability, lighter weight, ability to handle increased payload weight, and improved fuel economy. In the passenger cars segment, premium cars usually have section width >230 mm. For instance, in North America, GM Group Cadillac, FCA Dodge Challenger, Tata Range Rover Sport, BMW 5 series, Audi Q5 and other models have >230 mm section width tires. Premium cars segment is estimated to have the maximum tire replacement cycles. Around 85-90% of heavy commercial vehicles have section width >230 mm around the globe. For instance, in Germany, Mercedes-Benz Actros 2542, MAN TGS 41.480, MAN TGX 18.480, Mercedes-Benz Atego 1223 and others have section width more than 300 mm. The per unit cost of these tire sizes is also high as compared to the tires with section width <200 and 200-230 mm, hence the aftermarket value of >230 mm section width is more.
"Construction equipment constitutes the largest off-highway tires OE market globally"
The construction equipment includes articulated dump truck, backhoe loaders, motor grader, motor scraper and others. The construction industry has witnessed a boom over the decades, and the global sales of construction equipment, as per MarketsandMarkets analysis, is projected to grow at a CAGR of 3.75% during the forecast period. This growth can be majorly attributed to housing, and a substantial shift of rural population to urban areas. The 2008 recession in the construction industry had a serious impact on the design and construction workforce. Post-recession, there has been significant improvement in the construction sector. With growing population and standard of living, people are migrating towards urban areas, leading to a rise in the expenditure on housing. According to the McGraw Hill Construction-Dodge report, the residential housing has increased by 20% in 2015 as compared to 2014. Commercial building construction, which includes factories, manufacturing facilities, hospitals, schools, colleges and others, has also witnessed a growth of 10-12% in 2015 compared to 2014. Hence, the increasing demand for construction equipment such as dump truck, loaders, scraper and others is driving the off-highway tires market.
"Asia-Oceania: Largest tires market in Original Equipment (OE)"
The Asia-Oceania region leads the tires market, owing to increasing vehicle production in countries such as China and India. The vehicle production in these countries is projected to grow at > 6.0% CAGR over the period of next five years. This has led to the increased demand for tires in this region. To meet this demand, many 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), and Hankook Tires (South Korea) have set up their manufacturing plants in the region. Thus, owing to the presence of leading Tier-1 manufacturers and OEMs, the Asia-Oceania region is the largest tires market, globally.
BREAKDOWN OF PRIMARIES
The study contains insights provided by various industry experts, ranging from tire raw material suppliers to tire manufacturers. The break-up of the primaries is as follows:
-By Company Type – Tier-1 - 67%, Tier-2 - 17%, and others (include associations) - 16%
-By Designation - D level - 33%, C level – 67%
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