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The automotive retreaded tires market size is estimated to increase by USD 3.11 billion and grow at a CAGR of 5.87% between 2023 and 2028. The market's growth hinges on various factors, including the cost efficiency of retreaded tires, their contribution to energy conservation and environmental preservation, and the rising demand for Medium and Heavy Commercial Vehicles (M and HCVs). However, it faces challenges from the drawbacks associated with retreaded tires, the emergence of low-cost alternatives, and their limited application in passenger vehicles. These challenges impede the market's expansion despite the evident benefits of retreaded tires. Overcoming these hurdles requires innovative strategies to address the concerns regarding performance, safety, and versatility of retreaded tires, thus ensuring their wider acceptance across different vehicle segments and reinforcing their position in the market.
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The precure segment is estimated to witness significant growth during the forecast period. Precure retreading refers to a process where the new tread rubber is applied to the tire casing through a specialized curing process. This segment is gaining traction due to its numerous benefits and advantages over other retreading methods.
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The precure segment was the largest segment and was valued at USD 6.02 billion in 2018. Environmental sustainability is also a driving force behind the growth of precure retreading in the market in focus. The precure process requires fewer raw materials compared to other retreading methods, reducing the demand for new tire production and contributing to resource conservation. Additionally, the precure process often utilizes advanced curing techniques that consume less energy and emit fewer pollutants.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North American economies, i.e., the US, Canada, and Mexico, are the prominent contributors to the regional market. These countries lead the American automotive market in terms of volume sales of medium and heavy commercial vehicles, which is driving the demand for retreaded tires. Also, the improved quality of tread life, high supply of casings, increasing labor costs, and shortage of skilled technicians are some of the key factors currently influencing the automotive retreading market in this region. In addition, improving market conditions and growing economies are expected to drive the growth of the commercial vehicle industry. This, in turn, would contribute to the market in this region during the forecast period.
The automotive retread tire market is a crucial segment within the automotive sector, particularly for truck tires and heavy commercial vehicles. Fleet operators and fleet purchasers rely on retreaded commercial tires to ensure cost-effectiveness and sustainability in their operations. Utilizing pre-cure retreading and advanced retread technologies, tire manufacturing companies cater to the needs of vehicle fleets seeking to enhance safety and extend the vehicle's increased life. The use of budget tires and sustainable practices in tire retreading contribute to the industry's growth while addressing concerns related to tire quality and raw materials like rubber. This market serves as a cornerstone for the logistics sector and freight services, aligning with the growing demand for eco-friendly solutions and safety standards across commercial vehicle sectors. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The cost advantage of retreaded tires is notably driving the market growth. The global market is growing owing to numerous advantages associated with the use of such tires. These advantages are both functional and cost-related, and therefore, retreaded tires are popular among commercial vehicles, especially HCVs. Retreaded tires cost almost 50%-65% less than the total cost of a brand-new tire, making it much more affordable, especially for fleet operators who need to change tires regularly. This is mainly due to the limited use of rubber compounds, which reduces the high dependency on rubber resources. For example, according to the US EPA, retread tires contain up to 75% post-consumer recycled material.
Moreover, retreaded tires also help to save on maintenance and replacement costs with warranty schemes. All prominent retreaded tire manufacturers provide some form of warranty each time a tire is retreaded. This reduces the cost of potential failure. Thus, the above-mentioned factors are expected to increase the demand, which will propel the growth of the global market during the forecast period.
The growing development of advanced tire retreading processes and technologies is an emerging trend shaping the market growth. Retreaded tires are increasingly penetration the commercial vehicle sector, and the improved retread designs are helping to drive the growth momentum of the market in focus. The combination of advanced retreading technologies, processes, and government regulations is driving major changes in the global market. VMI Holland has developed the RETRAX retreading system, which uses renowned cushion gum-based extrusion-smearing technology. The modular design of the RETRAX retreading machine allows the customer to choose between three different extruder capacities, and the tread application can be made manually or automatically.
However, the RETRAX technology with builder and stitches features automatic alignment of the tread on the tire casing. Such innovations help to optimize tire retreading processes, which also results in efficient manufacturing of retreaded tires. Thus, the above-mentioned factors are expected to increase the demand, which will propel the growth of the global market during the forecast period.
The disadvantages of retreaded tires are a significant challenge hindering the market growth. Though the global market is growing owing to numerous primary and secondary forces, there are certain factors that are acting as a challenge to its growth. The disadvantages associated with either the use or manufacturing of retreaded tires are acting as a threat to the growth of the global market. The retreading process should achieve certain minimum quality standards; otherwise, it can adversely affect a vehicle's safety.
For instance, the retread applied to an old tire should have a decent thickness, or else it can wear out faster than expected. Low-quality retreaded tires need more thorough quality inspection before being used, as they are more vulnerable to tire burst and brake issues that may potentially lead to accidents and collisions. Such factors discourage vehicle owners from opting for retreaded tires, which acts as a challenge to market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bridgestone Corp. - The company offers automotive retreaded tires that significantly contribute to the reduction of discarded tires as well as the reduction of waste in communities.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market caters to fleet purchasers and vehicle fleets across various sectors, offering cost-effective solutions through retreaded commercial tires. It intersects with the tire industry, particularly OEM service providers and tire manufacturing companies, leveraging retread technologies for light duty vehicles. These tires enhance vehicle longevity and fuel efficiency while aligning with customer demands for durability and eco-friendliness. Raw material pricing and stringent regulations impact tire pricing and market dynamics. Innovations in eco-friendly tires aim to reduce greenhouse gas emissions and improve air quality. With applications across different vehicle types, including small cars, SUVs, and sports cars, retreaded tires prioritize endurance, comfort, and safety on diverse road conditions.
Furthermore, the market is thriving with the increasing demand for budget tires across various segments including passenger cars, light commercial vehicles, and trucks. With a focus on tire quality and longevity, the logistics sector and freight services are opting for retreaded tires to extend the vehicle's increased life. Factors such as regular maintenance and customer awareness contribute to the market growth, alongside advancements in new tire technology. Stringent regulations and environmental concerns drive the demand for eco-friendly and fuel-efficient tires, utilizing materials like natural rubber, synthetic rubber, and bio oil. As the aftermarket tire industry evolves to meet these demands, retreaded tires offer solutions for cargo protection, comfortable rides, and pothole protection across various vehicle types and road conditions.
Automotive Retreaded Tires Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.87% |
Market growth 2024-2028 |
USD 3.11 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.71 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, China, India, Thailand, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bridgestone Corp., CIO Tyres Pvt. Ltd, Continental AG, Eastern Treads Ltd, JK Tyre and Industries Ltd., Kal Tire, KRAIBURG Austria GmbH and CO. KG, MARANGONI Group, Michelin Group, MRF Ltd., Nokian Tyres Plc, Oliver Rubber Co., RDH Tire and Retread Co., REIFEN HINGHAUS GmbH, ROSLER TYRE INNOVATORS, The Goodyear Tire and Rubber Co., Tyresoles, West End Tire, Yokohama Rubber Co. Ltd., and Parrish Tire Co. |
Market dynamics |
Parent market analysis, market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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