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The automotive retreaded tires market size is estimated to grow at a CAGR of 5.87% between 2023 and 2028. The market size is forecast to increase by USD 3,112.5 million. The growth of the market depends on several factors such as the cost advantage of retreaded tires, energy conservation and environmental benefits of using retreaded tires and the increase in demand for M and HCVs.
This automotive retreaded tires market report extensively covers market segmentation by product (precure and mold cure), vehicle type (commercial vehicle and passenger vehicle), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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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 automotive retreaded tires 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 for automotive retreaded tires, which will propel the growth of the global automotive retreaded tires 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 are driving major changes in the global automotive retreaded tires 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 for automotive retreaded tires, which will propel the growth of the global automotive retreaded tires market during the forecast period.
The disadvantages of retreaded tires are a significant challenge hindering the market growth. Though the global automotive retreaded tires 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 automotive retreaded tires 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.
Global Automotive Retreaded Tires 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 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 6,017.96 million 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 automotive retreaded tires 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 labour 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 automotive retreaded tires market in this region during the forecast period.
In 2020, owing to the outbreak of the COVID-19 pandemic, the automotive industry was adversely impacted in this region. However, in 2021, the success of COVID-19 immunization campaigns across the region and a rise in investment inflows into the automotive sector helped facilities across the industry reopen and resume the production of vehicles, which led to a rise in automobile manufacturing and further resulted in the growth of the automotive retreaded tires market in this region. Therefore, due to increased duties on new Chinese tire imports by the US International Trade Commission, the growth of the automotive retreaded tires market will be fueled further in this region during the forecast period.
The automotive retreaded tires market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Automotive Retreaded Tires Market Scope |
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Report Coverage |
Details |
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Page number |
164 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.87% |
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Market growth 2024-2028 |
USD 3,112.5 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.71 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 35% |
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Key countries |
US, China, India, Thailand, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our 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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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