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The Tire Material Market size is estimated to grow by USD 14.54 billion between 2023 and 2028, exhibiting a CAGR of 3.2%. Market expansion relies on various factors, such as the global surge in passenger vehicle sales, increasing consumer preference for online tire purchases, and the declining prices of natural rubber. Challenges emerge from the fluctuating prices of raw materials used in tire manufacturing, environmental concerns stemming from manufacturing operations, and government-imposed restrictions on imports. These obstacles necessitate innovative strategies to navigate the evolving landscape. As businesses strive to meet consumer demand amidst price volatility and environmental scrutiny, they must address these challenges by implementing sustainable practices, enhancing supply chain resilience, and advocating for policy reforms. Achieving a delicate balance between profitability and sustainability is essential for sustaining growth and fostering long-term resilience in the industry.
The market share growth by the Elastomers segment will be significant during the forecast period. Elastomers are expected to continue being a dominant type in the global market during the forecast period. The demand for high-performance, long-lasting tires is rising across a variety of industries, including automotive and aviation, which is greatly enhancing the market outlook for elastomers in the market in focus.
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The elastomers segment showed a gradual increase in the market share of USD 30.52 billion in 2018. The production makes substantial use of synthetic rubber elastomers such as poly-butadiene rubber (BR) and styrene-butadiene rubber (SBR). The market position of elastomers in the tire sector has been further strengthened by developing eco-friendly elastomers, such as biobased elastomers, due to a growing emphasis on sustainability, which is expected to rise during the forecast period.
Based on vehicle type, the market is segmented into passenger cars, trucks, buses, and lCV. The passenger car segment holds the largest market share during the forecast period. Owing to the extensive usage and strong demand for passenger cars, the segment is anticipated to maintain its dominance as the leading vehicle type in the global market during the forecast period. The demand for passenger car tires is stable owing to the significant growth of the global automotive market. The market demand is fueled by increased urbanization, disposable incomes, and rising consumer demands for private transportation. The segmental growth is further stimulated by developments in tire technology, such as run-flat tires, all-season tires, and environmentally friendly alternatives.
APAC is estimated to contribute 48% 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.
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APAC is estimated to contribute 48% 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. In APAC, the rise in the demand for all kinds of automobiles is expected to drive the demand for tires for new vehicles and for replacement as well, which, in turn, is expected to increase the demand owing to the extensively pre-occupied lifestyle of consumers. The demand for tires in the region has also been boosted by an increase in online purchasing of automotive parts and equipment, leading to a growing demand. Such factors will drive the growth of the regional market in focus during the forecast period.
The market is a dynamic sector, driven by various factors such as rubber, tires, and vehicle utilization. Key components include elastomers, plasticizers, and reinforcing fillers, contributing to the durability and performance of tires. With the increasing demand for eco-friendly tire materials, manufacturers are exploring alternatives like synthetic rubber derived from butadiene to address environmental concerns. The rise of electric vehicles and hybrid vehicles further influences the market, necessitating advancements in tire technology for optimal performance and safety. As the vehicle industry continues to evolve, including passenger cars, ensuring automotive safety remains paramount, driving innovation in tire materials. Natural rubber, steel cables, and carbon black are among the key materials utilized, along with chemical compounds like butadiene rubber and styrene butadiene rubber. Effective tire replacements are essential for maintaining vehicle safety and performance, highlighting the significance of ongoing developments in the market.
The rise in sales of passenger vehicles globally is a major factor driving the market growth. The increasing sales of various passenger vehicles, such as sedans, hatchbacks, minicars, sport utility vehicles (SUVs), multi-purpose vehicles (MPVs), crossovers, and passenger vans are increasing the demand for tires and hence driving the growth of the global tires materials market. The vehicles produced in the market have longer lifespans. Hence, the market in focus is expected to witness a continuous demand for tires. The online channel is one of the prominent channels used by customers to purchase tires.
The average age of vehicles in use in the US is increasing year-on-year. In 2017, the average age of passenger cars and light trucks was above 11 years, as per the National Highway Traffic Safety Administration (NHTSA). The average lifespan of vehicles in Canada is greater than in the US, leading to a high vehicle population in the country. The average age of vehicles has been growing at a steady rate and increased by nearly two years from 2007 to 2017. Hence, the demand for vehicles is rising across the region. This has increased the demand for tires and, therefore, tire materials in the region. Hence, with the increase in sales of passenger vehicles, the global market is also expected to grow significantly during the forecast period.
The shift towards sustainable materials is a significant trend in the market. There is a considerable trend towards eco-friendly and sustainable tire materials in the global market. To address environmental concerns and satisfy consumer demand for sustainable products, manufacturers are rapidly implementing bio-based alternatives, recycled materials, and materials with a lower carbon footprint. For instance, tire manufacturers like Bridgestone offer tires (namely, Bridgestone Ecopia EP422 Plus) with recycled components like steel and polyester fibers and natural rubber obtained from sustainable plantations. This pattern aligns with the tire industry's increasing focus on environmental sustainability and circular economy concepts. Hence, the shift towards sustainable tire materials is a trend that is expected to drive the growth of the market in focus during the forecast period.
Fluctuating prices of raw materials of tire manufacturing materials are a major factor hindering the growth of the market. Manufacturers of tire materials face significant challenges due to fluctuating raw material prices, particularly those of natural rubber and synthetic polymers. It is challenging for manufacturers to maintain steady pricing and profitability since fluctuations in raw material prices impact production costs and profit margins. For instance, unexpected increases in the prices of natural rubber directly impact the cost of tire material manufacturers, increasing manufacturing costs and possibly lowering their ability to compete in the market in focus. To mitigate the effects of volatile raw material prices, tire material manufacturers must carefully manage their supply chains, research alternate sourcing possibilities, and optimize production techniques. Hence, the fluctuation in the price of raw materials for tire materials is expected to be a challenge that can hinder the market in focus during the forecast period.
Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
Aditya Birla Management Corp. Pvt. Ltd. - The company offers tire materials such as Birla Carbon 2123.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Bridgestone Corp., Cabot Corp., Continental AG, Dassault Systemes SE, Evonik Industries AG, Exxon Mobil Corp., GRI Tires, Hyosung Advanced Materials, Indorama Ventures Public Co. Ltd., JSR Corp., KURARAY Co. Ltd., Lanxess AG, Nokian Tyres Plc, Schubert and Salzer GmbH, Umicore NV, Yokohama Rubber Co. Ltd., ZEPPELIN GmbH, PetroChina Co. Ltd., and Trelleborg AB
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors 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.
In the market, there's a notable shift towards sustainability, with a focus on eco-friendly tire materials to address concerns regarding traditional rubber material. Safety remains paramount, prompting advancements in brake technologies within the automotive sector, especially crucial for navigating bumpy roads without compromising performance. However, health challenges persist due to non-degradable rubber tires, emphasizing the importance of eco friendly materials and raising awareness among consumers. Ingredients like carbon black, butadiene rubber, and styrene butadiene rubber are increasingly utilized to meet demands for durability and performance in luxury vehicles. Enhancements in vehicle utilization and tire replacements are driving the market towards high-performance tires that offer superior durability and safety features. The demand for eco-friendly tire materials is rising, driven by concerns over traditional rubber's environmental impact. High-performance tires are emerging as solutions for bumpy road, combating non degradable rubber tire issues, yet awareness gaps persist.
Moreover, the market is influenced by various factors, including the demand for metal rims, advancements in rubber compounds, and the rise of electric vehicles and hybrid vehicles. With a growing focus on sustainability, manufacturers are exploring eco friendly tire material like butadiene and implementing innovative rubber chemistry to develop environmentally conscious products. Safety remains a priority in the vehicle industry, with a focus on automotive safety features like brakes and stability to mitigate road accidents, even on bumpy or wet roads. Challenges such as health concerns from traditional tire materials and the environmental impact of non-degradable rubber tires drive the need for eco-friendly materials and heightened awareness. Utilizing tar materials, metals, and textiles, alongside weight optimization and advancements in pneumatically inflated structures and steel cables, manufacturers aim to enhance tire performance, including abrasion resistance and low hysteresis in high performance tires for both luxury and regular vehicles.
Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.2% |
Market growth 2024-2028 |
USD 14.54 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.06 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 48% |
Key countries |
China, US, India, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aditya Birla Management Corp. Pvt. Ltd., Bridgestone Corp., Cabot Corp., Continental AG, Dassault Systemes SE, Evonik Industries AG, Exxon Mobil Corp., GRI Tires, Hyosung Advanced Materials, Indorama Ventures Public Co. Ltd., JSR Corp., KURARAY Co. Ltd., Lanxess AG, Nokian Tyres Plc., PetroChina Co. Ltd., Schubert and Salzer GmbH, Trelleborg AB, Umicore SA, Yokohama Rubber Co. Ltd., and ZEPPELIN GmbH |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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