Automotive Tire OEM Market Size, Share & Industry Analysis, By Design (Radial, Bias), By Tire Type (Tubeless, Tube), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles), and Regional Forecast, 2019-2025

The global automotive tire OEM for passenger cars market size was valued at USD 47.22 billion in 2018 is projected to grow at a CAGR of 4.7% during the forecast period and the LCV tire OEM market is expected to reach USD 13.88 billion by 2025, while the HCV tire market is projected to reach USD 17.77 billion by 2025 at a CAGR of 2.6% from 2019 to 2025.

The rising production and sales of passenger and light commercial vehicles globally is anticipated to propel the automotive tire OEM market growth. Asia Pacific is projected to dominate the market amid the presence of major key players in this region. Technological innovation and high investments in R&D by key players may help to maintain dominance of Asia Pacific region during the forecast period. China is expected to hold largest market share in Asia Pacific region amid huge sale of advanced tires like airless tires, 3D print tires, and puncture-proof tires.

A tire is made up of components like sidewall, cord body, belts, liner, bead, and tread. Sidewall protects the carcass from rupture, as sidewalls are crack resistant and flexible rubber material. Sidewalls majorly give cushion to several layers of nylon cords that are woven loosely. These nylon cords are also called piles of a layer that are coated with a rubber compound on both sides, i.e. inside and outside of the tire. Cord body is a semi-rigid frame and has a property to resist jolts and shocks. Tubeless tires have two extra layers of nylon cords and rubber to take more pressure and resistance. All these components are enclosed inside outermost covering called tread, which protects tire from wear and cuts. It is the outermost part of tire that comes in contact with the road surface and is designed with various tread patterns as per the requirement or area of application of tire the tread patterns can be changed. Based on design, tires are divided into radial and bias type. The radial tire is expected to dominate the automotive tire OEM market owing to increasing use of radial tires that, in turn, help the vehicle to consume less fuel and provides better fuel efficiency. This tire is heat resistant, wear and cut resistance hence, increasing adoption of these tires is expected to propel the market. Based on type tires are divided into tubeless and tube tires. The tubeless tire is anticipated to dominate the market owing to absence of tube that makes the tire lighter than the traditional tube tire. This lowers the chances of vibration that further helps in better fuel saving of vehicles.

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Increasing vehicle sales and production is anticipated to boost the automotive tire OEM market in the near future. In developing countries, the commercial vehicle segment is expected to undergo a rapid shift of market from bias tire to radial tire. Considering the increasing miles traveled per year by a vehicle and the wear and tear caused by it, the automotive tire replacement market is expected to experience significant growth over the forecast period. Passenger Cars are anticipated to dominate the market over the forecast period. The sales of passenger cars are directly depended on economic conditions amid the fluctuation in purchasing power parity, exchange rates, and changes in government policies. Fuel prices and transportation infrastructure is also major factor that influences the demand for passenger cars. The LCV segment holds significant market share owing to its low maintenance cost, operating cost, and better fuel-efficiency than the heavy commercial vehicle.

MARKET DRIVERS 

“Advancement of technology in the manufacturing process of the tires is expected to drive the tire market over the forecast period”

Advancements in tire manufacturing technology, such as the use of nanotechnology, are aimed at reducing the rate of wear and tear of tires. The use of such advanced manufacturing technologies makes the tires more durable, gives them higher performance, and provides better comfort to the vehicle. Nanotechnology is used in the manufacturing of high-performance tires as well as regular tires. As a result, the tires can function in an extensive range of temperatures and have higher heat resistance. Nanoprene is a rubber chemical that is used with a rubber blend of the tire tread to attain better performance and durability. Also, a slick racing tire with reduced tread is used on dry tracks as it guarantees the least traction by providing the most substantial contact covering to the road.

Another development in the manufacturing process of the tire is with the lower-tech development in the tire, and it could lead to a more significant impact on the market. The ‘Discolor Tire’ looks like a regular black tire from the outer side, but as soon as the thread of the tire wears down to the lowest safety level, its surface turns a bright orange. The threads of tire are baked during the manufacturing process; the color recognition lets you know when it’s time to replace the tires, providing additional safety to the end-users.

 “Low rolling resistance tire Is expected to drive the market”

A low rolling resistance tire is designed to reduce the energy loss by tire due to rolling. Lowering the rolling effort of the tire leads to an increase in fuel efficiency by 5 to 10% of the fuel consumed by a typical car. Graphene is used in tires to reduce the rolling resistance of the tire; it also helps to reduce fuel consumption. An advanced design of low rolling resistance tires guarantees excellent traction so that vehicles can be driven safely on dry or wet roads. The conventional tires have a deeper tread pattern that is designed for a safe driving experience on rough terrains, whereas low rolling resistance tires are considered more appropriate for flat and smooth highways. Drivers can enjoy a safe drive regardless of high-speed parameters.

The material, design, and manufacturing of rolled resistance tire make it a fuel-efficient solution for the car. The high-quality design and shallower design of low rolling resistance tire reduce the resistance of tire with the road when energy is applied by the engine. Lower the power spent, lower the fuel consumed. The exterior design of the low rolling resistance tire ensures better traction. This tire meets quality standards as that compared to conventional tires in terms of traction, tread wear, and temperature resistance. All these factors of low rolling resistance tire will help to propel the growth of the automotive tire OEM market.

SEGMENTATION

By Design Analysis

“The Radial Tire Segment is Estimated to Generate the Maximum Growth Rate During the Forecast Period”

Based on design, the automotive tire OEM market has been segmented into the radial and bias tire. A radial tire is expected to show significant growth over the forecast period owing to the strength and flexibility of the tire. Radial tire absorbs the bumps, impacts, and shocks, providing better comfort to the operator with a better ride. The tread and sidewall of radial tire functions independently. Radial tire transfers more power of the machine to the ground, thus helping to lower fuel consumption and higher productivity. The radial tire provides lesser ground compaction and damage to the vehicle. These factors will lead to an increase in sales of the radial tire among the passenger vehicle segment.

Bias tire consists of the lapping of multiple rubber layers over each other. Bias tire’s overlapped layers of rubber are less flexible and highly sensitive to heating. There is a possibility of slippage of bias tire due to low in contact with the road. Bias tire stiffened by nature leads not to absorb shocks or impacts of the road leading to shaking and impact to machine and driver. Due to these factors, the growth for the bias tire segment is negative in the passenger vehicle segment, whereas it is steady in the commercial vehicle segment over the forecast period.   

By Type Analysis

Based on type, the market has been segmented into a tube and tubeless tire. The tubeless tire segment is expected to dominate the market in the passenger vehicle segment over the forecast period. The tubeless tire has no tube inside the tire like a tube tire. Air is trapped between the tires and rim itself with the use of the airtight seal. Due to the high speeding of a passenger vehicle, the temperature inside the tire gets higher, leading to an increase in pressure on the tire tube, leading to the burst of the tire. But the radial tire is without tube, high resistance to heat, and suited to hold air much more than a thinner tube. These factors further drive the market for the tubeless tire in a passenger car over the forecast period.

Commercial vehicles are used for transportation of heavy loads. Considering the capability to withstand heavy load, a tube tire is generally used in commercial vehicles. This factor will propel the growth of the tube tire in the commercial vehicle segment.

By Vehicle Analysis

“Passenger vehicle segment is expected to display growth over the forecast period.”

Based on vehicle type, the market has been segmented into a passenger car, light commercial vehicle, and heavy commercial vehicle. The passenger car segment is projected to show dominance in the market over the forecast period. Growing demand for passenger cars from developing countries such as India, China, and Indonesia, amid the rise in the purchasing power of consumers, will also propel the growth of passenger cars segment in the region over the forecast period.

The commercial vehicle segment holds the largest portion of the overall automotive tire OEM market share in terms of value. The replacement of tires is higher in terms of volume in the commercial vehicle segment. As the commercial vehicles have longer running with heavy loads, it leads to heavy wear and tear of tires. This results in a higher replacement ratio of tires in the commercial vehicle segment.

REGIONAL ANALYSIS

The Asia Pacific is anticipated to hold major market share amid rapidly growing domestic consumption, availability of cheap labor, large population and evolving standards. India is anticipated to dominate the region owing to the huge investment in the tire industry. This investment contributes to 3% of manufacturing GDP for 7.1% GDP of the entire automotive industry.

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Europe is projected to witness significant growth in the global Automotive Tire OEM Market. Europe currently holds the second-largest position in the Tire OEM Market. The increased steps taken by various governments in the region to reduce the carbon emission has been the driving factor for the growth of the automotive tire OEM market in the region. The major countries in the region are Russia, Denmark, Switzerland, Finland, the Czech Republic.

The Rest of the World would witness slow growth in the automotive tire OEM market, as industries in this region are not actively investing in R&D to develop advanced tires, which might prove to be fuel-efficient for vehicles.

INDUSTRY KEY PLAYERS

“Market Players like Bridgestone, Michelin SCA, Good Year Tire and Rubber Co., Continental AG, Pirelli & C. SpA would ensure to strengthen their market position with supplying technologically advanced tires to end-users”

The automotive tire OEM market is highly fragmented with the presence of lots of competitive players around the world. Michelin looks to strengthen its position in the market by introducing Puncture-Proof and Airless Tires.

List Of Key Companies Profiled:

• Bridgestone Corp.


• Michelin SCA


• Goodyear Tyre & Rubber co.


• Continental AG


• Sumitomo Rubber Industries, Ltd.


• Pirelli & C. SpA


• Zhongce Rubber Company


• Cheng Shin Rubber Industry Co.


• MRF LTD


• Toyo Tire & Rubber Co., Ltd


• Cooper Tire and Rubber Company


• Apollo Tyres Ltd


• Nokian Tyres plc

KEY INDUSTRY DEVELOPMENTS:

• In July 2021, Hankook has announced that it will be supplying tires for the first electric SUV from Volkswagen, the ID.4, which will be fitted with the Ventus S1 Evo 3 EV, designed especially for electric vehicles & the demands of their drive systems.


• In July 2021, The Goodyear developed non-pneumatic tires (NPT)) in collaboration with Local Motors and Jacksonville Transportation Authority (JTA). The wheel assembly will support urban autonomous vehicle transportation.


• In July 2021, Pirelli has announced its first high-load index tire for hybrid and electric cars and SUVs markets. The tire is designed and developed to offer heavier vehicles with extra support and deal with integrated batteries' added weight.


• In July 2021, Titan has introduced the new HK 458, a crossover wheel loader tire for extreme loader applications requiring aggressive traction and high levels of self-cleaning. Additionally, the E-4/L-4 dual-rated bias tire combines the tread design of a forestry tire, a wheel loader tire, and an ATV tire, making it ideal for muddy, challenging agricultural and construction site applications.

REPORT COVERAGE

The report provides qualitative and quantitative insights into the global and offers detailed analysis of the prevailing automotive tire OEM market trends.  global Automotive Tire OEM Market is segmented by the design, tire type, vehicle type, and geography. Based on the design, the automotive tire OEM market is classified into radial and bias tires. By vehicle type, the market is segmented into Passenger cars, Light Commercial Vehicles, and Heavy Commercial Vehicles. Based on tire type, the market is segmented into a tube and tubeless tire. Geographically, the global automotive tire OEM market has been analyzed across four major regions, which are North America, Europe, Asia Pacific, and the rest of the world. These regions are further categorized into countries.

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Along with this, the report provides an elaborative analysis of the prevailing automotive tire OEM market trends and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in the market, such as mergers & acquisitions, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key retail industry trends, competitive landscape and company profiles.

Report Scope & Segmentation