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The global automotive tire OEM market size is expected to grow at a CAGR of 4.7% till 2025. The LCV tire production set to reach USD 13.88 billion by 2025 and Heavy Commercial Vehicle (HCV) tire production to touch USD 17.77 billion by 2025. As per the Fortune Business Insights report, titled “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 market size was USD 47.22 billion in 2018. The in-depth analysis of the various factors contained in the report suggests that increasing demand for cars be the key driving factor for the global automotive tire OEM Market growth during the forecast period.
Higher Efficiency of Radial Tires to Aid Market Growth
A radial tire is known to provide better comfort and safety to the driver as it can absorb shocks and impacts in a more effective way as its tread and sidewall function independently of each other. These tires also fuel efficient since they are able to transfer more power from the vehicle to the ground, helping in lowering fuel consumption. Furthermore, radial tires provide a higher safety quotient due to lower ground compaction, which is one of the main factors augmenting their adoption rate in vehicle manufacturing.
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Growing Demand for Tubeless Tires to Present Greater Sales Opportunities
Tubeless tires do not have a tube inside the tire, with air trapped between the rim and the tire using an airtight seal. These tires provide greater safety as regular tube tires are under constant threat of bursting with the increasing speed of the vehicle. However, tube tires are still heavily utilized in the case of commercial vehicles, especially in HCVs. This is because tubes provide extra strength to the tires to withstand heavy loads that these vehicles carry. Both these segments together will further bolster the global automotive tire OEM market revenue.
Escalating Demand for Passenger Vehicles to Propel the Market
The rising purchasing power among consumers in countries such as India and China have caused the demand and consumption of passenger cars to spike. This is a crucial driving force for the global automotive tire OEM market growth as passenger cars record massive sales figures the world over. However, in terms of value, commercial vehicles will dominate the market owing to the higher wear and tear of the tires due to the carrying of heavy loads over long distances.
Asia-Pacific to Showcase Formidable Rise; North America and Europe to Follow
Rapidly transforming manufacturing processes, coupled with increasing disposable incomes and cheap labor, are the major factors that will accelerate the market for automotive tires in Asia-Pacific. Huge investments in tire technologies will make India the leading country in the region. After Asia-Pacific, Europe is slated to hold the largest portion of the global automotive tire OEM market share on account of the commitment by EU members towards cutting down on carbon emissions. In North America, the US is expected to lead the region as the demand for fuel-efficient luxury cars is on the rise.
Increasing Investment in Innovation to Drive Market Competition
The global automotive tire OEM market potential is expected to be enhanced owing to the different technological innovations that key players in the market are investing in. For example, in January 2019, General Motors and Michelin announced their partnership to develop airless and puncture-proof tires by 2024, claiming that these tires will be more reliable and long-lasting. Similarly, a few years ago, Goodyear launched tough and fuel economic tires for long haul travelling of trucks called the Fuel Max RSA Tires.
List of the prominent players in the global automotive tire OEM market include:
The global Automotive Tire OEM Market is segmented as follows:
Volume (Million Units)
By Vehicle Type