The global economic climate for all tyre end uses and types is expected to grow in volume and in value terms through 2024, with specialty applications like motorcycles, high-performance vehicles and OTR tyres leading the market.
This, according to Smithers latest market report, ‘The Future of Global Tyres to 2024’, which forecasts the global tyre market value will increase from $239 billion in 2019 to $280 billion by 2024, with a compound growth rate of 3.2 percent.
The report claims the global tyre industry is poised for growth as it adapts to meet global challenges across a complex matrix of tyre types, material inputs, end uses and global regions.
According to the report, the tyre industry challenges and opportunities include further evolution of the regulatory environment (labelling expansion, fuel efficiency and lower emissions), tyre technology advances, greater performance/load demands in many end-use applications, as well as sustainability.
The report identifies a number of key trends and drivers for the global tyre industry over the next five years: Global economic growth is expected to continue in most regions/ countries, supporting vehicle production and incremental expansion of the number of vehicles in use. Concurrently, greater performance and load demands placed on many vehicles and tyres will boost the fitment of high-performance and premium tyres, along with greater use of radial (in countries such as India) and premium tyres.
Replacement demand to grow due to a wide variety of growing end uses, ranging from passenger cars and light trucks, and medium and heavy-duty trucks and buses to specialty applications such as motorcycles, off-the-road (OTR) equipment (broadly defined to include mining, construction, ports, agricultural and industrial uses), and aviation. 7 www.satreads.com Transport and tyre regulations, including fuel economy mandates on vehicle manufacturers and consumer labelling standards, will continue to drive innovation and technology adoption both by OEMs and tyre manufacturers, and in turn their suppliers. The further pursuit of low rolling resistance with additional emphasis on tyre weight reduction (aerodynamics), will become more important.
Adaptation and evolution of tyres and related services to better meet end-use requirements such as fuel efficiency, performance, reliability, durability, and intelligence/data predictive analytics will accelerate. Further evolution of ownership will occur as vehicle sharing and fleets become more common and sophisticated in more applications. Expansion of e-commerce and greater efficiencies are changing distribution.
Companies are more focused on sustainability across the lifecycle, from raw materials to recycling. Greater automation and efficiency in production (including artificial intelligence and ‘smart factories’), relative reduction in materials used, pursuit of zero waste and defects are changing manufacturing and helping to limit costs of production. ‘The Future of Global Tyres 2024’ identifies and examines the current state and potential evolution of the global tyre market from the perspectives of technology, raw materials, end uses and leading producers.
The results are sourced and forecast from all the five global regions involved in the manufacture, distribution and recycling of tyres.
