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AUTOMOTIVE & TRANSPORTATION

Automotive Tire Original Equipment Manufacturer (OEM) Market Analysis by Product Type (Tubeless and Tube); by Design (Radial and Bias); and by Vehicle Type (Passenger Vehicles and Commercial Vehicles) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033

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Inflation And Looming Recession to Haunt Businesses:

In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022.

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Purchasing power in the couPurchasing power in the country is expected to fell nearly by 2.5%. On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.                                                         Request Insights

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IN THE NEWS

  • Goodyear Tire & Rubber Company - launched the all-new Goodyear ElectricDrive all-season tire and two new sizes for its ultra-high-performance tire, the Goodyear ElectricDrive GT, to stay ahead of growing demand in the electric vehicle (EV) market.

  • Yokohama Europe GmbH - announced that it is supplying its GEOLANDAR X-CV and ADVAN V61 tires as original equipment (OE) to Mazda Motor Corporation for use on MAZDA CX-60, the car manufacturer´s new crossover SUV.

 

Global Automotive Tire OEM Market Size, Forecast, and Trend Highlights Over 2023 - 2033

Base Year

2022

Forecast Year

2023-2033

CAGR

~5%

Base Year Market Size (2022)

 ~ USD 22 Billion

Forecast Year Market Size (2033)

~ USD 50 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of Middle East and Africa)

 

The global automotive tire OEM market is estimated to garner a revenue of ~USD 50 billion by the end of 2033 by growing at a CAGR of ~5% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 22 billion in the year 2022. The growth of the market can primarily be attributed to the growing trend of automotive OEM tires owing to rising awareness about its longevity amongst automotive users worldwide. For instance, it is projected that OEM tires may last more or less up to 50,000 miles.

automotive tire market overview image

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OEM tires commonly known as OE tires are specified by the vehicle manufacturer and are initially fitted to the new vehicle. The car manufacturer works with tire companies to choose a tire that will meet the performance requirements for their brand-new vehicle and selects a tire that balances ride noise, handling, fuel efficiency, and longevity, to achieve the overall features that the vehicle manufacturer believes are important to the end-user. With the development demand for OE tires as well as investment, the demand for OEM tires is on the rise amongst manufacturers, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global automotive tire OEM market during the forecast period. For instance, it is projected that to develop a tire that will adequately accompany new vehicles, car companies invest around USD 1 million.

Global Automotive Tire OEM Market: Growth Drivers and Challenges

Growth Drivers

  • Growing Capital Spending – For developing OEM tires that are specifically engineered to give the performance that the car manufacturer intends. The rising capital investment is expected to boost the automotive tire OEM market in the forecasted period. It was found that in 2019, the global tire industry’s capital spending was ~USD 15 billion.

  • Increasing Demand for OEM Tires – for instance, in the year 2020, nearly 36 million units of OEM passenger car tires were shipped to the United States.

  • Upsurge in the Global Tire Industry – With a rise in the number of vehicles on the road, more tires will be definitely needed to suit the needs. Tire production is estimated to reach ~ 22 million tons of production by 2024.

  • Rising Trend of Green Tires – which have low rolling resistance and are capable of increasing the fuel economy of the vehicle by a minimum of 2% in commercial vehicles.

  • Growing Sales of Cars – The global automobile industry has been recovering ever since COVID–19 started to recede. Car worldwide sales grew to more than 65 million in 2021.

Challenges

  • Requirement of Huge Capital Investment

  • Shortage of Raw Material - Because of its ability to dissipate heat and provide UV protection, carbon black, which is used in sidewall and inner liners, helps produce long-lasting tires. For many years, Russian carbon black has been a mainstay of the tire industry. Data shows that in 2018, Russia was the second-largest exporter of carbon black, sending more than 1.7 billion pounds throughout the world. But owing to the ongoing war with Ukraine, carbon black’s supply has been affected.

  • Concern about Replacement OEM Tires Quality

The global automotive tire OEM market is segmented and analysed for demand and supply by vehicle type segment into passenger vehicles and commercial vehicles. Amongst these segments, the passenger vehicles segment is anticipated to garner the largest revenue by the end of 2033, backed by the growing demand for passenger vehicles along with the surge in the sales of passenger vehicles worldwide. For instance, in September 2022, about 307,300 passenger vehicles were sold in India.

Global Automotive Tire OEM Market Regional Synopsis

The Asia Pacific automotive tire OEM market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033, backed by the presence of a strong automobile network in the region, a growing number of vehicles, as well as the growing awareness amongst the automobile users for the automotive OEM tire. For instance, globally, China with 300 million motor vehicles, has the largest fleet of motor vehicles in 2022.

Market Segmentation

Our in-depth analysis of the global automotive tire OEM market includes the following segments:

     By Product Type

  • Tubeless
  • Tube

     By Design

  • Radial
  • Bias

     By Vehicle Type

  • Passenger Vehicles
  • Commercial Vehicles

Top Featured Companies Dominating the Global Automotive Tire OEM Market

  • Goodyear Tire & Rubber Company

    • Company Overview
    • Business Strategy
    • Key Product Offerings
    • Financial Performance
    • Key Performance Indicators
    • Risk Analysis
    • Recent Development
    • Regional Presence
    • SWOT Analysis
  • Yokohama Europe GmbH
  • Bridgestone Corporation
  • Pirelli & C. S.p.A.
  • Giti Tire Pte Ltd.
  • Continental AG
  • Falken Tyre Europe GmbH
  • Nitto Denko Corporation
  • Toyo Tire Corporation
  • JK Tyre & Industries Ltd.

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