TBR Tire Market Trends

Growth Drivers

• Expanding logistics and transportation: The need for commercial vehicles like trucks and buses fuels TBR tire demand in e-commerce and goods transportation. About 3 million, 26 million, and 165 million tires were predicted to be replaced and sold each year in Germany, Europe, and worldwide respectively, as estimated by Continental in 2020. According to the International Trade Administration 2024, an expected growth rate of 14.4% in the e-commerce revenue share was predicted, surpassing USD 5.5 trillion by 2027. Moreover, it was surveyed by the researchers at Research Nester in 2024 that about 33% of the global population shop online using e-commerce, this is an increase of 5% when compared with 2022. The commercial vehicle share has increased, augmented by the rising e-commerce and demand for goods vehicles.
• Better auxiliary quality: In comparison to several other tire types such as touring and spare tires, TBR tires have better auxiliary quality, handling control, improved engine performance, and less weight, causing comparatively fewer mishaps and accidents. Hankook Tire & Technology in February 2024, announced that Hino Canada and Hino Trucks have considered Hankook’s long-haul DL11 and regional AH37 tires for their medium-duty trucks. In turn, this is anticipated to influence the sales of TBR tires in the near future.

Challenges

• Demand for tires other than radial: The increasing popularity of electric and autonomous vehicles requires the usage of tires that are different from standard TBR tires. It is poised that truck and bus radial tire adoption would be slow in various segments such as construction and mining due to the shift to alternative power systems and self-driving capabilities, which could hinder the TBR tire sales growth.
• High cost of advanced materials: Manufacturer margins have been pressed down by the sharp increase in raw material costs over the past year. For the same reason, several Original Equipment Manufacturers (OEMs) are unwilling to fit TBR tires on their cars. Moreover, R&D expenses are rising as a result of stricter emission regulations that demand lower rolling resistance. This is anticipated to act as a restraining factor for the market growth.