Tire Chemicals Market : Global Demand Analysis & Opportunity Outlook 2024
Buy Now Report ID: 409 | Published Date: Feb 13, 2023
Tire Chemicals Market : Global Demand Analysis & Opportunity Outlook 2024
Buy Now Report ID: 409 | Published Date: Feb 13, 2023
Our-in depth analysis of the global tire chemicals market includes the following segments:
Global tire chemicals market is further classified on the basis of region as follows:
Global tire chemicals market is expected to grow at a steady CAGR over the forecast period 2017-2024. In terms of volume, tire market accounted for 2380 Million units in 2016. This has intensified the demand for tire chemicals all across the globe. Further, the global tire chemicals market is anticipated to exceed 43.5 Million tons in terms of volume by the end of 2024. The rising sale of automotive across the globe is envisioned to bolster the growth of global tire chemicals market in the next few years.
Geographically, Asia-Pacific accounted for the highest market share in terms of volume in the overall global tire chemicals market. This can be attributed towards various factors such as presence of automotive industries and large number of tire manufacturers in the region. However, oversupply of tire chemicals such as natural rubber and synthetic rubber in the region is predicted to decrease the growth of Asia-Pacific tire chemicals market. This excess supply of tire chemicals is declining the demand for tire chemicals. However, government involvement in Asia-Pacific countries is predicted to trigger the growth of tire chemicals market. For instance, Chinese government is encouraging Chinese tire manufacturers and associations through various set of standards and guidelines.
Asia-Pacific is anticipated to be trailed by North America and Europe. North America and Europe markets are expected to witness moderate demand due to the stringent environmental protection laws and regulations to curb the pollution. However, the positive growth of automotive industries in these regions is envisioned to bolster the growth of global tire chemicals market. Further, these countries are promoting the growth and development of green industries.
Middle East & Africa region tire chemical market is anticipated to witness significant growth over the forecast period. Rising demand for automobiles and increasing purchasing power of the consumers is anticipated to supplement the growth of tire chemicals market in the region.
Rise in the demand and sale of automotive is driving the growth of the tire market globally. According to Automotive Association - OICA, 69 Million new passenger cars and 24 Million commercial vehicles were registered in 2016 all over the world. Further, this number is expected to expand in the next few years which are likely to impel the demand for the tire chemicals. Additionally, high demand for replacement of tires is anticipated to escalate the growth of the tire chemicals market. Apart from this, high demand for durable and long lasting tires is envisioned to drive the global tire chemicals market during the forecast period.
However, economic challenges such as volatility in the raw material price are anticipated to dampen the growth of the global tire market. Implementation of environmental protection laws and regulations is anticipated to inhibit the growth of global tire chemicals market.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
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