The global tire material market is estimated to garner a sizeable revenue and grow at a CAGR of ~5% over the forecast period, i.e., 2022 – 2030. The growth of the market can be attributed to the increasing improvements in rubber chemistry and tire design, and growing demand for vehicles, especially in emerging economies. According to the International Organization of Motor Vehicle Manufacturers, 97.302 million vehicles were produced all around the world in 2019. The production observed a growth of 2.36 percent increase since the previous year. Along with these, growing need for containment and traction in vehicles, and ongoing advancements in automobile manufacturing across the world are also expected to drive market growth in the forthcoming years. Furthermore, rise in research and development activities in developing eco-friendly tire material is projected to offer lucrative growth opportunities to the market in the near future.
The market is segmented by type into elastomers, reinforcing fillers, plasticizers, chemicals, metal reinforcements, and textile reinforcements, out of which, the elastomers segment is anticipated to hold the largest share in the global tire material market. This can be accounted to the growing population and the need for transportation, and rise in the demand for tires globally. Apart from these, elastomers are highly customizable in shape, size and flexibility, which in turn is also evaluated to boost the growth of the market segment in the future. Additionally, on the basis of end user, the segment for passenger cars is predicted to occupy the largest share during the forecast period owing to the low interest rates on these cars via different schemes and banking, and provision of subsidies by governments for setting up business units. CLICK TO DOWNLOAD SAMPLE REPORT
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
On the basis of geographical analysis, the global tire material market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in the Asia Pacific region is estimated to witness noteworthy growth and grab the largest share over the forecast period on the back of the spiraling demand for different types of tires from automotive industry, particularly in China and India. In addition, escalating consumer preference for electric vehicles and increasing deployment of initiatives promoting usage of green tires. Moreover, the market in Europe is also acquire a significant amount of share during the forecast period ascribing to the high production of automobiles and strong presence of prominent market players in the region. As per the data provided by the Association des Constructeurs Européens d’Automobiles, 10.8 million passenger cars were produced in the European Union in the year 2o20.
The global tire material market is further classified on the basis of region as follows:
Our in-depth analysis of the global tire material market includes the following segments:
FREQUENTLY ASKED QUESTIONS
The major factors driving market growth are increasing improvements in rubber chemistry and tier design and growing demand for vehicles in emerging economies.
The market is anticipated to attain a CAGR of ~5% over the forecast period, i.e., 2022 – 2030.
Scaling of production costs by automobile manufacturers is estimated to hamper the market growth.
Asia Pacific will provide more business opportunities owing to the spiraling demand for different types of tires from automotive industry, particularly in China and India.
The major players in the market are Cabot Corporation, Lanxess AG, JSR Corporation, N.V. Bekaert S.A., Chevron Corporation, and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by type, end user, and by region.
The elastomers segment is anticipated to hold largest market size and is estimated to grow at a notable CAGR over the forecast period and display significant growth opportunities.
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