The Global Advanced Tire Market was valued at USD 250.3 million in 2020 and is expected to reach USD 1,350.7 million by 2027, growing at a CAGR of 19.1% during the forecast period, 2021-2027
Advanced tires are made up of various combinations of different types of materials. They have less chances of getting punctured and are fuel efficient. They have a better grip on the road and less prone to accidents and can sense the conditions of the roads. Industrialization, commercialization and a rise in demand for automobiles such as trucks, cars, tractors, etc, have led to an increase in the production of automobiles and hence an increase in the advance tire market. For instance, India, in 2020, is said to be fourth largest automobile industry on a global scale, with an increase in sales of 10% year-on-year to 4.3 million units.
The automotive industry has observed a vigorous growth in recent years, mostly in developing countries such as China and India. This rise in automobile production in developing nations has led to increased production of automotive catalysts for emission control devices in automobile exhaust systems. Thus, upsurge in automobile production is anticipated to boost the growth of the global advanced tires market. Further, rise in concern for fuel efficiency and safety of automobile offers a remarkable growth opportunity for the players operating in the market. Stringent measures are taken to lower vehicular pollution globally. The Clean Air Act and Diesel emissions reduction act in the US, The Air (Prevention and Control of Pollution Act) and the Environmental Protection Act in India among many others are examples. Such regulations have made it mandatory for automobile manufacturers to use advanced technologies to reduce emissions and pollution in vehicles. Tubeless tires are one of the advanced tires in the automotive industry, which reduce vehicular emissions and enhance the fuel economy of vehicles. All these factors collectively drive the growth of the advanced tires market.
However, uncertain price of raw material required for the production of advanced tires is expected to hinder the market growth. Advanced tires depend on new technological features such as sensors, computing devices, and monitoring device which increase the cost of tires. According to Continental Tire the Americas LLC, price fluctuations in raw materials are not uniform. Additionally, the set up for manufacturing of advanced tires entails high investment. High initial cost required to manufacture advanced tires is likely to hinder the advanced tire market globally.
Therefore, with increase in technological advancements, vendors are coming up with highly efficient tires that increase the overall fuel efficiency of vehicles. For instance, Trelleborg, launched a new line of pneumatic tires with features such as grip and durability. Thus, rise in concern for fuel efficiency and safety is expected to create a growth opportunity in the advanced tires market.
Global Advance Tire Market by Region Outlook (Revenue, USD Million, 2021-2027)
Based on region, the European market is predicted to grow fastest during the forecast period. Presently, the European market is witnessing a demand of advanced tires with the presence of three significant qualities in a tire which are lesser wear and tear and enhanced durability, better grip and low rolling resistance for improved fuel efficiency. The introduction of the electric vehicles has become popular among the younger population and to cater to these electric vehicles there is a high demand for advanced tires. A strong production capacity in the region owing to being home to the major tire manufacturers such as Continental AG, Michelin, and Pirelli among others. The expansion of the automotive industry is a major driving factor of the European automotive tire market. The European automotive market is one of the largest in the world and the region is home to many global automobile part manufacturers. Moreover, the automotive tire market in the region is projected to register considerable growth due to the impact of new technologies, such as electric and autonomous vehicles, extension of tariff wars, and changing preferences of younger generation consumers.
Global Advance Tire Market by Material Type Outlook (Revenue, USD Million, 2021-2027)
Global Advance Tire Market by Type Outlook (Revenue, USD Million, 2021-2027)
Global Advance Tire Market by Technology Outlook (Revenue, USD Million, 2021-2027)
Global Advance Tire Market by Vehicle Type Outlook (Revenue, USD Million, 2021-2027)
Advanced Tire Market Report Highlights.
Company Profiles and Competitive Intelligence
The key players operating in the Global Advanced Tire Market are: