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.
Tires are one of the most indispensable commodities in the automobile sector. Advanced tires are airless tires and they are made up of a combination of different types of rubber. They do not puncture easily thus reducing the maintenance cost of vehicles. Advanced tires are made up of technology that can sense the condition of the road. Technological advancements, such as 3D printing, integration of sensors among others are adopted by major tire manufacturers, in terms of vehicle tires, are anticipated to propel the global advanced tires market, for instance, Tesla uses low friction and low noise tires in its electric cars. Increase in consumer preference toward premium cars and electric cars is estimated to fuel the demand for advanced tires across the globe. Advanced tires technologies, such as chip-embedded tires, self-inflating tires, etc, are expected to increase the vehicle convenience to a great extent.
Additionally, they increase and maintain durability of the tire through real-time tire pressure monitoring. Manufacturers are constantly working on advanced technologies such as 3D printing, organic raw material, along with integration of sensors, to monitor tire performance. For instance, Michelin and General Motors presented the new generation airless wheel technology which would be integrated in passenger vehicles in 2019. All these factors are expected to further boost the advanced tire market. Various government organizations are enacting stringent regulations regarding the emissions by automobiles, thereby making it mandatory for automakers to improve performance of vehicles to increase fuel efficiency. For instance, Pollution Prevention Law and Policies of 1990 in the US, the National Clean Air Program, 2019 by the Government of India are among many others. Advanced tires do not come in contact of the surface as much as other tires which is said to reduce friction between the tire and the road and thus increase vehicle fuel efficiency.
However, the restraints in the advanced tire market are the high cost of tires due to the advanced technology used for the tires. The setup for manufacturing advanced tires requires high investment. High initial cost required to manufacture advanced tires is likely to hinder the advanced tire market globally. For instance, due to a rise in raw material prices and lack of natural rubber, Goodyear raised the prices of its products by 8% in 2017. Vehicular pollution causes respiratory diseases and breathing problems such as asthma. Tires are used in all vehicles. Many countries are lowering the use of vehicles in order to tackle the problem of pollution. With lesser vehicles used, lesser tires will be required and hence this will be a setback for the advanced tire market. According to the Union of concerned Scientists, in a report of 2014, it was mentioned the US transport sector—which includes cars, trucks, planes, trains, ships, and freight—emits nearly 30% of all US global warming emissions, which is the most from all other sectors.
Constant new product developments by leading tire manufacturers are likely to further propel the advanced tires market during the forecast period. For instance, Goodyear introduced two noteworthy products in tire design which were the first all seasonal tire, and the ground-breaking fuel-saving elliptic tire. All these factors create an opportunity in the advanced tire market. Major tire manufacturers are expected to increase research and development of advanced tire technology and manufacturing during the forecast period. This, in turn, is expected to drive the global advanced tire market.
The Global Advanced Tire Market Size Segmentation:
By Material type
By Type
By Technology
Vehicle Type
By Region
Based on vehicle type, the light duty vehicles segment is to witness the fastest growth during the forecast period.
The LDV market, based on vehicle type, is projected to account for the largest market share during the forecast period. With an increase in the production of premium vehicles, such as SUVs, there is also a demand for advanced tires as premium cars are said to adopt advanced tires. According to a 2020 article in the New York Times, Sport utility vehicles in 2019, overtook the sale of sedans by two to one. Premium segment vehicles use advanced tires because general tires will hamper the aesthetics as well as the performance of premium vehicles. Hence, all these factors will lead to the growth of the light duty vehicles segment in the advanced tire market.
Based on technology, the self-inflating segment is said to grow the fastest during the forecast period.
Based on technology, the self-inflating segment will record the fastest growth during the forecast period. High production of commercial vehicles and a demand for better tire performance in commercial vehicles is projected to bolster the demand for self-inflating tires. Self-inflating tires monitor air pressure and also increase pressure in the tire automatically. Self-inflating tires have proven to be safe and convenient as per the report of iosrjournals.org which will also be a factor in propelling the self-inflating segment in the advanced tire market during the forecast period. In 2019, Continental invented the self-inflated tire and named it the tire of the future. All these factors will boost the self-inflating segment in the advanced tire market.
Based on material type, the elastomers segment in global Advanced Tire market is said to lead during the forecast period.
The elastomers are projected to lead the advanced tire market by material in 2020, and is expected to hold the dominance over the forecast years. Raw materials are required to be durable and lightweight, thus further boost the demand for elastomers. The world rubber production has been scaled down by 10% due to factors such as climate change among many others as stated by The Association of Natural Rubber Producing Countries (ANRPC) in 2020. The fall in production of natural rubber has led to the demand for elastomers, which is used instead of natural rubber.
Based on regions, Europe is Expected to Hold the Largest Share in the Advanced Tire Market during the forecast period.
Based on region, Europe is expected to hold the largest share during the forecast period. Europe is one of the key and leading producers of premium cars. Germany and the UK, together, are responsible for manufacturing around 35% of the total premium cars. Additionally, vehicle manufacturers such as Audi, Mercedes and Ferrari are based in Europe. The highest number of premium vehicle manufacturing coupled with a high rate of adoption of advanced technologies is estimated to drive the European advanced tires market. Rising demand for electric vehicles along with strong domestic production are some of the key factors which will help the growth of the advanced tire the market in Europe.
The rising demand for high performance, durable and reliable tires is fueling the growth of the Europe Tire market High living standards of consumers in the region have increased expenditure on luxury cars which demand for advanced and premium-quality tires and this has also boosted the growth of the advanced tired market. Further growing presence of major tire manufacturing companies such as Continental AG, Bridgestone, etc. is also driving the market. However, the region, saw a sharp decline in the advanced tire market as a result of the COVID-19 outbreak but this is temporary and there is said to be a rebound of the sales in the advance tire market.
The Advanced Tire Market Analysis report also provides in-depth analysis of market dynamics such as drivers, restraints and opportunity.
Drivers
Restraints
Opportunities
Covid 19 Impact on the Advanced Tire Market Growth
The Covid 19 impact was felt across all industries worldwide. The automobile industry and related industries were badly affected due to social distancing and lockdown policies of the governments worldwide. With little to no use of automobiles, the tire industry suffered a huge loss. Michelin and Goodyear reporting second-quarter sales declines of approximately 20% and 41%, respectively. As the "2020 Domestic Demand for Automobile Tires" report by the Japan Automobile Tyre Manufacturers Association (JATMA), the sales of new automobile tires for vehicles in 2020 were 36,439,000 down, a 17% decrease year-to-year. However, after the respite from the lockdown, there was a major thrust in the automobile industry. Consumers were seen to spend millions of dollars for repairs, maintenance and replacements for their vehicles. The first half of 2020 was badly affected by COVID-19 however, demand for new advanced tires recovered in the second half of the year due to strong new vehicle productions. This was seen to boost the advanced tire market.
The report also provides in-depth analysis of key market trends
| Sr. No. | Trends | Impact |
| 1 | Increase in consumer preference toward premium cars and electric cars | Positive |
| 2 | Constant ongoing research and development of advanced technology | Positive |
| 3 | High cost of raw material and high cost of manufacturing | Negative |
| 4 | Lack of production of natural rubber | Negative |
The report also provides in-depth analysis of recent News Developments and Investments
Advanced Tire Market - Company Profiles and Competitive Intelligence
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