Global automotive tyre market to be valued at $645bn by 2027

The global automotive tyre market expects an overall robust growth rate during the forecast period with a CAGR of 6.3% and will have an anticipated value of about US$645 billion by end-2027.

Passenger vehicles are expected to lead the global market in growth rates and market shares with a high CAGR of 6.8% throughout the forecast period, while commercial vehicles are poised to grow at a CAGR of 6.1%; light commercial vehicles will pose as a high growth segment and is expected to be valued at US$102.7 billion by late 2027.

Meanwhile, the radial tyre segment is expected to grow significantly and will be valued at US$550.2 billion come end-2027 while the OEM sales channel reflects a high growth rate during the current period of assessment, but the aftermarket segment is poised to record higher market value by the end of the forecasted year – the OEM segment is expected to grow at a CAGR of 6.4% during 2017-2027.

The Asia Pacific region, excluding Japan (APEJ), is expected to grow by similar rates. APEJ, however, is expected to lead the global market with high market shares by end-2027, at a value of US$194 billion.

Furthermore, evolving technology is set to overhaul the future of tyres by increasing mergers and acquisitions to expand retail networks, increasing use of tyre pressure monitoring systems (TPMS), and increasing use of digital platforms where consumers purchase products through e-commerce. There will be an increasing trend of switching to “green tyres” as an environment-friendly option, decreases in the selling price of small tyres, and strategic collaborations between tyre manufacturers with famous non-tyre entities to promote brand value.

The above is stated in a report by Future Market Insights (FMI) titled “Automotive Tire Market: Global Industry Analysis (2012-2016) and Opportunity Assessment (2017-2027)” that covers various market drivers, impacts, challenges, trends and opportunities in the global automotive tyre market including a comprehensive 2017-2027 competition assessment.

Key players involved in operations related to automotive tyres include Continental, Bridgestone, Michelin, Goodyear, Yokohama Rubber, Sumitomo Rubber, Madras Rubber, Shandong Linglong Tyre, and several others as profiled in the research report.