Tyre materials market to grow by USD$100 bn by 2028

March 29, 2019

The global tyre materials market has been envisaged by Future Market Insights (FMI) to approach the valuation of USD$100 billion by 2028, after an analysis that offers decisive insights pertaining to the related market and extensive information through organized market research. Some highlights of the “Tire Materials Market: Global Industry Analysis 2013–2017 and Opportunity Assessment 2018–2028” report include:

  • Higher demands of silica with increasing production of green tyres

The implementation of tyre labeling initiatives and growing environmental concerns by many regions has led to an increase in the production of high-performance or “green” tyres over synthetic rubber and fillers used in automotive tyres. Silica replaces carbon black in the production of “green” tyres, which has increased fuel efficiency and reduced CO2 emissions almost by 7%, thus reducing the carbon footprint and greenhouse gas effects.Regulatory bodies have laid incentives for manufacturers and consumers with a preference for performance tires.

  • Augments to automotive production and tyre materials market

The production and sales of vehicles directly affect the dynamics within the tyre industry – increasing automotive production has led to an increase in tyre production activities and tyre materials. The growing demand for automotives and subsequent boost to the tyre materials market is pushed by:

  1. replacing worn tyres, as each tyre experiences maximum wear and tear in 2-3 years;
  2. the growing vehicle parc and production;
  3. the growing fleet size adding to tyre replacement activities and indirectly influencing demand for materials;
  4. the increasing youth population and number of vehicle owners, as more people can afford vehicles;
  5. the increased standard of living and the adoption of high-performance and branded tyres.
  • East Asia will grow as a regional market for tyre materials

East Asia and South Asia currently account for more than 50% of tyre manufacturing facilities; key tyre manufacturers are much attracted invest in East Asia and South Asia because of easily available raw materials, economic and political stability, and the availability of skilled and cheaplabour.In this, China is estimated to be a leading tyre producer, while the presence of companies such as Yokohama Rubber Company makes Japan a promising tyre manufacturing country.

North American and European tyre industries are estimated witness a slowdown in production and sales due to the increasing competition from Chinese tyre manufacturers and their low-ranged products.  But, predominant tyre manufacturers like Exxon Mobil Corporation, JSR Corporation, Cabot Corporation, and Birla Carbon can still tip the potential market for tyre materials.

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