Worldwide demand for tyres is projected to increase 4.1 percent per year to 3.0 billion units in 2019. In value terms, sales of tyres are forecast to grow 7.1 percent per annum to US$258 billion.
Increasing incomes in developing regions will spur growth in the number of vehicles in use, fueling demand for tyres. Higher income levels and expanding economic activity will also contribute to increases in average annual vehicle mileage, boosting the frequency of tyre replacement.
However, growth will be constrained somewhat by rising tyre quality, which will exert downward pressure on replacement rates.
Motor vehicles to remain dominant market for tyres
The motor vehicle market will remain the largest outlet for tyre demand, accounting for over half of the total in 2019. Demand for tyres in this market will rise to 2.0 billion units, at an annual rate that will trail the global average. Western Europe and North America are particularly significant in the motor vehicle market, representing 40 percent of demand in this market compared to 10 percent in other markets. This is a reflection of the wealth of these regions, which support high levels of motor vehicle ownership and consequently sizable replacement tyre demand. Demand for tyres in motorcycle and other applications is projected to outpace the global average and reach 990 million units in 2019.
Tyre sales in this market are concentrated in fast growing developing regions, where motorcycles see heavy use as a low-cost substitute for motor vehicles. Sales of tyres in other applications, such as aircraft, tractors, and industrial vehicles, will also grow at a healthy pace as manufacturing and usage of these vehicles increase.
Asia/Pacific region to offer best growth opportunities
The Asia/Pacific region holds the largest share of the world tyre market and is forecast to post the fastest growth in demand through 2019. China, which accounted for one-fourth of global tyre demand in 2014, will remain one of the most rapidly increasing national markets for tyres. Several other countries in the Asia/Pacific region are also projected to achieve rapid advances in tyre demand, particularly in India, Indonesia, Thailand, and Vietnam. However, the regional pace of growth will be constrained by a contraction in Japan, which holds the world’s fourth largest market for tyres. The developing Africa/Mideast region and Central and South America will also register above average gains in tyre sales, although both of these regions will remain below six percent of the global total in 2019.
Growth in North America, Western Europe to trail global average
Growth in demand for tyres in North America and Western Europe is projected to trail the global average through 2019. Replacement tyre markets in these regions are mature, as vehicle ownership rates are already very high. In addition, motor vehicle manufacturers have shifted their emphasis to siting facilities in developing regions, and many plants in Western Europe have been permanently closed, limiting opportunities for tyre in OEM applications. Demand for tyres in Eastern Europe will trail the global average but comfortably outperform Western Europe, fueled by increased manufacturing of vehicles for export.