World demand for tyres is forecast to rise 4.3% a year to 2.9 billion units in 2017, according to the ‘World Tires’ study from industry market research firm Freedonia.
Growth in the tyre market will continue to be led by developing countries in the Asia/Pacific region, particularly China and India, according to the report’s authors. Global demand will also be supported by improved economic conditions in the developed countries of Western Europe and North America, but gains in these regions will continue to trail the global average, they added.
Freedonia analyst Elliott Woo said: “The Asia Pacific region will be responsible for the bulk of global tire demand gains, accounting for two-thirds of total growth through 2017. China is the largest national market for tyres in the world, representing 22% of global demand in 2012.”
But growth in demand for tyres in China will not match the gains posted during 2007-2012 as expansion of both motor vehicle production and motor vehicle usage will decelerate.
“However, the market for tyres in China will continue to be among the fastest growing in the world,” Woo explained. “Other major national markets for tires in the Asia Pacific region include Japan and India, which ranked as the world’s third and fourth largest, respectively, in 2012.
“Sales of tyres in Japan are forecast to decline through 2017, a function of a shrinking population and falling motor vehicle exports. India will post strong growth in demand for tires and is expected to surpass Japan as the world’s third largest tire consumer by 2017.”
Source: Plastics & Rubber Weekly
Published: 20 Jan 2014