LEATHERHEAD, England—According to a new Smithers Rapra study, the global tire market is well-positioned for further growth as it adapts to meet challenges across a complex matrix of tire types, end uses and regional markets.
"The Future of Global Tires to 2022" estimates the overall market to reach more than 2.2 billion units by 2017 with volume growth expected to continue at a 3.4 percent compound annual rate from 2017 through to 2022. In 2022, total global industry tire volume will approach 2.7 billion units, according to a Smithers Rapra release.
Value will grow somewhat faster due to a firmer raw material price outlook than in the recent past. 2017's market value of $223 billion will rise to $267 billion in 2022, at a 3.7 percent annual compound growth rate, Smithers Rapra predicts.
The drivers of growth are best seen in tire types and end uses, grounded by the mature and traditionally technologically advanced markets (such as the U.S., Western Europe and Japan), but increasingly dominated by volume and innovation in emerging markets in Asia, primarily China. Premium and high performance tire growth in North America and Europe will remain a strong positive influence on growth, the report noted.
Tracking growth of tire market volume, the global consumption of raw materials by tire manufacture is showing continued growth from 2017's estimated 45.2 billion tons. Growth is estimated at about 3.8 percent per year, to 54.5 billion tons. The share composition of materials used is remaining fairly stable through 2022, with exceptions for some of the materials finding greatest use in energy (or green) tires where low rolling resistance continues to gain in importance.
With rolling resistance reductions increasingly sought by vehicle manufacturers and end users, highly dispersible silica will become an increasingly important raw material, according to the study.
There is still considerable scope for further expansion of highly dispersible silica, which is expected to grow significantly faster than all other raw materials, by almost 10 percent per year through to 2022. Similar growth is occurring in silane coupling agents, where further innovations are being pursued.