VALLEY COTTAGE, N.Y.—The global tire materials market will reach a valuation of about $100 billion toward 2028, according to a report by Future Market Insights, a market intelligence and consulting firm.
Increasing automotive production in emerging economies has been driving the demand for tires from original equipment manufacturers, said the report, titled "Tire Materials Market: Global Industry Analysis 2013-2017 and Opportunity Assessment 2018-2028." This has led to an increase in tire production and demand for tire materials.
Expansion of the tire industry is expected to fuel demand for tire materials while the growing fleet size will add to tire replacement activities and influence tire material demand, the report said. The estimated global vehicle parc for 2017 was 1.3 billion.
Increasing middle-class population, coupled with rising urbanization in developing countries, will increase the number of vehicle owners, according to the report. Another factor is an increase in youth population, which led to an increase in automotive sales, also a positive sign for the tire materials market.
Changing lifestyles and standard of living have increased the adoption of high-performance tires as well as branded tires, also expected to positively impact the tire materials market, according to the report. The increasing number of vehicle owners will push the growth of both OEM as well as aftermarket segments, and boost the tire materials market going forward.
Silica is being used as a filler material as an effective replacement for carbon black because of the adoption of green technology, according to the report. The use of silica in the production of green tires has reduced carbon dioxide emissions by about 7 percent, and increased fuel efficiency. Increasing focus toward the reduction of carbon footprint and greenhouse gas effects is driving demand for silica in tire production.
The implementation of tire labeling initiatives and growing environmental concerns have driven an increase in the production of high performance or green tires. Regulatory bodies have also employed incentives for manufacturers and consumers with a preference for performance tires.
The report said East Asia and South Asia, which includes Japan, account for more than 50 percent of tire manufacturing facilities. Easily available raw materials, economic and political stability, and availability of skilled and cheap labor attracted tire manufacturers to invest in the area.
North America and European tire industries are expected to see a slowdown in coming years because of increased Chinese competition in the tire industry and low-range products, according to the report. North America and Europe are anticipated to be potential markets for tire materials because of key tire manufacturers in the region.
Solvay S.A., Lanxess A.G., Exxon Mobil Corp., JSR Corp., Cabot Corp., Birla Carbon and Evonik Industries A.G. are among the key companies identified in the market.
The report is available for individual purchase for $5,000, corporate purchase for $7,500, and enterprise purchase at $10,000. It can be found at www.futuremarketinsights.com/reports/tire-materials-market.