Evolution of Global Tyre Market- a potential growth of over 6% by value in the electric-vehicle age: Actual Market Research

Tyres are one of the most essential parts of any passenger or commercial automotive vehicle. The essence of mobility lies in the usage of wheels and tyres and hence the quality and functionality of tyres become inevitably important. As the automotive industry is looking at the next big leap in form of transition to electric vehicles, the growth of the tyre market is expected to get a fresh momentum to expand.

Tyres are however a kind of product which are heavily dependent and characteristically provide very limited scope for innovation. The tyre market is heavily dependent on the performance of the automotive industry, as the primary utility of tyres is majorly applicable for the functioning of automotive vehicles. As passenger and commercial vehicles underwent significant innovation, research, and development over the last few decades, the tyres also underwent significant scientific and engineering research to improve their durability and improve the riding and driving experience of the passengers. The significantly crucial role of tyres can be easily overlooked as rightfully, the major emphasis for ease of transport is always laid upon the kind of vehicle used, its engine, etc. But it is imperative to know that tyres also complement the performance of the vehicle not just from a comfort standpoint, but also mileage and durability of the vehicle parts.

The major innovation in tyres took place when radial tyres came into the market. Radial tyres were heavily popularized offering more comfort due to even contact of tread with the road. The radial tyres are still marketed stating this edge over bias ply tyres along with other benefits such as lesser fuel consumption, improved durability, and maneuverability. During the study on the global tyre market, Actual Market Research came across industry patterns that skew towards the adoption of radial tyres globally. During the historic period of 2015 to 2020, it was observed that the radial tyre growth rate exceeded the bias-ply growth rate by roughly 1 percentage point and it has been further forecasted that the radial tyres will be growing at more than 8% CAGR from 2021 to 2026. Globally it has also been observed that the 2 wheeler automotive and passenger cars are currently driving the growth of the market for radial tyres whereas medium and heavy vehicles continue to use bias tyres for their strength greater strength resulting out of specific structure and design. Not just for radial tyres, passenger cars are very prominent in driving the sales of tyres globally. However, in many emerging economies, eg. India, China, Brazil, Columbia, etc. other vehicle tyres such as 2 wheeler tyres, 3 wheeler tyres are also quite prominent. The share tyres as per vehicles also fall in line with what kind of vehicles the residents of an economy buy as their disposable income rises. In more developed regions such as North America and Europe, the first choice of personal vehicle that the choice to buy is passenger cars. Similarly in developing regions such as the Asia Pacific and Latin America, the customers choose to buy 2 wheelers as their vehicles, reflecting a similar trend in their respective tyre market.