The pneumatic tire market consists of rubber tires that use compressed air as a suspension medium. Pneumatic tires provide better shock absorption compared to solid tires as air pressure can be adjusted based on the vehicle load or terrain. Pneumatic tires offer improved vehicle handling, braking performance, and traction along with greater comfort. They are a standard fitment on motor vehicles including passenger cars, commercial vehicles, aircraft, and construction equipment. Growing demand for lightweight and fuel-efficient vehicles along with stringent emission norms have accelerated the usage of low-rolling resistance pneumatic tires.
The pneumatic tire market is estimated to be valued at USD 368.99 Bn in 2024 and is expected to reach USD 496.90 Bn by 2031. It is projected to grow at a compound annual growth rate (CAGR) of 4.34% from 2024 to 2031.
Key Takeaways
Key players operating in the pneumatic tire market are Michelin Group, Sumitomo Rubber Industries, Bridgestone Corporation, The Goodyear Tire and Rubber Company.
The growing vehicle parc along with increasing preference for comfort and safety features have boosted the Pneumatic Tire Market Demand for high-performance pneumatic tires globally. According to projections, over 2 billion vehicles will be plying on roads by 2030 necessitating the sales of over 2.5 billion replacement tires annually.
Tire manufacturers are expanding their footprint in developing countries through greenfield projects and acquisitions. China, India, Brazil, and Mexico are key focus areas offering a sizable untapped market. Collaboration with OEMs and fleet operators is allowing companies to cater to regional demands.
Market Trends
Adoption of green tires: Stricter emission norms have compelled tire makers to focus on reducing rolling resistance and improving wet grip performance of tires without compromising durability. Moreover, the use of sustainable materials such as natural rubber, sustainable natural fiber, and silica is growing.
Intelligent and connected tires: Tire manufacturers are developing intelligent tires embedded with sensors to monitor air pressure, tread depth, and temperature. The data is transmitted to motorists and fleet operators through smartphone apps or vehicles' infotainment systems allowing predictive maintenance and enhancing safety.
Porter's Analysis
Threat of new entrants: The pneumatic tire industry requires significant capital to enter which poses a high barrier. Bargaining power of buyers: Buyers have moderate bargaining power as there are few substitutes for tires. Bargaining power of suppliers: Raw material suppliers have moderate power given industry consolidation and dependence on limited materials. Threat of new substitutes: There have been few new substitutes to pneumatic tires developed and adoption takes time given infrastructure dependence on tires. Competitive rivalry: Companies rely on innovation, branding and partnerships to differentiate in a commoditized market.
Geographical Regions
North America currently holds the largest share of the global pneumatic tire market in terms of value, mainly attributed to factors such as high vehicle production and sales. Asia Pacific is expected to grow at the fastest pace owing to rapidly increasing automobile production and sales in emerging economies such as China and India.
Europe follows North America in terms of pneumatic tire market share. Regulations regarding vehicular emissions and fuel efficiency are driving demand for advanced tire technologies in the region. The Middle East and Africa are likely to witness steady growth over the forecast period. South America is expected to expand at a moderate rate due to economic uncertainties in major countries of the region.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
