Inevitably, tires are one of the most essential commodities in the automotive sector. The automotive sector comprises of innumerable vehicles working on motors and all of these vehicles are supported by respective tires. The development in the rubber industry has emerged with the innovative option of tires. Different terrains demand different tires, therefore, the tire companies are coming up with relevant products. Advance tires have a range of products including but limited to mud terrain tires, pneumatic tires, run-flat tires, tubeless tires, and airless tires. The growing demands in the automotive industry all around the world are the major growth driver in the global advance tires market. The production of a motorized vehicle surpassed 91 million units in 2018 and the demands and production are still on a rise. Considering the exuberant volume of production, it is evident that the segment will demand a significant number of tires which will subsequently benefit the global advanced tire market significantly. Robust investment for the development of advance tires is shaping the advance tires market place. Top companies active in the advance tire market are competing over digitally developed tires that are economically sustainable, environment-friendly, and gives optimum performance. A few of the companies are also leveraging up on the 3D printing technology to develop advance tires with minimal resources and wastage.
The demands of tires are cyclic which tremendously impacts the advanced tires market which held the global market size of $150 million in 2018. Foreseeing the rampant demands in the automotive industry, the opportunities in the global advanced tires are expected to grow at an above-average CAGR of 17.66% during the forecast period 2019 to 2025.
North America: Most Lucrative Advance Tire Market
The North American region was observed as the most productive region in the global advance tire market and was accounted for 20.32% of the total market share in 2018. The presence of some of the most developed economies such as the United States and Canada is a factor resonating the advance tire market growth. Additionally, the autonomous and electric vehicle ecosystem in the region is witnessing a remarkable growth due to the presence of top companies such as Google, Uber, and Tesla. Since the research and development are comparatively high in North America, therefore, the innovation rate here is greater than other regional demography. Thus, the rapid adoption of emerging technologies and a massive consumer base are the aspects supporting the growth of advance tires market in the region.
Application Analysis in the Advanced Tires Market
On-highway tire application was observed as the most rewarding application in the global advance tires market. The demand for on-highway tire application is poised to grow at a double-digit CAGR of 18.66% during the forecast period. The increased production of different variants in light-duty and heavy-duty vehicles are responsible for the heavy application of the on-highway tires. Further, the demands for on-highway tires are expected to surge owing to the growing production of premium segment vehicles which will ultimately support the global advance tires market.
Growth Drivers in the Advanced Tires Market
· Tires for Racing: Racing events such as Formula 1, Moto GP, and Dirt Track racing are very popular today. The vehicles used here touch speed as high as 300 mpH. Even a sensitive issue in the tires of these vehicles can lead to awful accidents which may cost the life of the driver. There exist a set of a soft, medium, and hard tires to support different weather and road conditions in Formula 1. These are some of the world’s most advanced tires ever produced. Since the research and development activities in this sport are terrific, the tires developed here are the most reliable and safe tires. Therefore, these races are considered as a gateway for innovation in the automobile industry.
· Expansion of Autonomous and Electric Vehicles: The emerging autonomous vehicle (AV) and electric vehicle (EV) market segments in the automotive industry has vacated the opportunities for the tire companies to implement advance tires developed with the help of digital technologies. The extent of electric vehicles running on the road will surpass 125 million by 2030 which will deliberately employ multiple tire companies to produce advanced tires. Thus, the growth in the electric vehicle and autonomous vehicle will support the advance tire companies in the upcoming years.
· Premium Vehicle Segment: Premium vehicle manufacturers use highly advance tires to provide high fuel efficiency, adequate grip on the road, and reduce carbon emission. Premium segment vehicles are bound to use perfect tires as using general tires in premium vehicles will hamper the aesthetics as well as the performance. These premium vehicles are most prevalent in developed economies. However, the disposable income in some of the developing economies is increasing which will further breed demands for premium vehicles. Thus, increasing demand for premium vehicles in both the developed and developing economies will support the global advance tires market growth.
· Advance Tire
Demands from the Aerospace & Defense Sector: The aerospace
and defense sector is also one of the largest consumers of tires. The tires
used in defense vehicles such as tanks, trucks, and Humvee are advance robust
and efficient tires. Uneven, rough, and patched roads are the common terrains
for these vehicles and therefore the requirement of advanced tires for these
vehicles is imperative. Considering aircraft, the need for sturdy and powerful
tires is necessary. Aircraft tire carries massive weights on them, also, the
speed and pressure exerted by the aircraft during landing and take-off are huge.
Therefore, strong and advanced sets of tires are used in aircraft. Demands for
advanced tires that can be used in space rovers are also burgeoning the
revenues in the advance tire market. Airless tires were developed for rovers
using steel-mesh doughnut-shaped coils connected to an aluminum base. These
tires had V-shaped treads developed from titanium for providing traction on the
moon’s surface. With this innovation, the potential for airless tires was
recognized and since then this tire is highly preferred for lunar missions by
various space organizations. Thus, the demands for advance tires in the
aerospace & defense sector will contribute to the global advanced tires
Advanced Tires Market Competitive Landscape
The companies influencing the advanced tires market are Continental AG, Bridgestone Corporation, Michelin, The Goodyear Tire and Rubber Company, Pirelli & C.S.p.A, Sumitomo Corporation, The Yokohama Rubber Company, The Hankook Tire & Technology Group, Nokian Tyres, Cavi Elettrici e Affini Torino (CEAT), and Toyo Tire Corporation.
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