The Advanced Tires Market is projected to grow at a CAGR of 17.98%, during the forecast period, to reach a market size of USD 690 million by 2027 from an estimated USD 219.7 million in 2020. Increasing demand for the automotive especially the luxurious cars, connected cars, and advanced cars are fueling adoption of advanced and improved quality tires. This is fueling the growth of the global market for the advanced tires. In addition, growing focus on tire manufacturing of tires from advanced technologies such as 3D printing and some of the green raw material, which is boosting the growth of the global advanced tires market.
The advanced tires market is segmented on the basis of technology, material type, and region. Based on the technology, the advanced tires market is segmented into chip-embedded, TPMS, self-inflating, and multi-chamber. Based on the material type, the market is segmented into LDV and HDV.
Growing focus on the reduction of carbon footprints is encouraging the manufacture of tires from green or organic raw material, which is less harmful to the environment. This factor is boosting adoption of advanced tires and likely to fuel growth of the global advanced tires market. Additionally, rising need for lightweight and durable raw material is expected to propel demand for the advanced tires and likely to fuel growth of the market.
However, need for high capital investment and mass production of advanced tires are limiting growth of the global advanced tires market. Moreover, complications in mass production are also restraining growth of the global advanced tires market. The presence of alternatives such as multi-chamber and airless tires is expected to restrain the growth of the global advanced tires market.
The U.S., Germany, France, and China have implemented government laws and regulations for vehicular emission & fuel economy and have mandated automobile manufacturers to use advanced technologies to combat high emission levels in vehicles. The exhaust gases from automobiles contain nitrogen monoxide, carbon monoxide, lead, CO2, and hydrocarbons, which can cause diseases such as asthma and respiratory allergies. As of 2013, automobiles contributed to more than half of the carbon monoxide and nitrogen oxides, with 25% of hydrocarbons emitted into the air. According to the International Air Agency, about 6.5 million deaths are recognized annually, due to the quality of air. The California Air Resources Board (CARB) launched the California Vehicle Emissions Program, which includes guidelines for manufacturers to produce and deliver zero-emission vehicles (ZEVs).
Fluctuating raw material prices owing to higher input costs due to low supply of natural rubber and oil prices restrain the growth of the global pneumatic tire market. In addition, almost all raw materials are crude derivatives therefore linked to crude oil prices. Further, raw material used to produce advanced tires accounts for almost 75% of the production cost with synthetic and natural rubber being the key raw materials. There is an increase in the crude oil prices in the recent years worldwide. Therefore, prices of synthetic rubber and other crude derivatives used in the production of tires are expected to increase in the coming years. This in turn is expected to decrease the growth of the global advanced tires market.
Some of the key players operating in the global market are Continental (Germany), Bridgestone (Japan), Michelin (France), Goodyear (US), Pirelli (Italy), Sumitomo (Japan), Yokohama (Japan), Hankook Tire (South Korea), Nokian (Finland), CEAT (India), and Toyo Tire (Japan).
Based on the region, the advanced tires market could be segmented into North America, South America, Europe, Asia Pacific, and the Middle East and Africa. Of these regions, Europe is expected to dominate the global market for advanced tires and likely to remain dominant over the forecast period. This growth is attributable to the growing production of automotive and growth of the automotive industry globally. North America is expected to account for the second leading share in the globally advanced tires market owing to growing demand for self-inflating layered tires in the region. However, the market in Europe is expected to expand with faster CAGR over the forecast period owing to the growing production of automotive in the region.
Report : Advanced Tires Market - By Material Type (Natural Rubber, Synthetic Rubber, Steel and Others), By Type (Pneumatic Tires, Run Flat Tires and Others), By Technology (Chip Embedded Tires, Self-Inflating Tires, Multi Chamber Tires and Others), By Vehicle Type (Light Duty Vehicles, Heavy Duty Vehicle), and By Region (North America, Asia Pacific, Europe, Middle East & Africa and Latin America) - Industry Analysis, opportunity and Forecast 2020 To 2027