Automotive Tire OEM Market Trends

Growth Drivers

• Growing Capital Spending – For developing OEM tires that are specifically engineered to give the performance that the car manufacturer intends. The rising capital investment is expected to boost the automotive tire OEM market in the forecasted period. It was found that in 2019, the global tire industry’s capital spending was USD 15 billion.
• Increasing Demand for OEM Tires – for instance, in the year 2020, nearly 36 million units of OEM passenger car tires were shipped to the United States.
• Upsurge in the Global Tire Industry – With a rise in the number of vehicles on the road, more tires will be definitely needed to suit the needs. Tire production is estimated to reach 22 million tons of production by 2024.
• Rising Trend of Green Tires – which have low rolling resistance and are capable of increasing the fuel economy of the vehicle by a minimum of 2% in commercial vehicles.
• Growing Sales of Cars – The global automobile industry has been recovering ever since COVID–19 started to recede. Car worldwide sales grew to more than 65 million in 2021.

Challenges

• Requirement of Huge Capital Investment
• Shortage of Raw Material - Because of its ability to dissipate heat and provide UV protection, carbon black, which is used in sidewall and inner liners, helps produce long-lasting tires. For many years, Russian carbon black has been a mainstay of the tire industry. Data shows that in 2018, Russia was the second-largest exporter of carbon black, sending more than 1.7 billion pounds throughout the world. But owing to the ongoing war with Ukraine, carbon black’s supply has been affected.
• Concern about Replacement OEM Tires Quality