TBR Tire Market size was over USD 17.8 billion in 2023 and is predicted to cross USD 43.1 billion by the end of 2036, expanding around 7.6% CAGR during the forecast timeline, i.e., 2024-2036. In 2024, the industry size of TBR tires is evaluated at USD 19.1 billion.
Growing industrialization has led to an alarming increase in pollution, requiring the implementation of strict norms and regulations to control the rate of contaminants. According to the Natural Resources Defence Council (NRDC) in December 2023, tires contribute a significant share in releasing pollutants in ecosystems, making them the second largest oceanic microplastic source. Furthermore, to reduce the amount of carbon emissions from vehicles, the governments of several regions have imposed fuel efficiency standards. It was estimated by NRDC in 2023, that about 27% of non-exhaust emissions could be reduced by the implementation of zero-emission vehicles. This acts as a growth factor for the TBR tire market worldwide.
A recent report by the U.S. Department of Transportation’s National Highway Traffic Safety Administration in April 2022 announced New Vehicle Fuel Economy Standards for Model Year 2024-2026. These Corporate Average Fuel Economy (CAFÉ) standards require about an average of 49 mpg in industry-wide fleets from light trucks and passenger cars. This model is predicted to decrease fuel consumption by 200 billion gallons by 2050.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
7.6% |
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Base Year Market Size (2023) |
USD 17.8 billion |
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Forecast Year Market Size (2036) |
USD 43.1 billion |
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Regional Scope |
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Application (Trucking Industry, Public Transportation Services, Urban Use)
The trucking segment in the TBR tire market is poised to capture a share of 59.1% in the coming years. Significant growth in the revenue share is anticipated as a result of the growing usage of TBR tires in advanced and next-generation vehicles, especially trucks and other vehicles that are used for construction. Moreover, the primary reason for the segment's growth is the increased funding that is being allocated to the advancement of public transportation to meet the growing demand for cutting-edge transportation options. For instance, the Department of Transportation 2024, estimated an investment of USD 20.5 billion attributed to Biden-Harris Administration in the public transportation sector. Furthermore, a rise in construction activity worldwide and a surge in the need for specialized trucks and cargo vehicles are anticipated to boost the market share of this segment during the projected period.
Sales Channel (Aftermarket, OEMs)
The aftermarket segment in the TBR tire market is set to be a faster-growing segment with a lucrative size by the end of the forecast period. The presence of various tire brands in this sector such as Michelin Group, Bridgestone Corporation, and Continental AG is set to contribute to the growth of this sector. They provide TBR tires at an affordable price when compared with Original Equipment Manufacturers (OEMs). Due to features like increased tread depth that are appropriate for a range of loads and road conditions, customers prefer to replace their older tires through aftermarket channels. Moreover, there are several available options for various truck models.
This adaptability encourages both independent fitters and well-known retail chains to offer repeat business. Aftermarket retailers offer cost transparency, in contrast to OEMs who group tire prices with the vehicle. Based on distinct technical features and costs, customers can select particular tires. Commercial fleet owners are drawn to aftermarket players because they offer value-added services like wheel alignment, balancing, and fitting. Growth in this sector will boost the tire cord value in the near future.
Our in-depth analysis of the TBR tire market includes the following segments:
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Application |
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Sales Channel |
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Type |
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North America Market Statistics
The TBR tire market in North America is set to hold the largest share of 49.9% during the forecast period. The surge in commercial vehicles such as trucks drives the growth of TBR tires in this region. According to the National Automobile Dealers Association 2022, it was witnessed that the sales of commercial trucks gained 3.8% from 2021 to 2022. The gain in this sector will augment the tire material value in the near future.
In the U.S. there is an increase in the transportation sector along with rapid industrial development is acting as a growing factor for the TBR tires market revenue. The U.S. Energy Information Administration estimated that about 27% of U.S. energy consumption was used by transportation in 2022. While American Public Transportation Association in 2024 propelled that the public transport ridership surpassed 16% between 2022 and 2023.
The demand for battery and electric vehicles in Canada is projected to fuel the TBR tires in the near future. The transportation industry benefits from electric vehicles as they reduce vehicle emissions, which will encourage the use of these vehicles in the upcoming years. Régie de l'énergie du Canada in 2024, propelled the registration of 86,032 electric vehicles in Canada in 2021. This consists of about 5.3% of the whole registrations of vehicles in that year.
APAC Market Analysis
Asia Pacific will also encounter huge growth in the TBR tire market value during the forecast period with a notable size. This region will account for the second position in this landscape owing to the growth in sales of commercial vehicles. According to The Global Economy 2023, the sale of commercial vehicles was about 428,875 in 2023.
The prevalence of TBR tire manufacturers such as Zhongce Rubber Group Co., Ltd., Giti Tire, and Sailun Jinyu Group Co., Ltd. in China showed an increase in the production and exports of TBR tires for global usage. For instance, Qingdao Keter Tyre Co., Ltd. in September 2023 showcased their TBR, AGR, OTR, and PCR under the KETER, NEOTERRA, and GREENTRAC product line.
The growth in the purchase of connected & electric vehicles in Japan owing to their benefits is increasing the demand for more TBR tires in this country. International Energy Agency 2024, in Japan the sales of electric vehicles increased by 3.5 million in 2023 compared to 2022, a 35% annual increase. Such demand for EVs and radial tires in this country will fuel the revenue share.
TBR tire market expansion is estimated to witness a lucrative share during the forecast period. The competitive environment is attributed to the tremendous spike in investments in the automation sector globally. More companies are entering this sector owing to the potential growth opportunities. In the forecast period, the market will observe emerging competitors and a growing demand for TBR tires around the world.
Some of the key players include:
Author Credits: Saima Khursheed
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