Tire Cord Fabric Market Trends

Growth Drivers

• Surge in radial tire demand: The growth of radial tires is a huge driver of tire cord fabric consumption. The radialization rate exceeded 91% in both Europe and North America for passenger cars in 2023. It is reported that China's radial truck tire penetration reached 86%, per CRIA. Radial tires need better cord fabric to handle loads and give better tread stability. The move from bias-ply tires to radial tires, especially in heavy trucks and buses, is creating new market potential and demand for higher-grade polyester and steel cord-reinforced cord fabrics on an international basis.
• Growth in replacement tire market: The replacement tire market is growing as the vehicle parc ages. Smithers estimates global demand for replacement tires will grow at a compound annual growth rate (CAGR) of 3.5% from 2023-2028. Meanwhile, the average age of vehicles in the U.S. reached 12.6 years in 2023, creating additional tire replacement demand and fabric consumption. Also, strong aftermarket sales allow manufacturers to continually consume promising tire cord fabrics for their manufacturing of replacement radial and bias tires.
•  Advancement in fabric reinforcement technologies: Growing technologies in tire cord fabrics, including high-tenacity polyester, aramid, and hybrid cords, will only strengthen drivers for market growth. For example, Tejin launched new PEN-based tire cords having 11-16% higher modulus and thermal resistance, and will increase tire life in 2023. In addition, companies are applying research and development resources for the lightweight, low-rolling-resistance tire cord fabrics to achieve improved fuel performance and carbon emissions. This links to international sustainability objectives and requirements for EV tires.

1. Emerging Trade Dynamics & Future Market Prospects

Tire Cord Fabric Import-Export Data (2019-2024)

(Source: meti.go.jp)

Key Trade Routes Statistics

(Source: unctad.org)

2. Tire Cord Fabric Market Overview

Detailed Price History & Unit Sales Volumes (2019-2024)

(Source: USITC.gov)

Key Factors Impacting Price Fluctuations

(Source: Eurostat.eu)

Challenges

• Competition from low-cost producers: Fierce price competition from lower-cost Asian manufacturers inhibits pricing power. In 2023, China and India produced over 46% of global tire cord fabric production volumes (ITMF). This creates pricing pressures for North American and European producers, which suppress profitability and create hurdles to premium-grade tire cord fabric growth in export markets.
   
• Decline in tire replacement demand: During periods of economic slowdown, tire replacement demand declines, leading to a decline in tire cord fabric sales. The U.S. Tire Manufacturers Association recently reported a 7.6% decline in replacement tire shipments in 2023 compared to 2022. Overall weak aftermarket due to high inflation and lower vehicle usage in Europe and North America ultimately restricts market growth possibilities.