Tire Cord Market Trends

Growth Drivers

• Expansion of the Automotive Industry: The automotive industry is a major driver of demand for tire cords market , as they are essential components of tires. Tesla is currently the world's leading manufacturer of electric vehicles, with a market share of around 15% in 2020, according to a report. China is the world's largest market for electric vehicles, accounting for more than 40% of global sales in 2020, according to the IEA.
• Increasing Demand for High-Performance Tires: There is a growing demand for high-performance tires, which require specialized tire cords made from materials such as aramid, nylon, and polyester. This demand is driven by factors such as increasing safety standards, rising disposable incomes, and a growing preference for sporty and high-performance vehicles. In a survey conducted, 52% of new vehicle owners reported that they were willing to pay extra for high-performance tires.
• Growth of the Construction Industry: Tire cords are also used in the manufacturing of construction materials such as conveyor belts, hoses, and industrial fabrics. The growth of the construction industry is expected to drive demand for tire cords, particularly in emerging markets such as China and India. The global construction industry is expected to reach a value of nearly USD 15 trillion by the year 2025.
• Surge in Urbanization- Urbanization, which usually results in an increase in the population of cities and the size of urban regions, is mostly attributed to people migrating from rural to urban areas. According to the statistics provided by the Department of Economic and Social Affairs of the United Nations, in 2018, 55% of the total population of the world was living in urban areas and the same is anticipated to grow to 68% by 2050.
• Rise in Research Spending – Growth in the global market during the forecast period can be further attributed to increased investment in research and development activities to continuously find more viable solutions for tire cords. Research reports show that global R&D spending has more than tripled in real terms since 2000, rising from about USD 680 billion to more than USD 2.5 trillion in the year 2019.

Challenges

• Fluctuating raw material prices: The price of raw materials such as nylon, polyester, and steel can be volatile due to factors such as supply chain disruptions, geopolitical tensions, and changing market demand. This can affect the production costs and profitability of tire cord market manufacturers.
• Increasing competition
• Environmental concerns