Tire Material Market Trends
Growth Drivers
- Growing Demand for Fuel-Efficient Tires - As concerns about environmental sustainability grow, so does the demand for fuel-efficient tires that reduce CO2 emissions. Fuel-efficient tires also have environmental benefits such as reducing CO2 emissions and air pollution. Fuel-efficient tires can reduce CO2 emissions by up to 4% compared to standard tires, according to the US Environmental Protection Agency.
- Increasing Improvements in Rubber Chemistry and Tire Design - Rubber chemistry has improved significantly in recent years with the development of new compounds and additives that improve tire performance. There have been major advances in tire design, including the use of new materials such as high-performance polymers, and the introduction of new manufacturing processes such as 3D printing. These innovations have made the tire more durable, with lower rolling resistance, and better performing in both wet and dry conditions.
- Investment by Government in Technological Advancement – Government authorities from all across the world are offering investment for enhanced and better technological advancement in tire manufacturing with automotive engineering.
Challenges
- Tires Effects on Environment - The large amount of solid waste generated from tires is a major concern. Old tires contain heavy metals and chemicals that leach out when these tires break down into the atmosphere. The mutagenic and carcinogenic properties of some of these chemicals have been recognized. Another risk of leaching is soil contamination. As the ground around these old tires can quickly become contaminated with the polluting chemicals they release. These environmental issues are expected to hamper the tire material market expansion in the upcoming times.
- Changing Consumer Preferences
- Scaling of Production Costs by Automobile Manufacturers
Tire Material Market: Key Insights
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
5.1% |
|
Base Year Market Size (2024) |
USD 100.1 billion |
|
Forecast Year Market Size (2037) |
USD 191.1 billion |
|
Regional Scope |
|
