Passenger Cars & Light Trucks Segment Contributed for Nearly 60% of the Tire Market Value in 2012, Reports Tech Archival16 May 2013 • by Natalie Aster
A tire can be defined as a spherical covering on a wheel's rim that enables a vehicle’s movement. Automobiles and bicycles use different types of tires that provide traction between the vehicle and the road and also serve as a flexible cushion that absorbs shock. Tires are made from a mix of raw materials that include different types of rubber along with special ingredients such as oils, carbon black, pigments, antioxidants, silica, and other additives. The global tire market comprises of the manufacturer’s revenues generated through the sales of both replacement and original equipment tires for cars, trucks, motorcycles, scooters, bicycles, aircrafts and other vehicles. Passenger cars and light trucks are the largest segment driving the demand, contributing for nearly 60% of the market's value in 2012.
Traditionally, North America and Europe have been the largest markets for tires in both replacement and original equipment segments. In-demand study “Global Tire Market Assessment & Future Opportunities 2008-2018” by Tech Archival explores that weak global economy, troubled financial markets and fluctuating exchange rates have squashed the tire sales volumes especially in advanced western economies in North America and Western Europe. This outlook has also impacted the revenues of leading global players including big names such as Bridgestone, Michelin, Goodyear, Continental etc. Yet, some of them have been able to recover losses by increasing sales in the emerging markets and expanding production capacities in developing countries where manufacturing costs are lower.
Global Tire Market Assessment & Future Opportunities 2008-2018
Published: May, 2013
Price: US$ 2,000.00
Tech Archival analysts have explored that countries in Asia Pacific region especially China, India, Thailand are continuing driving demand for tires globally. Although demand in mature economies is likely to keep up, the immense growth opportunities are available in emerging markets which have offered tire companies to expand capacities and seek green field investments. It is also important to notice that tire manufacturer’s profitability depends on raw material prices which are expected to remain highly volatile over the next few years. It will certainly put more pressure on company operations and profitability.
Since the market is promising good growth in the years to come, a number of small scale manufacturers have emerged in developing economies which are giving active competition to large scale global corporations such as Bridgestone, Michelin and Goodyear. Although these global players enjoy the greater proportion of overall industry scales, their market share is little by little decreasing as manufacturers from emerging countries particularly in China are expanding capacities and sales volumes.
Tech Archival projects that demand for tires is likely to grow steadily over the next five year period between 2013 and 2018 and annualized sales volumes are anticipated to reach close to 3.6 billion units by 2018.
More information can be found in the report “Global Tire Market Assessment & Future Opportunities 2008-2018” by Tech Archival.
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