Tire Aftermarket, Tire Replacement Market: Latest Developments

All tires eventually begin to experience wear. Tire wear can indicate an issue with tire pressure or vehicle alignment. According to the Survey on Motor Vehicle Tyres & Related Aspects conducted by the European Commission Enterprise Directorate General Unit, every year, 20% of tires are trashed owing to puncture or uneven wear caused by improper tire pressure. Therefore appropriate tire aftercare is presenting high demand. Inkwood Research anticipates that the global tire aftermarket, tire replacement market will accelerate with a 4.53% CAGR during the forecast period from 2022 to 2030.

Market players like Michelin, Bridgestone Corporation, Yokohama Rubber Co Ltd, etc., are switching towards automation for automotive tire manufacturing to boost efficiency and increase production to cater to the rising demand. In the forecast period, advances in composite material and incorporating alloys and carbon fibers in tire production are estimated to stimulate growth in the automotive tire market.

Furthermore, some market players partner with online retail services to increase revenue, broaden reach, and provide a better customer experience. For instance, in July 2021, CEAT Tyres entered into a partnership with TyresnMore for at-home tire fitment, online sales, and servicing. The products are not only home delivered but also fitted by its service team to provide a hassle-free customer experience.

Here are a few latest developments in the global tire aftermarket, tire replacement market:

• Market Players Investing Heavily in Manufacturing Facilities

The global tire industry has evolved from the more developed manufacturing regions, from where the leading manufacturers spread a global footprint, to low-cost tire manufacturers in China, assuming huge scale and dominating global exports. Additionally, the imposition of tire labeling emphasizes the performance standards of the generally higher quality tires produced in developed regions. Moreover, western global tire manufacturers such as Continental and Michelin have research and development budgets to sustain their technology and performance leadership, while most Asian suppliers spend less than 10% of the amount.

Tire manufacturing is an extremely complex process. Therefore, manufacturing plants require a large workforce and are large and capital-intensive, even in highly automated and modern facilities. Aside from the tire curing and assembly, other divisions include weaving & compounding plants and fiber layup sections. The compounding section prepares several different rubber compounds for each plant’s tire model, ranging from the sidewall and tread to inner layers, for which several additives and elastomers are required. Another key function is assembling the tires’ steel and synthetic fiber elements, which are then built into the tire structure along with the elastomers.

Furthermore, rising demand for high-performance vehicles, surging automobile ownership, and increased automotive production are anticipated to expand the automotive high-performance tires market. Leading companies are heavily investing in research and development to improve efficiency and produce premium quality tires. The soaring popularity of electric vehicles encourages them to create modified and lightweight tires specially designed for electric and hybrid vehicles, boosting the demand for electric vehicle plastic.

• Developments in Green Tire Technology

Green tires are particularly popular among younger customers as they improve mileage and are eco-friendly, predominantly in heavy motor vehicles or HMVs. Green tires have a comparatively high fuel economy of over 2% in commercial vehicles and a significantly low rolling resistance. Moreover, adopting rimless, bias, and radial tires and developing sustainable, cheaper, and greener tires help reduce carbon emissions. These product adoptions are predicted to boost the growth of the global tire aftermarket, tire replacement market during the forecast period.

According to research conducted on opportunities to improve tire energy efficiency by the International Council on Clean Transportation, improvements in tire energy efficiency can reduce global fuel consumption by almost 5% in passenger vehicles. As a result, a reduction in greenhouse gas emissions of over 100 million metric tons can be anticipated annually. Moreover, annual fuel savings can be expected to be worth $30 billion, thereby providing oil-importing countries with substantial energy security benefits.

Tire Aftermarket, Tire Replacement Market: Outcomes of Developments

A tire purchase decision is a multi-dimensional scenario that involves a diverse set of stakeholders and attributes. Missing out on any attribute or stakeholder can lead to a brand missing out in the highly competitive and perception-driven market. Adapting and evolving tires and related services to meet end-use requirements such as fuel efficiency, performance, reliability, and durability, as well as intelligence, data, and predictive analytics, are expected to accelerate the global automotive tire industry.

Further, the evolution of ownership is projected as vehicle sharing and fleets become more common and sophisticated in more applications. In addition, the expansion of e-commerce, including retail and wholesale rationalization, drawing interest from the private equity sector, is shifting the distribution scenario in the global tire aftermarket, tire replacement market.

By Sukanya Mukherjee