Rising population levels, rapid urbanization, and increasing personal disposable income have fuelled demand for cars, which in turn, has driven steady growth in the global tire market. By 2025, the sales of automobile tires are expected to reach 2,732 million units, owing to global economic growth, supporting vehicle production, and incremental expansion of the number of vehicles in use. As automobiles are becoming more automated and advanced, OEMs are working towards changing their strategies and investing in R&D to develop tires suitable for the various end-user markets.
Here are the top trends expected to dominate the global tire market in 2022.
Growing Demand for Advanced Tires | TechSci Research
As vehicle technology is changing rapidly, tire manufacturers must constantly evolve their tire designs and functionality. Advanced tires comprise technologies that increase the in-vehicle convenience, enhance the durability of tires with real-time monitoring of tire pressure, and improve vehicle fuel efficiency. Tire manufacturers use upgraded raw materials and chemical compounds to produce high-quality, smooth-performing tires for advanced vehicles. Intelligent tires will make mobility more efficient, affordable, and accessible. Hence tire manufacturers are increasingly focusing on building connected tires. In 2021, Goodyear introduced the first tire intelligence solution that works by using sensors and a cloud-based algorithm to provide fleet operators with real-time data. The growing need for automation and connectivity would further contribute to the rising adoption of advanced tires in the coming years.
Enhanced Focus on Sustainability
Consumer demands for low carbon emission levels due to environmental concerns are leading automotive OEMs to put pressure on tire manufacturers to build sustainable products. Hence, developers are introducing tires with minimal friction and higher fuel efficiency to reduce carbon footprint, eliminate scrap tire stockpiles, and enhance sustainability. Some leading tire manufacturing companies have started replacing rubber with a synthetic blend, often incorporating silica to reduce road friction. In 2021, Michelin announced its ambition to make all tires from renewable, recycled, and bio-sourced materials by 2050. The company also plans to make high investments in research, development, and collaborations with other firms and innovators to find greener tire technologies. The rival tire manufacturer, Bridgestone, announced to launch of a new tire technology developed in alliance with Techsyn technology to make tires 30% better in wear efficiency and improve road resistance.
Automation and Efficiency in Tire Production
Automation is being applied to almost every stage of the tire manufacturing process with the help of advanced digital tools like 3D printing and robotic technologies. The lack of skilled labor in the industry and the increased need for quality inspections and process improvements are creating more demand for automation in tire production. Besides, manufacturing plants require more technology that supports preventive and predictive failure solutions to enhance the efficiency of operations and improve workers’ safety. Real-time data for inventory management ensure 100% availability of raw materials and other components required for tire manufacturing in each process. Streamlined material flow allows facility managers to reduce buffering, water and scrap and enable better ergonomics and allocation of human resources.
According to TechSci Research report on “Global Tire Market by Vehicle Type (Passenger Car, Light Commercial Vehicle, Medium & Heavy Commercial Vehicle, Two-Wheeler, Three Wheeler and OTR), By Demand Category (OEM vs. Replacement), By Radial Vs Bias, By Region, Competition Forecast & Opportunities, 2017-2027”, the global tire market is expected to grow at a significant CAGR during the forecast period. The market growth can be attributed to the shifting demand towards better lifespan, environmental-friendly tires, and growing tire sales in the replacement segment.