Tire Material Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for tire material is expected to grow at a CAGR of approximately 5% globally during the forecast period. Tire materials include elastomers, plasticizers, chemicals, reinforcing fillers, metal, and other materials for manufacturing the tire for various vehicles. These materials are assembled with rims to manufacture tires. Various rubber compounds are used in different parts of the tire. The growing demand from the manufacturing of electric and hybrid vehicles has been driving the market growth.

On the flip side, the slowdown in automotive manufacturing across the globe is expected to hinder the market growth. Moreover, the outbreak of coronavirus across the globe is also likely to hinder the growth of the studied market.

The research and development in eco-friendly tire material are likely to provide opportunities for the tire material market over the next five years.

Asia Pacific region dominated across the world with increasing consumption from countries like China and India.

Key Market Trends

Elastomer Segment to Dominate the Market

• The elastomer segment stands to be the dominating segment owing to continuously increasing demand from the automotive industry.
• Elastomers are natural rubber and synthetic rubber which are used in tire production. Butadiene is used for producing rubber, as it has low rolling resistance and high resistance to wear. This provides improves the life span of tires, while reducing the consumption rate of fuel.
• Since 2018, the automotive industry has been experiencing a decline in production in countries, like the United States, China, and Germany, due to which the consumption of tire material is expected to drop. However, from 2021, the automotive industry is expected to witness a recovery in production.
• All the aforementioned factors are expected to drive the tire material market during the forecast period.

Asia-Pacific Region to Dominate the Market

• The Asia-Pacific market is expected to be the largest and fastest-growing market over the forecast period owing to robust demand from the automotive industry, particularly in emerging countries such as India and China.
• China is the largest producer of tires across the globe with approximately 1/3rd of the global production.
• Moreover, India is also one of the major producers oof tires in the region with numerous local and international players such as MRF, JK Tyres, CEAT, Michelin, Pirelli, Apollo Tyre, etc.
• Automotive manufacturing in the region is facing a slowdown due to the lack of demand and an increase in cost of labor. However, the Increasing consumer preference for electric vehicles and initiatives under Clean Energy Ministerial (CEM), like electric vehicle initiative and growing popularity for electric vehicles, are likely to drive the consumption of tire material in the near future.
• Hence, all such market trends are expected to drive the demand for tire material market in the region during the forecast period.

Competitive Landscape

The global tire material market is partially fragmented in nature with a few major players dominating a significant portion of the market. Some of the major companies are Kuraray Co., Ltd., PetroChina Company Limited, Exxon Mobil Corporation., JSR Corporation, and Umicore amongst others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support