Friday, 5 February 2016

Rising Demand for Automobiles to Propel Global Automotive Tire Market to US$298.1 bn by 2021

Transparency Market Research (TMR) has recently published a research study on the Global Automotive Tire Market, estimating the market to expand at a CAGR of 6.80% during the period from 2015 to 2021 and reach a market value of 298.1 bn by the end of the forecast period.The research report, titled “Automotive Tire Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2021’, states that worldwide automotive tire market stood at US$188.3 bn in 2014.

The rise of the global automotive tire market is directly proportional to the development of the automotive sector in the global arena. The increase in disposable income of the average consumer in many countries is augmenting the purchasing capacity of consumers across the world, driving their interest towards luxury items such as automobiles. With the rising demand for automobiles, the demand for auto parts is witnessing a high rate of growth at present.

According to the market report, the global automotive tire market has been classified on the basis of the type of tire and their application. Based on type, bias tires and radial tires are the two main segments of the worldwide market for automotive tires. The radial tire segment is reporting robust growth at present owing to ongoing technical development.The report identifies heavy commercial vehicles, light commercial vehicles, passenger cars, and two wheelers as the major application areas for automotive tires. Passenger vehicles emerged as the biggest consumers of automotive tires in 2014. Analysts expect this hierarchy to continue throughout the forecast period. The soaring demand for passenger vehicles from Asia Pacific and Europe is the main reason for the extensive growth of this market segment.

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As per the report, Asia Pacific, Europe, North America, and Rest of the World are the key regional markets for automotive tires across the world. Asia Pacific, among these, led the global market for automotive tires in 2014 with an overall value of US$81.4 bn. The regional market is likely to maintain its dominance as well as register the fastest growth over the forecast period. The rising demand for luxury vehicles, triggered by the increase in disposable incomes, has stimulated the growth of this market extensively in recent times.

Analysts at TMR expect the rise in the investment in the Asia Pacific automotive tire market for high-end research and development to be a major catalyst for exceptional growth during the forecast period.The Europe and North America markets for automotive tires are also expected to post high growth rates, on account of the high demand for luxury vehicles from the U.S., Germany, and France. The economic prosperity of consumers in these regions is adding significantly to the market’s growth in these regions.The global automotive tire market is highly concentrated and is led by a few established players including Goodyear, Bridgestone, MRF Tyre, Yokohama, Pirelli, Michelin, and Continental, states the research report.

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