Trends and Opportunities in the Automotive Tire Market: Driving Innovation and Growth
The increasing lifespan of automobiles is pushing up the demand for automotive tires across the world. During the last few years, due to several technological advancements, the average lifespan of automobiles has increased from 10.5 years to 12 years from 2010 to 2018. The increasing implementation of various government regulations and the rising competition among the automobile manufacturing companies have resulted in significant improvements in the reliability and durability of vehicles over the last few years.
The tire manufacturing companies are increasingly adopting the policy of private labeling for meeting the soaring requirements for their products and for optimizing their bottom-line profits. Some original equipment manufacturers (OEMs) are adopting this policy for maximizing their manufacturing capacities, on account of the fact that private labeling allows them to focus solely on brand management without worrying about various manufacturing operations-related problems. Due to these reasons, the demand for automotive tires is climbing across the globe.
This is propelling the growth of the global automotive tire market. As a result, the value of the market is predicted to increase from $155.3 billion in 2018 to $237.2 billion by 2024. The market is also predicted to exhibit a CAGR of 7.7% between 2019 and 2024. Moreover, the capacity of the market is predicted to grow from 1,866.7 million units in 2018 to 2,894.4 million units by 2024.
Globally, the automotive tire market will demonstrate the largest growth in the Asia-Pacific (APAC) region in the upcoming years, as per the forecast of P&S Intelligence, a market research company based in India. The market advancement in this region will be driven by the soaring automobile manufacturing, the increasing gross domestic product (GDP), and the surging disposable income of the people residing in the developing countries of APAC such as India and China.
Hence, it can be safely said that the demand for automotive tires will shoot-up all over the world in the upcoming years, primarily because of the increasing average lifespan of automobiles and the ballooning sales of vehicles around the world.