LONDON, March 27, 2017 /PRNewswire/ --
"Increasing demand for low rolling resistance tires driving
the tires OE (Original Equipment) market"
The tires OE
market is projected to grow at a CAGR of 5.48% from 2016 to 2021,
to reach a market size of USD 30.26
billion by 2021. Rolling resistance of tires affects the
fuel economy of a vehicle. According to Continental Corporation,
16% of the total fuel consumption of a vehicle is attributed to
rolling resistance.
Thus, decreasing the rolling resistance will lead to significant
amount of fuel saving. According to Exxon Mobil Chemical analysis,
a 10% decrease in the rolling resistance can lead to 1-2% increase
in the fuel economy of passenger cars and light trucks. This will
further lead to 2-4% increase in the miles per gallon (mpg) of a
vehicle. Thus, the demand for low rolling resistance tires is
increasing. However, the market growth is restrained by factors
such as fluctuating raw material prices of natural rubber and
synthetic rubber.
"Section width of >230 mm is the fastest growing segment
in the tires replacement market"
Demand for low-profile
tires is increasing, as they have wider section width than section
height. Wider section width gives increased vehicle stability,
lighter weight, ability to handle increased payload weight, and
improved fuel economy. In the passenger cars segment, premium cars
usually have section width >230 mm. For instance, in
North America, GM Group Cadillac,
FCA Dodge Challenger, Tata Range Rover
Sport, BMW 5 series, Audi Q5 and other models have >230
mm section width tires. Premium cars segment is estimated to have
the maximum tire replacement cycles. Around 85-90% of heavy
commercial vehicles have section width >230 mm around the globe.
For instance, in Germany,
Mercedes-Benz Actros 2542, MAN TGS 41.480, MAN TGX 18.480,
Mercedes-Benz Atego 1223 and others have section width more than
300 mm. The per unit cost of these tire sizes is also high as
compared to the tires with section width <200 and 200-230 mm,
hence the aftermarket value of >230 mm section width is
more.
"Construction equipment constitutes the largest off-highway
tires OE market globally"
The construction equipment
includes articulated dump truck, backhoe loaders, motor grader,
motor scraper and others. The construction industry has witnessed a
boom over the decades, and the global sales of construction
equipment, as per MarketsandMarkets analysis, is projected to grow
at a CAGR of 3.75% during the forecast period. This growth can be
majorly attributed to housing, and a substantial shift of rural
population to urban areas. The 2008 recession in the construction
industry had a serious impact on the design and construction
workforce. Post-recession, there has been significant improvement
in the construction sector. With growing population and standard of
living, people are migrating towards urban areas, leading to a rise
in the expenditure on housing.
According to the McGraw Hill Construction-Dodge report, the
residential housing has increased by 20% in 2015 as compared to
2014. Commercial building construction, which includes factories,
manufacturing facilities, hospitals, schools, colleges and others,
has also witnessed a growth of 10-12% in 2015 compared to 2014.
Hence, the increasing demand for construction equipment such as
dump truck, loaders, scraper and others is driving the off-highway
tires market.
"Asia-Oceania: Largest tires market in Original Equipment
(OE)"
The Asia-Oceania region leads the tires market, owing
to increasing vehicle production in countries such as China and India. The vehicle production in these
countries is projected to grow at > 6.0% CAGR over the period of
next five years. This has led to the increased demand for tires in
this region. To meet this demand, many tire manufacturers such as
Bridgestone Corporation (Japan),
Kumho Tire Co. (South Korea), Toyo
Tire & Rubber Co., Ltd. (Japan), The Yokohama Rubber Co., Ltd.
(Japan), Sumitomo Rubber
Industries Ltd. (Japan), and
Hankook Tires (South Korea) have
set up their manufacturing plants in the region. Thus, owing to the
presence of leading Tier-1 manufacturers and OEMs, the Asia-Oceania
region is the largest tires market, globally.
BREAKDOWN OF PRIMARIES
The study contains insights provided by various industry
experts, ranging from tire raw material suppliers to tire
manufacturers. The break-up of the primaries is as follows:
- By Company Type – Tier-1 - 67%, Tier-2 - 17%, and others
(include associations) - 16%
- By Designation - D level - 33%, C level – 67%
- By Region - North America - 17%,
Asia-Pacific - 50%, RoW - 33%
The report provides detailed profiles of the following
companies:
- Bridgestone Corporation
- Continental AG
- The Goodyear Tire & Rubber Company
- Michelin
- Pirelli & C. S.p.A
- Sumitomo Rubber Industries, Ltd.
- Hankook Tire
- Yokohama Rubber Co. Ltd.
- Cooper Tire & Rubber Company
- Toyo Tire & Rubber Co. Ltd.
Research Coverage:
The report provides a picture of
the tires market across different verticals and regions. It aims at
estimating the market size and future growth potential of the tires
OE by rim size, off-highway tires OE market by region, and
aftermarket by rim size, aspect ratio, section width, tire
retreading and region. Furthermore, the report also includes an
in-depth competitive analysis of the key players in the market
along with their company profiles, SWOT analysis, recent
developments, and key market strategies.
Reasons to Buy the Report:
The report will help the
market leaders/new entrants in this market by providing them the
closest approximations of the revenue numbers for the overall tires
market and the subsegments. This report will help stakeholders to
better understand the competitor landscape and gain more insights
to better position their businesses and make suitable go-to-market
strategies. The report also helps the stakeholders to understand
the pulse of the market and provides them information on key market
drivers, restraints, challenges, and opportunities.
Download the full report:
https://www.reportbuyer.com/product/4794250/
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