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Market Research Report

Asia Pacific Tire Replacement Market Report | APAC | 2021 Edition | 2019-2035 | Industry Analysis

Published Date :

2021-01-29

Report Pages :

410

Format :

PDF

Region Covered :

Asia Pacific

Market Overview

The proportion of tire production in the rubber product industry increased by 0.1 points from the previous year to 80.00% in raw material consumption. The production volume of automobile tires increased by 1.30% to 146.70 million tires in 2018 increased from the previous year for the first time in four years. Due to increase in export, passenger cars tires increased by 1.50% from the last year and light truck increased by 1.90% from the last year due to increase in domestic. Asia-Pacific is forecasted to have the fastest-growing demand for tires in the world, whereas China remains the dominant market, accounting for one-fourth of the global tire demand in 2014. Several other countries are also expected to gain ground for tire demand especially like India, Indonesia, and Thailand. In Japan industry represents 13% of its total manufacturing output and 10% of employment. South Korea is exporting41 % of the total motor vehicle production with roughly 35% of its exports going to the US. Japan hold the world’s fourth largest position experiencing a contraction in demand for the forecasted period. Demand will be driven by the growth in the number of vehicles in the developing countries which is fueling demand for tires thereby increasing vehicle mileage worldwide, boosting tire replacement rates. East Asian market is mainly driven by Japanese FDI. Apart from this there are state sponsored ownership initiatives. These countries are trying to make an auto industry base driven by MNC’s. Asia-Pacific is the fastest growing sector generating USD8.60 billion or 30.90 percent of the overall market value. The Chinese market is forecasted to grow strong as income levels rise and become more accessible to consumers. The market consists of 76.00 percent replacement tires and 24.00 percent original equipment. Passenger cars and light trucks account for 64.00 percent of the total market segment and trucks account for 26.00 percent for the replacement tires.

Asia Pacific Tire Replacement Market Segmentation

By Rubber Type

  • Natural Rubber
  • Ethylene –Propylenediene Monomer Rubber
  • Styrene-Butadiene Rubber
  • Polychloroprene
  • Others

By End-User

  • Automotive Sector
  • Aviation Sector
  • Construction Sector

By Distribution Channel

  • Online Distribution Channel
  • Offline Distribution Channel

By Region

  • Japan (U.S. & Canada) Tire Replacement {Market Share (%), Market Size(USD Billion)}
  • China Tire Replacement {Market Share (%), Market Size(USD Billion)}
  • India Tire Replacement {Market Share (%), Market Size(USD Billion)}
  • Singapore Tire Replacement {Market Share (%), Market Size(USD Billion)}
  • South Korea Tire Replacement {Market Share (%), Market Size(USD Billion)}
  • Australia Tire Replacement {Market Share (%), Market Size(USD Billion)}
  • New Zealand Tire Replacement {Market Share (%), Market Size(USD Billion)}
  • Rest of Asia Tire Replacement {Market Share (%), Market Size(USD Billion)}

We conducted interviews with the Asia Pacific Tire Replacement Market Manufacturers, OEMs, Aftermarket Players, Brands, Component Manufacturers, End User Industries, Distributors, Traders, Suppliers, Product Managers, Consultants, Decision Makers, VPs, Executives, Sales Managers, Regional Sales Head, C-level Executives, etc.

Key Highlights: Asia Pacific Tire Replacement Outlook, 2019-2035 (2021 Edition)

The report includes  APAC Tire Replacement Manufacturers, Aftermarket Players & Distributors Outlook (Market Competition & Global Presence), Business Strategy & Financial Analysis of Major Players. Further, the study also covers the Industry Insights (Future Trends & Forecast Data), Trade Data (Exports and Imports) and Distribution Model Analysis, Competitive Analysis, Opportunity Analysis.

  • Market Data Outlook: Market Size (USD Billion), Market Share (%), CAGR (%), Y-O-Y Growth Rate (%) of Asia Pacific Tire Replacement Industry and further it bifurcated into Countries, 2019-2035
  • Sales Outlook: By Rubber Type, By Distribution Channel, By End User Industry Type, By Countries (Value & Volume), 2019-2035
  • Data of Manufactured & Registered Tire: By Rubber Type, By Distribution Channel, By End User Industry Type, By Countries (Value & Volume), 2019-2035
  • Manufacturing/Production of Tire: By Rubber Type (OEMs & Contract Manufacturers), Production Data (By Rubber Type, By Countries), Manufacturing Capacity, Operational Margins, Profit Margin, Distribution Analysis, etc., 2019-2035
  • Asia Pacific Tire Replacement Industry Outlook: Tire Expenditure, Transportation & Manufacturing Reforms, Manufacturing Facilities, Govt. & Private Investments, R&D, (Current & Future Outlook), 2019-2035
  • Regulatory Framework & Approvals Outlook: Regulatory Framework for Tire Replacement, Govt. Initiatives & Programs, Manufacturing Framework & Regulations, Import Framework, Regulations & Policies, etc.
  • Competitive Outlook: Players Financial Analysis, Marketing Strategies, Ranking Index, Product Portfolio, Pricing Analysis, List of Customers, Competitive Advantage, etc. Company Profiles, SWOT Analysis of Each Player, Recent News & Developments of Each Player, Merger & Acquisitions, etc.  
  • Tire Replacement Aftermarket & Components Outlook: Aftermarket Analysis, Components Sales Outlook, Aftermarket Sales Outlook, Engine and Parts Manufacturers, etc, 2019-2035
  • Market Dynamics: Growth Drivers, Challenges, Opportunities, Trends, SWOT Analysis, PESTLE Analysis, Pricing Patterns, Regulations, Investments, Research & Development, 2019-2035
  • Trade Data of Tire Replacement (Export & Import): By Each Segment, By Countries, (By Value & Volume), 2019-2035
  • Target Analysis: Target & Potential Markets, By Major Countries
  • Risk Analysis: Supply & Demand Analysis, 2019-2035

The study provides an in-depth analysis of current and future trends to elucidate the imminent investment pockets in the market.

  • Current and future trends are outlined to determine the overall attractiveness of the market and single out profitable trends to gain a stronger foothold in the market.
  • Quantitative analysis of the current market and forecast from 2019-2035 is provided to showcase the financial competency of the market.
  • Drivers and opportunities are evaluated to highlight the top factors responsible for market growth. Various segments are carefully evaluated to gauge the potential of the market.
  • Porter’s Five Forces Model and SWOT analysis of the industry illustrate the potency of the buyers & suppliers participating in the market.
  • Competitive Outlook of major players of the market to understand the current business scenario and to understand the complexity and investment-related factors.

Trends, Drivers & Challenges to Market Growth

Growth Drivers

Asia’s Air Industry is expected to expand - Asia’s air travel market is expected to expand in the near future. The region carries a post of increase of 10.30% in 2020 compared to 2019. Japan aviation sector is a strong contender especially when it comes to domestic travel alone. The country’s domestic travel accounts for 1.20% of the global domestic travel -showing an increase of 6.80% of domestic air travel. Japan is a lucrative market for imported aircraft, parts and engines. The country is the top choice for world’s top tire markets.

Growth Opportunities

  • Booming car tire sales in emerging markets - Passenger car sales in emerging markets are forecasted to grow rapidly in the next four year time span. Passenger tires are expected to show an average annual volume growth of 7% in the emerging markets like China etc. during the period. Michelin with a strong market position is likely to benefit from the demand for passenger cars tires in growing economies.
  • Growing truck tire demand in Asia - Demand for a truck tire is likely to increase due shift in radial technology and strong economic growth in countries like India and China. Asia has now become the world’s largest tire market in terms of volumes. The annual average growth rate in the Asian truck tire market is expected to grow from 33 percent to 34 percent in 2008. Michelin has a strong brand image in many Asian countries. It provides Michelin the opportunity to boost revenue.

Mergers & Acquisitions

International and Domestic Players Dominance in the APAC Tire Replacement Market

While the APAC tire replacement market is extremely consolidated and has stiff competition the leading companies strategically integrate their business vertically from logistics to distribution. With economies of scale in distribution, research and development into consideration the leading companies are able to generate cash flows. The establishment of a strong brand image for quality and safety purposes has aided their ability to implement price increases over the last few years. The top players in the replacement tire market are Michelin Group, Bridgestone Corporation, Good Year Tire and Rubber Company and Continental AG. Bridgestone is the leading brand with a 21.00 percent market share while Michelin follows it next with 20.00 percent. One reason for this level of consolidation is that the market has fairly low profit margins. The original equipment manufacturers markets is dominated by a few large buyers (automobiles manufacturers) who place pressure on tire manufactures to innovate and keep prices down.

Main Players Market Share (%)
Bridgestone 15
Michelin 15
Goodyear 9
Continental 7
Chem China-Pirelli 4
Sumitomo  Rubber 4
Han kook 3
Other Players 44

 

Replacement Tires Market Share (%)
LCV 64
Trucks 2
RT Trucks 9
OE PC + LCV 25

 

The traditional tire makers, Bridgestone, Michelin and Continental were the dominant players with over 55% market share in 2004. With the arrival of Asian and Indian players, the companies had to restructure and put a cut on the production costs in order to protect their profit margins. The three groups now have 38% of the market share. The replacement tires accounts for over 71% of the annual sales, growth should be driven by strong demand for PC and LCV tires in 2017-2020, thanks to the catching up in the OEM since 2012 post the slump in China. Although there is rise in prices of rubber puts pressure on the Chinese brands who have invaded the western markets in the yester years. The three companies are expected to dominant the Asian market for the coming years as well. The tire sector is a growing market and replacement is compulsory and necessary for mid-range tires after 30-40,000 kilometers. With over 70% annual sales for private cars and vans the growth of replacement tires market for the forecasted period should be driven by the western countries due to the OEM’s catching up with the pace. China has a strong demand for large tires. Overall the tire market should grow at 4% in value terms in 2017 and 2019. Han kook is another example who entered the tire market, due to the tough competition the traditional players have to continuously make do changes and innovations in order to offer better quality products to sustain themselves in the market. The French tire manufacturers have entered the Chinese market with the aim to expand and double their profits.

Replacement tires are 70% and Asia represents >30%

Country % share
South America 6
Africa 10
Asia 32
Europe 29
North America 23

 

Asia Pacific Tire Replacement Market: Sales Distribution Data

The major segment in the region of B2C replacement tires purchased online is an estimated at 110 million units in 2018 or about 6.60% of the global market. This is expected to rise by an average of almost 20% per year to over 237.00 million in 2025 when the share will nearly become 14%.

E-Commerce replacement tire sales Channel 2019-2025
Year 2019-2025 Amount in mn units
2019 75
2020 80
2021 100
2022 120
2023 150
2024 130
2025 200

 

Value growth will be somewhere higher at 20.00% per year CAGR from USD 8.00 billion in 2018 to USD 18.00 billion in 2025 faster than unit growth and reflecting decent prices. With the continuous competition within the online and offline channel, the convergence of online and offline channels and increasing importance of user experience relative to price will support higher prices in the channel over time. Reflecting the number of vehicles in use, rates of tire replacement and rates of e-commerce penetration, the light vehicles segment has the largest share followed at 82% of volume in 2019 followed by motorcycles (13%)and then the trucks (8%). Light vehicles remain dominant in both volume and value terms. Motorcycles are the beating a second record in value terms and buses records the thirds which accounts to be the smaller segment.

 

Sales of Original Equipment tires in 2020
Category Sales in Units 2020/2019 (%)
Passenger Car tires 37,661 99.40
Light Truck Tires 5340 101.00
Truck and Bus Tires 1334 95.8
Special Vehicle Tires 821 101.90
Motorcycles tires 1072 96.80
Total 46,228 99.40

 

The export volume of automobiles tires in 2018 decreased by 0.20% to 44.89 million tires in terms of volume from the last year, increased by 3.90% to 547.30 billion yen amount from of money from the previous year and increased by 2.90% to 1.11 million tons in the last year. By region, North America exports increased but other region exports decreased from the last year. Yokohama has 825 points of sales in the lieu of expansion of distribution network which includes 44 Yokohama Club Network. The company has presence in the country for almost about a decade and is selling tires in the replacement market. The company is looking forward to expand its replacement segment and will continue it in the future, but will focus on the OEM’s. The company has about 2 to 3 per cent market share in the replacement market and is yet to occupy more space. In order to expand its business the company is talking to Japanese car makers for its future development. The company is following the 3R(Reuse, Recycle, Reduce), company is setting up a manufacturing plant to make its services more efficient. Many companies such as Volkswagen, Renault feel that a mono –supplier strategy is not good but having large number of suppliers is good.

 

Export by Region of Destinations in 2020
Category Sales in Units 2020/2019 (%)
North America 13,232 105.00
South and Central America 2,833 105.10
Europe 13,073 114.70
Middle East 6,420 84.50
Africa 1,966 99.80
Asia 5,513 105.80
Oceania 1850 102.60
Total 44,887 103.90

 

The import volume of automobiles tires in 2018 increased by 2.30% to 29.97 million tires in quantity from the last year, increased by 6.10% to 129.40 billion amount of money from the last year and increased by 4.10% to 0.27 million tons. By region, imports from Asia which account 90% of the total increased amount from the last year.

Import by Region of Destinations in 2020
Category Sales in Units 2020/2019 (%)
North America 843 137.40
South and Central America 71 116.40
Europe 2671 99.60
Middle East 42 270.50
Africa 11 222.60
Asia 0 -
Oceania 26,331 105.10
Total 29,969 106.10

 

The sum of used tires generated at the time of tire replacement and vehicle scrapping in 2018 was 96.00 million tires in quantity, 1,032,000 tons in weight decreased by 1 million tires from the last year. The volume of tire replacement was 82 million tires in quantity and 892,000 tons in weight as compared to the previous year. The total recycled volume increased by 32,000 tons from the previous year to 9, 97,000 tons in 2018 and the recycling rate was 97% increased by 4 points.

Competitive Landscape of Asia Pacific Tire Replacement Market

  • Bridgestone Corporation, 
  • Yokohama Tire Corp, 
  • JK Tire & Industries Ltd., 
  • Nokian Heavy Tyres Ltd., 
  • Nortec. 

COVID-19 impact on "Tire Replacement Market in Asia"

The report analyses and includes a complete detailed chapter of 50-70 pages about the short-term & long terms impact of COVID-19 outbreak on each segment of the "Asia Pacific Tire Replacement Market" along with government measures to support the sector. It also showcases the current market landscape during COVID, the impact of the virus on leading companies, the expected demand schedule and supply chain in the industry, and other various major factors. This will help you identify those companies that may benefit from this pandemic as well as those that will lose out.

Covered In This Asia Pacific Tire Replacement Market Report

The report covers the present ground scenario and the future growth prospects of the automotive aftermarket for 2019-2035 along with the market players’ analysis. We calculated the market size and revenue share on the basis of revenue generated from major players in all major countries. APAC Tire Replacement Market is forecasted on the basis of revenue analysis, product benchmarking and strategic developments of key market players.

Asia Pacific Tire Replacement Market Outlook 2019-2035, has been prepared based on in-depth market analysis from industry experts. The report covers the competitive landscape and current position of major players in the tire replacement aftermarket industry space. The report also includes porter’s five force model, SWOT analysis, company profiling, business strategies of market players and their business models. “ Asia Pacific Tire Replacement Industry Report” also recognizes value chain analysis to understand the cost differentiation, pricing models to provide a competitive advantage to the existing and new entry players.

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Key questions answered in this Asia Pacific (APAC) Tire Replacement Market Report

  • What is the total market size by 2035 and what would be the expected growth rate of the market?
  • What is the total revenue per segment and region in 2018-19 and what would be the expected revenue per segment and region over the forecast period?
  • What are the key market trends?
  • What are the factors which are driving this market?
  • What are the major barriers to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities for the existing and entry-level players?
  • What are the recent developments and business strategies of the key players?

Reasons to buy this market study

  • Facilitate decision-making based on strong historic and forecast data for Asia Pacific Tire Replacement Market
  • Develop strategies based on the latest regulatory framework
  • Position yourself to gain the maximum advantage of the APAC Tire Replacement industry’s growth potential
  • Identify key partners and business development avenues across the globe
  • Respond to your competitors’ business structure, strategy, and prospect.



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Asia Pacific Tire Replacement Market Report | APAC | 2021 Edition | 2019-2035 | Industry Analysis

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