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2021-01-29
410
Global
Global tire replacement market landscaping is changing and green initiatives are innovative fields with continuous advancements. Many companies are looking forward to upgrading their environmental practices for smart, sustainable products that can be made from recycled materials. Statistics shows that about 1/3 of the nation’s scrap tires are saving more than 150 million tires from the waste stream. 2.2 Billion pounds of rubber reclaimed annually and 150 Million tires are collected annually to be processed into beneficial end-use products. The latest figures by the association in 2017 indicate that 4.189 million tons of scrap tires were generated of which 3.411 million tons went to the market or were destined for a sale-a a utilization rate of 81.4 percent. Adding on to this, baled and landfill material (646,000 tonnes) the manages tire scrap reached a rate of 96.9 percent, 1736,340 tons respectively, 43 percent were used as tire-derived fuel in cement kiln, pulp and paper facilities, and industrial boilers. 1.013 million tons respectively, 25 percent got granulated for ground rubber solutions, 315,000 tons respectively 8% fulfilled civil engineering purposes and 109,000 tons, 3% exported. Scrap Tires Market size valued at over USD 435 billion in 2018 and is estimated to exhibit around 7% CAGR from 2019 to 2025. Growing sales of replacement tires through the online medium, rising tire radicalization, and burgeoning demand for Tire Pressure Monitoring System (TPMS) are some of the other factors that would positively influence the market during the forecast period.
Scrap Tire Material volume declined
Between 2009 and 2017, the percentage of scrap tire material dedicated to the market to total generated material declined from 85.3 – with an all-time height of 95.9 in 2013 – to 81.4 percent. The tire-derived fuel usage diminished from 2.085 to 1.736 million tons: The share of fuels used in cement kilns has increased from 2009 to 2017 from 604,000 to 806,000 tons and the use in utility boilers from 326,000 to 427,000 tons. But the utilization in pulp and paper mills sank from 716,000 to 503,000 tons, while the share of fuel burned in industrial boilers or dedicated to energy recovery declined to zero. And even the ground rubber market lost volume: The market distribution declined from 1.354 to 1.013 million tons. In spite of the fact, that ground rubber applications accounted for 25 percent of scrap tire usage in 2017. The number of stockpiled scrap tires that had reached one billion tons in 1990 was cleaned up by 94 percent in 2017, leaving 60 million stockpiled tires to go – mostly in Colorado and Texas.
The Federal States enacting schemes
Even if, as the Coalition underlines, “no government agency has concluded artificial turf is safe”, the federal states in Northern America started to enact schemes for supporting scrap tire treatment. 44 of 50 states have storage and disposal regulations, 36 require financial assurances for processors, and 17 demand financial assurances for haulers. 38 states allow the landfilling of cut or shredded tires, 24 allow their mono-filling, and ten allow the landfilling of whole tires. 30 states display a stockpile clean-up program, while in 23 states a stockpile clean-up program is operating. Several tire recycling grants are offered, for example in Kansas by the Bureau of Waste Management, in Nebraska backed by the Department of Environmental Quality, in Ohio by the Environmental Protection Agency and the Lorain County Community Development Department, and in California for the funding of road repair programs using recycled tires.
We conducted interviews with the Global 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.
The report includes 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.
The study provides an in-depth analysis of current and future trends to elucidate the imminent investment pockets in the market.
Waste tires have the potential for profitable reuse in a number of applications. Waste tire recovery is not limited to Europe, the USA and China. The struggles to treat the waste tire to become financially available an under circumstances which it becomes environmentally friendly are spread globally. In India, the Gujarat Pollution Control Board in 2011 has to shut down 45 oil –producing pyrolysis units since they used standard and polluting technology imported from China.-Equipment meanwhile banned in China itself.Redisa, the recycling and economic development initiative in South Africa started a system in which waste pickers would collect 30 million waste tires and thus creating jobs and improving the environment. In Russia, tire manufacturers have to fulfil recycling norms including 20 percent in 2017-2018, 25 founded in Moscow for independent compliance with recycling targets of used tires by international tire manufacturers like Bridgestone, Continental, Nokian tyres.
This increase in the recycling can be partially attributed to the high cost of landfilling and the fact that reusing materials is cost effective in some situations in comparison to the production of new materials.
Vee Rubber Corporation | $83,206.82 Million |
Bridgestone Americas | $18,600.27 Million |
Qtyres Limited | $7237.20 Million |
Good Year Dunlop Tires operation | $4003.74 Million |
Toyo Tire Corporation | $3494.15 Million |
Otani Tire Company Limited | $62,735.58 Million |
Iran Tire Manufacturing Company | $8972.14 Million |
Bridgestone Corporation | $32,434.89 Million |
Sumitomo Rubber Industries | $7946.24 Million |
Yokohama Rubber Company | $5778.02 Million |
Cheng Shin Rubber Industries | $3534.07 Million |
Hankook Tire and Technology Co Limited | $2835.59 Million |
Continental Automotive | $2860.18 Million |
Pirelli Tyre Spa | $3785.04 Million |
Geographically, the European market is the leading revenue source for the global replacement tires and rubber market, accounting for revenues of $9.3 billion in 2005. This is equivalent to 33.5 percent of the overall market value. In comparison, the AsiaPacific sector is on a fast rise, generating as much as $8.6 billion or 30.9 percent of the overall market value. The Chinese market is forecasted to grow strongly as income levels rise and make car ownership and maintenance accessible to more consumers there. This is likely to increase the Asia-Pacific contribution to the global market. The market is also segmented by tire category. The market consists of 75 percent replacement tires (RE) and 25 percent original equipment (OE). Passenger cars and light trucks account for 63.30 percent of the total market segment, and trucks account for 25 percent market share of the replacement tires.
It launched nine projects of tire rubber waste utilization. The listed schemes included amongst others projects for 300,000 tons of waste tires rubber construction, for tire recovery and whole industry chain resources recycling, for major intelligent clean demonstration engineering of 130,000 tons, for disposal and recycling of 200,000 tons per year, and for the improvement of an 11,000-ton waste tires production line.In the same year, the automobile industry began to pay attention to rubber recovery. Li Guo Qing, managing director at China Automobile Parts Holdings Ltd, saw a growing request in China to recycle rubber tires and other rubber waste products. China being the world’s biggest automobile market represents a huge demand for this technology. There is an enormous gap in the market for those looking for ways to dispose of used tires.In 2018, the synthetic rubber accounted for around 28% share in off-road tires market size owing to usage of styrene butadiene rubber (SBR) and butadiene rubber (BR) in agriculture and mining equipment vehicles. Synthetic rubber offers a cost-effective solution with considerable abrasion resistance. Manufacturers are continuously focusing to develop new raw materials for enhancing the vehicle performance. For instance, in February 2015, LANXESS showcased an innovative solution styrene butadiene rubber (SSBR) including Buna VSL 3038-2HM and Buna FX 3234A-2HM for producing energy-efficient tires. Natural rubber will register a significant growth owing to high strength and the ability to withstand heavy weight under extreme conditions. Increasing preference of natural rubber tires in off-road vehicles offering enhanced performance and stability will escalate the segment penetration over the forecast timeframe. Natural rubber provides increased durability and high flexibility in tough terrains, further influencing the segment growth. This segment is growing at a faster.
Goodyear acquired South Pacific Tyres, and Michelin acquired Shanghai Tire and Rubber Co. Most acquisitions and partnerships are now made in the Asia-Pacific region where production costs are generally lower. This has also enabled manufacturers to differentiate their operations between low- and high-margin tires. As a result, many of the low-margin tires available in the US and European markets are now produced in China where labor is cheaper. In January 2006, Bridgestone has established a new subsidiary in Guangdong Province, China, that begun operations at the beginning of 2008. Generally, low-margin tires are branded separately from the high-margin alternatives in order to strengthen the ability of players to increase prices.
Original Equipment | Replacement | |
---|---|---|
Europe Including Russia | -5% | -2% |
Europe Excluding Russia | -5% | -2% |
North America | -4% | 2% |
South America | -4% | 2% |
China | -9% | 4% |
The replacement consumer tire sales fell 3% to 218 million units, while OE demand declined 5% to 85 million units. Michelin Group reported a 10.4% increase in sales revenue for the nine months ended Sept. 30 despite lower sales volumes in the consumer and commercial tire segment. The US consumer tire aftermarket displayed moderate strength last year, with replacement passenger and light truck tire shipments up 2.2% and 2.5%, respectively, over 2018. Original equipment (OE) passenger tire shipments are expected to decrease by 2.1 million units, while passenger tire replacement shipments are projected to increase by 6.4 million units compared to 2018. World demand for tires is projected to rise 4.1 percent per year to 3.0 billion units in 2019. In value terms, sales of tires are forecast to advance 7.0 percent per annum to $258 billion. Rising incomes in developing regions will spur growth in the number of vehicles in use, fuelling demand for tires. Higher-income levels and expanding economic activity will also contribute to increases in average annual vehicle mileage, boosting replacement rates. However, the increase in miles driven will be offset by rising tire quality, which will exert downward pressure on replacement rates. Bridgestone is the leading player, with a 20.9-percent market share while Michelin follows closely with 20 percent. Sixty-six percent of the market‘s total revenues are generated by the four leading players in the industry. One reason for this level of consolidation is that the market has fairly low margins. The original equipment manufacturers (OEM) market is dominated by a few large buyers (automobile manufacturers), who place pressure on tire manufacturers to innovate and also keep prices down. Smaller companies are unlikely to compete because of insufficient scale economies to cope with the large buyers. While the aftermarket has more buyers, the largest tire companies are active in both OEM and aftermarkets. Despite the decline in the European market, growth opportunities can be found in other regions such as the US and Asia-Pacific. The commercial aftermarket is growing in the US, where replacement tires now form the market‘s most lucrative sector. The original equipment truck tire market is showing renewed growth after the stagnation of the last few years, and the North American passenger car and light truck replacement markets are increasing as is the demand for aircraft tires. There has also been a surge in demand for non-tire rubber, which is now outperforming the tire sector on a global scale. Michelin is the world‘s largest manufacturer of tires, with a market share of 20 percent in 2005. The company has a strong market position in truck tires, with a market share of over 38 percent in many geographic regions. The company has an equally robust market position in light vehicles and specialty tires such as aircraft tires. This strong market position provides the company with a competitive edge and increased bargaining power. Bridgestone Corporation is one of the world‘s largest manufacturers of tires and other rubber products. The company is primarily engaged in the production of tires and tubes for passenger cars, trucks and buses, construction and mining vehicles, industrial machinery, agricultural machinery, aircraft, motorcycles, and scooters. The company has its operations in Japan, America, and Europe. The company is headquartered in Tokyo, Japan. The Goodyear Tire & Rubber Company develops, manufactures, distributes, and sells tires and rubber products. The company has operations across the world and is headquartered in Akron, Ohio. Continental is Germany‘s largest manufacturer of tires for commercial vehicles. The company also manufactures power transmission systems, engine and suspension mounts, vehicle interiors, and electronic brake and traction control systems. The company has operations in the Americas, Europe, Asia, and Africa. It is headquartered in Hanover, Germany.
The number of Original Equipment and Replacement Passenger car and Light truck tires sold worldwide was stable in the third quarter of 2019, but declined by 1% over the first nine months, dragged down by the 7% fall in Original equipment demand during the period.
Global demand for new Original Equipment and Replacement Truck tires declined by 3% in number of tires sold in the first nine months of 2019, primarily due to a sharp 4% slowdown in OE demand and a 2% contraction in the Replacement markets.
Replacement
The original equipment dominates the replacement tire market size owing to rising off-road vehicle production across the globe. Growing disposable income along with availability of easy financing are attracting potential vehicle buyers to adopt off-road vehicles. Additionally, increasing vehicle launches along with multiple discounts offered by vehicle manufacturers are supporting the vehicle demand. Industry players are working closely with the vehicle manufacturers to understand consumer requirements and develop customized solutions for vehicle manufacturers. The secondary/replacement segment will showcase considerable growth of over 7% over the forecast timeframe due to assertive expansion strategies adopted by several industry players. The manufacturers are establishing retail channels that provide enhanced tire buying experience to customers with improved reliability, and safety. For instance, in June 2015, Bridgestone Corporation inaugurated their third concept store in India to showcase several tire brands including Dueler as an off-road tire brand. Bridgestone Corporation held the largest share among the top five players with a share of 13.90% as of 2017 followed by, Michelin Group and Goodyear Tire & Rubber Company with the respective shares of 11.580% and 7.20%. Tires from France, Japan, South Korea, and other nations now account for about 23.7% of the U.S. replacement market. By comparison, foreign manufacturers held 10.8% of the U.S. replacement tire market in 1980, according to MTD figures. Imported tires could make up 27% of the domestic replacement tire market by 1990. In replacement market, truck & bus tyres show 73%, next comes tractor front tires ( 58% ), and vice versa. And in the case of original equipment manufacturers, the tractor rear segment shows 61%growth. In the export market, light commercial vehicle shows a positive trend. In the last five years, the market value grew at a compound annual growth rate of 1.7 percent while market volume grew at a compound annual growth rate of 2.0 percent. 2001 and 2002 saw sluggish growth, which held down the market growth for the five-year review period. It was also during these years that the automobile market experienced slow market growth. Despite innovation being used to differentiate certain brands in the market, tires are close to being commodities, and competition from low-labour cost manufacturing exerted a downward pressure on prices, which held back value growth.
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 "Global 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.
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. Global Tire Replacement Market is forecasted on the basis of revenue analysis, product benchmarking and strategic developments of key market players.
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. “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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OR Call Us:+1-646-568-7747Global Tire Replacement Market Report | 2021 Edition | 2019-2035 | COVID-19 Impact Analysis
Asia Pacific Tire Replacement Market Report | APAC | 2021 Edition | 2019-2035 | Industry Analysis
Europe Tire Replacement Market Analysis Report | 2021 Edition | 2019-2035 | Industry Insights
North America Tire Replacement Market Analysis Report | 2021 Edition | 2019-2035 | Industry Outlook
United States Tire Replacement Market Analysis Report | 2021 Edition | 2019-2035 | Industry Insights