Tires are one of the most-replaced components of a vehicle, due to high wear and tear. The replacement tire market consists of players that provide the following solutions: OEM replacements and aftermarket replacements. The global replacement tire market is witnessing continuous growth in both areas. Analysts from global technology research and advisory company Technavio expect the market to increase by 372 million units by 2020, growing at a CAGR of 7.24%.
There are several key factors driving this growth in the global automotive replacement tire market, including falling rubber prices, decreasing gasoline prices, and a boost in automotive sales, especially in Asia. APAC was the most dominant region in 2015 with 55% of the total automotive replacement tire market, followed by the Americas with 27%, and EMEA with 18%.
The Asia-Oceanic region is dominated by countries like China, India and Japan, where the automotive industry is growing at a rapid rate when compared with mature markets such as the USA and Western Europe. The increasing number of foreign brand vehicle manufacturing plants and facilities in the Asia-Oceanic region – which is due to low production costs, increasing production capacity, and the growing demand for light and heavy vehicles – is driving the market for automotive replacement tires in these countries.
The global passenger car market is expected to reach 84 million units by 2020, with high volume demand from developing countries in Asia, including Vietnam, Thailand and Indonesia in addition to China, India and Japan. In 2015, passenger car sales recorded 70 million units, mainly driven by APAC countries, showing a healthy growth rate of over 5%.
The automotive tire replacement market is fragmented with numerous players, offering a variety of shapes and sizes to the customers. It is already witnessing huge demand as increasing sales of passenger cars are driven by emerging economies and the popularity of high-performance tires is on the rise. The key vendors include Bridgestone, Michelin, Continental and Goodyear.
July 28, 2016