Freedonia study on the global tyre market
According to the market study “Global Tires” from the Freedonia Group, world demand for tyres is forecast to reach 3.2 billion units in 2022. In value terms, sales of tyres are projected to advance 4.9 % per year, boosted by expected increases in raw material prices and the continued development of higher quality tyres.
The Asia/Pacific region is forecast to be the world’s largest and fastest growing tyre market. Three of the world’s four largest tyre markets are located in Asia: China, India, and Japan. Over the forecast period, the Asia/Pacific region will be responsible for more than two-thirds of global tyre demand gains, said Freedonia.
Motor vehicles are expected to retain the largest share of tyre demand. Their significant number in use in the world and the fact that they are the leading form of transportation in most areas create substantial yearly replacement tyre demand. In addition, rising income levels in developing nations will make motor vehicles more affordable, further boosting tyre sales in these markets. However, due to the maturity of the motor vehicle market, growth prospects are slower than in other tyre applications. In fact, light vehicles, which are by far the largest market segment, will register the slowest increases in demand through 2022.
Furthermore, motorcycles are forecast to be the fastest growing tyre market. Motorcycle tyre sales are largely concentrated in fast-growing developing areas in the Asia/Pacific region, where motorcycles are used as low-cost substitutes for motor vehicles. In these countries, motorcycle sales are expected to continue to register healthy advances as economic growth spurs additional purchases and income levels remain too low for much of the population to upgrade to motor vehicles. In contrast, growth for motorcycle tyre demand in developed markets will be more modest.
The study presents historical demand data (2007, 2012, and 2017) and forecasts for 2022 by market (light motor vehicles, medium and heavy motor vehicles, motorcycles, agricultural and other). The study also evaluates company market share and analyses industry competitors including Bridgestone, Continental, Goodyear, Hankook, Michelin, Pirelli, Sumitomo, and Yokohama.