Expanding demand in the world tire market is expected across the next five years according to the latest exclusive data from Smithers Rapra.
The Future of Global Tires to 2022 is available for purchase now. Tire and Rubber Association of Canada members can receive a 15% discount on this definitive market strategy tool.
Its new definitive report – The Future of Global Tires to 2022 shows how worldwide 2.24 billion tires will be sold in 2017, with and overall value of $223 billion. Across the next five years the rate of volume demand will fall to 3.4% per year, down from 5.2% in the 5 years preceding. In contrast the rate of value increase will increase from 3.4% to 3.7% per annum reflecting:
- Stabilisation of raw material pricings
- The new added value innovation is adding to the industry in developed markets
- Volume demand increases in transition economies with rising disposable incomes – especially China.
Smithers Rapra’s analysis tracks these trends across all:
- Tire raw materials
- Tire type and vehicle
- Key national and regional geographic markets ,
Production in North America is growing, and outpacing domestic demand, as Asian and European companies continue to shift capacity here to be closer to automotive OEMs, and circumvent potential trade restrictions that some view as more likely with the 2017 change of US administration.
The region’s tire market will reach a value of $39.7 billion in 2017 – 236 million units.
In mature markets demand will be especially strong for materials that enable energy efficiency. For example, continuing improvements in lowering rolling resistance means demand highly dispersible silica (HDS) is set to increase at over 10% per year through to 2022. This will run in parallel to continuing interest in complimentary technologies, such as automated tire pressure monitoring systems (TPMS).