Tire industry should prepare to adapt to automotive trends

curata__BsXXAsZJqp0yCWU.png

Akron, Ohio – The tire industry needs to continue to adapt as autonomous and electric vehicles become more popular, according to Jim Popio, vice president of operations in North America for Smithers Rapra.

Popio focused on developments driven in the automotive industry by ACES, or autonomous, connected, electric and shared vehicles in his presentation at the International Tire Exhibition & Conference in Akron 11-13 Sept.

Jim Popio, vice president of operations in North America for…

Read the source article at European Rubber Journal

Consumer and retail trends driving growth of tire market e-commerce

curata__IjMRRdxK2bzBjja.jpeg

E-commerce has been a key business disruptor across all industries and is forcing change, innovation and growth in the tire market. Still relatively new to the business-to-consumer replacement tire market, online tire sales sites have become significant for consumer research into tire types, attributes, reviews, pricing and availability. This trend and the expansion of e-commerce in general are leading to growth in online sales of tires, according to a new Smithers Rapra report, The Future of E-commerce for Tire Markets to 2023. (TRAC Members receive 15 per cent discount).

Across major tire market segments and geographic regions, the number of B2C replacement tires purchased online is estimated by Smithers Rapra at nearly 100 million units in 2018, or about 6.5% of the global market. This is expected to rise by an average of almost 19% per year to over 236 million in 2023, when the share will be nearly 13%.

 

E-commerce tire sales channel market 2015-23, by volume (million units)

 

Source: Smithers Rapra

 

Value growth will be somewhat higher, at 19.7% per year CAGR, from $7.1 billion in 2018 to $17.3 billion in 2023, faster than unit growth and reflecting modest price increases. While a degree of price competition within the online channel and versus offline retail will continue, the convergence of online and offline channels and the increasing importance of user experience relative to price will support higher prices in the channel over time.

End-use applications

Reflecting the numbers of vehicles in use, rates of tire replacement and rates of e-commerce penetration, the passenger car and light truck (light vehicles) segment is by far the largest, at 81% of volume in 2018, followed by motorcycles (12%) and then medium and heavy trucks and buses (7%). Light vehicles have been and remain dominant in absolute value and volume terms. In unit terms, motorcycles are a distant second, but in value terms, medium- and heavy duty trucks and buses are the next most important, although a much smaller segment.

Trends driving e-commerce tire sales

 

Consumer behaviour

Consumer preferences are ultimately the main market drivers for tire e-commerce with technology and retail developments enabling the change. Consumer behaviour and retail trends behind the uptake of e-commerce in tires include price sensitivity, reduced brand loyalty, time sensitivity and, increasingly, a desire for an omni-channel, which blends features of online and offline channels (already the case to some extent due to tire installation requirements).

Fitment proliferation

Fitment proliferation, the increasing number of available tire sizes, is also contributing to the growth of tires sales via the internet. This has been driven in part by the increase in rim diameters and the greater use of high-performance tires as OEM fitments, which is putting a strain on physical showroom and inventory space. E-commerce options help retailers and customers alike with education and availability. 

Growing economies and emerging markets

General economic and demographic growth serve as top drivers for tire e-commerce. B2C replacement tire e-commerce was initially a phenomenon of developed markets, led by Western Europe, followed by the US, which still enjoy the highest penetration rates. However, Asia-Pacific has already become the largest in unit terms and is on track to pass Europe in value terms during the forecast period, due to its large population and rapidly growing tire market (mostly motorcycle tires). Greater internet penetration and e-commerce readiness in developing markets are fueling the expansion of online tire sales. Very rapid growth will come from Eastern European countries and emerging economies such as China, India and Brazil, where levels of e-commerce penetration and vehicle density are comparatively low and growing.

For more information on the Smithers Rapra market report The Future of E-commerce for Tire Markets, visit https://www.smithersrapra.com/market-reports/tire-industry-market-reports/the-future-of-e-commerce-for-tire-markets-to-2023

Rapid EV growth to 2028 will drive changes in tires, new Smithers Rapra report says

curata__IjMRRdxK2bzBjja.jpeg

As part of the biggest automotive industry disruption in recent history, tire makers are increasingly focusing their business strategies on serving the electric vehicle market.  Electric vehicles (EVs) will make up a relatively small part of new vehicle sales and an even smaller part of the global vehicle park by 2028, but the segment is still exhibit dynamic growth.

In its market report The Impact of Electric Vehicles on Tires to 2028which is scheduled for release in October, Smithers Rapra estimates the number of EV passenger and light goods vehicles and the EV truck and bus segment will grow to nearly 432 million units with a CAGR of 35% over 2018-2028. This same segment is forecasted to reach nearly $33 million in value. Passenger car/light goods vehicles are forecasted to drive most of this volume and value growth.

As a baseline for comparison, the International Energy Agency (IEA) estimated that there were over 750,000 new Battery Electronic Vehicle (BEV) and Plug-in Hybrid Vehicle (PHEV) registrations around the globe in 2016.

Smithers’ research into regional development shows that China will be by far the biggest electric vehicle market due to government policies to reduce pollution and dependence on imported oil. Most importantly, China’s government desires to dominate the industry.

Tires for hybrid vehicles will have more emphasis on low rolling resistance. Tires for plug-in electric vehicles (PHEVs) and especially for BEVs will need to handle greater torque generated by the battery, extra battery weight and the requirement for reduced cabin noise. Vehicle weight distribution is also likely to be significantly different, which can affect tire design.

The main drivers for tires to enhance EVs include fuel efficiency, grip, load bearing, wear, noise and vibration, overall property balance, air retention, and puncture resistance. Fuel efficiency is the most important issue. By 2025 US CAFE standards for passenger cars/light goods vehicles and trucks and buses indicate targeted MPG for car fleets should be an average 54.5. In comparison, OEMs are focused on long-range EVs that provide 200 or more miles on a single charge.

Current market influencing trends on EVs and tire development include reducing CO2 emissions, the speed of technological change, the increasing affluence and growth of the middle class in emerging/BRIC markets, urbanization, and aging populations. Also important is the greater use of sustainable materials in tire construction, increased emphasis on recycling, and growing fleet operation.

The Smithers Rapra market report The Impact of Electric Vehicles on Tires to 2028offers in-depth analysis of the growing electric vehicle market and its influence on tire development and manufacturing.

Smithers Rapra estimates for the next 10 years the strongest growth for Mild Hybrid quickly followed by BEVs for the passenger car/light goods vehicles plus the truck and bus segment

Traction Summit Reminder: Standard Rate Expires Today

The Standard Rate for the 2018 Traction Summit expires today. Don’t miss your opportunity to hear the latest opportunities and challenges for the tire industry, in this new, disruptive age; build relationships, learn about next steps, and much more. 

 

Read the source article at tractionsummit.com

Smithers Rapra to present at ITEC

curata__UKndYPVzQFF59Jq.jpeg

AKRON—Smithers Rapra representatives will provide insights into emerging tire industry trends with a trio of presentations at the International Tire Exhibition & Conference, set for Sept. 11-13 at the John S. Knight Center in Akron.

Read the source article at Rubber and Plastics News

Smithers Rapra upgrades allow for testing of larger tires

curata__rjTKbfd9gBf2yDK.jpeg

RAVENNA, Ohio—Polymer products testing company Smithers Rapra has upgraded the wheel-testing capabilities at its Tire and Wheel Test Center in Ravenna to handle wheels with rim diameters up to 24 inches.

Read the source article at Rubber and Plastics News

Webinar – Considerations for Compound Development

For every rubber product, there are myriad design factors that must be taken into account when formulating compound options. Service environment, performance specifications, and material selection must be reviewed carefully to ensure that you can not only design an effective product, but also do so with as few iterations in the development process as possible. In this webinar, Christine Domer, General Manager of Smithers Rapra’s Analytical and Physical Testing labs, will cover the various formulation and processing considerations that rubber product manufacturers must use when developing compounds. An overview of material properties, processing techniques, and how they relate to various end use applications will be covered.

 

Read the source article at arpminc.com

Smithers Rapra discusses the application of force and moment data in relation to tire modeling

curata__9sooYZPUXI5cVhJ.jpeg

Smithers Rapra recently provided insight at the Global Tire Tech Forum, which was organized by China Rubber Industry Association. Henry He (above), general manager at Smithers Rapra’s Suzhou Tire and Wheel Testing Laboratory, spoke about the application of force and moment data in relation to tire modeling.

“Our testing services span the globe, and we are proud to have Henry represent our laboratory in China and the advances we have made,” said Derek Read, VP for global development – Asia.

Read the source article at Tire Technology International

Traction Summit 2018: Driving The Tire Industry Into The Future

Shifting the focus for 2018, Traction Summit will take a closer look at tire sensor technology, how the pursuit of autonomous vehicles are affecting the tire industry, considerations for autonomous vehicles tire data, as well as first-hand perspectives from OEMs, tire manufacturers and more. 

Specifically, this year’s program will feature sessions and topics on:

  • The Industry Now and Tomorrow: An overview of the current tire market, trends and future considerations.
  • Regulations: What regulations does the tire industry need to be aware of? From safety to environmental considerations
  • Sensing a Change: A look at the past present and future of sensors in tires
  • Smart Tires: Reinventing The Wheel
  • Autonomy: How does the quest for autonomous vehicles affect the tire industry?
 

Read the source article at tractionsummit.com

Smithers Rapra vice president to discuss the impact of tires on automotive industry at Clemson tire conference

Smithers Rapra vice president to discuss the impact of tires on automotive industry at Clemson tire conference Smithers Rapra vice president to discuss the impact of tires on automotive industry at Clemson tire conference Monday, March 26, 2018 Akron, OH – Smithers Rapra announced that Dr. James Popio, vice president, North America, will deliver a presentation on the significant role that tires play in supporting automotive market trends at the Clemson University Global Tire Industry …

Read the source article at World News by Country