Factors such as the booming automobile industry and the surging lifespan of vehicles are expected to drive the automotive tire market at a CAGR of 7.7% during the forecast period (2019–2024). The market registered sales of 1,866.7 million units in 2018, and it is projected to sell 2,894.4 million units by 2024. Moreover, the growing preference of automakers for private labeling will create ample growth opportunities for market players in the forthcoming years.
One of the primary factors behind the market growth is the increasing lifespan of vehicles, owing to the constant technological advancements being made in the automotive sector. Over the years, automobile manufacturers have been making constant efforts to improve the durability and reliability of vehicles, primarily on account of the rising implementation of stringent government regulations and growing competition among automakers. Besides, the amplifying chances of wear and tear of tires, due to the increasing mileages being offered by vehicles, will also augment the need for automotive tires in the forecast years.
According to P&S Intelligence, Asia-Pacific (APAC) held the largest share in the automotive tire market in 2018, wherein China was the major contributor. The leading position of China can be attributed to the presence of the world’s largest automobile manufacturing hub in the country. According to the International Organization of Motor Vehicle Manufacturers (OICA), China produced 19,994,081 units of passenger cars and 5,231,161 units of commercial vehicles in 2020. Whereas, Thailand will demonstrate the fastest growth in the coming years, due to the presence of around 35% of global reserves of raw rubber in the country.
Therefore, the flourishing automobile sector and growing lifespan of vehicles will supplement the market growth in the upcoming years.
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