Tire material refers to the materials used to
manufacture tires. The materials used to manufacture tires are natural rubber
or elastomers, carbon black, fillers, chemicals, and others. Manufacturing tires
also involves the use of different types of fabrics for reinforcement, and
different types of steel which are twisted or braided into strong cables. The
composition of tire materials differs according to the vehicle type and
performance requirements. The global market size for tire material was USD 73.93
billion in 2017 and is projected to reach USD 91.23 billion by 2022, at a CAGR
of 4.3% between 2017 and 2022.
Key players operating in the tire material market have adopted various growth strategies to strengthen their position in the market. Investments and expansions were the key growth strategies adopted by leading market players between 2015 and 2017 to enhance their production capacities and strengthen their position in the tire material market.
Cabot Corporation (US), JSR Corporation
(Japan), Thai Carbon Black (Thailand), Lanxess (Germany), and Bekaert (Belgium)
are some of the leading players operating in the tire material market.
In September 2017, Thai Carbon Black Public
Company Limited commenced its operations to produce carbon black in a greenfield
facility in Jining, China. The plant is being constructed in two phases.
Currently, the company has a production capacity of 120,000 ton per year in
phase 1 and is expected to increase the production capacity to 240,000 tons.
This expansion will enable the company to serve its customers in China.
JSR Corporation's production
capacity of S-SBR was 160,000 tons in Thailand and Japan. In March 2017, the company
expanded the production capacity to 220,000 tons by starting a new plant in
Hungary. With this expansion, the company aims to expand the sales volumes over
10% per annum, outpacing the overall market growth.
In November 2016, Goodyear and the
Luxembourg Institute of Science & Technology invested USD 43.1 million in
significant R&D projects, focusing on sustainability and new materials.
This would help the company innovate products and increase efficiency.
In June 2016, Cabot planned to set up a new
application innovation laboratory named Asia Technology Center in Shanghai,
China. This laboratory will provide analytical and application testing
equipment and will support the company's businesses in Asia.
The global market size for tire material
was USD 73.93 billion in 2017 and is projected to reach USD 91.23 billion by
2022, at a CAGR of 4.3% between 2017 and 2022. Increasing sales of vehicles,
innovations for reducing rolling resistance, and reducing tire weight are major
factors projected to drive the growth of the tire material market.
The elastomers segment is
expected to be the fastest-growing segment of the tire material market. The
demand for elastomers is driven by the need for providing grip, control,
safety, and comfort features to tires. Various research and development
activities are being carried out to minimize rolling resistance.
The passenger cars segment is expected to
be the fastest-growing application segment of the tire material market. This
growth is mainly driven by the increasing per capita income in emerging
economies globally. Simultaneously, the growth in population and government
& bank schemes are also expected to boost car sales during the forecast
period.
APAC is expected to be the fastest-growing
market for tire material. The APAC market has been segmented into China, Japan,
India, South Korea, Thailand, Indonesia, Malaysia, and the Rest of APAC. APAC
has emerged as a hub for automotive production in recent years, owing to
changing consumer preferences, increasing disposable income of the middle-class
population, and cost advantages for OEMs. Manufacturers such as BMW AG
(Germany) and Volkswagen Group (Germany) have already set up manufacturing
units in these countries. Consumers in the region are inclined towards compact
and cost-effective cars. Factors such as low production costs, availability of
economical labor, lenient emission and safety norms, and government initiatives
for FDIs have led to the region witnessing higher growth than the matured
markets of Europe and North America. The sizable population and government
support for FDIs in APAC have created promising opportunities for automobile
manufacturers and automotive product suppliers. OEMs in this region are not
only catering to local demands, but are also serving developed markets through
exports. All these factors are expected to drive the tire material market in
the region.
Cabot Corporation (US), JSR Corporation
(Japan), Thai Carbon Black (Thailand), Lanxess (Germany), and Bekaert (Belgium)
are some of the leading players in the tire material market. These companies
are focused on the adoption of organic growth strategies to increase their production
capacities and market share.
