Global tyre manufacturing output to grow 3.4% year- on -year to 2024 according to a new report published by Smithers Rapra

The global tyre industry is estimated at 19.25 million tonnes of production in 2019 and is anticipated to grow at 3.4% compound annual growth to 22.75 million tonnes in 2024. Global tyre demand is the ultimate driver of tyre manufacturing, with vehicles in use, generating ongoing tyre wear and replacement needs, and new vehicle sales requiring OEM tyres to be fitted.

Smithers Rapra’s new report The Future of Tyre Manufacturing to 2024 estimates the global tyre industry capital spending at over $15 billion in 2019. Further growth by value will reflect that of production and demand, with an average annual growth of 3.3% through to 2024. Changes in tyre materials and designs, the need for greater efficiencies, and the development of advanced tyre process machinery are helping to sustain and grow capital spending by tyre companies of all sizes. This is in addition to the need to optimise and update capacity to be closer to key customers and markets. This will happen in manufacturing technologies and in terms of end use and regional demand growth.

There are a number of key drivers and trends affecting the tyre manufacturing market:

· Tyre demand and industry growth are supportive of manufacturing expansion

· The evolving vehicle mix is creating more complexity and continued pressure to innovate

· The continuing shift toward light trucks away from passenger cars, and continuing high-performance trend

· Tyre changes are based on customer need, adding to tyre design trade-offs

· Raw materials substitution and sustainability pressures are accelerating

· Manufacturing advances are accelerating in a previously slow-changing environment, restricted by high equipment change costs, plant space and timing issues

· New standards and regulations to optimise fuel efficiency and minimise carbon emissions

· Tyre industry capital expenditure and capacity updates/expansions

· New technologies are placing pressure on and driving changes in tyre manufacturing

· Tyre manufacturing will be increasingly characterised by flexible, efficient production

· The future viability of tyre manufacturing requires integration of Information of Things, big data and Industry 4.0 concepts

· Trends in tyre manufacturing carry plant investment implications.

The Future of Tyre Manufacturing to 2024 looks at the current situation and the potential evolution of global tyre manufacturing, from both general and high-level trends and drivers, to tyre material and design requirements, to specific manufacturing technologies. It looks at how output (production) has evolved in terms of volume (tonnes) and other industry metrics, such as capital spending and production capacity. Leading manufacturers are identified, with detailed tables providing an overview of their tyre plants, locations, capacities and tyre types produced.

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