The global tyre market is well positioned for further growth as it adapts to meet challenges across a complex matrix of tyre types, end uses and regional markets. ’The Future of Global Tires to 2022’ estimates the overall market to reach over 2.2 billion units by 2017 with volume growth is expected to continue, at a 3.4% compound annual rate from 2017 through to 2022; in 2022 total global industry tyre volume is seen as approaching 2.7 billion units.
Value will grow somewhat faster due to a firmer raw material price outlook than in the recent past. 2017’s market value of $223 billion will rise to $267 billion in 2022, at a 3.7% annual compound growth rate. The drivers of growth are best seen in tyre types and end uses, grounded by the mature and traditionally technologically advanced markets (such as the US, Western Europe and Japan), but increasingly dominated by volume and innovation in emerging markets in Asia, primarily China. Premium and high performance tyre growth in North America and Europe will remain a strong positive influence on growth.
Tracking growth of tyre market volume, the global consumption of raw materials by tyre manufacture is showing continued growth from 2017’s estimated 45.2 billion tons. Growth is approximately 3.8% per year, to 54.5 billion tons. The share composition of materials used is remaining fairly stable through to 2022, with exceptions for some of the materials finding greatest use in energy (or green) tyres where low rolling resistance (RR) continues to gain in importance.
Tyre type segmentation at the whole industry level corresponds somewhat, but not entirely, to tyre end-use application. General tyres account for the bulk of passenger (car, light truck, motorcycle) and goods (medium and heavy trucks, buses) transportation. These are relatively undifferentiated, non-speed-rated, lower tier, mostly replacement tyres for the over-the-road mass markets of light vehicles, trucks, buses and motorcycles, particularly in large but still developing markets (especially China and India). They are still about four-fifths of the market, but this share is steadily declining. Growing much more rapidly are specialty tyres, which include high-performance (or speed-rated) and premium versions of tyres for the major ground/over-road end uses, as well as more specialised types such as energy (or green, or low rolling resistance – LRR) tyres, run-flats and winter tyres. The very small (in volume, though more important in value terms) OTR (off-the-road) tyres and aviation are also growing at an above-average rate.