Global Tires

Global demand for tires will reach 3.2 billion units in 2022. In value terms, sales of tires are projected to advance 4.9% per year, boosted by expected increases in raw material prices and the continued development of higher quality tires. As production of these higher value tires expands, it will cause changes in manufacturing locations, plant capacities, and tire replacement rates.

Because tires are essential components of motor vehicles and other transportation equipment, two key factors affect growth:

• Rising incomes in developing nations increase purchases of motor vehicles and the need for OEM tires. A larger local vehicle park also increases the pool of potential replacement sales.
• Economic growth contributes to increases in average annual vehicle mileage and expedites the need for replacement tires.

Key Findings in the Global Tires Study:

Motor Vehicles to Retain an Overwhelming Share of Tire Demand

The significant number of motor vehicles in use in the world and the fact that motor vehicles are the leading form of transportation in most areas create substantial yearly replacement tire demand. In addition, rising income levels in developing nations will make motor vehicles more affordable, further boosting tire sales in these markets.

However, due to the maturity of the motor vehicle market, growth prospects are slower than in other tire applications. In fact, light vehicles, which are by far the largest market segment, will register the slowest increases in demand through 2022.

Motorcycles Expected to be the Fastest Growing Tire Market

Motorcycle tire sales are largely concentrated in fast-growing developing areas in the Asia/Pacific region, where motorcycles are used as low-cost substitutes for motor vehicles. In these countries, motorcycle sales are expected to continue to register healthy advances as economic growth spurs additional purchases and income levels remain too low for much of the population to upgrade to motor vehicles.

Growth for motorcycle tire demand in developed markets will be more modest. High motor vehicle ownership rates in most developed nations cause motorcycle use to be hobby-oriented, limiting gains.

Asia/Pacific Region to be the World’s Largest and Fastest Growing Tire Market

Three of the world’s four largest tire markets are located in Asia: China, India, and Japan. Through 2022, the Asia/Pacific region will offer the best opportunities for increased tire sales. Ongoing industrialization efforts and economic expansion will increase personal income levels and boost the share of the population that can afford motor vehicles. As a result of increased motor vehicle ownership rates, opportunities for associated replacement tire sales will rise. Over the forecast period, the Asia/Pacific region will be responsible for more than two-thirds of global tire demand gains.

Study Coverage

This study presents historical demand data (2007, 2012, and 2017) and forecasts for 2022 by market (light motor vehicles, medium and heavy motor vehicles, motorcycles, agricultural and other). The study also evaluates company market share and analyzes industry competitors including Bridgestone, Continental, Goodyear, Hankook, Michelin, Pirelli, Sumitomo, and Yokohama.