The global market for automotive tires is dependent upon the macroeconomic aspects such as consumer spending, GDP (Gross Domestic Product), currency conversion rates, automotive production and distribution market, disposable income as well as exports. There are other factors which also influence the global automotive tire market, such as, taxation on foreign tires, cost of raw material and environmental considerations. As per analysis of Future Market Insights, the global automotive tire market is anticipated to grow at a robust growth rate throughout the period of assessment and poised to register a CAGR of 6.3% by value during the 2017-2027 period. This market is also expected to be valued at about US$ 645 Bn by the end of 2027. The key trends, drivers, restraints and opportunity analyses are portrayed which impact the growth of the global automotive tire market.
Passenger Cars segment to lead the global automotive tire market
By vehicle type, the passenger cars segment is anticipated to show high market share by the end of 2027. In 2016, this segment dominated the global automotive tire market and this trend is expected to continue over the projected period of 2017-2027, thus dominating the market by the end of 2027. The passenger cars segment is also anticipated to reflect highest growth rate, as compared to other segments by vehicle type, during the forecast period. It is poised to register a high CAGR of 6.8% during assessment period 2017-2027. Following this segment, the commercial vehicle segment is expected to grow at CAGR of 6.1% throughout the forecast period, also reflecting a significant value share by the end of 2027.
Light Commercial Vehicle segment to witness high growth potential
Light commercial vehicle sub-segment by commercial vehicle segment has shown dominance since 2016 and this is expected to continue during the period of forecast. This sub-segment dominates the commercial vehicle segment with respect to value and growth rate. The light commercial vehicle segment is expected to be valued at about US$ 102.7 Bn by the end of 2027.
Two and three wheeler segment and specialty vehicle segment are expected to grow slow compared to passenger cars and commercial vehicle segments, with a moderate CAGR throughout the forecast period.
Asia Pacific Excluding Japan (APEJ) the most lucrative market for automotive tires
The question if Asia Pacific excluding Japan (APEJ) region is worth investing in is answered here. The APEJ region shows high market attractiveness and can be considered to be the most lucrative segment after Western Europe, as it is expected to show higher market share of about US$ 194 Bn by the end of 2027. Western Europe stays in the second place as it is anticipated to reflect a market share of US$ 166Bn by 2027. Both these regions have a similar growth rate patterns, yet APEJ leads by dominating the market by value. North America region comes after Western Europe, reflects a high yet comparatively less CAGR than Western Europe and APEJ during the assessment period.
Global Automotive Tires Market: Impact Analysis