San Jose, CA (Vocus) September 22, 2010
Market for tires is highly variable and dependent on factors, such as growth in GDP, increase in usage of commercial vehicles as a means of transport, consumer purchasing power, and the overall health of automotive, transportation, mining, construction, and agriculture end-user industries. Demand is typically driven by the number of new vehicles being produced as well as replacement demand, which in turn is a function of several macro-economic factors, such as, population growth, consumer confidence, discretionary spends, vehicle affordability, interest rates, credit availability, employment, and fuel prices. The prolonged state of doldrums for automobile industry has taken its toll on tire demand, with demand patterns showing signs of distress. Globally, tire sales fell in 2008 and 2009 in both OEM and replacement market.
As stated by the new market research report, Asia-Pacific, and Europe collectively accounts for more than 65% of the global OEM tires market. The impact of the economic crisis that started in the US and spread to all nations across the globe resulted in the decline in new vehicle sales, a prime factor curtailing growth. Consequently, the tire industry, which is profoundly reliant on automotive sector and consumer confidence, took a hit. Also big drop in vehicle production following several closures of automobile manufacturing plants and bankruptcy reorganizations severely impaired volume shipments in 2009.
Demand for replacement tires has been holding up considerably well in comparison to demand from OEM market. This is because vehicle tires and other parts/components are subject to significant wear and tear thereby necessitating repairs or replacements during their operating life. Also, recession induced trends such as rise in gas prices and restricted budgetary conditions are forcing consumers to postpone their new vehicle purchase decisions and continue using their existing ones. While tire sales in the OEM segment plunged by around 4% globally, replacement tire sales had only fallen by 1% in 2009. With anticipated resurgence in market fundamentals in 2010, this trend may be marginalized as consumers begin to show a preference for new vehicles.
As the economy emerges from the effects of recession, a revival in vehicle sales and vehicle production is expected, increasing OE tire shipments. World market for OTR (off-the-road) tires will receive the strongest growth impetus from new construction and mining projects underway in developing markets of Middle East, Latin America and Asia, particularly, India, China, and Vietnam. Moreover, market for tires flaunt the potential to wax at a robust rate during the next few years in Asia, due to rising demand for luxury vehicles in these regions. OEM Passenger car tires market in Asia-Pacific is expected to reach 93.85 million units by 2015. Also, the vast growth opportunities presented by emerging markets such as China, India, and Brazil prompted major global players to establish operations in these markets. Global leaders such as Bridgestone, Goodyear and Michelin are all expanding their production capacities in emerging markets. Sumitomo Rubber, and Continental AG are among the other tire manufacturers that recently began investing in Brazil.
Leading global and regional players operating in the industry include Bridgestone Corporation, Bridgestone Americas Holding, Inc., Cheng Shin Ind. Co. Ltd, Continental AG, Cooper Tire & Rubber Company, Goodyear Tire & Rubber, Hankook Tire Co., Ltd., Kumho Tires Co. Inc., Michelin, Nokian Tyres plc, Pt Gajah Tunggal Tbk, Pirelli SpA, Sumitomo Rubber Industries, Triangle Tire, Toyo Tire and Rubber Co., Ltd., and Yokohama Rubber Co., Ltd.
The research report titled “Tires: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, competition, mergers, acquisitions, product launches, and player profiles worldwide. The report provides market estimates and projections, in annual shipments in units for OEM and Replacement tires, for United States, Canada, Japan, Europe, Asia-Pacific, Latin America and Middle East & Africa. Product markets analyzed include Passenger Car Tires, Truck Tires (Light Truck Tires and Heavy/Medium Truck Tires), Two Wheelers Tires, Aircraft Tires and Off-the-Road Vehicle Tires (Industrial & Utility Vehicle Tires and Farm Implement Tires). Historic data is also provided for an insight into market evolution over the period 2000-2006.
For more details about this comprehensive market research report, please visit – http://www.strategyr.com/Tires_Market_Report.asp.
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
Global Industry Analysts, Inc.
Web Site http://www.StrategyR.com/
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