Technology Innovation and Rise in New Vehicle Sales Drive Demand for Tires, According to New Report by Global Industry Analysts, Inc.

GIA announces the release of a comprehensive global report on tires markets. Global market for tires is projected to reach 2.4 billion units by 2018, driven by technology innovation and new vehicle sales in developing countries.

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Tires: A Global Strategic Business Report

San Jose, California (PRWEB) November 07, 2013

Follow us on LinkedIn - Global market for tires is heavily dependent on the automotive industry, which in turn is a barometer of general economic health in a country. While automobile production trends influence demand patterns in the OEM tire market sector, vehicle population, replacement cycles, and emergence of disruptive technologies influence demand patterns in the replacement tire sector. While GDP growth, employment levels, consumer discretionary spends, and average vehicle operating life influence demand in the passenger car tires market, expansion of commercial vehicle fleets and overall health of public transportation, mining, construction, and agriculture end-user industries influence demand for truck, bus, aircraft, industrial & utility vehicle, and farm implement tires.

The OEM tires market is expected to emerge as a key beneficiary of the rising number of specialty vehicle designs which will help spur the need for specialty tires. Poised to score the highest gains are tires with performance features such as, increased grip on wet surfaces, reduced noise levels, higher traction, comfort, and safety levels. Future growth in the world tires market will be driven by ultra high-performance (UHP) tires that offer superior driving control; ultra-fuel efficiency tires; and run-flat tires that assure safer driving despite a flat tire problem. Also, rising demand for eco-friendly vehicles such as hybrid and electric vehicles will accelerate the manufacturers’ focus on developing fuel-efficient tires.

Replacement tires market is expected to benefit from the rising average vehicle life worldwide. In the United States for instance, average age of cars on the road is estimated at over 11.1 years, which is a considerable increase from previous years. Tires are subject to significant wear and tear which necessitates frequent replacements during the functional life of a vehicle. Increase in vehicle age therefore results in greater need for replacements thus translating into higher demand for replacement tires. Additionally, overloading of vehicles, extreme weather conditions and poor road conditions are helping spur replacement demand for tires.

Defined as a pneumatic tire type where the tire cords are arranged at approximately 90 degrees to center line of the tread, radial tires have been growing in popularity in all segments of the motor vehicle industry from passenger cars to agricultural vehicles. While radialization in passenger cars has reached full circle in most developed countries like the United States, significant opportunities continues to exist for radialization of tires for trucks and buses, especially in the developing countries. In addition to passenger cars, trucks, two wheelers, and agricultural machinery, radial tires are gaining popularity in aircraft tires. Radialization of aircraft tires is a fairly recent phenomenon, given the fact that cross ply tires have long dominated the arena due to their hardier and robust construction. However, rising aircraft fuel prices is expected to drive demand for radial tires in the aviation industry. Radial tires are significantly lighter than cross ply tires and have the potential to reduce the weight of the aircraft by over 75kgs, which has a direct impact on fuel savings.

As stated by the new market research report on Tires, Asia-Pacific represents the largest and the fastest growing market worldwide with a CAGR of 7.8% over the analysis period. Growth in the region is led by strong demand for automobiles in countries such as China, and India. The newly emerging empowered middle class will remain Asia’s driving force and is expected to continue to be the most important consumer class for automobiles.

Major players in the market include Apollo Tyres Ltd., Bridgestone Corporation, Continental AG, Cooper Tire & Rubber Company, Goodyear Tire & Rubber Company, Hankook Tire Co. Ltd., Maxxis International, Michelin, Pirelli & C. S.p.A., Sumitomo Rubber Industries Ltd., Techking Tires Ltd., and Yokohama Rubber Co., Ltd., among others.

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, mergers, acquisitions and other strategic industry activities of major companies worldwide. The report provides market estimates and projections for OEM & Replacement Tires in Units for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, and Rest of Asia-Pacific), Middle East & Africa, and Latin America. Product market segments analyzed include Tires for Passenger Cars, Trucks (Light Trucks, Medium/Heavy Trucks), Buses, Two-Wheelers, Aircraft, and Off-The-Road Vehicles (Industrial & Utility Vehicles, Farm Implements).

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 leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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