Because of the growing number of ageing government vehicles around the world, the market for tyres for these vehicles is primarily driven by the rising demand for replacement tires. The expansion of public infrastructure spending as well as the rise in demand for tyres that are environmentally friendly and have low fuel consumption are additional factors that are fueling this market's expansion.
The market for tyres for government vehicles is propelled by the demand for replacement tyres brought on by the increasing number of ageing government vehicles worldwide. Compared to the average age of a passenger car, which is about 3–4 years, a government vehicle's average age is over 10 years. As a result, tyres for government vehicles are in greater demand.
Governmental organisations only utilise certain types of tyres on their cars. To be used on government vehicles, these tyres must adhere to a set of requirements and regulations. OE tyres and replacement tyres are the most popular types of tyres for government vehicles. Additionally, there are several kinds of tyres for government vehicles that are used for a variety of purposes, including those for police, fire, sanitation, utility, military, and postal service vehicles, among others.
The market for tyres for government vehicles is anticipated to reach USD 10.79 billion in value by 2031 and expand at a CAGR of 5.8% between 2021 and 2031.
The industry is fueled by the rising need for replacement tyres brought on by the world's geriatric government vehicle fleet.
Various difficulties are anticipated for the market for tyres for government vehicles throughout the forecast period. The strict environmental rules are the main obstacle to the expansion of the government vehicle tyre market. The European Union (EU), the United States Environmental Protection Agency (EPA), and other environmental organisations all carry out the implementation of these policies. It is projected that strict emission regulations would be implemented in both developed and developing countries as a result of the growing worries about the rising greenhouse gas emissions from vehicles. As a result, during the anticipated period, the market for tyres for government vehicles is anticipated to see development challenges. Yet, it is anticipated that there will be prospects for market expansion due to the increased vehicle industry.
Some of the major companies in the market for tyres for government vehicles include Yokohama Rubber Co., Ltd., Bridgestone Corporation, Sumitomo Rubber Industries Ltd., Michelin, Continental AG, The Goodyear Tire & Rubber Company, Hankook Tire Co. Ltd., Cooper Tire & Rubber Company, and Pirelli & C. S.p.A. Due to their broad geographic reach and solid product line, these businesses control a substantial segment of the economy.
The OE Tyres Type to Emerge as the Most Promising Segment
Government vehicle tyres are divided into two categories based on type: OE tyres and replacement tires. The OE tyre segment had the biggest market share in 2022, accounting for 77.7%, and is anticipated to expand at a CAGR of 4.6% from 2021 to 2031. The global increase in demand for government cars is to blame for this surge.
The Most Prominent Application Segment is Police Vehicle
The police vehicle category, which accounted for the highest share by application in 2020 with a share of 40.9%, is anticipated to rise at a CAGR of 5.1% from 2021 to 2031. The rise of police cars around the world is responsible for this surge. Additionally, due to the increasing number of ageing government vehicles around the world, the replacement tyres category is anticipated to rise at the highest CAGR of 6.2% from 2021 to 2031.
The Asia Pacific region renders Ample Financing Opportunities
From 2021 to 2031, Asia Pacific is anticipated to see the highest CAGR of 6.1%. The increasing need for government cars in nations like China, India, and Japan is responsible for this growth. The North American region is also anticipated to hold the highest share in 2020, at 33.5%, and is anticipated to expand at a CAGR of 5.0% from 2021 to 2031. The rising demand for government cars in the US and Canada is to blame for this expansion.
COVID-19 Impact and Market Status
The market for tyres for government vehicles has been significantly impacted by the COVID-19 outbreak. Tire production has decreased as a result of the lockdown imposed by various governments throughout the world to stop the virus' spread, and the supply chain has also been impacted. As a result, there is a tyre shortage on the market, which has driven up tyre prices. The pandemic is anticipated to hurt the aftermarket for tyres for government vehicles since government spending on repairs and maintenance is anticipated to decline.
Recent Developments in the Government Vehicle Tires Market
• The new line of MICHELIN® X® Line Energy T tyres from Michelin North America Inc. was unveiled in September 2021 and is intended for government delivery vehicles like utility, sanitation, and postal service trucks. Up to 30% less gasoline is used, and the tread life is extended with the new tyres.
• Bridgestone Americas, Inc. unveiled its new line of FirehawkTM FD691 all-position commercial truck tyres in May 2021. These tyres were created especially for fire trucks and other emergency vehicles. The new tyres provide better handling and traction as well as increased tread life and chip and puncture prevention.
• The new series of CONTI-GOVERNMENTAL Master truck tyres from Continental AG was introduced in March 2021. These tyres are intended for use on military, police, and fire trucks. The new tyres provide better handling, grip, and tread life in addition to being more resistant to chipping and perforations.
• The Continental HDR2 commercial vehicle tyre will go on sale in April 2021, according to Continental AG. The tyre comes in size 285/75R24.5 and is intended for Class 8 vehicles like semi-trucks. The tyre has an 18/32" tread depth and is designed for 80 mph top speeds.
• The Pirelli Carrier 2 is a new commercial vehicle tyre that Pirelli & C. SpA will begin selling in March 2021. The tyre comes in size 285/75R24.5 and is intended for Class 8 vehicles like semi-trucks. The tyre has a 20/32" tread depth and is intended for 80 mph top speeds.
• Michelin announced in January 2022 that it would begin operations in Northern Ireland with an investment of €205 million. The business intended to use this investment to build a factory with a capacity of one million tyres and increase its production capacity in Europe.
Government Vehicle Tires Market Scope
|Revenue forecast in 2031
|USD 10.79 billion
|CAGR of 5.8% during 2021-2031
|Type, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Yokohama Rubber Co., Ltd., Bridgestone Corporation, Sumitomo Rubber Industries Ltd., Michelin, Continental AG, The Goodyear Tire & Rubber Company, Hankook Tire Co. Ltd., Cooper Tire & Rubber Company, and Pirelli & C. S.p.A.
Key Segment of Global Government Vehicle Tires Market
By Type Overview (USD Billion)
• OE Tyre
• Replacement Tyre
By Application Overview (USD Billion)
• Police Vehicle
• Fire Vehicle
• Sanitation Vehicle
• Utility Vehicle
• Military Vehicle
• Postal Service Vehicle
By Region Overview (USD Billion)
• Rest of Asia Pacific
• Rest of North America
• Rest of Europe
Middle East and Africa