Several factors contribute to the expansion of the replacement tyre market for passenger cars. The market is expanding as a result of the rising demand for passenger cars, luxury cars, and commercial vehicles. The preference for radial tyres versus bias tyres has also increased due to the increased focus on safety and fuel economy. Government policies that support low-rolling resistance tyres are also advancing the market.
Replacement tyres are required for passenger vehicles. The increasing demand for passenger automobiles and commercial vehicles is what propels the market. People are choosing passenger vehicles more frequently to meet their mobility demands as a result of growing urbanisation and rising disposable incomes. Since replacing tyres is a crucial component of automotive maintenance, the rising use of passenger cars has also raised the demand for replacement tyres. The need for tyres has also increased dramatically as a result of the development of autonomous vehicles and electric vehicle technology. As a result, during the period of forecasting, the market is anticipated to experience rapid expansion.
Replacement tyres for passenger cars are made to satisfy a range of driving requirements, such as performance and safety. Replacement tyres come in a variety of sizes and designs, including bias and radial tyres. Bias-ply tyres include many layers of cloth cords that cross the tread pattern diagonally and offer good traction on slippery terrain and bumpy roads.
The replacement tyre market for passenger vehicles is anticipated to increase at a CAGR of 4.72% between 2021 and 2031 and reach USD 135.01 billion by that time.
The primary drivers of the market's expansion are the rising demand for passenger automobiles and the expansion of the commercial vehicle segment. The tyres that require replacement as they wear out or are damaged are known as replacement tyres.
Increasing costs for labour and raw materials, as well as price fluctuations brought on by unstable exchange rates, are some of the main issues the replacement tyre market for passenger vehicles is currently dealing with. Radial tyres typically require more repairs than bias tyres because of their relatively low durability. During the forecast period, this issue is also anticipated to limit the market for replacement passenger vehicle tyres. The expansion of the passenger car replacement tyre industry in the upcoming years is also likely to be hampered by strict government restrictions governing tyre safety. But in the upcoming years, it is anticipated that the integration of intelligent tyres with sensors that can detect weather conditions and tyre pressure would create new market prospects.
The Nokian Tyres plc, Kumho Tire Co., Inc., Toyo Tire & Rubber Co., Ltd., Goodyear Tire & Rubber Company, Continental AG, Pirelli & C. S.p.A, Bridgestone Corporation, Hankook Tire Co., Ltd., Yokohama Rubber Co., Ltd., and Michelin Group are some of the major players in the passenger vehicle replacement tyre market. To increase their consumer base and diversify their product offerings, these firms frequently engage in mergers and acquisitions, agreements, engagements, new launches, & technology.
The Radial Tire Type emerged as the Most Booming Segment
Radial tyres are anticipated to dominate the replacement tyre market for passenger vehicles over the forecast period. They are the favoured option for passenger automobiles because of their higher performance and improved traction on wet roads. Additionally, the market for replacement passenger vehicle tyres is anticipated to rise as a result of the rising demand for commercial vehicles.
The Most Prominent Application is the Passenger Cars
Passenger automobiles are anticipated to rule the market in terms of application during the forecasted period. This is mainly because there is a surge in demand for replacement tyres as a result of the rising demand for passenger automobiles. The industry is expanding due to rising commercial vehicle demand as well. Likewise, the rising popularity of electric vehicles is creating prosperous chances for expansion in this industry. The market for replacement passenger vehicle tyres is anticipated to increase even more as a result of tyre manufacturers' rising spending on R&D.
The APAC Region to render Ample Financing Opportunities
During the projection period, the Asia Pacific region is anticipated to be the largest and fastest-growing regional market. The rising demand for passenger cars, government programmes encouraging the use of electric cars, and the existence of significant tyre producers in nations like China and India are the main causes of this. Additionally, improving road infrastructure and rising levels of disposable income are some other elements boosting regional market expansion.
COVID-19 Impact and Market Status
The demand for new tyres for passenger vehicles has been significantly impacted by the COVID-19 outbreak. Tire sales have decreased as a result of the pandemic's extraordinary decline in demand for passenger cars. The prolonged lockdowns imposed by governments around the world have caused production facilities to shut down and supply lines to become disrupted. Costs have increased as a result of the reduction in tyre production and availability. The market is anticipated to rebound from the crisis when economic activity gradually picks up again and government regulations are relaxed. Growth opportunities are being created shortly by the rising demand for replacement tyres for electric vehicles. The market will experience growth in the upcoming years as a result of increased investments in R&D by international tyre manufacturers.
Recent Developments in the Passenger Vehicle Replacement Tire Market
• Bridgestone Corporation, a prominent automotive service and retail company in the US, announced the acquisition of Pep Boys in November 2020. By growing its clientele, Bridgestone will be able to enhance its position in the replacement tyre market for passenger vehicles, which is anticipated to spur growth during the projection period.
• The debut of the ContiPremiumContact 6 tyre for passenger car replacement tyres was announced by Continental AG in February 2021. Wet grip, fuel economy, and handling performance are all improved by the product. During the forecast period, this is anticipated to further strengthen the company's foothold in the global market.
• Groupe PSA and Michelin announced their partnership to supply replacement tyres for each other's automobiles in March 2021. This deal is anticipated to increase the company's market share in the replacement tyres market for passenger vehicles and broaden its clientele, both of which will fuel growth over the projection period.
Passenger Vehicle Replacement Tire Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2031||USD 135.01 billion|
|Growth Rate||CAGR of 4.72% during 2022-2031|
|Segment Covered||by Type, by Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Nokian Tyres plc, Kumho Tire Co., Inc., Toyo Tire & Rubber Co., Ltd., Goodyear Tire & Rubber Company, Continental AG, Pirelli & C. S.p.A, Bridgestone Corporation, Hankook Tire Co., Ltd., Yokohama Rubber Co., Ltd., and Michelin Group|
Key Segments of the Global Passenger Vehicle Replacement Tire Market
Type Overview, 2021-2031 (USD Billion)
- Radial Tire
- Bias Tyre
Application Overview, 2021-2031 (USD Billion)
- Passenger Cars
- Commercial Vehicles
Regional Overview, 2021-2031 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa
- South Africa