Commercial tires set to lead 8% U.S. tire market growth
The U.S. tire market is set for a compound annual growth rate of eight percent from 2015 to 2020, according to a new forecast.
Global market research and consulting company TechSci Research released its latest analysis of 80 tire markets around the world last week, with the $50 billion U.S. market looking in pretty good shape over the next four years — even if growth will be slower than the industry might like.
Four main factors behind tire market growth
Karan Chechi, research director at TechSci Research, said there were four main factors behind the expected U.S. tire market growth, including growth in the automobile market, the growing construction and infrastructure sector, declining gasoline prices and the swelling demand for retread tires.
Chechi predicted commercial tires would lead the growth.
“The passenger car tire segment captured over 80 percent of the market in 2014, while medium and heavy commercial vehicles tires are forecast to be the fastest growing segment,” he said.
“(It) is projected to grow at over 8.5 percent during 2015 to 2020.”
Chechi did not predict any significant change in market share for any of the major tire manufacturers during the forecast period.
“However, Goodyear and Cooper are expected to witness an incline, while the market share of Bridgestone may fall.”
International tire market experiencing “ups and downs”
The 80 global reports show the tire industry is witnessing a “lots of ups and downs” with declining growth in mature markets like the U.S., Canada, Australia and emerging economics like India, China and Vietnam emanating new growth spectrums.
The company said the past decade had proven “to be quite interesting for many companies riding on the back of manufacturing growth in China” but predicted a price stabilization for natural rubber thanks to changing market dynamics and the announcement Indonesia, Malaysia and Thailand had pledged to reduce natural rubber exports by 615,000 tons until August 2016.
Get the report
The TechSci report is one of the industry’s most trusted forecasts and is used by Michelin, Continental, Goodyear, Hankook, Bridgestone, Pirelli, Sumitomo, Giti and many other tire manufacturers around the world.
For a copy of the full TechSci report, visit the company’s website.