The latest market report from Smithers Rapra indicates the global tyre market will continue to adapt to challenges across a complex matrix of tyre types, end uses and regional markets.
The report, The Future of Global Tyres to 2022, estimates the market will reach over 2.2 billion units by 2017 with volume growth expected at a 3.4% compound annual rate from 2017 through to 2022.
In 2022, total global industry tyre volume will approach 2.7 billion units, according to Smithers data. Market value will grow somewhat faster due to a firmer raw material price outlook than in the recent past, Smithers Rapra says.
It will rise from $223 billion in 2017 to $267 billion in 2022 at a 3.7% annual compound growth rate. Growth will be grounded by the mature and traditionally technologically advanced markets (such as the US, Western Europe and Japan), but increasingly dominated by volume and innovation in emerging markets in Asia, primarily China. Premium and high-performance tyre growth in North America and Europe will remain a strong.
Global consumption of raw materials for tyre manufacturing is expected to grow from an estimated 45.2 billion tons in 2017 to 54.5 billion tons, approximately 3.8% per year, Smithers Rapra says.
The share composition of materials will remain fairly stable through to 2022, with exceptions for some materials that are used in energy (green) tyres where low rolling resistance continues to gain importance. With rolling resistance reductions increasingly sought by vehicle manufacturers and end users, highly dispersible (HD) silica (or HDS) will become an increasingly important raw material along with other innovative materials.