Global Tire Market to Grow at CAGR 8.4% till 2021
Anticipated
increase in the tire production capacity, growing vehicle sales and expanding
automobile fleet to propel global tire market over the next five years
According to TechSci
Research report, “Global Tire Market Forecast and
Opportunities, 2021’’, global tire market is forecast to grow at a
CAGR of 8.4% in value terms during 2016-2021.. On the basis of vehicle
type, the global tire market is broadly classified into six categories – passenger
car tire, light commercial vehicle (LCV) tire, medium and heavy commercial
vehicle (M&HCV) tire, two-wheeler tire, three-wheeler tire and the OTR tire.
During 2011-2015, both automobile production and sales grew at sluggish pace,
globally. Key reasons for weak demand can be attributed to Eurozone crisis and slump
in the crude oil prices post 2013. As a result, the global automobile
production and sales grew at a CARG of 1.37% and 2.59%, in the volume terms,
during 2011-2015, respectively. Backed by slow growth in automobile production
and sales, the global automobile fleet (excluding two-wheeler and
three-wheeler) exhibited a CAGR of 3.79% during the same period.
Crude oil prices
declined from above US$ 100 per barrel levels in 2011 to sub US$ 50 per barrel
levels in 2015, thereby exhibiting a negative CAGR of over 16% during
2011-2015. As a result, the Middle-East region witnessed decline in the revenue
generated from the oil sector. As a result, expenditure for construction and
infrastructure sectors shrunk, which impacted the sales of OTR, LCV and
M&HCV vehicles and related products such as tires across the region. Further, in 2009, Europe
suffered one of the worst economic meltdowns, commonly referred to as the
Eurozone Crisis. Though the crisis impacted the entire region, Portugal, Italy,
Ireland, Greece and Spain were among the most severely affected countries. The
European economy suffered a slump, and multiple public as well as private banks
declared bankruptcy, which impacted various sectors, consequently restraining
growth in Europe’s automobile and related components market over the last five
years. However, the region witnessed signs of revival in 2013 due to several
bailout packages offered by the European Union and the International Monetary
Fund (IMF).
“The global automobile market
is poised to grow at a brisk pace over the next five years, backed by anticipated
stabilization of crude oil prices and growth in the global economy, which is
expected to augment demand for automobiles and increasing consumer spending, and
consequently, boost sales of tire in the coming years.” said Mr. Karan Chechi,
Research Director with TechSci Research, a research based global management
consulting firm.
“Global Tire Market Forecast and Opportunities, 2021” has evaluated the future growth
potential of tire market and provides statistics and information on market
size, consumer behavior and trends. The report intends to provide cutting-edge
market intelligence and help decision makers take sound investment evaluation.
Besides, the report also identifies and analyzes the emerging trends along with
essential drivers, challenges and opportunities in the global tire market.
About TechSci Research
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