|
Forecast Period
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2024-2028
|
|
Market Size (2022)
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USD 1,823 Million
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CAGR (2023-2028)
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4.58%
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Fastest Growing Segment
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Scooters
|
|
Largest Market
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Brazil
|
Market Overview
The Latin America two-wheeler tire
market achieved a value of USD 1823.85 million in 2022 and is anticipated to
reach USD 2342.92 billion by 2028, with a projected CAGR of 4.58% during the
forecast period. This growth can be attributed to the increasing preference for
radial tires over bias tires, driven by benefits like reduced fuel consumption,
improved traction, and lower rolling resistance. Radial tires also face fewer
regulatory restrictions in many countries. Additionally, the rising demand for
electric two-wheelers is boosting the need for new tires in the Latin American
region. There's a growing emphasis on sustainable materials in tire
manufacturing, with the use of substances like silica and soybean oil,
resulting in improved tire quality in terms of grip, slip resistance, and heat
dissipation. In the demand category, the replacement segment held the largest
market share at 80.45% in 2022 and is expected to maintain dominance due to
increased two-wheeler usage in logistics and ride-hailing services. Brazil
leads the market with a substantial 46.19% market share in 2022 and is
projected to grow at a CAGR of 5.04% from 2023 to 2028.
The Latin America two-wheeler tire
market represents a vital segment of the region's automotive industry, driven
primarily by the significant use of motorcycles and scooters for personal
transportation and commercial purposes. This market encompasses a diverse range
of two-wheeler vehicles, including motorcycles, scooters, and electric bikes,
and is characterized by various factors shaping its dynamics. One of the key
drivers of the Latin America two-wheeler tire market is the region's growing
urbanization and population density. In densely populated urban areas,
two-wheelers are often preferred as a practical and cost-effective means of
transportation, particularly for navigating through traffic congestion. This
trend is particularly pronounced in countries like Brazil, Mexico, and
Colombia, where motorcycles and scooters serve as essential modes of daily
commuting.
Moreover, economic factors play a
crucial role in the demand for two-wheeler tires in Latin America. The
affordability and relatively low operating costs of motorcycles and scooters
make them accessible to a broad demographic, including individuals with limited
disposable income. This affordability factor contributes to the sustained
demand for two-wheelers and their associated tires. Environmental concerns and
fuel efficiency are emerging as influential factors in the Latin America
two-wheeler tire market. As environmental awareness grows, consumers are
increasingly seeking fuel-efficient and eco-friendly options. Motorcycle and
scooter manufacturers are responding by designing more fuel-efficient models,
which require tires that can maximize mileage while providing adequate grip and
durability. This demand for eco-friendly and energy-efficient tires is likely
to drive innovation within the market.
However, challenges persist in this
market. Safety concerns, including accidents related to two-wheelers, have led
to increased government scrutiny and regulations. Ensuring the safety of riders
and passengers is paramount, and this has prompted manufacturers to develop
tires with enhanced traction and braking capabilities. Additionally, the market
faces competition from other forms of transportation, including public transit
options and rideshare services. In conclusion, the Latin America two-wheeler
tire market is characterized by its reliance on motorcycles and scooters for
urban mobility and cost-effective transportation. While affordability and
urbanization continue to drive demand, factors like environmental awareness and
safety concerns are shaping the market's future. Meeting these evolving
consumer expectations and regulatory standards will be essential for tire manufacturers
operating in this dynamic and competitive landscape.
Key Market Drivers
Increased Demand for Radial Tires
The rising demand for radial tires can
be attributed to their advantages, including low rolling resistance, which
significantly enhances overall fuel efficiency by reducing fuel consumption by
approximately 8-10% compared to other tire types. Additionally, radial tires
offer superior traction, making them increasingly popular among consumers.
Manufacturers of two-wheeler tires are increasingly focusing on this tire
segment due to its growing popularity. Furthermore, compliance with regulatory
standards for radial tires is relatively straightforward for manufacturers,
further driving their adoption. Radial tires also provide better road contact,
improved steering, and enhanced driving comfort, along with increased
resistance against tread-related damage. These factors collectively encourage
two-wheeler manufacturers to prefer radial tires over alternative options.
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Development in Sustainable Tire
Composition
The two-wheeler tire industry's
increasing emphasis on lightweight tire designs, incorporating sustainable
materials, and optimizing end-to-end production processes is effectively
reducing the specific material requirements within the tire manufacturing
sector. These efforts have enabled two-wheeler tire manufacturers to enhance heat
dissipation in their products, leading to reduced carbon black usage.
Typically, carbon black accounts for approximately 22% of a tire's composition,
so reducing its volume not only cuts costs but also contributes to lower
emissions. Another beneficial shift involves the increased utilization of
"silica" components, streamlining the tire manufacturing process
while simultaneously reducing rolling resistance and enhancing cut and slip
resistance, ultimately elevating tire performance. In the case of two and
three-wheeler vehicles, the carbon black content is minimized, given their
lower load-bearing capacity compared to commercial vehicles. Furthermore, many
premium tire brands are adopting more sustainable practices, such as
substituting petroleum-based oils with soybean oil, a change that requires
approximately half the number of petroleum-based oils to achieve the same level
of extension during tire manufacturing. Collectively, these factors drive the
growth of the two-wheeler tire industry in Latin America.
Growth of Two-Wheeler Industry
The growth of the two-wheeler tire
industry in Latin America has been influenced by the in-line growth of the
two-wheeler market across the region. As the tire market operates in parallel
with the automobile industry, the emergence of new two-wheeler manufacturers in
key regional markets has also benefited the overall market. In the future, the
increasing demand for electric Two-Wheelers will provide further growth
opportunities for the two-wheeler tire industry. According to two-wheeler
manufacturers, the demand for more innovative concepts for EVs will also create
a new category of tire series in the market.
Rising Urbanization and Traffic
Congestion
Latin American cities are experiencing
rapid urbanization, leading to increased traffic congestion on roads. As a
result, two-wheelers, such as motorcycles and scooters, have become popular
choices for navigating through crowded urban areas. They offer a practical and
cost-effective solution to commuters seeking to avoid traffic jams. This trend
is particularly evident in megacities like São Paulo, Mexico City, and Buenos
Aires. The demand for two-wheeler tires is directly linked to the growth of
urban populations and traffic congestion, making it a significant driver of the
market.
Affordability and Cost-Effective
Transportation
Two-wheelers are often more affordable
to purchase and operate compared to four-wheelers. This affordability factor
makes them accessible to a wide range of consumers, including those with
limited disposable income. As economic conditions vary across Latin American
countries, many individuals opt for two-wheelers as a cost-effective means of
transportation. The lower initial purchase price and reduced fuel expenses
further boost the demand for two-wheelers, spurring the need for replacement
tires.
Environmental Concerns and Fuel
Efficiency
Increasing environmental awareness is
encouraging consumers to consider more fuel-efficient and eco-friendly
transportation options. Two-wheelers are perceived as having a smaller
environmental footprint compared to larger vehicles. Manufacturers are
responding to this trend by designing more fuel-efficient models, which require
tires that can maximize mileage while offering adequate grip and durability.
Consumers are increasingly seeking tires that contribute to lower fuel
consumption, aligning with their environmental concerns.
Safety Regulations and Tire Improvements
Safety concerns associated with
two-wheelers, including accidents, have led to heightened government scrutiny
and regulatory standards. This has prompted tire manufacturers to develop safer
and more reliable tires with improved traction, braking capabilities, and
resistance against tread-related damage. Meeting these safety requirements is
essential to ensure rider and passenger safety and comply with government
regulations, thereby driving innovation within the tire market.
Growth of Electric Two-Wheelers
The Latin American market is witnessing
a surge in the popularity of electric two-wheelers, including electric scooters
and electric motorcycles. These vehicles are viewed as eco-friendly
alternatives to traditional gasoline-powered two-wheelers. As the adoption of
electric two-wheelers grows, there is a corresponding increase in the demand
for specialized tires designed to meet the unique requirements of electric
vehicles. These tires must offer improved energy efficiency, given the emphasis
on extending the driving range of electric two-wheelers.
Key Market Challenges
Penetration Of Low-Quality Tires
The Latin American two-wheeler tire
market has been significantly influenced by the emergence of budget tire
manufacturers entering the region. These companies provide affordable tire
options, which has created competitive pressure on both global and local tire
manufacturers. The availability of low-cost and lower-quality tires can pose
safety risks, potentially leading to accidents and negatively affecting the
reputation of two-wheeler manufacturers. Consequently, this may hinder the
widespread adoption of two-wheelers in the region. To uphold safety standards,
there is a need for cooperation between tire manufacturers and regulatory
authorities to regulate the distribution of such tires while advocating for the
use of high-quality and safer tire options.
Cost Centric Market
A notable challenge in the Latin America
two-wheeler tire market stems from the volatility in tire manufacturing costs,
primarily driven by restrictions imposed by several countries on the
transportation of materials and components. Additionally, a significant portion
of customers in the Latin American region gravitates toward budget-friendly and
cost-effective tire options. Price-sensitive consumers frequently opt for more
economical choices, creating obstacles for premium and high-quality tire
markets. This exerts pressure on manufacturers to provide competitive pricing
while upholding tire quality. Striking a balance between tire durability and
affordability becomes a critical consideration for companies. These factors
collectively contribute to a deceleration in the market's growth.
Fluctuating Manufacturing Costs
One of the primary challenges in the
Latin America two-wheeler tire market is the volatility in manufacturing costs.
This volatility is often attributed to restrictions imposed by many countries
on the transport of materials and components. These restrictions can disrupt
the supply chain and lead to fluctuations in production costs. Manufacturers
must navigate these hurdles while striving to maintain competitive pricing.
Preference for Budget-Friendly Options
Many consumers in the Latin American
region tend to favor budget-friendly and affordable tire options. Price
sensitivity is high, leading a significant portion of consumers to choose
lower-cost tire models. This preference for affordability can hinder the demand
for premium and high-quality tires, posing a challenge for tire manufacturers
looking to cater to diverse consumer segments.
Price Competition and Margin Pressure
The strong preference for budget-friendly
options places pressure on tire manufacturers to offer competitive prices.
Maintaining profitability while meeting price-sensitive consumer demands can be
challenging. Manufacturers must strike a delicate balance between affordability
and quality to remain competitive in the market.
Regulatory Compliance
Ensuring compliance with regulatory
standards is crucial for tire manufacturers, especially concerning safety and
environmental regulations. Meeting these standards adds complexity to the manufacturing
process and requires ongoing investments in research and development. Failure
to comply with regulations can lead to legal consequences and damage a
manufacturer's reputation.
Balancing Durability and Affordability
Achieving the right balance between tire
durability and affordability is a significant challenge. Consumers seek tires
that are both long-lasting and cost-effective. Tire manufacturers must invest
in research and development to develop durable yet affordable tire solutions.
This can be particularly challenging given the diverse road conditions and
usage patterns in Latin America.
Key Market Trends
Focus on Green Tires and Environmental
Sustainability
Environmental sustainability is a
growing trend that positively impacts the Latin American two-wheeler tire
market. The tire industry's evolution is heavily influenced by technological
advancements, with tire manufacturers increasingly focusing on producing
high-efficiency tires. As these tires ultimately end up in landfills and contribute
to soil degradation issues, there is a growing preference for sustainable tires
across various industries, especially those with high carbon emissions.
Consequently, tire manufacturers are actively developing innovative tire
technologies that offer reduced rolling resistance. Moreover, the adoption of
eco-friendly or "green" tires is on the rise as energy consumption
decreases and environmental awareness grows. The Latin American two-wheeler
tire market incorporates a significant portion of these environmentally
friendly tire options.
Growing Network of Both Major and New
Players
The Latin American two-wheeler tire
market is witnessing significant transformation due to the rapid expansion of
both established and emerging players. The presence of major players, including
renowned tire manufacturers, is growing within the Latin American market,
intensifying competition. These established brands bring their wealth of
experience, strong reputations, and financial resources to the region, posing
challenges to local manufacturers and other international competitors. This
heightened competition serves as a catalyst for tire companies to drive
innovation, enhance product quality, and offer competitive pricing. Ultimately,
consumers benefit from a broader array of choices. Concurrently, the entry of
new players into the Latin American two-wheeler tire market contributes to
market diversification. Emerging manufacturers, particularly from developing
economies, may introduce cost-effective tire options, targeting specific
consumer segments. This diversification fosters a dynamic and competitive
landscape within the market.
Technological Advancements
The tire industry is witnessing
significant technological advancements, particularly in the development of
high-efficiency tires. Tire producers are investing in research and development
to create tires that offer enhanced performance, better fuel efficiency, and
reduced environmental impact. These innovations include improvements in tire
materials, tread designs, and manufacturing processes. As technology continues
to drive improvements, consumers can expect tires that provide better grip,
handling, and durability.
Customization and Personalization
There is a growing trend toward
customization and personalization in the two-wheeler tire market. Consumers are
seeking tires that align with their specific preferences and usage patterns.
This trend is driving tire manufacturers to offer a wider variety of tire
sizes, tread patterns, and designs. It also includes the development of
specialized tires for different types of two-wheelers, such as motorcycles,
scooters, and electric bikes. Personalization allows consumers to optimize
their riding experience, whether it's for urban commuting, off-road adventures,
or high-performance riding.
Preference for Radial Tires
Radial tires are gaining preference over
bias tires in the Latin American two-wheeler market. Radial tires offer several
advantages, including lower rolling resistance, improved fuel efficiency
(resulting in fuel savings of 8-10%), and better traction. These benefits are
contributing to the surge in demand for radial tires. Additionally, regulatory
standards for radial tires are often easier for manufacturers to meet in many
countries, further driving their adoption. Consumers appreciate the improved
road contact, steering response, and overall driving comfort that radial tires
provide.
Segmental Insights
By Vehicle Type
The vehicle type segment in the Latin
America two-wheeler tire market encompasses a diverse range of two-wheeled
vehicles, including motorcycles, and scooters. Motorcycles, with their
versatility and wide-ranging applications, constitute a significant portion of
this segment. They are favored for both daily commuting and recreational
riding. Scooters, known for their compact design and fuel efficiency, cater to
urban commuters seeking convenience. The emergence of electric bikes, driven by
environmental concerns, contributes to the growth of this segment. Each vehicle
type has unique tire requirements, leading to tire manufacturers offering a
wide array of options to cater to the specific needs of these diverse
two-wheeler categories.
By Demand Category
The demand category segment in the Latin
America two-wheeler tire market primarily comprises two categories: original
equipment manufacturer (OEM) and replacement. OEM tires are supplied directly
to manufacturers for installation on new two-wheelers during the production
process. These tires are designed to meet specific vehicle requirements. In
contrast, the replacement segment involves the Replacement purchase of tires to
replace worn-out or damaged ones on existing two-wheelers. The replacement
category holds a substantial share, driven by the need for periodic tire
replacements due to wear and tear. It also offers consumers the flexibility to
choose from a wide range of tire options to suit their preferences and
requirements.
By Tire Construction Type
The tire construction type segment in
the Latin America two-wheeler tire market encompasses two primary categories:
bias and radial tires. Bias tires feature a construction where multiple layers
of fabric cords run diagonally across the tire, providing stability and
durability. They are cost-effective and excel in carrying heavy loads. In
contrast, radial tires are constructed with fabric layers that run
perpendicular to the tire's centerline, offering enhanced performance
attributes such as reduced rolling resistance, improved fuel efficiency, and
better traction. Radial tires are gaining popularity due to their superior
handling and comfort, making them a preferred choice for many riders across
Latin America.
By Country
The country segment in the Latin America
two-wheeler tire market reflects the variations in demand and preferences
across different nations within the region. Countries such as Brazil, Mexico,
and Argentina are prominent markets due to their large populations and
extensive use of two-wheelers for daily commuting. Brazil, in particular,
stands out as a market leader with a significant share. Smaller nations like
Colombia and Peru also contribute to the market's growth, driven by
urbanization and increasing urban mobility needs. Each country exhibits unique
economic conditions, regulatory environments, and consumer behaviors,
influencing the demand for two-wheeler tires and shaping the regional dynamics
of the market.
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Country Insights
Brazil holds a commanding position in
the Latin American two-wheeler tire market. Its prominence is a result of the
country's vast population, significant urbanization, and the widespread use of
motorcycles and scooters for daily commuting. The favorable economic conditions
and ongoing infrastructure development projects further bolster the demand for
two-wheeler tires in this region. Brazil's unique market dynamics make it a
crucial hub for both local and global tire manufacturers.
Mexico, another influential player in
the Latin American market, is experiencing rapid urbanization and a growing
preference for two-wheelers as cost-effective transportation solutions. Its
proximity to the United States also plays a role in shaping the market, as
global and regional tire manufacturers are investing in the Mexican market to
meet the rising demand for two-wheeler tires. This trend underscores Mexico's
significance as a key market within the region.
Argentina presents a robust market for
two-wheeler tires, driven by urbanization and a preference for two-wheelers in
its cities. The country's unique economic conditions and consumer behaviors
contribute to its distinct market dynamics. Argentina's market is characterized
by a growing demand for both motorcycles and scooters, fostering opportunities
for tire manufacturers to cater to this evolving market landscape.
Colombia is emerging as a noteworthy
market for two-wheeler tires, fueled by increasing urban mobility needs and a
growing population. The country's urbanization trends, coupled with the need
for efficient and affordable transportation, are propelling the demand for
motorcycles and scooters. This, in turn, fuels the need for high-quality
two-wheeler tires, creating opportunities for both local and global tire
manufacturers.
Peru, although a smaller market compared
to some of its neighbors, is experiencing steady growth in the two-wheeler tire
segment. The country's urban areas are witnessing a rise in motorcycle and
scooter usage as consumers seek practical and cost-effective transportation
options. Peru's unique economic landscape and regulatory environment contribute
to its specific market dynamics, making it an emerging market to watch within
the Latin American region.
Recent Developments
- In June 2023, A prominent Indian tire
manufacturer uses the Latin Tyre & Auto Parts Expo in Panama as a platform
to promote its line of OHT and two-wheeler tires and to pursue new business
prospects in Latin America markets.
- In June 2023, Nordexx, NDI-owned tire
brand has planned to expand in Latin America Market.
- In October 2021, The LATAM joint
venture's full equity investment will be acquired and controlled by Maxam Tires
Latin America (LATAM), according to its announcement.
Key Market Players
- Bridgestone Americas, Inc.
- Rinaldi
S/A Industria de Pneumaticos
- Pirelli
& C. S.p.A.
- Michelin
Group
- Continental
AG
- Maxxis
International GmbH
- Maggion
Industrias de Pneus e Maquinas Ltda
- Pneus
Technic
- Kenda
Rubber Industrial Co. Ltd.
- Borilli Group
|
Vehicle
Type
|
By
Demand Category
|
By
Tire Construction Type
|
By
Country
|
|
|
|
|
- Brazil
- Colombia
- Mexico
- Argentina
- Peru
- Chile
|
Report Scope:
In this report, the Latin America Two-Wheeler Tire
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- Latin America Two-Wheeler
Tire Market, By Vehicle Type
o Motorcycles
o Scooters
- Latin America Two-Wheeler
Tire Market, By
Demand Category:
o OEM
o Replacement
- Latin America Two-Wheeler
Tire Market, By
Tire Construction Type:
o Radial
o Bias
- Latin America Two-Wheeler
Tire Market, By Country:
o Brazil
o Colombia
o Mexico
o Argentina
o Peru
o Chile
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Latin America Two-Wheeler Tire Market.
Available Customizations:
Latin America Two-Wheeler Tire Market report with
the given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
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Two-Wheeler Tire Market is an upcoming report to be released soon. If you wish
an early delivery of this report or want to confirm the date of release, please
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