The global tire market is forecast to surpass $ 319 billion by 2022 on account of anticipated rise in vehicle sales and expanding vehicle fleet, especially in Asia-Pacific region, during the forecast period. In 2016, the global tire market was also dominated by Asia-Pacific region. The region accounts for more than 60% of the tire manufacturing plants due to ample rubber production, low labor cost and favorable government policies.
Global tire market witnessed a marginal growth during 2012-16, predominantly due to prevailing effects of Eurozone Crisis and slump in the crude oil prices which impacted the global automobile industry. These factors cumulatively resulted in weak demand for tires across Europe, Africa and Middle-East, which restricted the growth of global tire market over the last five years. However, the tire market in Asia-Pacific region exhibited a steady growth during the same period. Apart from the increasing penetration of flagship tire brands such as Bridgestone, Michelin, Goodyear, Continental, Yokohama, Kumho, etc., the global tire market is witnessing increasing inflow of Chinese tire brands across all major geographies.
Demand for Chinese tires has been growing across the globe over the last five years, majorly due to lower prices of Chinese tires compared to flagship tire brands. Additionally, increasing per capita income and anticipated increase in new vehicle launches are few of the other factors expected to drive global tire demand over the next five years.
It is forecast that Asia-Pacific would continue its dominance in the global tire market over the next five years, owing to anticipated increase in the region's vehicle production, sales and vehicle fleet. Passenger car tire segment accounts for majority of the tire sales and the trend is forecast to prevail through 2022 across Americas, Europe, APAC and MEA. In 2016, Bridgestone grabbed the largest share in the global tire market, followed by Michelin, Goodyear, Continental, Hankook, Pirelli, Kumho and Sumitomo.