The global tire reinforcement materials market is forecast to grow at a CAGR of 4.3% during the period 2016-2020.
Commenting on the report, an analyst from the research team said: One of latest trends in the market is increasing demand for eco-friendly tires. Eco-friendly tires are those tires in which the rubber compound contains natural or recycled products and can also contain non-aromatic oils. Owing to growing environmental concerns, vendors are shifting toward the use of natural and recycled materials to manufacture tire. This decreases fuel consumption by reducing rolling resistance, enhances tire performance and lessens greenhouse gas emissions.
According to the report, one of the primary drivers in the market is growth in automotive industry. The automotive industry is growing due to the increasing sales of passenger and commercial vehicles worldwide. In terms of units, an estimated 89.68 million vehicles were sold in 2015. The number is expected to rise to 108.31 million by 2020. Rising per capita income and population growth are expected to increase the acceptance of vehicles.
Further, the report states that one major challenge in the market is volatile raw material prices. The volatile prices of raw materials for tire manufacturing pose a major threat in the tire reinforcement materials market. Rubber is one of the major raw materials used for manufacturing tires and accounts for over 60% of the manufacturing cost of tires. The increase in prices of rubber is affecting the profit margins of vendors. The price hike in crude oil has also affected the profit margins of vendors as crude oil derivatives are used in tire manufacturing.
The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to a SWOT analysis of the key vendors.
What will the market size be in 2020 and what will the growth rate be?
What are the key market trends?
What is driving this market?
What are the challenges to market growth?
Who are the key vendors in this market space?
What are the market opportunities and threats faced by the key vendors?
What are the strengths and weaknesses of the key vendors?