The Tire Industry in 2023

The tire industry is a global industry that manufactures and distributes tires for a variety of vehicles, including cars, trucks, buses, and aircraft. The industry is highly competitive, with a number of major players vying for market share.

Overall market trends

The global tire market is expected to grow at a CAGR of 4.6% from 2022 to 2029, reaching a value of $250 billion by 2029. This growth is being driven by a number of factors, including:

• Increasing demand for vehicles, both in developed and developing countries
• The rise of electric vehicles, which require different types of tires than traditional gasoline-powered vehicles
• Government regulations aimed at improving fuel efficiency and reducing emissions

Key trends in the tire industry

There are a number of key trends that are shaping the tire industry today. These include:

• The shift to sustainable tires: Tire manufacturers are increasingly focusing on developing tires that are more sustainable, using recycled materials and manufacturing processes.
• The rise of connected tires: Connected tires are tires that can communicate with the vehicle's onboard computer. This data can be used to improve safety, fuel efficiency, and tire maintenance.
• The growth of the aftermarket: The aftermarket tire market is growing faster than the original equipment (OE) market. This is due to the increasing lifespan of vehicles and the growing popularity of performance tires.

Challenges facing the tire industry

The tire industry faces a number of challenges, including:

• Rising raw material costs: The cost of raw materials used in tire production, such as rubber and steel, has been rising in recent years. This is putting pressure on tire manufacturers' margins.
• Competition from low-cost producers: Tire manufacturers in developing countries are able to produce tires at lower costs than their counterparts in developed countries. This is putting pressure on tire manufacturers in developed countries to reduce their costs.
• Government regulations: Governments around the world are increasingly imposing regulations on tire manufacturers, aimed at improving safety and reducing emissions. These regulations can add to the cost of production and make it more difficult for tire manufacturers to compete.

Despite these challenges, the tire industry is expected to continue to grow in the coming years. This growth will be driven by the increasing demand for vehicles and the rise of electric vehicles. Tire manufacturers that are able to develop sustainable and connected tires will be well-positioned to succeed in this growing market.

References

• Tire Industry Association: https://www.tireindustry.org/
• P&S Intelligence: https://www.psmarketresearch.com/
• National Bureau of Economic Research: https://www.nber.org/
• Statista: https://www.statista.com/
• IBISWorld: https://www.ibisworld.com/

Conclusion

The tire industry is a complex and dynamic industry that is facing a number of challenges. However, the industry is also expected to continue to grow in the coming years, driven by the increasing demand for vehicles and the rise of electric vehicles. Tire manufacturers that are able to develop sustainable and connected tires will be well-positioned to succeed in this growing market.

If you need an agency that understands your industry then you need ME, and Tucker Albin & Associates.

Natasha Salem

Commercial Business Development Tucker, Albin & Associates Inc.

Office: 303-502-5663 ?ext 146