Automotive Tyre Market Report

Tyre Pressure Monitoring System (TPMS) installed in many modern vehicles provides the alert for under-inflated tyres. Advanced systems provide real-time tyre pressure and temperature information, thus enabling optimum performance and safety for the tyre. Digital tyres are much more than just regular tyres embedded with sensors and sophisticated technologies that enable them to communicate real-time information on the tyres to the driver and control systems of the vehicle. It can include data on tyre pressure, wear and tear, temperature, and a lot more which ensures drivers are informed instantly in case something is wrong with the tyres. Digital tyres adapt to changes in road conditions for increased grip, reduced wear, and a smoother ride which in turn, help to achieve better fuel efficiency since optimal conditions of the tyres will be maintained. With the world shifting toward driverless vehicles, digital tyres will feature among the important things that will ensure these driverless cars work to their fullest abilities.

Run-flat technology for tyres is changing this game rather quickly as they are designed to deal with the challenges on the road even in the event of a puncture. Reinforced sidewalls coupled with innovative construction enable the run-flat tyre to support the weight of the vehicle over a limited distance, giving you the ability to get to a safe location for repair or replacement. The idea of self-inflating tyres is already realized into military-grade and industrial tyres and is ready for commercial use. The self-inflated tyre uses a sensor named Automatic Pressure Regulator (APR), which recognizes whether the pressure in the tyre is too low. It also contains a pressure relief valve that lets air out when the pressure is too high. With the increase in the number of electric and hybrid vehicles, the demand for advanced tyres also increases. The EVs have high torque and are quiet, so that would demand a quiet, low-resistance tyre that has the ability to cling on the road. That's where this incredibly sticky substance called silica comes in which is initially used for high-performance sports car tyres, but with the need for greater fuel efficiency, silica has found a new purpose with low rolling resistance tyres commonly found on electric and hybrid cars. These tyres are found on the brand-new Tesla 3 which offers the best fuel efficiency and performance for the most high-tech car.

The tyre industry essentially needs natural rubber, synthetic polymers, and a long list of other raw materials whose prices may fluctuate wildly due to geopolitical tensions, disruptions in supply chains, and shifts in global demand. Governments around the world are implementing increasingly demanding laws that affect tyre performance, safety, and environmental footprint. The correspondence of these regulations, to a large degree, requires huge investments in R&D in order to provide new-generation tyres. Moreover, demands for sustainability are putting more pressure on developing green materials and processes, which may be very costly and challenging to scale up. The industry is also struggling to overcome the growing concern of tyre waste, since at the end of their use, tyres pose a great problem of disposal and recycling. The challenge remains the optimum grip and traction on wet, dry, or icy surfaces under various driving conditions. Ensuring that tyres perform well under diverse conditions without compromising safety is complex and requires extensive testing and innovation. Low rolling resistance is of great help to improve fuel economy in EVs, and hence their range but traction and handling must not be sacrificed to achieve low rolling friction.
 
Completely minimizing road noise runs a risk to performance and safety, and there is a need for balance by the manufacturer in tread pattern design and types of materials that reduce noise without necessarily affecting other performance features. Another major challenge would be developing tyres that resist premature wear but still maintain performance within their lifetime. Tyres, when in operation, produce heat that influences their performance and durability. In this regard, good heat management is important in order to avoid overheating. Tyres must also support impacts such as potholes and road debris without sustaining damage. Tyre blowouts and other failures pose significant safety risks and ensuring that tyres are resistant to sudden failures under normal and extreme conditions is a major challenge. This includes designing tyres to handle high speeds, heavy loads, and varying environmental conditions while minimizing the risk of catastrophic failures. The tread pattern and depth are crucial for safe driving as shallow or worn-out treads can reduce grip and increase the risk of hydroplaning in wet conditions. Regular monitoring and maintenance are necessary to ensure that tyres provide adequate tread depth and performance.

The automotive tyre market has developed immensely due to technological advancement, sustainability initiatives, and changing consumer preferences. Among the most astonishing changes is the inclination towards 'green' tyre manufacturing. Companies are continuously looking for avenues to make use of more sustainable material-to-content, such as bio-based rubbers and recycled plastics in contributing towards the making of tyres less harmful to the environment. Sensors and IoT technology allow us to observe the condition of the tyres in real-time, therefore predicting maintenance as well as safety. This technology will be capable of alerting drivers who use their tyres under-inflated or unevenly worn, hence improving the performance as well as the safety of a vehicle.

In June 2024, JK Tyre & Industries launched a new tyre collection tailored to cater to the changing requirements of the transportation industry. JK Tyre intended to enhance its Truck & Bus Radial selection by adding four new versions: JETWAY JUM XM, JETWAY JUC XM, JETSTEEL JDC XD, and the innovative JETWAY JUXe designed for electric buses. In June 2024, Pirelli released the P Zero Winter 2, an updated version of the well-known winter tyre designed for high-performance vehicles. Pirelli's research and development team utilized virtual modelling to develop a product that is distinct from its previous version, which had proven to be highly effective in various scenarios.

According to the European tyre and Rubber Manufacturer’s Association the top 75 tyre companies worldwide are located in 25 different countries, with 24 of them based in China, including four in the top rankings 10 are in India, 5 in Taiwan, 4 in both the United States and Japan, and 3 in both Russia and South Korea joined by 9 in the EU and its Potential Member States. Asia Pacific region has shown maximum growth in the automotive tyre market, due to a rapid expansion of automobile production and growing disposable incomes. In the Asia-Pacific region, the largest market is China, accounting for an enormous share of its automotive manufacturing industry is very huge. The demand for passenger cars, trucks, and two-wheelers is driving sales of tyres, while government initiatives for electric vehicles further escalate the market potential. In addition, countries like India and Japan are facing a rise in demand for high-performance tyres due to be quality-conscious consumer base. Fluctuating raw material prices and intense competition may, however, act as challenges to the automotive tyre market. The market is growing rapidly with the influence of regional factors like the level of the economy, the production of vehicles, the preferences of consumers, and regulatory standards.

Demand for light and heavy-duty vehicles is the major growth impetus of the automotive tyre market in North America. This market is dominated by the United States, primarily due to the country's significant market share for the automobile industry and consumer propensity to opt for high-performance as well as all-season tyres. Furthermore, the adoption of electric vehicles also follows the trend of increasing tyre innovations with regard to specific tyres aiming to improve the efficiency and range of EVs. According to the International Energy Agency electric car sales have typically accounted for 15-20% of the total global annual sales.

Moreover, strict regulations concerning fuel efficiency and safety are turning out to be motivating factors for consumers to invest in advanced tyre technologies, like low rolling resistance tyres. The strong environmental regulations and the sentiment of sustainability in European countries have made this region's market for automotive tyres extremely demanding. Such a region, being at the forefront in the application of eco-friendly technology, is forcing tyre manufacturers to design environment-friendly products that are made from sustainable materials. Increasing electric and hybrid vehicles are further increasing the demand for specialized tyres, which will enhance energy efficiency. Germany, France, and the UK are considered major growth contributors. These countries have high ownership rates of vehicles and emphasize safety and performance. Online tyre retailing has rapidly shifted the market, making it much more convenient and competitively priced for consumers.