San Francisco, California - The global automotive tire market is set to reach $374.22 billion (€328 billion) by 2024 according to a new report by US-based market research agency, Grand View Research.
Increasing car sales, particularly in countries such as China, India, Japan, and South Korea, is expected to drive the tire market over the forecast period.
The increasing mobility can be attributed to rising disposable income and improvement in the overall lifestyle of consumers.
The report also cited technological improvements and the development of innovative and environment-friendly green tires as contributors the growth of the sector.
However, stringent emission norms by governments and regulatory authorities worldwide are expected to challenge demand.
In the passenger car and light vehicle segment, the report’s findings suggest that passenger cars dominated the industry with over 40-percent revenue share in 2015. The increasing success of plug-in cars has also added to the market gain.
The report anticipated that the two-wheelers segment would grow at CAGR of over 7.5 percent between 2016 and 2024. The growth will be mainly driven by increasing demand India and China.
With the presence of a number of prominent car-makers and ancillaries in the region, Asia Pacific is expected to continue its dominance in the industry. The region contributed to over 40 percent of global revenue in 2015.