Leatherhead, UK – Global tire market volume is poised to show 3.4% compound annual growth rate between 2017 and 2022, to reach 2.7 billion units, according to Smithers Rapra.
In a report titled “The future of global tires to 2022”, Smithers Rapra said growth would be faster in value terms, due to “a firmer raw material-price outlook than in the recent past.”
Market value, which currently stands at $223 billion (€189 billion), is expected to rise to $267 billion in 2022 – a 3.7% compound annual growth rate.
Global consumption of raw materials by the tire industry is also expected to grow, tracking the uptrend in tire market volume.
According to the report, tire manufacturers’ consumption of raw materials is set to grow 3.8% year from 2017’s estimated 45.2 billion tonnes to 54.5 billion tonnes in 2022.
The report went on to highlight potential growth in demand for certain tire compound ingredients, particularly highly dispersible silica (HDS).
“Although already well established in some regions and sectors, there is still considerable scope for further expansion of this fuel- and emission-saving technology,” said the report, referring to HDS.
Demand for the material is expected to grow “significantly faster” than all other raw materials at almost 10% per year through to 2022.
Similarly, silane coupling agents, where further innovations are being pursued, are increasingly in demand.
The highest growth for these materials, the reported noted, will be seen in regions with the most potential for further penetration of low rolling resistance tires, such as Asia-Pacific.
Europe will see the slowest growth as low-rolling-resistance technology is “most established” there.
In terms of tire-type, speciality tires, including high-performance and premium versions of tires are gaining particular momentum in the market.
Specialised tires, such as green low rolling resistance tires, runflats and winter tires are also showing rapid growth.
Other categories of tires showing above-average growth rates are OTR (off-the-road) tires and aircraft tires, the report noted.