Report says UHP tire market set to triple over next decade

Dubai, UAE – The global ultra-high performance (UHP) tire market is poised to reach nearly $30 billion (€25 billion) by 2031, driven in part by demand from professional racing activities.

The market is expected to top $10.4 billion this year, up 10% compared to 2020, found a recent report by Dubai-based Future Market Insights (FMI).

Increasing number of professional automotive racing activities such as Formula 1 and NASCAR as well as a substantial rise in demand for sports cars and SUVs are contributing to the market growth, the report added.

According to FMI, the sales of ultra-high performance tires grew at a compounded annual growth rate (CAGR) of 3.7% over the past half-decade. 

But the shift of consumer preference to “high performance” automotive components to enhance the driving experience and comfort is propelling the product demand. 

In response to this trend, the report said, the sales of UHP tires are projected to rise at CAGR of 10.9% during the forecast period from 2021 to 2031. 

According to FMI, all-season tires are estimated to emerge as the most preferred tire type, projecting sales growth at CAGR of 11.6% through 2031. 

Primary factor driving the segment growth is the ability to provide high performance on both dry and wet roads, making them ideal for all types of weather conditions.

"Leading tire manufacturers are increasingly investing in research and development (R&D) activities to introduce high quality tires with anti-puncture and high durability features,” said the report. 

These efforts, it added, are expected to bode well for the market growth.

China is anticipated to account for around one-third of sales in the East Asia market, creating an incremental opportunity of more than $1 billion by 2031. 

The US is expected to dominate the market in North America, accounting for nearly 81.5% of the overall sales in 2021. 

Germany, home to the top automotive manufacturing companies, is estimated to account for just under 18% of the total revenue share across Europe by 2031.
 
In terms of car type, sports cars are forecast to emerge as the most remunerative segment, creating an opportunity of over $11.3 billion through to 2031. 

Based on sales channel, replacement/aftermarket is projected to lead the segment, accounting for over 76.1% of the global sales over the forecast period.

The report found high cost of UHP tires and stringent environmental regulations as possible factors impacting the growth of the market.