Asia Pacific Tyre Market Outlook, 2029

The Asia-Pacific tyre market is a rapidly developing market. As the economies in the region are rapidly growing and infrastructure development is taking place throughout the region; the Asia-Pacific tyre market finds itself on a suitable pedestal to grow upon. In order to assess and study the regional trends and patterns in the Asia-Pacific tyre market, the research has been approached by looking at the market through appropriate segments and classification. To have a broader understanding of the landscape of the tyre market in Asia-Pacific, further segmentation has been made on the basis of countries, and the sales channels through which the products are made available to the distributors and customers. The increasing demand for tires in the Asia Pacific region is also being driven by the increasing automobile production along with the expanding fleet size. In addition to this, the rising consumer living standards supported by their growing disposable income levels have also boosted automobile sales, thereby propelling the demand for tires in the region. Furthermore, the increasing usage of both light and heavy commercial vehicles in logistics has driven the demand for the market in recent years. As of 2021, it was derived that about 134.67 Million units of 2 wheeler tyres were sold in the region, making it one of the major drivers of the tyre market in the region. 3 wheeler and other tyres are expected to be the fastest-growing category during the 2024 to 2029 period, expected to grow at a CAGR of more than 9%. As the region is a major global hub for vehicle manufacturing and assembly, the OEM demand for tyres is more promising in the Asian Pacific market than anywhere else in the world. According to the research report "Asia Pacific Tyre Market Overview, 2029," published by Bonafide Research, the Asia Pacific Tyre market is anticipated to grow with more than 7% CAGR from 2024–2029. The tire industry in the Asia-Pacific is quite vast and projecting swift expansion in the coming years due to improving economic conditions & living standards and growing inclination toward private ownership of vehicles. Besides, the abundance of raw materials like rubber & cheap labor is another crucial aspect attracting several prominent tire manufacturers to set up their production facilities across the region and contribute to the notably growing tire industry during the forecast period. Besides, the mounting demand for second hand vehicles, especially across countries like India, Malaysia, & Indonesia, is also anticipated to drive the market in the coming years owing to the growing need for replacement tires entwined with greater awareness about timely maintenance of tires & vehicles. Moreover, with various ongoing & upcoming construction projects associated with roads, bridges, tunnels, & airports, among others, in line with extensive infrastructural developments across different countries, the demand for heavy commercial vehicles & construction equipment is surging at a rapid pace and, as a result, positively impacting the overall market growth. Additionally, the growing popularity of next-generation and high-performance tires for luxury and premium cars is also driving the market growth. Apart from this, the increasing demand for replacement tires owing to the large consumer base of passenger cars and the high replacement rate of tires after certain usage limit is further bolstering the demand of tires in the region.

The Asia-Pacific tyre market is characterized by diverse segments, including passenger cars, commercial vehicles (lightweight and heavy), two-wheelers, and three-wheelers. Each segment reflects distinct developments and demand patterns influenced by regional economic dynamics. Passenger Cars dominate the market, driven by rising disposable incomes and urbanization. The demand for passenger car tyres is expected to grow significantly, with a projected CAGR of 6.82% from 2023 to 2030, reflecting an increasing preference for personal vehicles in densely populated urban areas. Innovations in tyre technology, such as eco-friendly materials and enhanced performance features, are also shaping this segment. Commercial Vehicles, segmented into lightweight (LCV) and heavy vehicles (HCV), are crucial for logistics and transportation in the region. The growth in e-commerce and infrastructure development has led to a surge in demand for commercial tyres. The lightweight segment is particularly benefiting from the rise in last-mile delivery services, while heavy vehicles are essential for freight transport across expanding road networks. Two-Wheelers hold a significant share of the tyre market, especially in countries like India and China, where they serve as a primary mode of transport due to affordability and convenience. The two-wheeler tyre market is anticipated to grow, bolstered by innovations such as anti-skid and eco-friendly tyres. The increasing adoption of electric two-wheelers further enhances this segment's growth prospects. Three-Wheelers and other vehicles also contribute to the market, particularly in rural areas where they are popular for transport services. The demand for tyres in this segment is closely linked to local economic activities and mobility needs. Radial tyres are distinguished by their construction, where the cord plies run radially from the center of the tyre. This design allows for improved performance, better heat dissipation, and reduced rolling resistance compared to bias ply tyres. The radial construction enhances traction and handling, which is crucial for the varied driving conditions found across Asia-Pacific countries. In recent years, manufacturers have focused on incorporating advanced technologies into radial tyre designs. For instance, companies like Continental have introduced products such as the Comfort Contact CC7, which utilizes Comfort+ Technology to enhance performance in terms of handling, braking, and fuel efficiency. Additionally, there is a growing emphasis on sustainability in radial tyre production. Manufacturers are investing in eco-friendly materials and processes to reduce environmental impact while meeting consumer demand for greener products. Bias ply tyres feature a construction where the cord plies are laid at angles across each other. While they were once the standard in tyre manufacturing, bias ply tyres are generally less efficient than their radial counterparts. They tend to provide a stiffer ride and may not dissipate heat as effectively as radial tyres. However, they still hold relevance in specific applications due to their robustness and cost-effectiveness. Although bias ply tyres are gradually being overshadowed by radial designs in many segments, they remain popular in certain markets due to their lower production costs and ability to withstand harsher conditions. Innovations in bias ply technology focus on enhancing durability and performance while maintaining affordability. Manufacturers are also exploring ways to improve fuel efficiency in bias ply designs to meet changing consumer preferences. OEM Tyres are supplied directly to vehicle manufacturers for new vehicles. This segment is experiencing robust growth, driven by the increasing production of passenger cars, commercial vehicles, and two-wheelers across the region. Countries like China, India, and Japan dominate this market due to their substantial automotive manufacturing bases. OEM partnerships are crucial for tyre manufacturers as they ensure a steady demand for tyres that meet specific vehicle performance and safety standards. Distribution channels for OEM tyres typically involve direct sales to automotive manufacturers, facilitated through strategic collaborations and contracts that align with production schedules. On the other hand, replacement tyres cater to consumers who need to replace worn or damaged tyres on existing vehicles. This segment is significantly influenced by the rising number of vehicles on the road, coupled with a growing awareness of vehicle maintenance among consumers. Replacement tyres are distributed through a variety of channels including traditional tyre dealerships, automotive service centers, and increasingly through online platforms that offer convenience and competitive pricing. The rise of e-commerce has transformed how consumers purchase replacement tyres, allowing them to compare prices and features from the comfort of their homes. China leads the Asia-Pacific tyre market due to a combination of factors that position it as a powerhouse in both production and consumption. Firstly, China's vast population and rapidly growing economy have significantly increased automotive ownership, creating substantial demand for tyres across various vehicle segments, including passenger cars, commercial vehicles, and two-wheelers. The country has become a global hub for automotive manufacturing, with major domestic and international brands establishing production facilities to meet both local and export needs. In 2022 alone, China produced approximately 856 million tyres, accounting for over a third of the world's output, and exported 552 million units, underscoring its dominance in the global market. Moreover, China's competitive advantages include lower production costs driven by abundant raw materials and inexpensive labor. This cost efficiency allows local manufacturers to offer competitive pricing while maintaining high production volumes. The government’s supportive policies and significant investments in infrastructure development further facilitate the growth of the tyre market by improving logistics and transportation networks. Additionally, the increasing consumer preference for electric vehicles (EVs) is shaping new demand patterns; manufacturers are innovating to produce tyres that cater specifically to EV requirements, such as low rolling resistance for enhanced energy efficiency. COVID-19 Impact The advent of Covid-19 in 2020 had a decelerating effect on most industries, and the automotive & tire industries across Asia-Pacific were no exception. The tire industry got catastrophically affected when governments of different regional countries imposed stringent movement restrictions & lockdowns to curb the spread of this dreadful disease. The leading players in the industry faced several challenges like disruptions in the supply chain for raw materials, hampered transportation & logistics, shortage of labor, increased demand & supply gaps, & shutdown of manufacturing units. Consequently, the prominent players witnessed substantial financial losses, which led to a temporary decline in the growth of the tire market. On the other hand, while the agriculture sector remained operational amidst the crisis, the demand for agriculture equipment & tires escalated swiftly and, in turn, projected a temporary hike in the market. Key Players: Apollo Tires, Bridgestone, CEAT Tires, Continental, Giti, Goodyears Tires, Hankook, JK tires, Kenda Kumho, Maxxis International, Michelin, MRF, Nexen Tire Corp, Pirelli, Sailun Group Co., Ltd, Sumitomo Rubber Industries, Titan International , Toyo Tire Corporation, Triangle Tire Co, Zhongce Rubber Group Co, Yokohama, Doublestar Tire, Linglong, Nankang

Considered in the report • Geography: Asia Pacific • Base Year: 2023 • Historical year: 2018 • Forecasted Year: 2029 Countries covered • China • Japan • India • Australia • Rest of Asia-Pacific Aspects covered in the report • Market Size by Value (2018-2029F) • Market Size by Volume (2018-2029F) • Market Share by Vehicle Type • Market Share by End Use • Market Share by Design • Market Share by Sales Channel • Market Share by Country The approach of the report: We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free. Intended Audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Automotive and Transport industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.