According to Future Market Insights, the low rolling resistance tire market is forecast to grow exponentially through the forecast period at a compound annual growth rate (CAGR) at 11% between 2021 and 2031. The rise in global sales of the low rolling resistance tires in 2021 can be attributed to increasing sales of passenger vehicles. Increasing consciousness regarding environmental sustainability is pushing manufacturers towards adopting organic materials and sustainable production processes. This trend is expected to drive growth in the market over the coming years. As per data published in the Global Fuel Economy Initiative (GFEI), around 2.7% annual improvement in fuel economy is desired to reduce the automotive emissions and reduce the number of new light duty vehicle fuel economy by 50% till 2030.
Similarly, as per the International Energy Agency, new light duty vehicles (LDVs) consumed at an average of 7.2 liters of gasoline-equivalent per 100 km (Lge/100 km) in 2017. Rising pressure from international organizations to improve fuel efficiency and control carbon emission will boost the market growth. Wide band width low rolling resistance tires are gaining traction in automotive sector as they distribute the load of vehicle over the large surface area evenly. This attribute restricts tire damage from frictional heat. Installation of wide band width tires assists in enhancing fuel economy and improves cargo carrying capacity of vehicle. Such properties will fuel the low rolling resistance tire market sales.
Aftermarket sales of low rolling resistance tire are relatively high as there is consistent demand for good quality tires to improve the automotive life cycle. With increasing number of vehicle owners are trying to reduce operating cost of vehicle, low rolling resistance tires demand is expected to increase throughout the assessment period.
“Drastic and important changes in automotive manufacturing to reduce the carbon footprint by improving fuel economy of vehicle will elevate low rolling resistance tire market growth,” remarks the FMI analyst.
- Increasing demand for low rolling resistance tires, thriving automotive industry and strict government regulations will provide lucrative growth opportunities in the U.S.
- Surge in number of tire makers along with growing automotive demands in China will drive the low rolling resistance tire market growth in the country.
- Indian tire market is going through a transition period which is creating growth opportunities for low rolling resistance tire producers. With increasing government initiatives to reduce carbon footprint along with downsizing the curb weight of automobile the demand for low rolling resistance tires will continue rising in India.
- Presence of leading market players such as Yokohama and Bridgestone along with increasing modernization in tire industry in Japan will accelerate the low rolling resistance market growth.
- Expanding electric vehicle industry coupled with presence of automotive market leaders in the country will drive the market growth in Germany.
- Rising adoption of low rolling resistance tires in commercial and passenger vehicles due to modified vehicular design will accelerate the low rolling resistance tire market growth.
- Strict government policies to curb rising emission by modifying vehicle design will drive the market growth.
- Increasing government efforts to improve efficiency and make vehicle more economical will intensify the market growth.
- High regular capital investment required to consistently upgrade the technology hampers the adoption of low rolling resistance tire system among small manufacturers leading to reduced sales.
- Rising cases of skidding related accidents and fatalities restricts the low rolling resistance tire market growth.
- Expensive nature of low rolling resistance tire will negatively influence the low rolling resistance tire market sales in middle income market.
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As per Future Market Insight’s analysis, market players are emphasizing on providing new products with modern low rolling resistance gripping technology to expand their market foothold.
The key market players are also engaging in inorganic methods like strategic acquisitions, mergers and collaborations to standout in the highly competitive market.
- The Goodyear Tire & Rubber Company led the proceedings to acquire of Cooper Tire & Rubber Company in February 2021. The company was valued at about US$ 2.5 Bn. The acquisition will combine product portfolios of both the companies and offer diversity of complementary brands. It will also provide a sturdy US-based manufacturing center to Goodyear Tire & Rubber Company along with dominance in distribution and retail channels across the light trucks and LUV product segments.
- Sumitomo Rubber Industries Ltd. started a joint research program with Kansai University in March 2021. The program aims at developing electric generation module powered by the rotation of a tire. The task can be accomplished by attaching a power generator on the inside of a tire to harness the static electricity generated during rotation.
According to FMI’s report, the following low rolling resistance tire manufacturers currently operate in the global market:
- Bridgestone Corporation
- The Goodyear Tire & Rubber Company
- Sumitomo Rubber Industries Ltd.
- Pirelli & C S.p.A
- Hankook Tire
- Continental AG
- Trelleborg AB
- The Yokohama Rubber Co. Ltd
- Apollo Tyres Ltd.
- Maxxis International (Cheng Shin Rubber)
- Marangoni S.p.A
- MRF Tyres