Market Leader – Tires Market for OE & Replacement
The increasing average vehicle age, annual miles driven by light-duty vehicles, improved infrastructure and increased tires replacement miles is driving the growth of tires aftermarket. The tires replacement market is projected to grow at a CAGR of 1.8% to reach a market size of USD 113.1 billion by 2025 from 101.7 billion in 2019.
The fundamental strategy adopted by major players to gain traction in the market is supply contracts/partnerships. In July 2018, Bridgestone together with ZMP Inc. launched a development project aimed at utilizing automated driving in tire noise tests. This project entails outsourcing the development of an automated driving system that incorporates Bridgestones tire test expertise to ZMP, the company that creates products and services based on its advanced robotics technologies. The companies have already succeeded in using automotive driving of manned vehicles at a Bridgestone’s proving ground, and are working to achieve SAE-Level 4 automated driving of unmanned vehicles for practical application in tire noise tests. The second most widely followed strategy is new product development. The Goodyear Tire & Rubber Company collaborated with an innovative mobility company, Priva, to provide tire monitoring capabilities that allow fleets to operate more efficiently. Priva is a Michigan-based startup that offers mobile offices for workers on the go. Goodyear has equipped Priva’s fleet of vehicles with intelligent tires, which contain sensors to capture tire data. The sensors allow Goodyear to gather data on the tires’ current state and work with Priva to predict future tire maintenance needs, reducing vehicle downtime and enhancing operational efficiency. Other companies that adopted this strategy include Continental AG (Germany), Michelin (France) and Sumitomo Rubber Industries (Japan).
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The tires market is dominated by a few global players and comprises several regional players. Bridgestone Corporation (Japan) is a leading player in the market globally. The company manufactures and distributes tires and tubes for passenger cars, trucks, buses, construction and mining vehicles, industrial machinery, agricultural machinery, aircraft, motorcycles, scooters, and others with a regional presence in 150 countries worldwide. A diverse product portfolio along with a robust global presence, helps the company maintain its leadership position in the market, keeping revenue streams secure. The key strategy followed by the company is new product development. In November 2019, Bridgestone announced that the name for the worlds first polymer that bonds rubbers and resins on the molecular level is Susym. With this new name, the company aimed to increase recognition of Susym and encourage its use as a next-generation polymer material to make contributions in various fields that exceed the scope of use as a tire material. Presently, the company is a critical supplier to OEMs such as Toyota Motor Corporation (Japan), Honda Motor Company (Japan), and Nissan (Japan) amongst others.
Goodyear Tire & Rubber Company (United States) is one of the top five automotive tire suppliers worldwide. The company manufactures and distributes tires to both vehicle manufacturers and replacement business. It has adopted the strategy of new product development to increase its presence in the automotive tires market. In April 2018, Goodyear Tire & Rubber Company and Bridgestone Americas, Inc. announced they would form one of the most significant tire distribution joint ventures in the United States. TireHub, LLC, will provide U.S. tire dealers and retailers with a comprehensive range of passenger and light truck tires from two of the world’s leading tire companies, with an emphasis on satisfying the rapidly growing demand for larger rim diameter premium tires.
Related Reports:
Tires Market for OE & Replacement by Rim Size (13-15, 16-18, 19-21,>21 inches), Replacement Market, by Aspect Ratio (<60, 60-70, >70), Section Width (<200, 200-230,>230 mm), Season, Vehicle Type, Retreading Market, and Region - Global Forecast to 2025
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