There isn’t an economy or sector that has remained unscathed this year. But it seems as if the tyre industry will make a recovery – thanks to mechanisation, urbanisation and technology advances
According to ResearchAndMarkets.com – a massive market research store with 1 700 research teams across 81 countries – the technologies in automotive tyres have undergone significant changes in recent years, one being the progressive move from pneumatic to airless tyres.
“The rising wave of new technologies, such as radial and bias tyre manufacturing technologies, is creating significant potential for automotive tyres in various vehicle platforms.” These include transportation, flexible sidewalls and reduced fuel consumption due to less rolling resistance, ResearchAndMarkets.com notes in its piece: “Technology Landscape, Trends and Opportunities in the Global Automotive Tire Market”.
In another report, “Tires – Global Market Trajectory and Analytics”, ResearchAndMarkets.com states that the global market for tyres is forecast to reach 2,7 billion units by 2025, “driven by continuous developments in tyre engineering – particularly innovations surrounding tyre tread technology.
“Macro factors driving growth in the market include a healthy upswing in agrarian economies focused on mechanisation and the resulting strong demand for agricultural vehicle tyres.”
Mordor Intelligence – a market research consulting firm based in Hyderabad, India that offers advisory, insights and investment analysis services – supports this point in its report: “Commercial Vehicles Tires Market – Growth, Trends and Forecast (2020 – 2025)”.
“The agricultural sector is highly affected by the cyclical nature of sales. To boost the productivity on the lands of agriculturally deprived economies and to meet the food need of growing populations, original equipment manufacturers (OEM)s are trying to build machinery installed with the Internet of Things, GPS and automation techniques to gain more from the land. In emerging economies, farmers are rapidly adopting mechanisation practices.”
Automation isn’t exclusive to emerging markets, however, as many developed economies (such as Japan) are facing the problem of an ageing population. “This is causing a shortage of labour in the agriculture sector. Therefore, developed countries are increasing their spending on research and development of automation of farming techniques.”
The farm mechanisation trend has also been rising in China, due to increasing investments in agriculture, as well as governmental encouragement. “Additionally, this trend has also been a result of the increase in the number of large agricultural producers and new rural organisations engaged in farming.”
These developments, which will enhance the demand for agricultural vehicle tyres, aren’t the only factors that will lead to growth within the tyre industry. ResearchAndMarkets.com notes that healthy recovery in the global construction industry, increased spending on construction vehicles and a parallel increase in demand for construction tyres in the OEM market will also add to the numbers.
The Mordor Intelligence report lists rapid urbanisation as one of the reasons that construction activities have seen a surge, noting that developments in transport infrastructure are fuelling growth within the commercial vehicle tyres industry.