The long-term outlook of the global retread tires market remains positive and the market value is expected to increase at a CAGR of 4.6% during from 2018 to 2028, according to a study from Future Market Insights.
Among the end-use segments of the retread tires market, the heavy commercial vehicles segment is expected to expand with a significant CAGR in terms of value as well as volume over the forecast period, the study said.
The global sales of retread tires are estimated to be valued at approximately $8.7 million by the end of 2018, the study says. The Chinese retread tires market is estimated to account for a value share of 29.6% in the global retread tires market by the end of this year and is anticipated to retain its dominance throughout the forecast period.
But what is driving this growth? Future Market Insights highlights a few key factors that make retreading a hot market through 2028.
Increasing Automotive Production & Vehicle Parc
Sales of retread tires is directly related to vehicle parc and vehicle production. Despite unstable economic conditions in the market in the recent past, the global automotive industry has witnessed satisfactory growth. Automotive production is anticipated to increase with a modest CAGR of 3%–3.5% during the forecast period.
Automotive production is expected to be higher in emerging economies as compared to that in developed economies. This can mainly be attributed to increasing urbanization and stable economic conditions in these regions. During the forecast period, the fleet on road is also expected to rise with a modest CAGR, providing marginal opportunities for the growth of the retread tires market over the forecast period.
The global retread tires market can be segmented on the basis of vehicle type into passenger car, light commercial vehicle, heavy commercial vehicle and off-road vehicle. On the basis of vehicle type, the heavy commercial vehicle segment is anticipated to continue to dominate the global market in terms of value over the forecast period. The demand for retread tires in heavy commercial vehicles is estimated to grow at a relatively high CAGR as compared to other vehicle types over the forecast period. This segment is expected to represent a total incremental opportunity $2.2 million between 2018 and 2028.
Regional Market Projections
The China retread tires market is expected to represent a significantly high incremental opportunity between 2018 and 2028, while the South East Asia and Pacific region’s retread tires market is projected to expand at a significant CAGR in terms of volume over the forecast period. Sales of retread tires in South East Asia and the Pacific is expected to represent a total incremental opportunity of around $4.7 million between 2018 and 2028.
The report highlights some of the top companies operating in the global retread tires market such as Bridgestone Corporation, The Goodyear Tire & Rubber Company, Marangoni S.p.A., Michelin Grope, MRF Tyres, JK Tyres, Easters Treads, Nokian Tyres plc, Kraiburg Austria Gmbh & Co.Kg and Pilipinas Kai Rubber Corporation.
For more information and to access the full study, visit https://www.futuremarketinsights.com/reports/sample/rep-gb-3657