Intermediate level growth in demand for truck tires globally is predicted, even as the market continues to evolve and diversify according to the latest exclusive research from Smithers.
The new market data report The Future of Global Truck Tires to 2027 tracks how value in this sector will reach $107.6 billion in 2017. With year-on-year growth forecast at 3.5% across the next decade, this will reach $152.4 billion in 2027. After adjusting for price and raw material fluctuations, gains in tire manufacturing productivity, and then consumer potential of greater value adding features; volume consumption of all truck tires will increase at a rate of 3.2% per year from 2017–2027.
Smithers’ analysis sub-divides the truck tire market across all core segments – tire size, vehicle type, geographic and key national market. For vehicles type, the light truck market has a 2017 value of $40.0 billion worldwide. It will outperform the heavier truck segment across 2017-2027; growing at 4.0% year-on-year. Medium and heavy truck tires – worth $68.6 billion in 2017 – will retain a healthy 3.3% annual expansion across the same period; despite of a very sizeable retread market that is both symbiotic and competitive.
The truck tire market is nearly as diverse as the overall tire market itself; it is influenced by many variables, including highly general phenomena such as economic activity; and specific trends in truck production, sales and size. Evolving truck ownership models, fuel costs, driving patterns and behaviours, and the availability of alternative transport are significant drivers of truck use, which in turn impact the performance requirements of future truck tires regarding miles driven, tire wear, and ultimately the replacement of both vehicles and tires.
"In the case of medium and heavy truck tires, the impetus for the adoption of new technologies is driven by economics more than regulations. And while it is a conservative and slow to change market segment, innovations that can provide fuel savings and maximize tire asset life are significant motivators in purchasing decisions. The main areas of technical innovation center on incremental improvement in critical performance criteria – such as rolling resistance, lifecycle and sustainability. Some supporting technologies related to tire inflation are especially important in truck tires. And merging disruptive innovations, such as autonomous driving, will have an increasing influence on technology development and implementation."