Global Tire Demand to Reach 3.3 Billion Units in 2015

World demand for tires is forecast to rise 4.7 percent per year through 2015 to 3.3 billion units.  In value terms, the tire market is projected to advance 6.5 percent annually over the same span to $220 billion.  The large motor vehicle tire market will see an acceleration in growth through 2015.  Stronger gains will be registered by the industrial and other tires segment, which includes a variety of tire types, including bicycle, motorcycle and off-road tires.  These and other trends, including market share and product segmentation, are presented in World Tires, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.  

The Asia/Pacific region is by far the largest market for tires, accounting for over half of global tire demand in 2010, thanks in large part to its huge appetite for bicycle and motorcycle tires.  In addition, the region will register the strongest growth in tire demand through 2015.  The massive Chinese tire market, which alone accounted for more than one-quarter of global tire demand in 2010, will record the strongest gains of any country through 2015.  Although the majority of tire demand in China is comprised of motorcycle and bicycle tires, sales of motor vehicle tires in the country are also the second highest in the world, behind only the US.  The tire markets in North America and Western Europe will continue to see advances below the global average, although both regions will rebound from the declines recorded during the 2005 to 2010 period.

Motor vehicle tires, which accounted for over 60 percent of all tire demand in 2010, will remain the largest segment of the tire market in 2015.  As income levels increase worldwide, the share of the global population able to own a vehicle will rise.  This growth will bolster demand for both OEM and replacement motor vehicle tires, especially for light vehicles. 

Although the industrial and other tires segment includes a wide range of tires, the vast majority of demand is comprised of bicycle and motorcycle tires used in developing nations worldwide.  The Asia/Pacific region will account for more than 90 percent of growth in unit terms through 2015.  The massive size of this segment in the Asia/Pacific region is reflective of the large population levels, as well as of the low motor vehicle utilization rates throughout the region, except in Japan and South Korea.  Although tires employed in some industrial applications -- including agricultural, construction and mining equipment, and airplanes -- will comprise a small portion of total unit sales, these products’ share of sales in value terms is much more significant. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.