Rising Demand from Emerging Countries to Drive the Global Tire Cord Market, According to New Report by Global Industry Analysts, Inc.
GIA announces the release of a comprehensive global report on Tire Cord markets. Global Tire Cord market is projected to reach 1.67 million metric tons by 2018, driven by rising demand from the burgeoning automotive sector in developing countries. Continued demand from the replacement market and increasing focus on radial tires also bodes well for the future of this market.
San Jose, California (PRWEB) November 02, 2012
Follow us on LinkedIn – As a tire reinforcement material that influences tire performance, tire cord represents an important factor in tire production. Tire cord market is directly dependent on the tire industry, the performance of which co-relates with the automobile industry. In other words, market opportunities for tire cord are largely dependent upon the overall health of the tires industry and the automobile industry as a whole. The automotive industry in turn is a barometer of the health of a country's economy. Economic conditions determine discretionary incomes of consumers and their spending on vehicles. Global automotive production has a direct impact on the demand for tires and tire cords in the OEM segment. Higher number of cars produced translates into increased use of tire cords in tire production and vice versa. Therefore, disruptions in vehicle production tend to distort opportunities in the market.
Demand for tire cord was affected during the 2007-2009 recession period with the automobile industry being one of the worst hit industries. Demand for cars, during the period, witnessed hurting declines as a result of higher levels of unemployment, lower purchasing power and the resulting postponement of new car purchases, decline in per capita automobile travel and volatile fuel prices. Reductions in per capita automobile travel directly impacted demand for tires and thereby tire cord in the replacement market. In the United States for instance, the average number of vehicle miles traveled per year for light vehicles was an estimated 12 thousand miles for the year 2008, and 10 thousand miles for the year 2009, representing a cumulative decline of over 6.0% when compared to the year 2007. In the OEM market for commercial vehicles and passenger cars, postponement of new car purchases as a result of tight liquidity and lengthening of the replacement cycle resulted in reduced demand for tires and tire cord. In the Off-the-Road (OTR) vehicles market, the collapse of the construction and mining industries impacted demand for off-the-road vehicle tires and tire cord.
Reduced construction activities for instance reduced demand for construction equipment/machinery like cranes, crawler loaders, crawler tractors, haulers-dump trucks, wheeled loaders. This in turn reduced demand for off-the road vehicle tires. The mining industry, on the other hand, recorded several jeopardized mining projects. In addition to shortages of refinancing facility, the lower commodities prices during this period impacted mining companies' cash flows and their ability to self-finance capital projects thus impacting capex programmes. Closed mining townships directly impacted demand for mining equipment. All of these factors indirectly impacted demand for heavy-duty, rugged mining equipment tires. In this sector, demand for large tires, especially 25-inch radials, bore the brunt of the decline.
In Europe, the automotive industry is buckling under the pressure of the debt crisis. The domestic automotive industry during the year 2012 vacillated widely between optimism and fear, marring sentiments in an otherwise recovering automotive market. Credit restrictions as a result of austerity measures implemented by debt ridden governments, consumer indecisiveness, weakening consumer confidence as a result of periodic flaring up the region's financial problems, resulted in slowing down auto sales during the year. Weakness in auto sales was witnessed in France, Spain, Greece and Portugal during the year. A future downgrade in the outlook for auto production cannot be ruled out, given the tumbling sales and the decline in new car registrations in the first half of 2012 and excess production capacities. Also, unlike the Government support received by Ford and General Motors in the United States during the 2007-2009 recession, the European auto industry is seen as unlikely to receive federal support from the already debt burdened Governments. With Europe mired in a crisis of confidence, the sustained uncertainty in itself is dragging down growth patterns in the tires and tire cord market.
As stated by the new market research report on Tire Cord, Asia-Pacific is the largest and the fastest growing regional market worldwide. Growth in the region is projected to wax at a CAGR of 10.8% over the analysis period. Demand for steel cord in the region is especially forecast to increase against a backdrop of growing demand for radial tires, a direct result of improving road infrastructure. Steel Cords are indispensible in the manufacture of radial tires, given their characteristics, such as, high tensile strength, which plays an important role in the performance of radial tires. The market in the region therefore stands to benefit from the ongoing radialisation of heavy vehicle tires. Growing consumer demand for durability and superior mileage is helping support the trend. In addition to heavy vehicles, demand for radial farm tires is also expected to increase in the upcoming years. Polyester Tire Cord represents the fastest growing segment trailing a projected CAGR of 8.5% over the analysis period.
Major players in the marketplace include Century Enka Limited, CORDENKA GmbH, Formosa Taffeta Co. Ltd., Hyosung Corporation, Junma Tyre Cord Company Limited, Kolon Industries, Inc., Kordarna Plus A.S., Kordsa Global Endüstriyel İplik ve Kord Bezi Sanayi ve Ticaret A.Ş., NV Bekaert SA, SRF Limited, Teijin Limited, and Xingda International Holdings Limited, among others.
The report titled “Tire Cord: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides review of industry overview, product overview, product introductions, recent industry activity and profiles of major players. The report analyzes market data and analytics in terms of annual sales in volume terms for regions including North America, Japan, Europe, Asia-Pacific, and Rest of World. Product market segments analyzed include Polyester Tire Cord and Nylon Tire Cord.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
Global Industry Analysts, Inc.
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