New York, Oct. 04, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Automotive Green Tires Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06325596/?utm_source=GNW
Further, supply chain disruptions and trade restrictions created chaos in the market as it made tire assembly and its supply to major OEMs more complex than expected. However, as manufacturers started taking necessary measures to mitigate such future risks and as restrictions eased, the demand in the market started picking up pace and is expected to continue over the forecast period.
Over the medium term, customer preferences for environmentally friendly mobility options, as well as strict restrictions, are increasing the demand for tires that are both energy-efficient and environmentally safe. The raw material utilized is the first critical component of an eco-friendly tire. Companies are attempting to replace rubber with a synthetic composite, which frequently includes silica. Silica helps replace rubber in the treads and reduces road friction.
Silica aids in the reduction of rolling resistance or the energy lost as the tire deforms against the road. Energy conservation improves fuel efficiency. Rolling resistance accounts for 10-15% of fuel consumption in passenger cars but can account for up to 30% of fuel consumption in heavy trucks. While low rolling resistance tires may only cut this by 2 to 3%, fuel savings still assist the environment.
Rising electric car sales have been cited as a key element driving the demand for green tires. These green tires provide 20% less low rolling resistance, increasing total vehicle efficiency. This has been recognized as a primary solution for electric car manufacturers who are experiencing issues with limited range and green tires. They may see longer-range electric vehicles as a result of the improved efficiency supplied by them.
Key Market Trends
OEM Sales Channel Likely to Hold Major Market Share During the Forecast Period
Remarkable changes have been made to other aspects of the auto industry as a result of the rise of electric automobiles. The focus on creating components for electric automobiles other than the electric powertrains had shifted due to the requirement for greater efficiency.
With growing automobile sales, especially electric vehicles, the demand for these automotive green tires through the OEM sales channel is expected to grow significantly during the forecast period. OEMs deliver quick access to products through their global distribution network and ensure product quality and support services with a warranty, which signifies higher product life.
With an emphasis on efficiency and range, prominent electric car manufacturers are working with tire manufacturers. For Instance,
In April 2022, Mercedes-Benz announced its development partner Bridgestone Corporation for manufacturing tires for the Mercedes-Benz Vision EQXX, which is a futuristic electric vehicle. Under this partnership, Bridgestone is expected to work collaboratively with the OEM to design highly efficient custom Turanza Eco tires for Mercedes EVs to help increase the driving range to 1,000 km. In addition, Bridgestone has combined lightweight ENLITEN technology in the tire to enable low rolling resistance and reduce tire weight by 20%.
In December 2021, the new ElectricDrive GT was introduced by the Goodyear Tire & Rubber Company, which uses Goodyear's SoundComfort Technology and serves as an integrated sound barrier to assist minimize road noise and is optimized for electric vehicles. Goodyear claims that it is compatible with the Tesla Model Y and Model 3, two of the most well-liked electric vehicles in the United States.
Moreover, the increasing trend for SUV culture globally owing to its comfort in longer during journeys has attracted consumer preferences. Thus, tire manufacturers are also aiming to target the SUV segment to offer OEM batter and reliable tire solutions. For instance,
In February 2022, Yokohama announced that it would supply its Geolandar X-CV tires to OEM Toyota's latest Lexus LX SUV. The tires are designed as highway terrain tires for high-performance SUVs to deliver maneuverability and high-speed performance characteristics. In addition, the tires would add high-performance standards, including lower rolling resistance in Toyota's upcoming Lexus LXs.
Governments of various countries are coming up with various stringent regulations for vehicles and vehicle manufacturers. As a result, tire manufacturers adopt environment-friendly raw materials without compromising on lighter tires, which significantly reduces vehicle weight, providing higher fuel efficiency and less consumption. All advantages of green tires will propel the demand for green tires in the market.
Minimizing carbon emissions is one of the utmost priorities of countries across the globe. In the wake of this, prominent countries are framing regulations to reduce carbon emissions. For instance,
In June 2022, The Bureau of Energy Efficiency, India, launched the Star Labeling Program for tires, similar to the rating we often see for electrical appliances. The rating of the tire gives information about rolling resistance and possible fuel economy.
Considering the developments between OEM and tire manufacturers, demand for OEM tires is expected to remain positive during the forecast period.
Asia-Pacific is dominating the Automotive Green Tire Market
Based on geography, Asia-Pacific holds a significant market share in terms of revenue in 2021 and is projected to grow during the forecast period. The major presence of vehicle manufacturers across the region is likely to create lucrative opportunities for the market. In terms of country, China is dominating the automotive green tire market in Asia-Pacific.
The China government of China has introduced many incentive plans to bolster auto sales and has also offered subsidies for the purchase of electric vehicles to encourage the expansion of the automotive industry in the county. For instance,
According to the China Association of Automobile Manufacturers (CAAM), China's auto sales surged 29.7% in July 2022, standing at 2.42 million units, compared to the previous year, and Sales of new energy vehicles, which include pure electric vehicles, plug-in hybrids, and hydrogen fuel-cell vehicles, increased 120% in July 2022 from the previous year. In 2021, approximately 505,000 busses and 4.3 million trucks were sold in China. This represented a 13% increase in bus sales .compared to the previous year.
Moreover, China is home to some of the world's largest light-vehicle manufacturers globally, where most vehicles are exported overseas. According to the China Passenger Car Association (CPCA), China has exported more than 760,000 cars in the first five months of 2021. Some main export destinations include Chile, Saudi Arabia, Russia, and Australia.
In India, factors such as growing per capita car ownership among the expanding base of middle-class population and strong aftermarket opportunities fed by bad road conditions, increasing the risk of punctures accompanied by wear and tear of tires are likely to provide huge opportunities for automotive green tires market during the forecast period.
Increasing environmental concerns pertaining to fuel emissions and safety will also provide potential opportunities for players and is encouraging them to stick to the regulations and conduct several research activities to attract consumers who are preferring eco-friendly products. For instance,
In July 2022, Michelin has become the first tire brand in the passenger vehicle segment in India to be accredited with the newly introduced star labeling program by the Government of India. Michelin India is one of the first brands to register for both commercial vehicle and passenger car segments and was subsequently awarded India's first five-star rating for Michelin Latitude Sport 3 and Pilot Sport 4 SUV tires.
In February 2021, IITB-Monash Research Academy and Michelin India Technology Centre in Pune signed a Memorandum of Understanding (MoU). This partnership will be for a tenure of 5 years with several projects envisaged for development in the mobility space in India. It will bring involve doctoral students from the Academy and Michelin's global Research and Development DNA. The projects will encompass a wide range of themes such as advanced computational engineering, materials, simulation and manufacture, infrastructure engineering, clean energy, nanotechnology, biotechnology, and stem cell research.
The prominent tire manufacturers operating in the region are adopting various growth strategies such as expansion, mergers, acquisitions, collaborations, partnerships, etc., to realign their position in the market as part of their growth strategies over the forecast period. For instance,
In May 2022, Bridgestone Corporation, Sumitomo Rubber, and Yokohama Rubber announced that they will supply their tires as original equipment for the bZ4X electric vehicle (EV) launched by Toyota Motor Corporation. Bridgestone will supply the Alenza 001 and Turanza EL450 tires. The Alenza 001 will be fitted on the bZ4X designed for the Japanese, European, and Asian markets.
In January 2022, the Council for the Development of Cambodia (CDC) approved two new investment projects with a total capital of USD 303 million in Rattanakiri and Preah Sihanouk provinces this week. One of the newly approved projects belongs to General Intelligence (Cambodia) Co., Ltd. in Sihanoukville Special Economic Zone, Preah Sihanouk province. The firm plans to inject USD 297 million into the production of all kinds of vehicle tires.
The Automotive green tires market is dominated by players such as Michelin, Bridgestone, Continental, Goodyear Tire & Rubber Company, Pirelli & C. SpA, and many others.
Such few players hold a major share in the market and invest in their production capabilities to develop sustainable tire materials. Automotive green tire manufacturers are constantly investing in product innovation, research and development, mergers & acquisitions, and geographic expansion to attain a competitive edge in the market. For instance,
In May 2022, Pirelli invested USD 15 million over 2 years to build an advanced technology and digitalization center next to its plant in Silao, Mexico. It will produce tires for the more electric, sustainable, and connected vehicles of the future.
In April 2022, Bridgestone announced that it had been selected by Mercedes-Benz AG as the development partner for tires for the Mercedes-Benz VISION EQXX. Bridgestone engineers collaborated with Mercedes-Benz to create custom-designed tires that have contributed to increasing the vehicle's efficiency and a real-world driving range of 1,000km on a single charge.
In April 2022, Linglong Tire announced that it has signed a comprehensive strategic cooperation agreement with Taiyuan Clean Tire Environmental Protection Technology Co. Ltd (Clean Tire). Linglong Tire and Clean Tire will jointly select a suitable area to build a waste tire recycling plant, accelerate the realization of unified distribution and management, and build a comprehensive industrial chain of tire research and development, manufacturing, retreading and recycling throughout the life cycle of tires.
In February 2022, Bridgestone Corporation and ENEOS Corporation jointly launched a research and development project. Both companies will jointly develop chemical recycling technologies for used tires by merging the advanced rubber and polymer material design technologies Bridgestone has cultivated through its tire and rubber business with the crude oil refining technologies and foundational basic chemical product manufacturing technologies of ENEOS.
In January 2022, Michelin and Hyundai Motor signed a memorandum of understanding (MoU) to develop next-generation tires optimized for premium electric vehicles (EVs). Both companies will jointly develop eco-friendly tires with increased use of eco-friendly materials.
In January 2022, Yokohama Rubber Co. Ltd formed a joint venture with YHI International Limited (YHI), the official distributor of Yokohama tires in Southeast Asia, to form Yokohama Tire Sales Malaysia SdnBhd.
In October 2021, Bridgestone inaugurated the expansion project of its tire manufacturing plant, located in the city of Cuernavaca, Mexico, with which it will increase its production by 15% annually. Bridgestone Mexico invested more than USD 100 million in this expansion project that includes the construction of more than 18,000 square meters of buildings, new service facilities and facilities for its employees, as well as the installation of state-of-the-art machinery.
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