The global market size for tire material was USD 73.93 Billion in 2017 and is projected to reach USD 91.23 Billion by 2022, at a CAGR of 4.3% between 2017 and 2022. The increasing sales of vehicles along with the initiatives to decrease tire weight are the significant factors projected to drive the growth of the tire material market.
The elastomers segment accounted for the largest share of the tire materials market as compared to other materials in 2016, in terms of volume. Elastomers include natural rubber and synthetic rubber. Increasing vehicle sales globally due to the increasing population and need for transportation is boosting the tire demand and is expected to indirectly drive the tire material demand during the forecast period.
The passenger cars segment is expected to be the fastest-growing segment of the tire materials market, in terms of both value and volume. Lower interest rates via banking and different schemes and subsidies provided by governments to set up business units are expected to boost vehicle sales globally.
The tire material market in APAC is projected to grow at the highest CAGR during the forecast period, in terms of both value and volume. China and India are the major countries contributing for the growth of tire materials market in the region. Easy availability of raw material, political & economic stability, well-developed infrastructural facilities, and skilled & cheap labor force have attracted major international automotive manufacturers to invest in APAC. Hence, all these factors are expected to drive market for tire material in the APAC region.
Volatile price of raw materials is acting as a key restraint to the growth of the tire material market.
Cabot Corporation (US), JSR Corporation (Japan), Thai Carbon Black (Thailand), Lanxess (Germany), and Bekaert (Belgium) are some of the key players operating in the tire materials market. These companies have maintained a strong foothold in the tire materials market, owing to their diverse product portfolios, strategically positioned R&D centers, adoption of various growth strategies, and expansion of production capacities.
In September 2017, Thai Carbon Black Public Company Limited commenced its operation to produce carbon black in a greenfield facility in Jining, China. The plant is being constructed in two phases. Currently, the company has installed a production capacity of 120,000 ton per year in phase 1 and is expected to increase the production capacity to 240,000 tons. This expansion will enable the company to serve its customers in China.
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