Market Trends of Tire Bead Wire Industry
This section covers the major market trends shaping the Tire Bead Wire Market according to our research experts:
Automotive Tire Segment Dominates Market
- Bead Wire is an important reinforcing material for car tires. Bead wire protects tires from changing their shape due to air pressure and binds the tire to the rim to avoid vibration while driving. During the forecast period, the automotive market is expected to grow rapidly.
- Various factors are driving the expansion, including an increase in people's interest in sports such as car and bike racing. Increased sales of passenger and commercial automobiles, particularly in emerging countries around the world are expected to drive tire consumption in the future.
- According to OICA, over 56 million new passenger vehicles and 26 million commercial vehicles were manufactured in the year 2021, registering a cumulative growth of over 3% over the previous year's production.
- For direct OEM sales, the tire industry relates to the automobile industry. Original Equipment Manufacturer (OEM) demand is directly related to automobile production and sales. Vehicle penetration is expected to rise in the coming years as per capita income rises.
- The tire bead wire market is expected to expand as infrastructure (roads) activities increase in both developed and emerging economies, thereby increasing demand for automobiles (especially medium and heavy commercial vehicles for the movement of goods). In addition, demand for improved and advanced tire varieties is expected to drive global tire sales.
- This scenario is expected to boost the market demand for tire bead wire globally during the forecast period.
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Asia-Pacific Region to Dominate the Market
- The Asia- Pacific region dominated the worldwide market in 2021, with a significant market share in terms of revenue, and is projected to maintain its dominance during the forecast period of 2022- 2027.
- Growing demand for tire bead wire from the automotive sector in countries like China, India, and Japan is the primary factor driving the growth of the target industry in Asia-Pacific.
- In terms of demand and supply, China has the world's largest automobile market. According to OICA, China produced 26.08 million units in 2021, a 3% increase over the 25.23 million units produced in 2020, which stimulates the market for tire bead wire. Moreover, as per the National Bureau of Statistics of China, tire production in China in 2020 was valued at USD 807.47 million units.
- The tire industry in India was one of the largest in the world. According to ATMA(India), in 2021 the total tire production in India stood at around 169 million units. This was a decrease of 4% over the preceding year. This volume is comprised of tires made for trucks, buses, two and three-wheeler vehicles, passenger cars, and light commercial vehicles, among others.
- In India, Rajratan is one of the leading manufacturers of tire bead wire. Based in Pithampur near Indore, Madhya Pradesh, its manufacturing facility in India has a production capacity of 72,000 TPA. It also owns another unit in Thailand, with a production capacity of 40,000 TPA.
- Therefore, with all such developments and the growth of the tire industry, the demand for tire bead wire is likely to increase at a robust rate in the region during the forecast period.
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