According to the Market Statsville Group (MSG), the global truck & bus tire market size is expected to grow from USD 44.8 billion in 2021 to USD 68.5 billion by 2030, at a CAGR of 4.8% from 2022 to 2030. The expanding automotive industry around the world, even in emerging economies, is driving up demand in the tire industry. Due to infrastructure development and the need for transportation, the number of trucks on the road has increased. The demand and supply of radial tires vary according to truck size and load. Globally, the demand for truck & bus tires is expected to witness a tremendous growth during the forecast period. The global truck & bus tire market is relatively abundant as truck & bus tires have higher manufacturing technology than some light tires. Furthermore, the increased truck and bus production, advancements in R&D in truck tire manufacturing, and government authorities initiatives to strengthen the transportation sector are the factors that drive the market's growth. In contrast, there are a few challenges in the market that must be considered, such as the high replacement cost of truck and bus radial tires compared to bias tires, sustainability concerns over the use of rubber in tire manufacturing, and other economic factors that impede market growth, such as fuel costs, truck ownership, driving patterns and behaviors, and transportation alternatives.
The novel COVID-19 has significantly impacted the truck and bus tire market. The epidemic has thrown up an unprecedented crisis for nations and businesses across the world. The spread of coronavirus across the globe has resulted in lockdowns in the countries, which has compelled people to stay at home and forced companies to allow their employees to work at home to contain the spread of the epidemic. Every element has been affected, from raw material suppliers to manufacturers, OEMs, and other end users. Factories and production facilities have been forced to remain closed due to lockdown and social distancing measures, resulting in a sharp drop in the sales of the truck and bus tire market on a global level. Moreover, various economies had enforced massive restrictions on public transport to reduce the transmission of the virus and ensure the safe passage of key workers during the emergency response, which has hampered the growth of the truck and bus tire market.
The Strong growth supported by government reforms, transportation sector development plans, rising demand for logistics due to the rapid pace of e-commerce, and the growing industrial sector will likely propel the market growth over the forecast period. Additionally, the growing investments in the logistics and transportation sector by various economies will drive the truck and bus tire market demand. For instance: The United Kingdom has planned to invest around US$ 72.41 Billion (£61bn) in transport with an additional £2.6bn fund from the National Productivity Investment Fund to support transport infrastructure and future transport technology during 2015/16 and 2020/21. Moreover, in 2019, China implemented the Green Travel Action Plan, which promotes the large-scale application of green vehicles and accelerates the construction of charging infrastructure. The country aims to improve public transportation facilities, connectivity, and information systems that support green mobility. The country had implemented 3 developments consisting: 1) the development and construction of High-speed trains, 2) the development and construction of subway systems, and 3) the development and deployment of electric buses. Thus, the country will further escalate the demand for truck and bus tires over the forecast period.
The tire manufacturers rely heavily on raw materials such as synthetic rubber, natural rubber, Brent crude, and others. Truck and bus tire manufacturers heavily count on these raw material suppliers, as quality and dependency on raw materials ensure long-term sustainability in the market. The fluctuations largely influence companies’ margins in the raw material cost. Also, the availability of a significant number of suppliers in the market results in the ease of switching to a new supplier for the manufacturers. The fluctuation in the raw material is a challenging factor for various manufacturer, which significantly influence the market growth over the forecast period.
Globally, tire manufacturers are gearing up to strengthen their role in the modernization point, largely driven by the demand and supply conditions as also directly relative to automobile sales to a few extents. With their modernization approaches on the market, the development of tires has grown steadily. Thus, the tire industry embraces new trends and materials in the manufacturing process to meet the varying market dynamics and cater to the modern demands of the original equipment manufacturers (OEMs).
The latest trends in material development include using multiple rubber plies, silica, bio-sourced materials, recyclable plastics, and more. These materials improve tire performance by reducing the rolling resistance and focus on better traction and on-road performance that enhance fuel efficiency. Moreover, trends in materials development mainly go in two distinct directions - cooperative research with polymer manufacturers on custom-made synthetic elastomers for niche applications and the development of sustainable alternatives to conventional petrochemical-based materials. Therefore, the rise in technical material development in tire manufacturing on account of growing insistence on lower emission levels, along with the growing customer preference to buy eco-friendly products, is creating a huge demand for solid tires for trucks and buses and significantly creating a lucrative growth prospect for the market over the forecast years.
The study categorizes the truck & bus tire market based on tire type, operation type, weight, distribution channel, and application area at the regional and global levels.
Based on the tire type, the market is divided into radial and bias. The radial segment is expected to dominate the market share in 2022 in the global truck & bus tire market. This demand is stimulated by the high production of medium and heavy-duty trucks that transport bulk goods. Trucks are ideal for hauling heavy-duty goods and freight transportation. As a result, they must be constantly maintained. The growing use of e-commerce has broadened the scope of transportation and logistics. Online shopping for products such as medical products, consumer electronics, beverages, foodstuffs, cosmetics, and so on has increased as more people become acquainted with the virtual world. As a result, major vendors are strengthening their logistical chains by adding more trucks to their fleets. This ultimately increases demand for tires with excellent road grip, which radial tires readily meet.
Based on the regions, the global truck & bus tire market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. North America is projected to account for the highest market share in 2022. The truck and bus tire market in North America is primarily driven by the expanding construction sector and the emerging trend of numerous infrastructural projects, such as housing facilities, road and railway networks, industrial complexes, and so on. In line with this, rising investments in improving various commercial structures, such as highways, bridges, dams, power supply grids, and so on, are also boosting the market.
The truck & bus tire market is a significant competitor, and extremely cutthroat in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.
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