Published on : Mar 18, 2016
The truck tire market is quite diverse in nature. The market comprises light passenger vehicles such as sports utility vehicles, crossover utility vehicles, pickup trucks, and minivans, 18-wheel long-haul tractor-trailers and heavy duty construction. The key trends in the market have been elaborated as under:
- Sales in Vehicles: The global sale of vehicles have been continuously recovery since 2009. The U.S. market’s rebound is underway owing to the increasing age of the average vehicle, gradual economic upturn, and low-interest rates. Similarly, the development of the market in China has slowed down while within the European market, the UK leads in the global truck tire market.
- Demand for Sustainable Materials: There is an increasing pressure on original equipment manufacturers for helping attain emission goals and fuel economy within the light truck segment as well as the medium to heavy truck segment. The increasing use of alternative powertrains including electric drives and hybrids is the needs of tire designs and more effectual designs of low rolling resistance are being highly demanded.
- Urbanization and Mobility: In terms of vehicle ownership, mature markets have reached their peak mobility and within emerging economies the middle class is growing steadily and is looking for greater mobility. The combined middle-class in India, China, Russia, and Brazil totaled to a sum of 800 mn people. This number is predicted to double to approximately 1600 mn people by 2020.
- Rigid Environmental and Government Regulation: Due to the increasing environmental and climate concerns, the regulations by governments will be a major influence on the global tire use, production, and demand. The European Union is particularly active and has therefore set the standard for majority of the world. It was due to the emission requirements set by the EU owing to which tire manufacturers developed low rolling resistance tires.
Thus, in the key markets for truck tires, economic development has been inconsistent in the past few years, accompanied by sluggish growth within the U.S, Japan, and European markets. This slow growth was compensated by the growing economies of India and China. In addition, in 2015, there was some recovery within the market in the U.S., though European and Chinese markets are predicted to grow slowly.