GLOBAL LOW ROLLING RESISTANCE TIRES MARKET
The modern advancements in mobility have created new avenues for development in different parts which are used in vehicles. Tires, an essential component of on-road vehicles have seen major technological advancements and refinements in their designs over time.
The tires which are engineered with the help of specially formulated tread compounds, to reduce the friction acting on them are called Low rolling resistance tires. The LRR tires are designed to reduce the energy consumption of the engine and thus provide better fuel efficiency for on-road vehicles.
These tires, because of their numerous advantages have gained a huge share of popularity in the tires market for a long time now.
In this report, we will further dwell on the intrinsic characteristics of the LRR market and would gain insights of the market in the forecast period.
GLOBAL LOW ROLLING RESISTANCE TIRES MARKET DYNAMICS
The major reasons that are responsible for driving the low rolling resistance tires market forward can be listed as:
- Increase in demand for fuel-efficient vehicles.
- Government regulations concerning tires to lower carbon product.
- Increase in production of passenger and light-weight vehicles.
- The inclination of people towards using the environmentally friendly product.
On the other hand, the relatively high price of LRR tires in comparison to standard tires and the increasing popularity of tire retreading may obstruct the growth of this market.
Further, the market is segmented into Application Type, Vehicle Type, and Sales Channel.
By application type, the LRR can be divided into two parts: On-Road and Off-road. The On-road application segment of low resistance tires is expected to flourish to a large extent owing to increased demand for these tires in the passenger cars segment. Additionally, the Off-road segment is also expected to have a steady growth in the forecast period.
Based on Vehicle Type, the LRR is categorized into Passenger vehicles, Light commercial vehicles, and heavy commercial vehicles. Heavy commercial vehicles are reported to account for a significant share in the market revenue. These vehicles cover large distances on daily basis and therefore fuel and cost efficiency are important characteristics associated with this segment.
The use of LRR will save a huge amount of fuel and therefore a large number of fleets, every year, will recognize the benefits of these tires and will create growth opportunities in the market during the forecast period.
GLOBAL LOW ROLLING RESISTANCE TIRES MARKET SIZE AND FORECAST
The low resistance tire market is geographically segmented into North America with major countries being the USA, Canada, and Mexico, Europe with major contributors being France, United Kingdom, and Germany, Asia-Pacific with major countries being China, India, Japan, and South Korea and the rest of the world.
The Asia Pacific region is expected to dominate the LRR market because it is the fastest developing region for the low resistance tire market and also, the automobile industry is expanding at a steady rate in this particular region. Europe is also projected to show major growth as a result of the strict regulations put forward on fuel emissions by the governing bodies of this region and the natural growing demand for fuel-efficient vehicles.
The Covid-19 has hit severely the global automotive tire market and therefore affected the whole automotive market severely. The pandemic resulted in shutting down operations and reduced manufacturing of tires. Also, the pandemic forced various raw materials suppliers to cut production in some areas.
Nevertheless, some market players in the tire market extended their relationships with Original Equipment Manufacturers as countermeasures to the setback they faced in recent times. Also, the adoption of bold measures like adopting digital channels to engage with prospective buyers helped these market players to sustain in the market. With the vaccine out, the situation of the market is returning to the normal state.
These tires are constructed with the help of Silica and the innovative designs in the LRR tires provide good traction to drive safely in wet and dry conditions. Also, these tires are suitable for tarmac with much comfort.
Also, the governments are drafting mandates which give a push to these markets on the grounds of green tires and fuel efficiency which helps in reducing the carbon footprint of the nation. Therefore, ample opportunities lie and eventually are expected to rise in the forecast period.
Because of the outnumbering advantages of these tires over traditional ones, these tires are expected to observe a flourishing marketplace in the forecast period with many opportunities boosting growth specifically in the domain of designs of LRR tires.
The major trends transforming this industry are Growing Vehicle Parc, Stringent regulations focusing on reducing carbon footprint, and the superior alternatives coming up to the traditionally used tires.
The Low rolling resistance tires, since aim to have less contact with the road, it results in an unwanted outcome, I.e., Reduced grip on Roads as compared to the conventional tires. Also, these tires demand improvements in design as there is a need for these tires to be fully inflated to get the maximum performance otherwise the fuel efficiency will become less. Also, the SUV and Sedan owners tend to use conventional tires over LRR tires because of the better road grip and safety the former offers on harsh terrains.
The transport sector is heavily dependent on oil for its energy needs and therefore innovations and better designs in every part of engineering related to vehicles are lauded to reduce the fuel emissions in the present time. Since the impact of the tire vehicle performance directly, companies have come up with innovations like Self-Inflating Tires or have started embedding Multi-piece Cushion or Interlaced Strip Technology in the tires.
While Dunlop is coming up with a Multiple-blade tire that can be used in weather extremities. Companies like Goodyear are constantly coming up with interesting and compelling designs in tires like BioTRED, an environment-friendly compound for tires or Electricity- generating tires that can transform tire deformation into electricity, and many more.
Tire manufacturers continue to work on the material composition and tread pattern to improve the fuel economy.
Some of the major prominent players in the market are:
- Bridgestone Corportation
- Goodyear Tire and Rubber Company
- Cooper Tire & Rubber Company
- Hankook Tire & Technology Co. Ltd
- Sumitomo Rubber Industries Ltd
- Yokohama Rubber Co. Ltd
- Apollo Tyres Ltd.
- Maxxis International
- Toyo Tire & Rubber Co. Ltd
- Carlisle Corp
- Nokian Tyres plc
- Kumho Tire Co Inc
- Pirelli & C. S.p.A