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.
With the incorporation of low rolling resistance tires, the fuel economy can be improved by approximately 5-15% as established by the United States Department of Energy. A mere 5% reduction in rolling resistance can improve the fuel economy by almost 1.5% for heavy and light duty vehicles. The incorporation of tires with low rolling resistance can help in the reduction of fuel costs and ensure appropriate tire inflation. For instance, in class 8 trucks, the replacement of dual tires with one tire with a wide base can improve fuel efficiency by 5% due to reduction in rolling resistance.
Michelin, the leader in tires and mobility, in July 2021. announced the establishment of a new sales unit in Casablanca Morocco. The unit will professionalise the sales and use of tires in Morocco by upgrading the performance of tires and reducing carbon dioxide emissions.
As of March 2021, Goodyear announced a venture with UFODRIVE which is an all-electric and all-digital car rental company. The strategic partnership will facilitate their combined efforts towards mobility solutions as well as the company’s intelligent tire monitoring system with UFODRIVE’s advanced e-mobility software platform. The company is also collaborating with Voyomotive, a company focused on connected car technology. The collaboration will pilot the tire monitoring solutions which will help achieve more efficient operation of automobiles across the US.
The company Goodyear and a Dutch research organisation TNO are planning to collaborate to develop an intelligent braking system. They will test the implementation of connected tires passing information onto the vehicle’s control system, particularly the anti-lock system which will initiate the raking system to operate.
GLOBAL LOW ROLLING RESISTANCE TIRES MARKET SIZE AND FORECAST
The Low Rolling Resistance Tires 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.
COVID-19 IMPACT ON LOW ROLLING RESISTANCE TIRES MARKET
The COVID-19 pandemic has resulted in the economic slowdown for several industries which has disrupted the supply chain operations across the globe. The shortage of raw materials worldwide due to the lockdowns and travel restrictions globally has led to the economic instability across different sectors of the market. However, as the restrictions are starting to relax the markets have started to recover. The tire market has also started to recover due to the development and demand of the automotive sector in the Asia-Pacific and US region.
Nokian Tyres released their half year financial reports for the period January-June 2021. They recorded net sales of $ 899.1 million which was a significant increase as compared to the same term for the year 2020 which was $652 million, indicating an increase of 37.7%. The decrease was attributed due to the COVID-19 pandemic which resulted in shortage in raw materials, as the costs started to increase, they resulted in a negative impact during the second half of the year 2020. The market started to recover as the restrictions relaxed across the globe creating a balance in the supply chain systems which were disrupted earlier.
Goodyear reported a net income of $12 million with adjusted net income of $102 million for the first quarter of the year 2021. The sales for this quarter were $3.5 billion which increased by approximately 15% from the sales of the year 2020 due to the COVID-19 pandemic. The total volume of tires sold totalled to 35 million which was significantly increased by 12% from the previous year. The increase was attributed to the recovery experienced by the industry and increase in the market share gains.
RECENT TREND IN THE LOW ROLLING RESISTANCE TIRES MARKET
- In August 2021, Continental’s tire development sector improved the existing low rolling resistance EcoContact 6 summer tire which has been designated for Ford surpassing the EU tire label class A highest ranking by more than 15%. The 15% reduction in rolling resistance can yield fuel saving of approximately 0.1 L per 100 km.
- In June 2021, Michelin launched two new pre-mold retreads to enhance its lineup of low rolling resistance tires.
- The company also launched the new Michelin X multi energy Z2 tire which is fuel efficient and has superior traction and mileage performance.
- The company has also launched a separate low rolling resistance tire series, the Sport EV tires to be incorporated in electric vehicles.
- In May 2021, Cooper Tire & Rubber company launched the new series of Discoverer Rugged TrekTM tires which will be available by the end of 2021. The tires will be available for use in pick-up trucks and SUVs with several features such as Whisper Grooves ™ which help in blocking the air rush through the tire to reduce noise, Stable Trac ™ technology which enhances the traction on rugged roads and Earth Diggers ™ which forcefully dig into the muddy, sandy as well as uneven surfaces.
- In March 2021, Sumitomo Rubber Industries announced plans to work with Kansai University on a joint venture to research and develop a new technology for generation of electric power from the rotation of the tire. The technology will harness static energy during rotation by installing a power generating device in the tire.
- In February 2021, Apollo launched a new range of low resistance rolling tyres called the Amazer XP targeted at the entry-level passenger vehicle market. The tyres will be available in seven sizes ranging from 12 to 14 inches.
LOW ROLLING RESISTANCE TIRES MARKET COMPETITIVE LANDSCAPE
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 Market, 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 Bridgestone Corporation in April 2021, announced the investment of $9.3 million at the Shimonoseki Plant which manufactures tires for construction as well as mining vehicles. The investment is set to develop cutting-edge technology equipment for facilities at the plant. The installation of the equipment will start from 2022 to enhance the company’s production safety, disaster management, as well as productivity and quality.
The company also released the half yearly financial statement for the first half of the year 2021 with revenue worth $14.2 billion which is a 24.2% increase from the H1 revenue of the year 2020 at $11.4 billion. The company is also set to become the exclusive tyre partner of Fisker Incorporation which produces sustainable electric vehicles and develops mobility solutions. The agreement underlines the development of Bridgestone’s Potenza Sport tyres to be incorporated in the Fisker Ocean all-electric SUV which will be sold in Europe and North America.
In February 2021, the Goodyear Tire & Rubber company initiated the acquisition of Cooper Tire & Rubber for a total worth of approximately $2.5 billion. The agreement is set to expand the company’s product offering due to the combination of the portfolios of complimentary brands. They will increase the presence in the distribution channels across the USA for light trucks and LUV products. The company acquired Ventech systems that provide automated tire inspection systems technology. The acquisition has strengthened Goodyear’s stake in the US market as the technology used in inspection has helped in improving the efficiency of tires manufactured.
Goodyear also released the report for the second quarter of the year 2021 with a net income of $67 million and operating income of $349 million. The sales of the company in the second quarter were approximately $4 billion which was a whopping increase of approximately 86% from the last year.
In India, the Ministry of Road Transport and Highways (MoRTH) issued a draft in May 2021 proposing new tyre norms to be implemented across the country. The norms will be incorporated in the automotive indian standards AIS-142:2019 as an amendment. The norms propose that all cars, buses and truck tyres shall meet the requirements of rolling resistance, wet grip as well as the rolling sound emissions in accordance with the stage-2 limits of European regulations.
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.
LOW ROLLING RESISTANCE TIRES MARKET COMPANY PROFILE
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
THIS LOW ROLLING RESISTANCE TIRES MARKET REPORT WILL ANSWER FOLLOWING QUESTIONS
- Low Rolling Resistance Tires Market size and Forecast, by region, by application
- Average B-2-B price for Low Rolling Resistance Tires Market, by region, per user
- Technology trends and related opportunity for new Low Rolling Resistance Tires Market tech suppliers
- Low Rolling Resistance Tires Market share of leading vendors, by region,
- Coronavirus impact on Low Rolling Resistance Tires Market earnings