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The automotive retread tires market is influenced by a myriad of market factors that collectively shape its dynamics. One of the primary drivers contributing to the growth of the automotive retread tires market is the increasing focus on sustainability and cost-effectiveness in the transportation and logistics industry. Retreading tires offers a more environmentally friendly option compared to manufacturing new tires, as it reduces the demand for raw materials and energy consumption. This aligns with the broader global efforts towards sustainable practices and environmental responsibility, making retread tires an attractive choice for fleet operators and businesses aiming to reduce their carbon footprint.
Cost considerations play a significant role in driving the demand for retread tires. The cost of new tires constitutes a substantial portion of the overall operating expenses for commercial vehicles. Retreading provides a cost-effective alternative, allowing businesses to extend the lifespan of their tires and maximize the return on their initial tire investment. This cost savings becomes particularly crucial for industries reliant on large fleets, such as trucking and public transportation, where minimizing operational expenses is a key priority.
Regulatory frameworks and standards also exert a considerable influence on the automotive retread tires market. Governments and regulatory bodies often implement measures to promote sustainable practices and reduce waste, creating a conducive environment for the adoption of retread tires. In some regions, regulations may mandate the use of retread tires in certain applications or industries, further driving market growth. Additionally, industry standards and certifications for retreaded tires contribute to building trust among consumers, assuring them of the quality and safety of retreaded products.
Technological advancements in the retreading process play a crucial role in market dynamics. Innovations in tire retreading technologies have improved the quality and performance of retreaded tires, making them comparable to new tires in terms of safety and reliability. Advanced processes, such as computerized buffing and laser inspections, enhance the precision and accuracy of the retreading process, ensuring that retreaded tires meet or exceed industry standards. These technological advancements contribute to boosting consumer confidence in the efficacy of retreaded tires.
Market factors are also influenced by the overall economic conditions and trends in the transportation industry. Economic downturns may lead businesses to explore cost-saving measures, making retread tires an appealing option. Conversely, periods of economic growth and increased transportation activity may drive the demand for both new and retreaded tires. Understanding and adapting to these economic trends is essential for stakeholders in the automotive retread tires market to make informed decisions and capitalize on market opportunities.
The competitive landscape and industry collaborations are additional factors shaping the automotive retread tires market. The presence of established retread tire manufacturers, along with strategic alliances and partnerships within the industry, influence market dynamics. Collaborations may involve tire manufacturers working with fleet operators or third-party retreaders to offer comprehensive tire management solutions. Such collaborations enhance the accessibility and adoption of retreaded tires, further expanding the market.
Consumer perceptions and awareness also impact the automotive retread tires market. As awareness grows regarding the economic and environmental benefits of retreading, consumers become more inclined to choose retreaded tires. Effective marketing and educational initiatives by manufacturers and industry stakeholders contribute to changing perceptions and fostering a positive attitude towards the use of retreaded tires.
The automotive retread tires market is shaped by a complex interplay of factors encompassing sustainability, cost-effectiveness, regulatory influences, technological advancements, economic conditions, industry collaborations, and consumer awareness. The market's trajectory is dynamic, influenced by the evolving priorities of businesses, regulatory landscapes, and advancements in retreading technologies. As the automotive industry continues to navigate the challenges of sustainability and cost efficiency, the market for retread tires is expected to play a significant role in providing viable solutions for businesses seeking economical and environmentally responsible tire options.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Process Type, Sales Channel, Vehicle Type |
Automotive Retread Tires Market Highlights:
Global Automotive Retread Tires Overview
The Automotive Retread Tires Market size was valued at USD 7810.6 million in 2023. The Automotive Retread Tires industry is projected to grow from USD 8099.59 million in 2024 to USD 10865.5 million by 2032, exhibiting a compound annual growth rate (CAGR) of 3.74% during the forecast period (2024 - 2032).The Automotive Retread Tires Market is consistently growing due to the Increasing demand automotive vehicles across globe and growing support from government through rules & regulations. Furthermore, growing research & development abilities among key players in the market is likely to drive the region’s market throughout the forecast year. Due to government rules and regulations, there is a need for sustainability for tires, tire industry is making significant efforts for greener and more sustainable production considering reduced CO2 emissions. The government of the US has introduced the bill, H.R. 8165 (The Commercial Vehicle Fleet Retreaded Tire Utilization Reinvestment and Recovery Act of 2022). Under this bill government will provide a tax credit to fleet purchasers on buying United States retreaded commercial tires. The federal government will support shifting the business model in the favor of retarding, thus providing a highly effective way for recycling tires, with various notable economic as well as environmental benefits.
Global Automotive Retread Tires Size (USD MILLION) (2018-2032)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Automotive Retread Tires Trends
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Low-cost of retreat tires
The tire is a major contributor to the expense of operating the fleet. The cost of tires comprises one-third of the yearly expenditure suffered by fleet operators. The cost-effectiveness of retreaded tires is about 40% higher as compared to new tires, which is a significant edge in the achievement of operational efficiency. In addition, some of the major factors contribute to low costs of retreads include reduced consumption of rubber, which decreases the dependence on raw materials for manufacturing retread tires. As a result, lifecycle of tires increases due to multiple recycling and reduces the cost significantly.
Furthermore, retreads are exempt from certain taxes for instance Federal Excise Tax charges which are up to USD 34 for new tires. Due to the economic benefit, truck fleet operators shift towards retreaded tires. Around 70% of commercial transport fleets retread the tires no less than once in the whole lifecycle. The cause of replacement is due to the costs of a retread tire being around 30% to 50% of the price of a new tire thus economical for the fleet operators. Further, more major players are establishing facilities across the world for offering retreaded tires. In September 2021, BKT established a new production unit in Waluj, in Maharashtra India, the annual production of the facility is around 30,000 metric tons of off-highway tires.
Automotive Retread Tires Segment Insights:
Automotive Retread Tires Process Type Insights
The Automotive Retread Tires segmentation, based on process type, includes Pre-cure and Mold-cure. Among them, Pre-cure segment held the largest market share of 66.9% and is expected to dominate the market over the anticipated period. It is a pre-cure style of tire retreading which involves the use of rubber that has already been vulcanized having the new tread design. A fine layer of cushioned gum is put on the tread area of the new buffed tire as well as the precured tread is applied. This cushioned gum work as a bond for attaching the new layer of the pre-cured tread to the tire. The tire is then put within a curing chamber for completing the adhering stage.
Global Automotive Retread Tires Size (USD MILLION) process type 2022 VS 2032
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Automotive Retread Tires Sales Channel Insights
According to sales channel, the segment is divided into OEM, and aftermarket. The OEM segment held the majority share in 2022 contributing around ~ 83.45% to the market revenue.
The processes in the OEM segment include the production, procurement, and installation of the automotive retread tire. Many automotive manufacturing companies are working on ensuring safety and comfort to comply with the recent and upcoming tire manufacturing technology all over the world. For instance, Michelin and Enviro have partnered to develop new technology that allows used tires to be converted into raw materials. The various benefits offered by OEM automotive retread tires are better quality, high lifespan, warranty, and return on investment. Such advantages are expected to drive the growth of the OEM segment during the forecast period.
Automotive Retread Tires Vehicle Type Insights
The Automotive Retread Tires market research segmentation, by vehicle type, the market is segmented into passenger cars, light commercial vehicles, and heavy commercial vehicles. The Light commercial vehicle (LCV) segment held the majority share in 2022 contributing around ~ 54.22% to the market revenue.
Light commercial vehicles (LCV) include mini-vans, pickup trucks, and buses. The rise in the processing, manufacturing, and logistics sectors, along with the continuous growth in the tourism and hospitality industries, are increasing the demand for light commercial vehicles. The increase in demand for safety, comfort, and traction features among drivers in light commercial vehicles are expected to raise the demand for automotive retread tires for transmitting traction, torque, and braking forces to the road surface.
Global Automotive Retread Tires Size (USD MILLION) vehicle type 2022 VS 2032
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Automotive Retread Tires Market Regional Insights
By Region, the study segments the market into North America, Europe, Asia-Pacific, Middle East & Africa, and South and Central America. Asia Pacific accounted for the largest share of revenue in 2022 and is expected to retain its dominance in upcoming years in terms of CAGR owing to the immense development of the automotive sector in nations such as China, India, and Japan.
China is the leading market in terms of vehicle sale, globally. The country is one of the most attractive markets for tire manufacturers who are investing by forming joint ventures with local vehicle brands. China is one of the leading countries in terms of consumption of electric vehicles, owing to the introduction of the “Automobile Mid and Long-Term Development Plan” and the presence of BAIC, BYD, and JAC.
Further, the automotive industry in India is well-positioned in terms of contribution to the overall GDP, due to continuous growth in the demand for passenger cars. India is one of the key exporters of vehicles in Asia-Pacific, owing to high production rate, low labor cost, growing ease-of-doing business rating, its position as an emerging economy, and globally recognized engineering capabilities. Additionally, the increasing awareness in use of retreaded tires and the shifting consumer preference towards cost effective options are some of the factors that are expected to drive the adoption of automotive tires during the forecast period.
Global Automotive Retread Tires Size (USD MILLION) Region 2022 VS 2032
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Further, the countries considered in the scope of the Automotive Retread Tires are the US, Canada, Mexico, Germany, UK, Italy, France, China, India, Japan, South Korea, Australia, Saudi Arabia, UAE, South Africa, Nigeria, Brazil, Argentina.
The demand for automotive retread tires in construction and industrial equipment vehicles is expected to drive the market in North America. Furthermore, the continuously rising demand for high-performance industrial-grade tires, especially in the replacement market, is expected to offer lucrative opportunities to the automotive retread tire market during the forecast period. Activities, such as off-roading and rally racing, are quite popular in this region. The automotive retread tire market in Europe is one of the largest. The presence of leading global automotive tire manufacturers such as Michelin, Continental AG, and Pirelli & C. SpA., are driving the market. These companies are offering low cost and technologically advanced automotive tires for increasing their market share and are contributing to the increasing use of such tires throughout the region. Middle East & Africa region includes countries such as the UAE, Saudi Arabia, Israel, and South Africa, among others. The continuous growth in the sale of vehicles can be attributed to the high GDP and increasing per capita disposable income. South America region includes countries such as Brazil, Argentina, Chile, Peru, and Venezuela. Governments across this region are working on regulations and programs to improve vehicle efficiency to improve the mining and construction activities in the region.
Automotive Retread Tires Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Automotive Retread Tires grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Automotive Retread Tires industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
The major players in the market include Bridgestone, Michelin, The Goodyear Tire & Rubber Company, Marangoni S.p.A, Nokian Tyre, MRF Tyre, Kraiburg Austria Gmbh & co. KG, Jk Tyre, Continental AG, and Pirelli & C. S.p.A. Bridgestone is focused on optimizing its research & development structure to develop a competitive and diverse product and service portfolio. It concentrates on its corporate mission of “serving society with superior quality” by conducting research & development to establish a fiercely competitive business in the global market. The company collaborates with external parties to further enhance the effectiveness of its development activities. It strategizes to combine the technologies from its tire and diversified product segments as well as its ICT segment to strengthen its product and service offerings. Bridgestone is currently developing tires that provide a perfect balance between a long tire life and reducing manufacturing costs.
Key Companies in the Automotive Retread Tires include
- Bridgestone
- Michelin
- The Goodyear Tire & Rubber Company
- Marangoni S.p.A
- Nokian Tyre
- MRF Tyre
- Kraiburg Austria Gmbh & co. KG
- Jk Tyre
- Continental AG
- Pirelli & C. S.p.A.
Automotive Retread Tires Industry Developments
September 2022: The Goodyear Tire & Rubber Company and Treadco, Inc. enter into a joint venture agreement, this will lead to the formation of the largest network as well as new truck tire sales, along with service and retread manufacturing centers.
August 2022: Bridgestone and Microsoft extended collaboration for advancing tire analytics. This will accelerate Bridgestone's digital transformation as well as further develop advanced along with predictive maintenance analytics.
May 2022: Bridgestone launched the Bandag B713 FuelTech drive tire tread, designed for increasing retread value for fleets.
Automotive Retread Tires Segmentation
Automotive Retread Tires Process Type Outlook (USD Million, 2018-2032)
- Pre-cure
- Mold-cure
Automotive Retread Tires Sales Channel Outlook (USD Million, 2018-2032)
- OEM
- Aftermarket
Automotive Retread Tires Vehicle Type Outlook (USD Million, 2018-2032)
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
Automotive Retread Tires Regional Outlook
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- UK
- Italy
- France
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Australia
- Rest of Asia-Pacific
- Middle East & Africa
- Saudi Arabia
- South Africa
- Nigeria
- Rest of Middle East & Africa
- South America
- Brazil
- Argentina
- Rest of South America
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