Market Trends of Steel Tire Cord Industry
This section covers the major market trends shaping the Steel Tire Cord Market according to our research experts:
Increasing Demand from Tire Industry
Steel tire cords are the fastest-growing cords in the tire industry. They are used in reinforcing tires to enable strength and resistance from expansion during a tire rotation and to withstand deformations caused by any obstacles or bumps in the road.
The global automotive tire manufacturing market was sized at about USD 112 billion in 2019, projected to grow to USD 154 billion in 2027.
An increase in the research and development activities in the automotive industry is growing for the introduction of new designs of tires and their manufacturing processes to enhance the performance of tires. In 2021, the number of new energy vehicles in China was about 8 million, and the penetration rate of new vehicles reached 12.7%. Therefore, domestic and foreign tire enterprises are actively planning to launch new tire products with characteristics one after another to help develop the new energy vehicle industry.
Superior properties of steel tire cord, such as good adhesion build-up mechanism, enhance its usage in the tire sector.
Owing to all these factors, the market for steel tire cord is likely to grow globally during the forecast period.
Asia-Pacific Region to Dominate the Market
The Asia-Pacific region is expected to dominate the market. In the region, China is the largest economy in terms of GDP. China and India are among the fastest emerging economies in the world.
According to data from the General Administration of Customs of China, China's auto tire export was 5.54 million tons, worth USD 12.82 billion, from January to November of 2021, which was an increase of 13.9% and 22.4 %, respectively, compared to the previous year.
In 2020, the China Rubber Industry Association (CRIA) released the 'Guiding Outline for the '14th Five-Year' Development Plan. As per the plan, tire production is expected to reach 704 million units per year by 2025, including 527 million passenger radial tires, 148 million truck/bus radial tires, 29 million bias truck tires, and 20,000 extra-large industrial tires, 12 million agricultural tires, and 54,000 aircraft tires.
India presently has the world's fifth-largest passenger car market, the world's largest motorcycle market, and the world's third-largest commercial vehicle market. On Indian highways, there are more than 250 million scooters/motorcycles, 40 million cars, and 10 million commercial vehicles. The OEM demand in the Indian tire market is one-third of replacement due to very high vehicles in operation, also known as PARC.
In 2021, the total tire production in India stood at around 169 million units, which is expected to increase four times by 2026.
Due to all such factors, the market for steel tire cord in the region is expected to grow steadily during the forecast period.
