Pune, India – The Global Bias Tire Market size is estimated to grow at a CAGR of 13.46% between 2023 and 2027. The market size is forecast to increase by USD 25,765.53 million. The growth of the market depends on several factors, including the growing demand for bias tires in the agriculture equipment market, a rise in sales of passenger vehicles globally, and an increase in two-wheeler production and sales. The US, China, India, Japan, and Germany are the top countries contributing to the market growth. The US held the largest market in 2021 projecting revenue of USD 3,974.37 million according to Technavio.
The general bias tires segment was the largest segment and was valued at USD 10,315.37 million in 2017 and continue to grow by 2021. General bias tires are the dominating segment in the global bias tire market due to the following advantages: Good load-carrying capacity: Their robust construction makes them suitable for carrying heavy loads. Good puncture resistance: General bias tires provide better puncture resistance and cut protection due to the overlapping ply design. Such factors are enhancing the growth of the market.
OEMs hold the largest market share based on the distribution channel. Automotive OEMs offer bias tires due to their unique characteristics and advantages like the following: Cost-effectiveness, especially in price-sensitive automotive markets, heavy load-carrying capacity, and durability, especially when used in off-road vehicles, agricultural machinery, and construction equipment, high resistance to damage caused by punctures and cuts to the tires, excellent stability and traction on soft soil and uneven surfaces. Automotive OEMs mostly use bias tires that complement the features and handling capabilities of the respective vehicles to which they are fitted. These factors are boosting the segment growth.
APAC is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The bias tire market in the Asia-Pacific (APAC) region is experiencing substantial growth, driven by the expanding automotive industry and increased vehicle demand. APAC has become a significant tire manufacturing hub, with major players like Great Wall Motors, Toyota, Hyundai, and Tata Motors in China, Japan, South Korea, and India, respectively. The rising popularity of passenger cars and commercial vehicles is boosting the demand for bias tires, fueled by factors such as population growth, urbanization, and higher disposable income.
Government policies and regulations also play a crucial role in shaping the production and quality of bias tires in the region. For example, the Chinese government’s strict regulations on tire labeling and safety standards have prompted manufacturers to focus on creating high-quality and environmentally friendly bias tires. This compliance with government standards instills consumer trust, positively impacting the sales and growth of the APAC bias tire market.
The regional bias tire market experienced a setback in 2020 due to the COVID-19 outbreak. Stringent lockdown measures in countries like India and China hindered vehicle purchases, leading to reduced demand for tires. However, by the end of 2021, successful vaccination drives brought the pandemic under control, resulting in increased demand for automobile tires by 2022, as people preferred personal transportation.
Additionally, being the world’s largest motorcycle market, APAC saw a 13.2% increase in two-wheeler sales in India in 2022. The rising demand for passenger cars and commercial vehicles, especially in emerging markets like India and Bangladesh, further boosted the bias tire market’s growth. Online automotive parts purchases also contributed to increased tire demand in the region during the forecast period.
The growing demand for bias tires in the agriculture equipment market notably is driving the market growth. Agricultural equipment is mainly used in modern farming methods. The increasing adoption of advanced technology in the agriculture industry is driving the sales and production of agricultural equipment like tractors. Advanced technologies are utilized in modern farming in the form of farming equipment, such as tractors, cultivators, mechanized plows, combine harvesters, strippers, cutters, and all-terrain vehicles. All these different types of agricultural equipment require tires for their movement. Hence, the rising demand for and sale of agricultural equipment is driving the production of bias tires.
Moreover, the APAC countries are adopting technology to increase agricultural production. The agriculture industry in these countries is characterized by the high cost-consciousness among farmers. However, tractor manufacturers are increasingly investing in launching affordable tractors in these countries to increase their market shares. Rising agricultural wages for laborers is the major factor driving the growth of agricultural machinery like tractors and other advanced types of farm equipment, This will drive the sales and production of bias tires used in agricultural machinery which will rise the demand for bias tires for such machinery during the forecast period.
The growing tire e-retailing market is the primary trend in the bias tire market. Online marketplaces are increasing due to the wide range of products. Vendors in the global bias tire market are turning to online business models to expand their reach and generate revenue. Low-priced tires that are sold in Asia are the major challenge to global and regional tire vendors. Vehicle manufacturers are increasing their import of tires from Asia due to their lower prices when compared to those produced in their own countries.
Therefore, Premium tire brands, namely MICHELIN, and Goodyear will be compelled to reduce the number of offline stores and opt for an omnichannel strategy with both online and offline presence and an increased emphasis on online stores. Thus, rising market consolidation will further invite large retail chains such as Discount Tires or Kwik-Fit to offer tires online. moreover, increasing spending on e-commerce platforms by OEMs manufacturing bias tires due to the rising Internet penetration rate will drive the online tire market over the next five years as well. Thus, the rising penetration of e-commerce in the overall tire industry will boost the growth of the global bias tire market during the forecast period.
Environmental issues due to bias tire manufacturing activities are the main challenge for the bias tire market. Production plants release many hazardous air pollutants during the process of manufacturing which adversely impact the quality of air in the area. Various regulatory bodies are applying strict regulations that restrict emissions released during the tire manufacturing process. due to these regulations, manufacturers will need to invest in expensive after-treatment systems and heavy machinery to maintain compliance with the emission regulations.
For instance, the US Environment Protection Agency (US EPA) has formulated the National Emission Standards for Hazardous Air Pollutants (NESHAP) to check the amount of pollution caused by tire manufacturing companies. These standards give strict regulations that all tire manufacturing processes must meet the Hazardous Air Pollutants (HAP) emission standards. moreover, the emissions of these chemicals are volatile organic compounds (VOCs), which are known to cause acute health disorders and chronic health issues like degenerative lesions of the nasal cavity and polyneuropathy. Thus, the formulation of stringent emission standards in the tire manufacturing industry will pose a significant challenge to manufacturers of bias tires during the forecast period.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including: Balkrishna Industries Ltd., BLACKSTONE RUBBER INDUSTRIES PVT. LTD., Bridgestone Corp., Coker Tire, Continental AG, DANANG RUBBER JSC , Dewan Tyres Ltd., Dunlop Aircraft Tyres Ltd., Furukawa Electric Co. Ltd., GTR TYRES, GUIZHOU TYRE CO. LTD., JK Tyre and Industries Ltd., Kesoram Industries Ltd., Kyoto Japan Tire Group, Lotus Rubber Industries, Michelin Group, Salsons Impex Pvt. Ltd., Singla Polymers, The Goodyear Tire and Rubber Co., and VIDYA DISTRIBUTORS AND AGENCIES PVT. LTD.