Specialty tire market size is expected to increase by $10.86 billion by 2026

Elmhurst, IL – The specialty tires market size is expected to increase by USD 10.86 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 4.36% according to Technavio.

This specialty tires industry report further provides detailed data on several market vendors, including Balkrishna Industries Ltd., Bridgestone Corp., Continental AG, Giti Tire Pte. Ltd., GRI Tires Pvt. Ltd., JK Tyre and Industries Ltd., Kumho Tire Co. Inc., Michelin Group, Nokian Tyres Plc, Pirelli Tyre Spa, Polymer Enterprises Inc., Shandong Linglong Tyre Co. Ltd., The Carlstar Group LLC, The Goodyear Tire and Rubber Co., Toyo Tire Corp., Trelleborg AB, Triangle Tire USA, Xuzhou Construction Machinery Group Co. Ltd., Yokohama Rubber Co. Ltd., and Zhongce Rubber Group Co. Ltd. among others. One of the key highlights of this report is the post COVID-19 impact analysis on the market, which will help companies evaluate their business approaches for the future.

The reducing prices of natural rubber is notably driving the specialty tires market growth, although factors such as rental market of specialty vehicles may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the specialty tires industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

One of the key factors driving the global specialty tires industry growth is the reducing prices of natural rubber, as it will reduce the overall production costs. For instance, in 2021, the natural rubber prices declined due to low trading in the global markets owing to the low demand for natural rubber in the automobile sector wherein the automobile industry faced a shortage of semiconductor chips. Countries such as India and China are the major exporter of natural rubber. However, due to the pandemic, the producers too faced issues such as low demand and high-cost margins. Therefore, producers with lower costs will be able to supply more products at a given price than those with higher costs, which be pushing the growth of the global specialty tires market during the forecast period.

Development of airless tires for specialty vehicles and mainstream commercial vehicles is one of the key specialty tires market trends that is expected to impact the industry positively in the forecast period. The major tire manufacturers have been developing prototypes of airless tires for ATVs since 2016. For instance, in 2018, Crocodile Tyres launched 50-510-900Mk1 airless tires for heavy industrial vehicles. Michelin introduced Unique Puncture-proof Tire System (Uptis) back in 2019 in partnership with General Motors. The Michelin Uptis is said to be an alternative to the conventional pneumatic tires, offering better durability and less prone to mishaps. Thus, the development of these technologically advanced tires will further support the market growth in the coming years.

One of the key challenges to the global specialty tires industry growth is the rental market of specialty vehicles as rental services offer an economical alternative to owning a specialty vehicle. For instance, Enterprise Holdings Inc., a major heavy-duty truck and equipment renting company based out in the US, has increased its number of business units in the US by 300% since 2007. These include new Enterprise Truck Rental offices in Virginia, Texas, Tennessee, Ohio, Nevada, Kentucky, Kansas, Illinois, Georgia, Florida, and California by 2017. These companies also offer customized equipment packages, including specialty vehicles and additional machinery, thereby extending the convenience of having all the needed vehicles and equipment at a fraction of its actual cost. This will adversely affect the demand for specialty tires during the forecast period.

This specialty tires market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.