Tire Cord and Tire Fabrics Market to Expand with Significant CAGR During 2023
With only a few companies raking in the highest revenues, the global tire cord and tire fabrics market exhibits a consolidated vendor landscape, observes Transparency Market Research (TMR) in a new report. Small players operating in the market pose considerable threat to the leading players, as they provide cheaper alternatives to products manufactured by bigger companies. Nevertheless, large players usually capitalize on supply agreements and their goodwill in the market.
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However, if demand for tire cord and fabrics rises at a lower rate than capacity addition, even the large players stand a chance of losing their profitability marginally. Among the most prominent companies, Hyosung Corporation holds the dominant share of 15.8% in the market. The company owes much of its lead to the fact that it produces more than one kind of tire cords. Other leading players such as Bekaert are exclusively engaged in the manufacture of steel cords. As per TMR, Hyosung Corporation, Kordsa Global, Bekaert, Kolon Industries, Inc., and SRF Ltd. together holds 59.2% of the global tire cord and tire fabrics market.
The rising demand for automotive globally, particularly in the emerging nations of Asia Pacific is expected to considerably boost sales of tire cord and tire fabrics. Since, the market is directly related to conditions in the automotive industry, volatility in macro-economic conditions affecting auto manufacturers also adversely influences the prospects for enterprises engaged in tire cords and fabrics sale.
India and China have emerged as lucrative domestic markets for tire cord and fabrics. Experts are touting these countries to be the market leaders of the future. “The emerging middle-class population in India and China has considerably contributed in the rising demand for automotive in Asia Pacific, which makes the region the most attractive market for tire cord and tire fabrics,” said a lead analyst in TMR.
“The revival of the U.S. economy will also infuse fresh demand for tire cords and fabrics,” he added. As per TMR, the U.S. accounts for over 60% of all commercial and passenger vehicles sold in North America. Therefore economic rebound post-recession in 2008-2009, will fuel opportunities for the tire cord and tire fabrics manufacturers in the U.S. This is expected to be a major factor fuelling demand for tire cords and fabrics globally.
On the contrary, despite being home to the most prominent brands in the automotive industry, Europe witnessed a sharp decline in demand for vehicles during economic slowdown. This however is the only region that is yet to recover from effects of the global recession. The road to recovery has been sluggish in Europe due to the slow GDP growth reported in the region. The decreasing demand in the region is hampering the overall prospects for the global tire cord and fabrics market.
The overcapacity of Asia Pacific, especially in China, also negatively influences the market’s trajectory. Nevertheless, manufacturers are projected to gain significantly from the launch of hybrid tire technologies. The increasing demand for environmentally sustainable and bio-based alternatives also bodes well for the market.
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Regionally, the rising demand for automotive has sealed Asia Pacific’s dominance in the global tire cord and tire fabrics market. North America has emerged as the second-largest regional market for tire cord and tire fabrics.
Based on in-depth research, TMR has pegged the overall value of the global tire cord and tire fabrics market at US$4.14 bn in 2015. Rising at a CAGR of 4.9% between 2015 and 2023, the market is expected to reach US$6.37 bn by the end of 2023.
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