Market Summary
Global Automotive Retread Tires Market 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
-
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
- Michelin
- The Goodyear Tire & Rubber Company
- Marangoni S.p.A
- Nokian Tyre
- MRF Tyre
- Kraiburg Austria Gmbh & co. KG
- Jk Tyre
- 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
Market Size & Forecast
|
Report Attribute/Metric |
Details |
|
Market Size 2023 |
USD 7810.6 million |
|
Market Size 2024 |
USD 8099.59 million |
|
Market Size 2032 |
USD 10865.5 million |
|
Compound Annual Growth Rate (CAGR) |
3.74% (2024-2032) |
|
Base Year |
2023 |
|
Forecast Period |
2024-2032 |
|
Historical Data |
2018-2023 |
|
Forecast Units |
Value (USD Million) |
|
Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
|
Segments Covered |
By process type, sales channel, and vehicle type |
|
Geographies Covered |
North America, Europe, Asia Pacific, Middle East & Africa, and South America |
|
Countries Covered |
The US, Canada, Mexico, Germany, UK, Italy, France, China, India, Japan, South Korea, Australia, Saudi Arabia, UAE, South Africa, Nigeria, Brazil, Argentina. |
|
Key Companies Profiled |
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. |
|
Key Market Opportunities |
· Low cost of retreat tires |
|
Key Market Dynamics |
· Increasing tire sales · Government-supporting rules and regulations |
Major Players
Automotive Retread Tires Market Segmentation
Global Automotive Retread Tires Process Type Outlook (USD Million, 2018-2032)
- Pre-cure
- Mold-cure
Global Automotive Retread Tires Sales Channel Outlook (USD Million, 2018-2032)
- OEM
- Aftermarket
Global Automotive Retread Tires Vehicle Type Outlook (USD Million, 2018-2032)
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
Global Automotive Retread Tires Regional Outlook (USD Million, 2018-2032)
- North America Outlook (USD Million, 2018-2032)
- North America Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- North America Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- North America Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- US Outlook (USD Million, 2018-2032)
- US Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- US Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- US Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Canada Outlook (USD Million, 2018-2032)
- Canada Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- Canada Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- Canada Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Mexico Outlook (USD Million, 2018-2032)
- Mexico Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- Mexico Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- Mexico Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Europe Outlook (USD Million, 2018-2032)
- Europe Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- Cana Europe da Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- Europe Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Germany Outlook (USD Million, 2018-2032)
- Germany Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- Germany Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- Germany Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- UK Outlook (USD Million, 2018-2032)
- UK Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- UK Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- UK Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Italy Outlook (USD Million, 2018-2032)
- Italy Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- Italy Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- Italy Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- France Outlook (USD Million, 2018-2032)
- France Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- France Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- France Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Rest Of Europe Outlook (USD Million, 2018-2032)
- Rest of Europe Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- Rest of Europe Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- Rest of Europe Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Asia-Pacific Outlook (USD Million, 2018-2032)
- Asia Pacific Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- Asia Pacific Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- Asia Pacific Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- China Outlook (USD Million, 2018-2032)
- China Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- China Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- China Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Japan Outlook (USD Million, 2018-2032)
- Japan Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- Japan Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- Japan Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- India Outlook (USD Million, 2018-2032)
- India Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- India Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- India Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- South Korea Outlook (USD Million, 2018-2032)
- South Korea Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- South Korea Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- South Korea Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Rest of Asia-Pacific Outlook (USD Million, 2018-2032)
- Rest of Asia Pacific Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- Rest of Asia Pacific Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- Rest of Asia Pacific Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Middle East & Africa Outlook (USD Million, 2018-2032)
- Middle East & Africa Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- Middle East & Africa Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- Middle East & Africa Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Saudi Arabia Outlook (USD Million, 2018-2032)
- Saudi Arabia Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- Saudi Arabia Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- Saudi Arabia Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- UAE Outlook (USD Million, 2018-2032)
- UAE Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- UAE Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- UAE Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- South Africa Outlook (USD Million, 2018-2032)
- South Africa Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- South Africa Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- South Africa Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Nigeria Outlook (USD Million, 2018-2032)
- Nigeria Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- Nigeria Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- Nigeria Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Rest of Middle East & Africa Outlook (USD Million, 2018-2032)
- Rest of Middle East & Africa Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- Rest of Middle East & Africa Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- Rest of Middle East & Africa Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- South America Outlook (USD Million, 2018-2032)
- South America Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- South America Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- South America Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Brazil Outlook (USD Million, 2018-2032)
- Brazil Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- Brazil Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- Brazil Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Argentina Outlook (USD Million, 2018-2032)
- Argentina Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- Argentina Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- Argentina Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Rest of South America Outlook (USD Million, 2018-2032)
- Rest of South America Automotive Retread Tires by Process Type Outlook
- Pre-cure
- Mold-cure
- Rest of South America Automotive Retread Tires by Sales Channel Outlook
- OEM
- Aftermarket
- Rest of South America Automotive Retread Tires by Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- South America Automotive Retread Tires by Process Type Outlook
- Middle East & Africa Automotive Retread Tires by Process Type Outlook
- Asia Pacific Automotive Retread Tires by Process Type Outlook
- Europe Automotive Retread Tires by Process Type Outlook
- North America Automotive Retread Tires by Process Type Outlook
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