The global market for retread tires was valued at US$ 12.65 billion in 2018 and is set to grow at 4.9 per cent CAGR over the forecast period. Rising used-car market worldwide and growing commercial vehicle sales worldwide are the main growth drivers for the global tire retraining market. The global used car market is expected to grow with a CAGR of more than 8 per cent in the coming years. An estimated 500 Mn of retread tires were sold in 2018 and are expected to show an annual growth rate of around 5.5 percent. The growing market for tire replacements worldwide is also a major driver of growth for the market. Retread tires are 40-50 per cent cheaper than new tires due to their continued high demand. Safe, eco friendly, long-lasting and others are some of the benefits that increase the demand for retread tires. Increased investment by the major market players in retread tires is also a promising factor driving market demand. As a result, we presume that the global market for retread tires will show substantial growth during the forecast period.
Sample of Retread Tires Market Report: https://www.credenceresearch.com/sample-request/60085
On the basis of end-use, the global market for retread tires was led by the commercial vehicle segment in 2018, contributing more than 35% of the market share of revenue in the same year. Increasing sales of commercial vehicles worldwide and increased costs for tires are key factors in the dominance of the commercial vehicle segment. According to OICA, 26,365,470 commercial vehicles were sold in 2018 compared to 24,365,772 vehicles sold in 2017. The robust growth of the transport industry and the increasing use of commercial vehicles in various industries, such as mining, infrastructure development, construction and other sectors, are some of the factors for the growth of the segment. We therefore expect the segment of commercial vehicles to show significant growth throughout the forecast period.
Based on the geography, Asia Pacific was the market leader in both value and volume in the global retread tire market in 2018. Asia Pacific contributes around 35 per cent of the market share of revenues and more than 40 per cent of the market share in the same year. Asia Pacific is dominant due to robust vehicle sales and the growing market for tire replacements in the region. India, China and Japan will be the key contributors to the Asian Pacific retread tire market. In 2018, more than 65 percent of the Indian tire industry’s revenue share comes from replacement.