April 4, 2020

Retread Tires Market: Asia Pacific is expected to account for the highest sales over the projected period

The global market for retread tires worldwide was valued at US$ 12.65 billion in 2018 and is expected to grow over the forecast period with 4.9 percent CAGR.

Market Insights

The rising worldwide market for used cars and growing global sales of commercial vehicles are the main drivers of growth for the global market for retread tires. With a CAGR of over 8 percent in years to come, the global used car market is likely to grow. It was sold an estimated 500 Mn units of retread tires in 2018 and is expected to show an annual growth rate of about 5.5 percent. The growing tire replacement market around the world is also a major market driver for growth. Retread tires are 40-50 percent less expensive than new tires, which means that their demand remains strong. Safe, eco-friendly, long-lasting and other benefits result in increasing demand for retread tires. Another promising factor driving market demand is increased investment by major market players for retread tires. Thus, we assume that during the forecast period, the global retread tires market will show significant growth.

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The low cost of retread tires is one of the key factors that enhances the growth of the retread tire market. This growth is further enhanced by the transport sector’s robust growth. Furthermore, tire retreading is an eco-friendly solution and is therefore supported by different regulatory bodies. In addition, continuous growth in vehicle parc is another factor that will increase tire replacement requirements. In order to ensure cost-effectiveness, large fleet owners prefer tire remolding. All of these factors will have a positive effect on the global market for retread tires.

What are retread tires and how do it help environment?

The worn tires still have a lot of life to give. Typically, the tire casings last long after the tire has been worn. Retreading involves inspecting and repairing these housings thoroughly before replacing the used tire treads with freshly vulcanized new treads. Every tire that is retread  reduces the amount of stock and uses fewer natural resources to produce. According to the EPA, retread tires require the production of 70 percent less oil and contain post-consumer material at 75 percent. The more tires we retread, the less harmful the environmental impact we have.

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Based on end-use, the global market for retread tires was led by the commercial vehicle segment in 2018, contributing over 35 percent of the market share of revenue in the same year. Growing worldwide sales of commercial vehicles and increased cost of tires are the major factors for the dominance of the segment of commercial vehicles. In 2018, “26,365,470” commercial vehicles were sold compared to “24,365,772” in 2017, according to OICA. Strong growth in the transportation industry and increasing use of commercial vehicles in various industries such as mining, infrastructure development, construction and other sectors are some of the factors for segment growth. Hence, we expect the segment of commercial vehicles to show significant growth over the forecast period.

The Asia Pacific is expected to account for the highest sales over the projected period in the global retread tire market in terms of demand. This is due primarily to the region’s steadily increasing vehicle sales and growing vehicle park. In the overall retread tire market, China, India and ASEAN are supposed to hold major stakes. In addition, North America is expected to be the next big market in the global retread tire market after the Asia Pacific due to the favorable regulatory environment and enhanced retread tires adoption, which will build new vertical growth in this region. Due to growth in commercial aircraft, the North American market is expected to experience high demand for retread tires. Moreover, Europe is expected to be the next big market followed by North America on the global retread tire market— EU5 countries are expected to hold a leading market share over the forecast period.

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David Brown

David Brown

Experienced Market Research Analyst with a demonstrated history of working in the market research industry. Skilled in Secondary Market Research, Primary Market Research, Client Interfacing. - Identify, collect and organize data for use in research projects - Provide fundamental analysis for research projects - Review data to ensure its quality and integrity - Market estimates and forecast based on homegrown forecasting models - Identifying potential titles for syndicated research projects - Analyzing, estimating and forecasting various industry/market using various analysis tools and forecasting models - Conducting secondary research - Company profiling and analyzing competitive landscape - Report writing And Quality check

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