The automotive tyres and wheels market in the Asia-Pacific (APAC) region is expected to witness a steady growth rate of 1.7% CAGR from 2024 to 2029, according to a new report by GlobalData, a prominent data and analytics firm. This growth comes amid rising vehicle production, continuous technological advancements, and innovations in tyre and wheel manufacturing.
The report, titled “Global Sector Overview & Forecast: Tyres and Wheels – Q2 2024”, estimates that the market volume for tyres and wheels in APAC will reach 541.5 million units in 2024, with projections showing an increase to 589.9 million units by 2029.
However, while advancements in tyre durability have made them more reliable and less prone to flat tyre incidents, the demand for spare wheels has seen a decline. This, in turn, has slowed overall market growth.
Technological Innovations Drive Market Changes
Madhuchhanda Palit, Automotive Analyst at GlobalData, highlights the growing use of tyre monitoring sensors. These sensors, though still in their developmental stages, are being integrated into tyres to monitor key parameters like pressure, temperature, and tread condition. The data collected can enhance road safety and extend tyre lifespan. Palit also notes the industry’s focus on reducing wheel weight to lower fuel consumption and cut exhaust emissions, in response to global emission standards.
Impact of Electric and Autonomous Vehicles on the Sector
The rise of electric vehicles (EVs) and autonomous vehicles (AVs) is significantly influencing tyre and wheel innovations. Tyre manufacturers are increasingly focused on creating low rolling-resistance tyres to boost energy efficiency for both internal combustion engine (ICE) vehicles and EVs. Palit points out that EVs, due to their heavier weight, require tyres that can handle greater loads while also improving battery range. In response, manufacturers are developing specialised solutions like AV tyre health monitoring systems to cater to the unique requirements of autonomous vehicles.
Major Players Investing in EV-Compatible Tyres
Leading tyre manufacturers are aligning their products with emerging automotive technologies. Bridgestone, for example, has committed to producing tyres compatible with electric vehicles across its entire product range. Other industry leaders like Hankook, Kumho Tire, and Nexen Tire are investing in new production facilities geared towards meeting the growing demand for EV-compatible tyres.
Future Outlook for the Tyres and Wheels Market
Palit concludes by stating that ongoing advancements in the automotive sector are reshaping the tyres and wheels market. As manufacturers work to enhance performance and meet environmental standards, they are prioritising innovative solutions to reduce wheel weight, lower emissions, and address tyre wear. With the rapid expansion of the EV market, the industry is also investing heavily in factory upgrades to produce tyres and wheels that meet the specific needs of this evolving segment.
These trends indicate a bright future for the APAC tyres and wheels market, with technology and sustainability at the forefront of its growth trajectory.
