WELLESLEY, Mass., Aug. 16, 2018 (GLOBE NEWSWIRE) -- The tire reinforcement materials market is growing thanks to important trends such as weight reduction, improved strength and noise reduction, according to a report by BCC Research.
As outlined in the report Tire Reinforcement Materials: Global Markets to 2023, the industry expects to see a compound annual growth rate (CAGR) of 3.2% through 2023, when it could be worth more than $17.6 billion.
Major players in the market include Bekaert, Jiangsu Xingda Steel Tire Cord, Michelin, Formosa Taffeta, Hyosung Group, Performance Fiber, Toray Industries, Century Enka, Saba Tire Cord Complex, Cordenka, Dupont, Kolon Industries and Teijin.
Research Highlights
- PEN tire cord fabric leads the market by growth, with a CAGR through 2023 of 40.1%. By size the market is dominated by steel tire cord fabric.
- The steel tire cord fabric market is led in size by carcasses for radial heavy-duty tires, with an estimated 2023 value of $4.3 billion and a CAGR of 3.7%. Belt plies for radial heavy-duty tires will see a CAGR of 3.0%.
- For steel bead wire, radial heavy-duty will lead by size and growth, with a CAGR through 2023 of 4.2% and a value of $2.3 billion, followed by radial light-duty, with a CAGR of 3.8% and a value of $1.2 billion.
“Radial heavy-duty tires consume steel tire cord fabric instead of nylon reinforcement materials for making carcasses; radial light-duty tires use steel tire cord fabric for manufacturing belt plies,” said BCC Research analyst and report author Jason Chen. “Developing countries will increase their radialization rates in the next five years, which will boost the production of radial tires and the consumption of steel tire cord fabric. India increased its radialization rates for heavy-duty tires for trucks and buses from 10% in 2009 to over 30% by 2014. Growth to over 50% is expected by 2023.”
North American Steel Tire Cord Fabric Segment Sees Significant Challenges
In North America, the steel tire cord fabric segment faces significant obstacles, the report notes. Big foreign brands dominate the market and low economic growth provides opportunities for new entrants. Steel makers have strong bargaining power, which lowers the profits of steel bead wire producers, though large tire manufacturers in general have strong bargaining power. Significant trends for this market include automaker purchasing of cheap Asian tires, a focus on high-end products such as super-high-tensile cord fabric, and technological innovation aimed at lowering production costs.
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.