Global sales of high performance (HP) tires were estimated to total 198 million units in 2013, comprising 13.6% of the passenger car and light goods vehicle tire market. This is forecast to rise to over 314 units or 15.9% by 2020. The CAGR over this period is estimated at 6.8%, compared to 4.5% for the passenger car and light goods vehicle market in general. In value terms, the market is expected to rise from $24 billion (23.6%) in 2013 to $38 billion (27.0%) by 2020.
The high performance (HP) passenger car tire sector is a star performer, easily outpacing the rest of the passenger car tire market in terms of historic and forecast growth and profitability. As a result, the leading producers are targeting this market for further growth and R&D spending. HP tires are distinguished by larger size and higher speed rating. Once bought only by enthusiasts for handling and speed performance, these tires are now reaching a wider market and manufacturers have had to adapt and offer other advantages, such as ride comfort, low noise and better fuel efficiency.
The present market is dominated by Europe (38%), North America (31%) and Asia Pacific (26%). South America is predicted to be the fastest growing market (CAGR 17.3%), but from a very low base and will only reach about 5% of the market by 2020. Of the three majors, Asia Pacific is predicted to be the fastest growing (CAGR = 7.8%), with Europe next (6.2%) and NAFTA the slowest (5.6%).
Figure 1 Volume of high performance passenger car and light goods vehicle tire market, percentage share by region, 2015 (millions of units)
Source: Smithers Rapra
This major new report by Smithers Rapra – The Future of High Performance Tires to 2020 – examines the main drivers for the growth of the high-performance sectors and also how emerging trends such as energy efficiency, sustainability and extended mobility are going to affect their development. It provides quantitative data for the size and scope of the high-performance tire industry and presents five-year forecasts for growth by end-use sector, type and region.
The Future of High Performance Tires to 2020 was gathered using a combination of primary and secondary research. Primary research consisted of interviews with major global players across the tire supply chain including tire manufacturers, tire raw materials suppliers, tire machinery suppliers, tire/rubber industry associations and car/ truck manufacturers. Secondary research consisted of a review of published material, conference proceedings and information from organisations and companies involved in the production, supply and use of tires and their ingredients.
The Future of High Performance Tires to 2020 is available now for £4,200. For more information, please contact Bill Allen on +44 (0)1372 802086, via e-mail at firstname.lastname@example.org
Smithers Rapra is the global leader in rubber, plastics, polymer and composites testing, consulting and information products and events, with key focuses including the tire, industrial, transportation, consumer and medical industries.