Global demand to rise 4.7% annually through 2015

World tire demand is forecast to rise 4.7 percent per year through 2015 to 3.3 billion units. In dollar terms, the tire market is projected to advance 6.5 percent annually through 2015 to $220 billion. The large motor vehicle tire market will see an acceleration in growth through 2015 following a period of weakness between 2005 and 2010, as the motor vehicle industries in many important producing countries rebound. The strongest gains will be registered by the industrial and other tires segment, which includes a variety of tire types, including bicycle, motorcycle and off-road tires.

Asia/Pacific to solidify status as dominant region

The Asia/Pacific region is by far the largest market for tires, accounting for over half of global tire sales in 2010. In addition, the region will register the strongest growth in tire demand through 2015, despite the fact that the large Japanese tire market is expected to see extremely sluggish growth as the motor vehicle industry in that country posts modest output gains. The massive Chinese tire market, which singlehandedly accounted for more than one-quarter of global tire demand in 2010, will record the strongest gains of any country through 2015. Although the majority of tire demand in China is comprised of non-motor vehicle tires, sales of motor vehicle tires in the country are the second highest in the world, behind only the US. The tire markets in North America and Western Europe will continue to see advances below the global average, although both regions will rebound somewhat from the declines recorded during the 2005 to 2010 period.

Motor vehicles to remain largest tire market

Tires for motor vehicles, which accounted for over 60 percent of all tire demand in 2010, are expected to remain the largest segment of the tire market in 2015. Vehicle utilization rates are forecast to increase worldwide as income levels rise, allowing a greater share of the population to own vehicles. This growth will bolster demand for both OEM and replacement motor vehicle tires, especially for light vehicles.

However, the industrial and other tire market will register the strongest gains of any tire segment through 2015. Although this segment includes a wide range of tires, the vast majority of demand is comprised of bicycle and motorcycle tires used in developing nations worldwide. The Asia/Pacific region will account for more than 90 percent of growth in unit terms through 2015. The massive size of the industrial and other tire segment in that region is reflective of both the large population levels, as well as the low motor vehicle utilization rates, except in Japan and South Korea. Tires employed in other applications -- including agricultural, construction and mining equipment, and airplanes -- will account for some of the increases in sales, but are utilized in much lower numbers than bicycle and motorcycle tires on a worldwide basis.