The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The popularity of competitive racing has led to a steady increase in the demand for high performance tires. Automotive races were restricted to developed economies, as the development of race courses required heavy investments and high-quality infrastructure. However, the sport has gained popularity in developing countries such as China, India, and Brazil, due to the increasing number of enthusiasts in racing championships. The market is expected to grow at a CAGR of around 15%.
Racing and Sporting events have played a significant role in the growth of the automotive industry, offering automotive manufacturers an opportunity to promote high-performance automotive components such as engines, external parts, and tires. Companies gain significant brand leverage through sponsorships of international racing championships. The popularity of competitive races, such as F1 and NASCAR, has contributed to the success of major tire manufacturers in the racing tire market. The presence of tire manufacturers in such racing competitions has helped increase the visibility of these manufacturers in the high-performance/ultra-high performance tire segment. During 2009-2013, racing events in mature markets such as the UK and the US were shut down due to the economic crisis of 2008-2009, declining viewership of racing events.
High-Performance tires have a substantial demand from the aftermarket segment especially in the racing segment. A racing vehicle requires about nine to 14 sets of tires on an average in a racing championship circuit. In a racing championship, a team requires an average of 36-58 tires. The average cost of a racing tire ranges from $1,500 to $2,600, which makes the racing tires cost a team $63k to $157k per championship. A lot of money is invested by a team in order to participate in an international racing event. We expect the market to grow significantly with increased interest among racing enthusiasts.
Nanotechnology helps to reduce wear and tear significantly. Reduction in the wear and tear is critical to high performance tires, as these tires undergo a huge amount of heat and pressure. Application of nanotechnology in the production of high performance tires implies that these tires operate in a wide range of temperatures with superior heat resistance. A high-performance rubber additive, Nanoprene, is used with the rubber mixture of the tire tread, which significantly helps to reduce wear and tear in automobile tires.
A racing slick is the most preferred type of tire used for international racing championships on a dry track. Racing slick with reduced tread helps provide the largest contact patch to the road, and thereby ensures maximum traction for any given tire dimension. Racers have the option to change tires during a race based on the weather conditions. The market is at a crossroad, witnessing various structural changes from both demand and supply sides. Innovation in materials used, tire manufacturing processes, and tire groves is changing the supply side of the market. From the demand side, the rising popularity of racing and sporting events especially in developing countries such as China, India, and Indonesia is pushing high performance tire manufacturers to establish their presence in these regions. The market has been experiencing a significant rise in the number of professional racing events in these countries, especially during the last 5 years.
The report classifies and defines the automotive high performance tire market size, in terms of value and units. The market is segmented on the basis of tire type- Racing Slicks, Tread Tires, and Others; end consumers- OEMs and Replacement/Aftermarket Tires; vehicle type- Racing vehicles, OTR vehicles, and others. The report showcases potential growth opportunities in the forecast period, while also reviewing the market drivers, restraints, opportunities, technology trends in tire manufacturing, racing vehicle market dynamics, competitive landscape, and other key aspects with respect to automotive high performance tires. The report also covers qualitative aspects such as value chain analysis, and Porter’s five force analysis for the global market. The key players in this market have also been identified and profiled. Some of the key players mentioned in the report are Bridgestone Group, Pirelli, Goodyear, Michelin, and Continental to name a few.
WHAT THE REPORT OFFERS
Market Definition and Scope along with identification of key drivers and restraints for each segments in the market.
Market analysis with specific studies and theoretical analysis on the high performance tire market for each region
Identification of factors that has been instrumental in changing the market dynamics, prospective opportunities for each segments and identification of key factors, influencing the market.
Extensively researched competitive landscape segment with the market dynamics for each major player across the region.
Identification and analysis of the macro and micro factors that affect the growth of the industry for each region as well as for countries.