The tire cord & tire fabrics market is poised to grow significantly through 2030 owing to prominent growth of the automotive industry. In addition, innovation in tires, along with robust sales of passenger and commercial vehicles, is likely to augment market growth over the forecast period.
During the COVID-19 pandemic, the industry witnessed a negative impact due to strict lockdowns and restrictions on travel. However, a substantial increase in demand for sustainable tires to reduce carbon footprint has boosted consumer interest. Growing environmental concerns have led to an upsurge in demand for electric vehicles, thereby impelling product uptake in the automotive industry.
Furthermore, mounting vehicle demand has been favorable for tire cord & tire fabrics market adoption. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), in 2021, the production of cars increased by 4% in the United States, 65% in Argentina, 30% in India, and 12% in South Africa.
Moreover, key industry players have been focusing on strategic acquisitions & partnerships and developing innovative products in keeping with the emerging sustainable trends to strengthen their foothold in the market. To cite an instance, in May 2022, Kordsa Global, Inc., an industrial fabrics company, displayed its sustainable tire reinforcement technologies at the Tire Technology Expo 2022.
The tire cord & tire fabrics market has been bifurcated on the basis of product, vehicle type, and region.
In terms of product, the tire cord & tire fabrics industry has been classified into rayon cord, steel cord, nylon dipped cord, polyester, and others. The polyester segment is expected to reach a valuation of more than $1,917.7 million by the end of the analysis period. The improving economic situation and rising purchasing power of people in the APAC region are set to result in high demand for passenger cars, thereby accelerating the uptake of polyester over the coming years.
Meanwhile, the rayon cord segment is anticipated to grow at a CAGR of nearly 5.9% and register more than $357.7 million in revenue by 2030 as a result of its cost-effectiveness. The versatility of rayon cords allows them to blend well with other fabrics, which is slated to fuel segmental development.
Based on vehicle type, the tire cord & tire fabrics market has been divided into off-road and two-wheeler, LCV, passenger car, and HCV. The LCV segment is projected to expand at roughly 6.0% CAGR through the review period as nylon is designed to keep tires running longer and have a significant effect on the performance of tires, which makes them a preferred product among LCV manufacturers. Additionally, the off-road and two-wheeler segment is estimated to grow at a CAGR of above 6.2% over 2022-2030.
In the regional landscape, the LATAM tire cord & tire fabrics industry is foreseen to reach about $556.3 million in revenue by 2030 owing to the increasing disposable income and shifting consumer interest toward high-speed vehicles in the Latin America region. Similarly, the Middle East & Africa tire cord & tire fabrics market is speculated to exhibit notable growth at a CAGR of approximately 6.3% through the assessment period.