Global Automotive Tyre Market, By Type (Aircraft, Commercial Fleet, Mining Vehicle, passenger vehicle), opportunities and forecast 2020-2027
Covid-19 Impact on Automotive Tyre Market:
The outbreak of the covid-19 has a severe and swift impact on the automobile and transportation industry. This is majorly due to the shutdown of assembly plants in the US, interruptions across Europe in large-scale manufacturing, and disruption in the export of Chinese parts. In addition to this, the industry is dealing with reduced demand across the globe due to changes in customer behavior and shifts in a supply-demand chain. A recent study shows a 39% decline in sales of automotive all over the world. Moreover, the nationwide lockdowns have substantially affected the transportation sector. Restrictions on transportation accounted for a 45 to 55% decline in public as well as private transport sectors.Market Overview
Improved performance of the vehicles is one of the major factor driving the growth of the market. Nitrogen is more compatible with rubber and does not corrode like air containing oxygen and water vapor does. It is a non-flammable, non-toxic, property-free, non-reactive substance that is very less likely to travel through the tire rubber than the oxygen does. Hence, the tire pressure remains more stable over the longer period of time. Nearly 98% of nitrogen is used in the tubeless tires globally.
Nitrogen gas is considered to be cooler than the compressed air and hence, it is useful in any driving conditions. Due to the lesser temperature, the tread wear and tear is also lesser. After long travelling, higher temperature in tires also has a tendency to burst. Nitrogen reduces 90% chances of the tire burst. These factors might lead to being a lifesaver even as on the highway where high speed and long hours, together pose a threat to the car and its passengers.Segment Overview
Rising demand for personal cars as well as other types of automobiles is creating plenty of opportunities for tire gas manufacturers to realize the automotive safety and production efficiencies. Due to the considerable benefits of nitrogen gas especially used in tubeless tires, the tire gas market is predicted to witness healthy growth in the coming future.
90 percent of all tire failures are a result of under inflation, mainly due to the internal heat build-up, due to under inflated tyre, for longer time. According to government statistics. Underinflated tires results into overheating as they can't maintain their proper shape, becoming flatter than intended while in contact with the road. Tires which are underinflated by just a few pounds might suffer from a weakening of their internal structure and can results into serious tyre failures.Regional Overview
Highly developed industries and presence of major market players in the region are the major reasons for positioning the market as a leader in the global tire nitrogen inflation market. Although, experts recommend checking the car’s tire pressure weekly. Studies have shown that the majority of drivers rarely check their tyre pressure. Usually only refill their tyres when the air is visibly low or the tyre is running out of air. About 94 percent of cars in this region have under-inflated tires, wasting some 2.14 billion gallons of high-priced, polluting fuel every year. Furthermore, in June 2017 the Air Product and Linde North America Inc. announced a joint venture named East Cost Nitrogen (ECN) which invests in a new air separation unit (ASU) and gas liquefier in Glenmont, New York.
Market player’s key strategic move such as partnership and joint ventures in this region are anticipated to maintain the position of this region as a major revenue generating market.Competitor overview
As a result, due to tough competition among major market players in this sector, currently, manufacturers are using quality and distribution as their major marketing strategies. They are also constructing nitrogen gas plant, whose cost depends upon a number of factors including technology, design, quality, after-sales service, etc. As the nitrogen gas is used for delicate purposes, a supplier may lose its business for the wrong supplies. Replacement is one of the important services that the companies provide to their customers to gain customer satisfaction and loyalty. But till now very few cases are observed regarding bad services of the nitrogen tire inflation. Hence, distribution of this gas holds 30-35% value of total value chain process.Key Players
- Parker-Hannifin Corporation
- Novair Industries
- Air Liquide International S.A
- Linde Engineering
- Air Products and Chemicals, Inc.
- Praxair, Inc.
- Peak Scientific Instruments Ltd.
- Proton Onsite
- Holtec Gas Systems
- Hitachi Industrial Equipment Systems Co., Ltd.
- Commercial Fleet
- Mining Vehicles
- Passenger Vehicles
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Saudi Arabia
- Rest of LAMEA