PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1462773
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1462773
According to Stratistics MRC, the Global Tire Cord Fabrics Market is accounted for $5.57 billion in 2023 and is expected to reach $7.99 billion by 2030 growing at a CAGR of 5.3% during the forecast period. Tire cord fabrics are essential components in the manufacturing of tires, providing reinforcement and strength to ensure optimal performance and safety on the road. These fabrics are typically made from materials like nylon, polyester, rayon, aramid, and steel, which are woven into a specific pattern to create a durable layer within the tire.
According to the data by the China Association of Automobile Manufacturers, passenger vehicles production in China stood at 1.767 million units in September 2021, rising 18.1% month on month.
Expansion of the automotive sector
Demand for sturdy, long-lasting tyres rises in tandem with the growth of the automotive industry. Tire cord fabrics, the hidden heroes within tires, provide the essential structure and reinforcement, making them a key driver of the tire cord fabrics market. This market thrives on the increasing production of vehicles, particularly in developing nations, and the rising preference for long-lasting, fuel-efficient tires. Even the electric vehicle revolution plays a role, as their unique wear patterns require specialized, high-performance tire cord fabrics, creating new opportunities for the market.
Fluctuating raw material prices
The cost of key raw materials like nylon, polyester, and rayon can fluctuate significantly, impacting production costs and profitability for manufacturers. Unpredictable raw material costs make it difficult to accurately calculate production costs and set profitable selling prices. Also, volatile prices can erode a manufacturer's competitive edge, especially if they cannot adjust their pricing quickly enough to maintain profitability.
Electric vehicle revolution
Electric vehicles' unique weight distribution, higher torque, and instant acceleration demand specialised tyre cord fabrics with superior strength, rolling resistance, and durability. This opens a new market segment for manufacturers, requiring innovation in materials like aramid fibres and lighter, stronger composites to cater to these evolving needs. As EV adoption surges, the demand for specialized tire cord fabrics is poised to rise, driving significant growth for the market.
Substitute materials
Alternative materials, such as steel belts or non-pneumatic tyres, offer different properties and performance characteristics that could potentially replace traditional tyre cord fabrics. These substitutes may provide advantages such as increased durability, reduced weight, or improved puncture resistance, thereby challenging the dominance of traditional cord fabrics. Therefore, it acts as a significant barrier to market expansion.
Covid-19 Impact
The COVID-19 pandemic initially caused disruptions in production, supply chains, and demand. Lockdown measures, factory closures, and reduced automotive production led to a decline in tyre cord fabric sales. However, the market gradually rebounded as restrictions eased, driven by pent-up demand for vehicles and increased emphasis on transportation safety. Moreover, the pandemic accelerated trends like e-commerce and vehicle electrification, stimulating demand for specialised tyres and innovative cord fabrics.
The nylon segment is expected to be the largest during the forecast period
The nylon segment is estimated to hold the largest share, due to its exceptional strength, durability, and heat resistance properties. Widely utilised in tyre manufacturing, nylon cord fabrics enhance tyre performance, offering excellent resistance to abrasion and punctures. Its flexibility allows for the creation of high-quality, lightweight tyres that deliver superior traction and stability on diverse road surfaces. As the automotive industry continues to evolve, the demand for nylon cord fabrics remains robust, driving innovation and advancements in tyre technology worldwide.
The commercial vehicles segment is expected to have the highest CAGR during the forecast period
The commercial vehicles segment is anticipated to have lucrative growth during the forecast period. Commercial vehicles encompass a wide range of vehicles used for transporting goods and passengers, including trucks, buses, and heavy-duty vehicles. These vehicles demand robust tyres capable of withstanding heavy loads, harsh road conditions, and frequent use. Tyre cord fabrics play a crucial role in reinforcing commercial vehicle tyres, providing the strength, stability, and durability necessary for prolonged operations. With the growing global logistics and transportation industry, the demand for commercial vehicle tyres continues to rise, driving the market.
Asia Pacific commanded the largest market share during the extrapolated period due to its burgeoning automotive industry and expanding infrastructure. Countries like China, Japan, India, and South Korea are major contributors to the market's growth, driven by increasing vehicle production and rising demand for tires. The region's robust economic growth, coupled with technological advancements in tire manufacturing, fosters significant opportunities for market players. Overall, Asia Pacific emerges as a key hub for tyre cord fabric production and consumption, poised for continued growth in the foreseeable future.
North America is expected to witness profitable growth over the projection period. The United States and Canada lead market growth, propelled by high vehicle ownership rates and a robust manufacturing base. Moreover, the emphasis on fuel efficiency and sustainability drives demand for advanced tyre technologies, boosting the market for innovative cord fabrics. Additionally, the presence of key players and significant investments in research and development contribute to the market's vitality.
Key players in the market
Some of the key players in the Tire Cord Fabrics Market include Toray Industries Inc., Hyosung Corporation, Indorama Ventures Public Company Limited, Kordsa Teknik Tekstil A.S., SRF Ltd, Kolon Industries Inc., Teijin Limited, Century Enka Limited, Firestone Fibers & Textile Company, Shenma Industrial Co. Ltd., Cordenka GmbH & Co KG, Bekaert, Zhejiang Hailide New Material Co., Ltd., Far Eastern Group and Milliken & Company.
In January 2023, Century Enka Limited commenced the commercial production of a nylon tire cord fabric crafted entirely from fully recycled nylon waste. Apollo Tyres Ltd. will utilize this new environment-friendly material for specific product lines across various market sectors.
In September 2022, TEIJIN LIMITED announced that Teijin Frontier Co., Ltd., its business unit, had developed an environment-friendly tire cord by utilizing a low-impact, chemically recycled polyester fiber and an adhesive free from resorcinol formaldehyde (RF), which is a carcinogen harmful to both humans and the environment.
In September 2022, Kolon Industries Inc. announced the successful expansion of its tire cord manufacturing facility in Vietnam's Binh Duong province. The company is making rapid progress in enhancing its global competitiveness. This expansion has enabled the company to bring its annual manufacturing capacity for PET (polyester) tire cords at the facility to 19,200 tons, bringing its global capacity to 103,200 tons