In the global premium tires market, there is sharp increase in demand for premium tires as customers increasingly prefers tires that have quality and can improve their vehicle’s fuel efficiency. This focus for safe driving and a better driving quality are some of the factors that are further fuelling the growth of the premium tire industry. Most tires are made of raw materials like nylon tire cord fabric, natural rubber, carbon black, rubber chemicals, and synthetic rubber like poly butadiene rubber and styrene butadiene rubber. The premium ones then undergo several quality, durability, and speed checks to improve their overall performance. This improved performance and durability in comparison to low cost tires, is what is driving the market growth further despite its premium pricing. Currently, the market is expected to grow at a CAGR of 9.72% during 2013 to 2018.
This report: Global Premium Tires Market 2014-2018 talks about the gradual shift of consumers towards premium tires from traditional ones, analyses the top five vendors of the market and the major trends that are influencing the growth further.
Increasing preference of premium tires
The improved quality and performance along with the enhanced safety features in premium tires are some of the major drivers of this market growth. Analyzing the tire industry trends further reveals that low grade tires are a lucrative option only for replacement purposes as they are affordable, however, since they wear out faster, they have safety issues and requires frequent replacements. Therefore, the consumers, especially in developed economies are moving away from the traditional ones and opting for the premium range that improves their overall drive quality and performance but preferring the low cost commercial tires for replacement.
Top 5 key players of the market
The top 5 key players of the markets are Good Year, Pirelli, Continental, Bridgestone, and Michelin. Addressing to this demand of premium tires, these companies are currently focusing on expansion and increasing its market share. Where Good Year is venturing into China to improve its overall production capabilities, Pirelli is extending its market in APAC regions and placing extra emphasis on the premium tire segment. The tires market will also be significantly affected by Continental’s endeavor for innovative designs in this segment and Bridgestone’s vertical and horizontal expansion that will reduce its operational costs and increase its market share. Michelin is also investing heavily in emerging economies like Brazil, India and China and expects to launch its Warrior brand which will permanently strengthen its position globally.
Despite the overpricing of premium tires, the tire industry analysis revealed its continued growth for its quality and improved driving capabilities. The global premium tire market is also anticipated to significantly impact the growth of high-end vehicle manufacturing besides venturing into emerging economies for its manufacturing and development.
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