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April 20, 2021, New York, USA – The growing demand for energy-efficient, and easily recycle materials has led to a tremendous surge in demand for green tyres worldwide. Moreover, the growing global regulatory initiatives to increase recycling, and making industries more accountable will lead to stronger growth of the global eco-friendly tyre market in the near future. in 2016, the total units sold in the global market reached an unprecedented 56,742.3 thousand worldwide. In 2022, this figure was expected to reach over 100,000 thousand units. The market is expected to register a robust CAGR of 10.3% during the 2021-2028 period. The phasing of traditional raw materials like asbestos, and growing demand for global eco-friendly tyres will also remain a key driver in growth globally.
The rising demand for passenger vehicles in key markets like North America, despite the onslaught of the global pandemic remains a promising driver of growth in the global eco-friendly tyre market. for example, the electric vehicle which value the energy efficiency very highly are amongst the leader of new vehicle growth. furthermore, the international energy agency also estimates in 2020 that most consumers worldwide are waiting for the latest and best technology in EVs to delay their purchase. These consumers will soon find many options to choose from as global vehicle manufacturers has committed to production of EVs with at least one model by 2024. Furthermore, the IEA has also predicted that in regions like Asia Pacific, where demand for two-wheelers remains robust, the increasing battery capacity, and lowering prices of EVs will bring tremendous growth in the EV market in the near future. The promising growth of the global eco-friendly tyre market, and growing demand for two-wheeler, three-wheeler EVs will promise robust growth for the global eco-friendly tyre market.
Passenger Cars to Dominate Growth in Total Revenues Globally
The global passenger cars will remain the key vehicle type driving growth for the global eco-friendly tyres. Despite the growing demand for commercial vehicles like trucks, and inclusion of automated technology, the passenger vehicles promises to remain dominant. The covid-19 has impacted the market growth with slowdown in sales for regular petrol and diesel vehicles. However, growing demand for trucks, and reducing prices of fuels, and lowering interest rates for vehicles will remain dominant growth. The sales of second-hand vehicle will also remain one to watch out as traditional demand in key regions like North America is increasingly shifting to second-hand vehicles. The growth in the region with decreasing disposable income will likely lead to more opportunities for renovation among vehicles. The growth for demand for repairs, and innovation remains robust, as trends like DIY, and increasing maintenance apart from growing demand for EVs will drive growth of the global eco-friendly tyre market.
Off-Road Vehicles to Remain Dominant as Demand from Rural Areas Drives Growth
The rising demand for off-road vehicles remains a promising growth prospect for players in the global eco-friendly tyre market. Thanks to increasing mileage, increased demand in rural America, and globally for off-road vehicles, and changing perception of their utility are main drivers of growth. The increased demand for off-road duty vehicles remains robust in key markets like the US, while picking up strongly in new regions like Asia Pacific. The growing demand for off-road duty vehicles for agriculture in countries like India, China, and expansion of manufacturing base of established players in new regions also remain promising drivers of growth. Growing disposable income, and increased interest in travel, adventure, tourism also remain prominent drivers of growth in new regions like Asia Pacific.
North America to Remain Dominant in Total Revenue Share as Agriculture Expansion Continues
The increased normalization of relationship between US, and China will drive new growth of agriculture. Moreover, the Biden administration has also announced over 2 trillion package to drive growth of US infrastructure. This will also drive tremendous demand for off-road duty vehicles in the North America region. Such initiatives are common across countries like the China, and India, wherein India’s finance minister has also announced over 10 trillion-dollar investment in the country over 2021-2028 period. Similar developments are taking place in China, wherein its global initiative like the Road and Belt initiatives will soon build a global trade network in the region. The increased investment in construction of highways, bridges, ports, airports, and other infrastructure, and important application of off-road duty vehicles in such construction will drive tremendous growth for the global eco-friendly tyre market.
Lack of Awareness Remains a Key Challenge in Emerging Economies
The increasing fuel efficiency due to green tyres remains a promising driver for EV manufacturers to include eco-friendly tyres. For example, in passenger cars, the tyres promise to increase efficiency by as much as 7-10%, while consumers around the world bear increasing burden of unstable fuel prices. The group of oil manufacturers have also decided to limit supply of fuels in 2021, further increasing anxiety about the future oil prices in the global market. such anxiety, and increased trend to view vehicles as essential among American consumers will remain major drivers of growth in the global eco-friendly tyre market. The lack of awareness among emerging countries for new vehicles, and niche applications like off-road duty vehicles remains a challenge for growth. In emerging regions of Asia pacific, the best of EV like Tesla is yet to be out in full-force, with the exception of few countries like China. Even in other major markets like India, biggest EV brands like Tesla simply remain limited in their reach to exceptionally few. The launch of more economical brands, and even products from the likes of Tesla will change the scope of expansion for the EV market during the 2021-2028 period.
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