NEW YORK, July 21, 2016 /PRNewswire/ --
Anticipated increase in the tire production capacity, growing vehicle sales and expanding automobile fleet to propel global tire market over the next five years
According to TechSci Research report, "Global Tire Market Forecast and Opportunities, 2021'’, global tire market is forecast to grow at a CAGR of 8.4% in value terms during 2016-2021. On the basis of vehicle type, the global tire market is broadly classified into six categories - passenger car tire, light commercial vehicle (LCV) tire, medium and heavy commercial vehicle (M&HCV) tire, two-wheeler tire, three-wheeler tire and the OTR tire. During 2011-2015, both automobile production and sales grew at sluggish pace, globally. Key reasons for weak demand can be attributed to Eurozone crisis and slump in the crude oil prices post 2013. As a result, the global automobile production and sales grew at a CARG of 1.37% and 2.59%, in the volume terms, during 2011-2015, respectively. Backed by slow growth in automobile production and sales, the global automobile fleet (excluding two-wheeler and three-wheeler) exhibited a CAGR of 3.79% during the same period.
Crude oil prices declined from above US$ 100 per barrel levels in 2011 to sub US$ 50 per barrel levels in 2015, thereby exhibiting a negative CAGR of over 16% during 2011-2015. As a result, the Middle-East region witnessed decline in the revenue generated from the oil sector. As a result, expenditure for construction and infrastructure sectors shrunk, which impacted the sales of OTR, LCV and M&HCV vehicles and related products such as tires across the region. Further, in 2009, Europe suffered one of the worst economic meltdowns, commonly referred to as the Eurozone Crisis. Though the crisis impacted the entire region, Portugal, Italy, Ireland, Greece and Spain were among the most severely affected countries. The European economy suffered a slump, and multiple public as well as private banks declared bankruptcy, which impacted various sectors, consequently restraining growth in Europe's automobile and related components market over the last five years. However, the region witnessed signs of revival in 2013 due to several bailout packages offered by the European Union and the International Monetary Fund (IMF).
"The global automobile market is poised to grow at a brisk pace over the next five years, backed by anticipated stabilization of crude oil prices and growth in the global economy, which is expected to augment demand for automobiles and increasing consumer spending, and consequently, boost sales of tire in the coming years." said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
"Global Tire Market Forecast and Opportunities, 2021" has evaluated the future growth potential of tire market and provides statistics and information on market size, consumer behavior and trends. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities in the global tire market.
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