Retread Tires Market By Process (Pre Cure and Mold Cure), By Sales Channel (OEM Service Providers and Independent Service Providers), By Vehicle Class (Commercial Vehicles, Passenger Cars, Off-road Vehicles, Two-wheelers and Electric Vehicles) - Growth, Share, Opportunities & Competitive Analysis, 2023 – 2031

30 Nov 2022 Format PDF icon PPT icon XLS icon Request Sample

The global market for retreaded tires is anticipated to grow at a compound annual growth rate of 5.10% during the forecast period of 2023 - 2031. The tread on worn tires can be replaced by a process called retreading, which is a form of tire remanufacturing. Retreading is the process of applying new treads to the casings of used tires that have already undergone inspection and repair. Because they are more cost-efficient than brand-new tires, retreaded tires have experienced a surge in sales in recent years. In addition, retreaded tires are good for the environment, which adds to the growth of the industry as a whole because customers are more likely to express a preference for ecologically friendly alternatives. As a consequence of this, an increasing number of manufacturers started fitting commercial and heavy vehicles with retreaded tires. The growth of the logistics industry and the increasing need for freight have combined to produce a market situation that is advantageous for the selling of retreaded tires. The need for retreading tires has become more prevalent in recent years as a direct consequence of the elevated levels of tire wear and tear. The operators of vehicle fleets are seeking ways to cut expenses while still operating a fleet of vehicles that is environmentally friendly and secure. The usage of retread tires, which many fleet owners are discovering to be helpful, has been one strategy that owners of fleet vehicles have pursued in order to address this issue. The quality of retreaded tires has also substantially improved over the past several years as a direct result of the introduction of cutting-edge technology. In addition to this, rising levels of consumer knowledge regarding the kind of tire, together with rising levels of the average sale price of new tires, will drive demand in the market throughout the forecast period.

Increasing Number of Light Commercial Vehicles Driving the Demand for Retread Tyres

The production of a single tire for a light-duty car requires an average of 26 liters of oil, however retreading the same tire requires only 9 liters of oil, which accounts for approximately 34% of the process of new manufacturing. On the other hand, the Retread Tire Association estimates that purchasing a brand-new set of four tires for a large SUV will cost approximately $1,000 in total. When it comes to light-duty cars, retreading can result in savings of almost half of the total cost. There are a variety of tire manufacturing firms that are releasing retread tires. For instance, Michelin released two new pre-mold retreads to broaden its array of tire retread technologies. Other tire manufacturing businesses are also releasing retread tires. The tread of this retread features a unique compound that helps save money on fuel, resulting in a cheaper total cost of ownership. Additionally, Goodyear Tire & Rubber Company and Cooper Tire & Rubber Company have announced that they have entered into a definitive transaction agreement to grow their scale in order to support investments in New Mobility and Fleet Solutions. As a consequence of this, retreading suppliers are focusing on light-duty vehicles, and some tire manufacturers, such as The Goodyear Tire & Rubber Company, are getting into the business of retreading tires for light commercial vehicles. As a result, the growing demand for retread tires in light commercial vehicles will be the primary driver of the market for retread tires.

Longevity of Retreaded Tires

When compared to an ultra-low-cost tire, a premium tire that has been retreaded twice can stay on the road for up to 500 % longer than the latter. The usable life of modern commercial tires can be increased since they are constructed so that they can be retreaded in a safe manner several times. As demonstrated in the following illustration, many fleets will buy brand new premium tires for the "steer" position of their trailers, then retread those same tires once for the "drive" position, and then retread them one or more times for the "trailer" position. If you compare a quality tire with a retread to an ultra-low-cost tire that is only used for the "steer" position and then thrown away, the premium tire with the retread has the potential to live up to 500 % longer.

Retreaded Tyres Are Facing Competition from Budget Tyres

Despite the fact that retreaded tires have a positive impact on the environment, the proliferation of cheap tires is causing a paradigm shift in the competitive landscape of the tire industry. Budget tires are more affordable than retreaded tires and newly constructed tires, which are of a higher quality than retreaded tires. Therefore, stakeholders need to diversify their business capabilities in budget tires in addition to retreading their tires in order to maintain their relevance in the market and deliver retreaded tires to clients who set unique criteria. In order to purchase new varieties of oils, polymers, and other materials, businesses are constructing sophisticated on-site mixing facilities. These facilities allow manufacturers to collaborate with suppliers.

Pre-Cure Segment Dominates the Market by Process

The global retread tire market by process was dominated by the pre-cure segment in the year 2022. During the forecast period, the pre-cure sector is expected to maintain its dominant position in terms of revenue share. This pre-cure process calls for comparatively less investment and also results in lower costs associated with subsequent maintenance. As a result, all of these factors in the pre-cure process is anticipated to fuel the growth of this market during the forecast period.

SMEs Dominated the Market by Sales Channel

The global retread tire market by sales channel was dominated by small and medium organizations in the year 2022. It is expected that the number of new market players will continue to rise, particularly in terms of growth potential, due to the vast opportunities that are currently available to new companies in the retread tire market. As a result, it is anticipated that the market for small and medium organizations will constitute the majority of revenue during the forecast period.

Commercial Vehicles Dominated the Market by Vehicle Class

The global retread tire market by vehicle class was dominated by commercial vehicles in the year 2022. Fleet operators of commercial vehicles are required to routinely replace the tires on their vehicles because of the rapid wear that is caused by the tires. This is due to the high weights and increased mileage covered by their vehicles, both of which contribute to the wear that is caused by the tires. The growing number of factories, warehouses, and other commercial facilities drives sales and the number of miles driven by transport vehicles, which in turn drives the share of the worldwide market for retreaded tires contributed by the commercial vehicle segment.

APAC remains the Global Leader

Asia Pacific currently held the largest revenue share in the global retread tire market in 2021 contributing to about US $3001.44 million.  This growth can be attributed to the Asian countries that are increasing investments in the automobile manufacturing industry, such as China, India, Japan, Indonesia, South Korea, and Thailand, amongst others; this will lead to an even greater increase in the demand for the retread tire market. It is anticipated that the existence of a significant number of small and medium-sized vehicle tire producers in the region would also contribute to the expansion of the sector throughout the course of the projected period of time. In addition, the growing industrialization of the region has led to an increase in the number of kilometers driven by commercial vehicles, which has contributed to an increase in the demand for replacement tires.

Investments & Expansion Strategies to Enhance the Market Share Among Competitors

The primary strategy adopted by the key market players is investments and expansions (excluding the others). The secondary strategies adopted by top companies include product launches, partnerships and collaborations, and acquisitions. There was no significant difference between the primary and secondary strategies. All other strategies are negligible. Bridgestone Corporation, JK Tyre & Industries, and Michelin focused the most on investment and expansions. Marangoni was observed to have the highest count of press releases pertaining to product launches. The company is also listed as the top in press releases with respect to acquisitions. Most of the top companies focused on partnership and collaboration as a strategy. Bridgestone Corporation and Continental AG have divested a few operations. For instance, Continental sold 6 retread locations To Conlan Tire and Bridgestone to close the Hong Kong aircraft retread tire plant.

Historical & Forecast Period

This study report represents analysis of each segment from 2021 to 2031 considering 2022 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2023 to 2031.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Retread Tires market are as follows:

  • Research and development budgets of manufacturers and government spending
  • Revenues of key companies in the market segment
  • Number of end users and consumption volume, price and value.
  • Geographical revenues generate by countries considered in the report
  • Micro and macro environment factors that are currently influencing the Retread Tires market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Research Period  2021-2031
Base Year 2022
Forecast Period  2023-2031
Historical Year  2021
Unit  USD Million
  • Pre Cure
  • Mold Cure

Size of Organisation
  • Small and Medium Organisations
  • Large Organisations

Sales Channel
  • OEM Service Providers
  • Independent Service Providers

Vehicle Class
  • Commercial Vehicles
  • Passenger Cars
  • Off-road Vehicles
  • Two-wheeler
  • Electric Vehicles

 Region Segment (2021-2031; US$ Million)

  • North America
    • U.S.
    • Canada
    • Rest of North America
  • UK and European Union
    • UK
    • Germany
    • Spain
    • Italy
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East and Africa
    • GCC
    • Africa
    • Rest of Middle East and Africa

Key questions answered in this report

  • What are the key micro and macro environmental factors that are impacting the growth of Retread Tires market?
  • What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
  • Estimated forecast and market projections up to 2031.
  • Which segment accounts for the fastest CAGR during the forecast period?
  • Which market segment holds a larger market share and why?
  • Are low and middle-income economies investing in the Retread Tires market?
  • Which is the largest regional market for Retread Tires market?
  • What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
  • Which are the key trends driving Retread Tires market growth?
  • Who are the key competitors and what are their key strategies to enhance their market presence in the Retread Tires market worldwide?
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