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Global Two-wheeler Tires Growth Opportunities

Global Two-wheeler Tires Growth Opportunities

  • May 2022
  • 127 pages
  • ID: 6282544
  • Format: PDF
  • Frost & Sullivan


Table of Contents

The growing working group population in emerging economies in Asia is expected to drive vehicle adoption, fulfilling annual miles and eventually tire consumption. The demand for premium two-wheeler tires (250cc and above) is increasing due to the rise in premium two-wheeler sales across all regions.

Growing popularity in leisure motorcycling is driving the YoY demand for off-road, dual-purpose, and track tires.Tires with high mileage thread wear and durability against potential punctures will gain sales traction in developing economies with challenging road environments.

The need for higher fuel efficiency and lower tailpipe emission in small-capacity two wheelers is driving tire makers to manufacture tires with lower rolling resistance.Growth trends toward ride-sharing, ride-hailing, vehicle leasing, and subscription services will shift the fleet operator’s focus toward adopting high mileage tires.

Leading global participants, such as Michelin, Bridgestone, and Pirelli, are exploring breakthrough tire technologies of airless tires, connected tires, sustainable raw materials, and green recycling to reduce the environmental impact. Price-sensitive commuter two-wheeler markets, such as Asia and South America, have competitively priced domestic brands dominating the small-capacity two-wheeler segments. Leading domestic vendors, such as MRF and Ceat in mass-market two-wheeler markets, are exploring technologies to match consumer demands in high mileage tire technology and puncture-proof tire technologies. The impact of COVID-19 in 2020 forced tire makers and retailers to step into the eRetail platforms, which have opened new revenue opportunities as consumer interest in online shopping has skyrocketed since 2020. India’s tire import restrictions imposed in 2020 created a massive revenue stream for domestic vendors catering to the demands for the premium two-wheeler segment tires. The rising energy costs, strong demand for goods, and supply chain disruptions translated to soaring inflation levels across the globe. While US inflation topped 6% in October 2021, the highest in 30 years, prices in the Eurozone surged by 5% in November 2021. As many Latin American economies battled double-digit inflation in 2021, price increases in India and Russia overshot central bank targets of 4%. China, East Asia, and ASEAN economies were an exception to the trend, with weaker domestic demand and currency stability feeding into an approximate 2% price hike in 2021. Global supply chain disruptions were augmented by acute shortages of key inputs due to climate disruptions and local virus outbreaks in critical supply chain links, such as Vietnam, China, Indonesia, and Malaysia, in H2 2021. In addition, a paucity of semiconductor chips held up production in several industries, including electronics and automotive.

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