What is the growth trend of the tire rubber industry?

The growth trend of the tire rubber industry shows a steady upward trend, and the specific analysis is as follows:

1、 Global tire market growth trend

Market sales:

Before 2020, the growth rate of tire sales showed a marginal slowdown, and the industry encountered bottlenecks in development. In 2020, it fell into a negative growth situation, with tire sales declining to less than 1.6 billion units, a year-on-year decrease of 10.8%.

With the global economic recovery and industrial policy support from various countries, the tire market has regained its growth momentum. The global tire sales are expected to exceed 1.6 billion units in 2023, and will exceed 1.8 billion units in 2024. The future growth rate is expected to remain at 3% to 5%.

Market demand structure:

In the tire consumption structure, replacement tires and matching tires together constitute market demand. In 2023, the global shipment of replacement tires was 1.32 billion, accounting for 74.7%, with an average annual compound growth rate of 3.4% over the past four years; The shipment volume of matching tires is 460 million, accounting for 25.3%, with an average annual compound growth rate of 4.7% in the past four years.

The sales volume of passenger car tire replacement reached 1.16 billion units, exceeding the consumption level of previous years before the epidemic, making it the absolute mainstay of tire demand; Passenger car tires have benefited from the recovery of the automotive market, showing a high compound growth rate.

In terms of car tires, although the replacement tire market has entered a downward cycle in recent years, the demand for matching tires remains strong, especially in the Chinese market where it has performed outstandingly.

2、 The growth trend of China's tire market

Production growth:

In recent years, China's tire manufacturing industry has shown strong growth momentum and has jumped to the top of global tire production.

According to statistical data, China's tire production continues to grow. In March 2024, China's rubber tire outer tire production was 96.93 million pieces, a year-on-year increase of 4%. This growth trend began with the rebound of production after falling to a low point in 2018, and reached its highest level in history by 2023. The cumulative production for the whole year was 987.74 million, an increase of 13%.

Export growth:

The export volume of Chinese tires continues to rise, especially in 2024, with significant growth in both export volume and export value.

Taking October 2024 as an example, China's rubber tire exports reached 800000 tons, a year-on-year increase of 12.4% and a month on month increase of 50000 tons; The export amount was approximately 13.849 billion yuan, a year-on-year increase of 11.5%.

From cumulative data, from January to October 2024, the cumulative export volume of rubber tires in China was 7.74 million tons, a year-on-year increase of 5.2%; The export amount was approximately 136.373 billion yuan, a year-on-year increase of 5.5%.

Market demand:

The growth of demand in the Chinese tire market is mainly due to the vigorous development of the domestic and international automotive markets. With the continuous increase in car ownership and consumers' increasing demand for vehicle performance, tires, as an important accessory of cars, have also seen an increase in demand.

In addition, the Chinese government has created favorable conditions for the development of the tire manufacturing industry by providing tax incentives, financial support, and other policy measures.

3、 Future Development Trends of Tire Rubber Industry

Technological innovation and industrial upgrading:

With the continuous development of technology, the tire rubber industry will usher in more technological innovation and industrial upgrading. Enterprises need to increase research and development investment, promote product innovation and technological upgrading, and improve product performance and quality.

At the same time, the industry will develop towards high-end, intelligent, and green directions to meet consumers' demand for high-quality and high-performance tires.

Acceleration of internationalization process:

Chinese tire companies are accelerating their internationalization process and expanding their international markets through overseas factories, mergers and acquisitions, and other means. This will help enhance the international recognition and competitiveness of Chinese tire brands.

At the same time, enterprises need to pay attention to the legal regulations and standard requirements of the international market to ensure that their products meet international standards and quality requirements.

Environmental Protection and Sustainable Development:

Environmental protection and sustainable development have become the focus of global attention. The tire rubber industry needs to actively respond to national environmental policies, adopt environmentally friendly materials and processes, and reduce its impact on the environment.

At the same time, enterprises need to strengthen the recycling and reuse of waste tires, promote tire remanufacturing and the development of circular economy.

In summary, the tire rubber industry is showing a steady growth trend. In the future, with the acceleration of technological innovation, industrial upgrading, and internationalization, as well as the continuous improvement of environmental protection and sustainable development requirements, the tire rubber industry will usher in a broader development prospect.