Tire Cord Market is expected to grow at a CAGR of 17.6% during the forecasting period 2021-2028.

The global tire cord market size was worth US$ 4,583.98 Million in 2020 and is estimated to reach US$ YY Million by 2028, growing at a CAGR of 17.6% during the forecast period (2021-2028).

Tire cords are reinforcement for the tired used for maintaining the shape of a tire. Tire cords are primarily made of polyester, steel, nylon, aramid, rayon and hybrid. These materials offer several beneficial properties: high tensile strength, controlled deformation and abrasion resistance, contributing to their use as core components. Tire cord plays a crucial role in providing strong support to rubber tires. It offers support and aids in maintenance of tire form. It handles a vehicle's overall weight & provides elongation and absorption performance, making it a crucial tire element.

On the basis of material type, the tire cord market is segmented into Nylon, Polyester, Rayon, Aramid, Steel, Hybrid and Polyethylene Terephthalate (PET). Nylon holds a dominating position in the market due to its high tenacity, toughness, superior fatigue resistance and good adhesion to rubber.

On the basis of the Tire category, the Radial segment is growing at the fastest pace in the market owing to the increasing production of passenger cars across the globe. Radial tires have different springiness characteristics than bias-ply tires and a different degree of steering slip. 

On the basis of process, the Fiber segment is the dominating segment, as the Fibers made of different materials can change the physical properties to match the characteristics required for the tire and two or more types of fibers can be combined to create special properties.

The Asia-Pacific region holds the largest market share for the tire cord market globally. It is expected to maintain market momentum in the forecast period due to the region's expanding automotive and electronics industry. In addition, the growing demand for automobiles in the region, mainly in China and India, will boost the tire cord market.

Market Dynamics

Drivers

• Growing demand for eco-friendly manufacturing
• Demand for high-performance tires

Restraints

• Fluctuating prices of raw material and environmental impact

Demand for high-performance tires

High-performance tire sales have expanded dramatically over the years due to an increase in vehicle racing competitions, which act as the main driver for the high-performance and ultra-high-performance tire market. The increasing popularity of various types of a car racing around the world has significantly aided the market's expansion. 

Competitive automotive racing was initially focused on popular automobile racing series like Formula One, NASCAR and motorcycle races drew a lot of sponsorships and promotional activities. Over the years, however, racing competitions have seen a surge in the number of different types of races, including SUVs, dirt bikes, monster trucks, solar cars, sprint cars and touring cars, all with varied engine sizes.

Furthermore, For tire companies worldwide, the replacement of high-performance tires represents a huge opportunity. Vendors are spending money on marketing to raise their brand's awareness, particularly in the lucrative aftermarket of high-performance and ultra-high-performance tires. They're also putting money into making their items more apparent on their websites and expanding their online portfolio of high-performance tires.

Thus growing influence of high-performance tires in car racing competitions and increasing manufacturer investments in the replacement of high-performance tires has created immense opportunities for the tired cord market in recent times to build the tire's physical and mechanical core.

For instance, on October 13, 2020, Got Tires has Launched We Got Tires High-Performance Niche Offering Performance Sport Tires at Attractive Prices. The sports tire provides unrivaled grip while launching, braking and cornering everything from exotics to sedans, electric vehicles and powerful luxury SUVs. No matter how much power is put down, a set of high-performance tires is the best change one can make.

Geographical Analysis

The Europe Tire Cord Market was valued at US$ 999.31 million in 2020 and is likely to reach US$  YY million by 2028, growing at a CAGR of 12.9% during the forecast period (2021-2028).

In Europe, countries such as the UK, France, Spain and Germany will be the major countries for the tire cord market. The presence of major tire manufacturing and automotive companies in the countries is the major reason for propelling the demand for the tire cord market. Moreover, the rising focus by the manufacturers to reduce greenhouse gas emissions will also play an important role in the market.

In 2019, the production of vehicles in the new European Union reached 4,379,411 and the production for other European countries reached 3,577,276. The majority of the demand was incorporated from passenger cars, followed by light commercial vehicles and heavy commercial vehicles. Moreover, the growing demand from the aftermarket has also boosted the tire cord market. 

The companies are focusing on expanding their presence in the region with acquisitions and production expansions. For instance, in 2018, Indorama Ventures Public Company Limited has agreed to acquire Kordárna Plus A.S., the leading producer of tire cord fabrics in Europe. The Kordárna acquisition combines production sites in the Czech Republic and Slovakia with technical fabrics and tire cord production capacity of 50,000 tons annually.

Kordárna will provide a complete portfolio of tire cord fabrics, including Nylon 66, Polyester, Nylon 6, Rayon, Aramid and Hybrids. Post-acquisition, Indorama Ventures has become the number one tire cord producer in Europe and the second largest for tire cords globally, with a full range of tire cord fabrics and single-end cords.

Moreover, in 2017, Group Michelin has invested roughly US$ 105 million in a pair of plants in Romania to start production of new tire models and expand steel cord output at a second. The company has also spent US$ 68 million through 2019 at its steel cord plant in Zalau to expand capacity by 50% to 60,000 metric tons.

In 2020, Continental and Kordsa announced the series production of the first eco-friendly 250.000 passenger car tires featuring their new sustainable adhesive technology. The company has offered the replacement of formaldehyde and resorcinol with environmentally friendly alternatives that are beneficial for tire cord manufacturers.

However, the market has faced a decline in 2020 due to the lower demand from the automotive sector. According to the European Tyre & Rubber Manufacturers' Association data, the Original Equipment segments were most strongly affected, registering a -23% for consumer tires sales and -18% for truck sales. Also, in the Replacement market, all the sections have been negatively impacted. For instance, consumer tires have recorded 12% sales, specifically 20% on winter tires and 13% on summer tires.

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