APAC Automotive Retread Tires Market To Grow At Largest CAGR

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APAC Automotive Retread Tires Market To Grow At Largest CAGR

The automotive retread tires are also referred to as remold tires. Retread tires is the process of remanufacturing of worn out and old vehicle tires. The process of remanufacturing replaces the worn out tires with new tires. The remanufacturing of tires includes 20% of the material cost and 90% of the material employed in worn out tires. Additionally, retread tires are ecological product solutions and the vertical is experiencing sustenance from several government authorities which spurs awareness about the application of retread tires. Worldwide automotive retread tires market has experienced substantial growth and is predicted to surge at 5% CAGR. Growing demand for tires from fleet owners is the key influencing factor for the expansion of the global automotive retread tires market. OICA declared that there is a constant rise in the consumption of tires within the passenger car section and specifically in heavy commercial automobiles, which spikes up the requirement for retread tires in the vehicles. Strict government regulations and augmented ecological concerns will augment the demand for retread tires among the consumers and manufacturers. High-cost advantages from the retreading of worn out and old tires will open up new avenues for the new manufacturers within the worldwide market. The tire manufacturers asserts that the retreading of dilapidated tires will save at least 30% of the total cost as compared to the new ones. This influences the environment in a positive way. Bridgestone Corporation and the Goodyear tire manufacturing company is capitalizing heavily in the assessment and development of old tires. However, the US National Highway Traffic Safety Administration (NHTSA) distinguishes the consumer behavior about the usage of retread tires. The NHTSA is conducting research about the section of tire condition from retreading of tires in comparison with new tires. However, awareness and consumer satisfaction related to the retread tire is the key concern for retread tire manufacturers.

Key Players

The key players ruling the global automotive retread tires market include The Goodyear Tire & Rubber Company (US), Bridgestone Corporation (Japan), Marangoni S.p.A. (Italy), Michelin (France), MRF Tyres (India), Nokian Tyres plc (Finland), JK Tyres (India), KRAIBURG AUSTRIA GmbH & CO. KG (Austria), Eastern Treads (India), and Pilipinas Kai Rubber Corporation (Philippines).

Market Segmentation

Worldwide automotive retread tires market is segmented based on sales channel, process type, region, and vehicle type. Based on process type, the market is segmented into mold cure and pre cure. Based on sales channel, the market is segmented into aftermarket and OEM. Based on vehicle type, the market is segmented into light commercial vehicle, heavy commercial vehicle, and passenger car.

Regional Analysis

Based on geography, the global market for the automotive retread tires is categorized into Asia-Pacific, Europe, North America, and the Rest of the World. Asia-Pacific market is estimated to represent the largest CAGR for automotive retread tires. Surged vehicle consumption in economies such as India and China is anticipated to affect the sales for the automotive retread tires positively. Surge in strict government regulations and environmental alertness in China and other economies will positively impact the consumption and manufacturing of retread tires in the automobile sector. This in turn triggers the market growth in the APAC market.

Europe employed strict norms like EC Regulation 109 and EC Regulation 108 concerning the remanufacturing of commercial vehicle and passenger car tires. These regulations will dictate the recycling of secondhand tires. Besides, in the US, the transport department is prepared to incorporate the “DOTR Number”, which offers you the information about the year and name of the retreaded. The promising government policies is predicted to play a noteworthy role in the positive growth of the automotive retread tires in North America and Europe. The rest of the world includes South America and the Middle East and Africa. The Middle East and Africa is projected to lead the market throughout the assessment period.

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