Global retreaded tyre sales to hit $8.8 billion in 2021

Global retreaded tyre sales are expected to reach US$ 8.8 billion in 2021, according to research produced by ESOMAR-certified market research and consulting firm Future Market Insights. According to the new report entitled “Retread Tires Market”, the increase in average miles driven and growing vehicle parc will drive the tyre aftermarket, subsequently fuelling the demand for retreaded tyres.

According to the report, increasing automobile ownership remains a chief driver of demand. Specifically, the demand for heavy commercial vehicle is expected to rise in response to the expansion of various industries, which will continue supporting the growth of the market. Indeed, the same research suggests 44 per cent of retreaded tyre sales will concentrate in the “heavy commercial vehicle segment”.

Commercial vehicles often find application in construction and mining activities. Logistics sector too exhibit high demand for commercial vehicles. In short, greater focus on maintaining commercial vehicles for a longer period of time is expected to boost retread tyres sales.

Despite registering a “considerable drop in sales amid COVID-19”, the retreaded tyre market is expected to bounce back this year, exhibiting 4.7 per cent compound annual growth rate (CAGR) between 2021 and 2031.

In Europe, the UK is singled out as a retread tyre good news story, with this business expected to register 3.4 per cent year-on-year growth in 2021. Similarly, increasing vehicle production is expected to continue retread tyre market growth in Germany and France. Such market movements will be supported by “favourable policies aimed at reducing automotive waste to support expansion in China”, the report adds.

In North America, the US is slated to take over 78 per cent of retread tyres sales in North, thanks to its size and rising demand for heavy commercial vehicles across various industries.

“Retread tyre sales are picking up in response to higher focus on maintaining vehicles. While focus on maintenance remains high among heavy commercial vehicle owners, retread tyres are gradually making inroads into off road vehicle segment. To capitalize on these opportunities, manufacturers are likely to focus on expanding their footprint around the world,” said Future Market Insights representatives explained.