Global Passenger Car Tire Retreading Market to Grow at a CAGR of 2.15% During 2023–2031

Introduction

A "retreaded tire" has been serviced and re-fitted with new tread rubber to reach a predetermined mileage threshold. Wearing out tires is a direct outcome of using them while traveling. The tread is the low-lying, worn portion of a tire. Tire retreading is selecting and analyzing previously worn tires to obtain fresh treads. Buffing the treads of used tires and applying a fresh tread is a lot like making new tires. Not only does this help save money and space in landfills, but it also discourages people from recklessly discarding their old tires. Since remanufactured tires save money for buyers compared to brand-new tires, demand has skyrocketed over the past decade.

Market Dynamics

Savings for the Environment Drives the Global Market

The market for passenger car tires is anticipated to be driven by retreaded tires' environmentally friendly qualities and their lower price when compared to new tires. Retreading is ecologically beneficial. By repurposing the discarded tires, manufacturers minimize the space required for landfills. It also reduces carbon dioxide emissions and saves millions of gallons of oil that would otherwise be used to manufacture new tires. Retreaded tires have a far lower environmental impact than new tires since they use just 80% of the materials required to create them. According to data, a new tire consumes 21 gallons of oil. However, each retread tire only uses 7 gallons. As a result, 14 gallons of oil are saved every time a business chooses retread tires over new tires of the same value.

Numerous governments worldwide are implementing the strategy and have set up rules for cars in the areas due to the benefits it provides for the environment. As an illustration, all retreads manufactured in Europe must adhere to E.C. Regulations 108 (for automotive tires) or 109 (for bicycle tires) (commercial vehicle tires). According to this law, all tires must complete the same load and speed tests performed on brand-new tires. Due to the advantages mentioned above, it is projected that the market will experience strong demand throughout the forecast period.

Growth in Use and Operation of Passenger Vehicles Creates Tremendous Opportunities

There are currently significantly more passenger automobiles in use globally due to rising sales of both new and used cars and the rising average age of vehicles. Asia-Pacific has the highest percentage of operational cars (33.6%), followed by Europe and North America with 28.3% and 24.7%, respectively. The market for used passenger cars expanded in 2019 and 2020 despite a fall in new car sales internationally, which increased the number of vehicles in use or in operation, or parc autos.

People must take extra measures because the coronavirus has spread over the globe. Most commuters now take personal transportation, which offers a lesser risk of catching the virus, rather than shared transportation. The average age of passenger cars is rising, increasing demand for the business because tire retreads benefit end users financially and environmentally.

Regional Analysis

Europe is the largest source of revenue and is anticipated to expand at a CAGR of 2.35% over the projection period. Germany is one of the biggest markets for autos in the world. As the number of cars in use in the country rises significantly, it is projected that the market under study will grow. The demand for electric vehicles is growing, with more than 10,000 electric car registrations in Italy in 2019. The development of hybrid cars took a similar path. One of the significant countries, Italy, has a passenger car fleet with an average age of 11.3 years, which is older than the union's average of 10.9 years. E.C. Regulation 108 (car tires) or 109 must be complied with by all retreads produced in Europe (commercial vehicle tires). They are tested under the demanding conditions for new tires, as suggested (with the same load and speed criteria). About 20 years ago, millions of retreaded passenger tires were sold across Europe.

North America is anticipated to grow at a CAGR of 2.20% during the projection period. Favorable environmental laws and rising consumer acceptance of retreaded tires for passenger cars are expected to create new growth opportunities in North America during the projected period. Due to the financial and environmental advantages, retreaded tires are becoming more common in the region. The United States is estimated to contribute the most to market growth in the area during the forecast period, followed by Canada and Mexico. Jan. 20, 2021, Therefore, during the anticipated time, the United States will still be the most attractive market for passenger car retreading. The use of rental automobiles has expanded, rubber use regulations have been strengthened, and other environmental impacts have all played a role in developing the passenger car retreading industry.

Key Highlights

• The global passenger car tire retreading market was valued at USD 253.20 million in 2022. It is projected to reach USD 306.63 million by 2031, growing at a CAGR of 2.15% during the forecast period (2023-2031).
• Based on production methods, the global passenger car tire retreading market is pre-cure and mold cure. The mold cure segment is the highest contributor to the market and is estimated to go up at a CAGR of 2.10% during the forecast period.
• Europe is the most significant revenue contributor and is expected to grow at a CAGR of 2.35% during the forecast period.

Competitive Players

Competitive Players

The global passenger car tire retreading market's major key players are Tire Recappers, Edwards Tire Company Inc., S.C. RADBURG CENTER SRL, Vipal Rubber, Techno Pneu inc., Eastern Tire Service Ltd., and Rigdon GmbH.

Recent Developments

Market News

• In February 2022, a combined research and development project between Bridgestone Corporation (Bridgestone), the National Institute of Advanced Industrial Science and Technology (AIST), Tohoku University, ENEOS Corporation (ENEOS), and JGC Holdings Corporation was announced. This program intends to create chemical recycling methods that use tires to produce isoprene, a synthetic rubber raw material, at high yields.
• In February 2022, Continental Tires unveiled its newest collection of CrossContact AX6 SUV tires in India. The new, cutting-edge Generation 6 CrossContact AX6 all-terrain tires have an open tread pattern that maximizes edges and contact areas to aid in more off-road traction. To stop the loose surface from slipping through the tread grooves, the tires have traction grooves with teeth that can grab onto objects. The polymer construction grips the road and provides exceptional traction and braking on slick and wet surfaces thanks to the Silica Tread Compound.

Segmentation

Global Passenger Car Tire Retreading Market: Segmentation

By Production Method

• Pre-cure
• Mold Cure

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA