The global passenger car tire retreading market size 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).
A retreaded tire has been fixed and then retreaded with new tread rubber to achieve a specific mileage goal. Tires deteriorate over time as a direct result of driving on the road. The tire tread is the worn area of a tire. Selecting and evaluating used tires to obtain new treads is known as tire retreading. Used tire treads are buffed, and a new tread is applied in a process comparable to creating new tires. To top it all off, this prevents tires from being carelessly thrown away, which is good for the environment and the wallets of automobile owners everywhere. Over the past decade, the market for remanufactured tires has grown significantly because remanufactured tires offer cost savings to consumers over brand-new tires. Manufacturers and suppliers in the retreaded tire market now have several options thanks to the increasing demand for retreaded tires among commercial vehicle owners.
The environmentally friendly features of retreaded tires and their lower cost, compared to new tires, are projected to be the market drivers for passenger car tires. Manufacturers reduce the area needed for landfills by preparing the used tires for new uses. Additionally, it saves millions of gallons of oil used to make new tires and minimizes carbon dioxide emissions. The environmental effect of a retreaded tire is greatly lessened because it conserves 80% of the materials needed to make a new tire. Data reveals that while each retread tire only generates 7 gallons of oil, a new tire requires 21 gallons to create. As a result, every time a business opts for retread tires over a new tire of the same value, 14 gallons of oil are saved.
Due to the advantages, it offers for the environment, numerous governments from over the globe are using the method and have established regulations for automobiles in the areas. As an illustration, E.C. Regulation 108 (for automobile tires) or 109 (for bicycle tires) must be followed when manufacturing all retreads in Europe (commercial vehicle tires). This law stipulates that all tires must pass the same load and speed tests that are conducted on new tires. It is anticipated that the market will have high demand during the forecast period due to the benefits mentioned above.
Rubber, steel, cloth, carbon black, and synthetic rubber are the main raw ingredients needed to make tires. Depending on the type of tire, sulfur and a few additional raw materials are required for tire production. The primary raw materials for tires are natural and synthetic rubber, representing 60–70% of the overall cost of raw materials. Plants provide natural rubber, whereas petroleum-derived polymers are used to create synthetic rubber (synthetic rubber prices are positively correlated to crude oil prices).
Since the beginning of 2019, there has been a downward trend in rubber production worldwide. This was primarily caused by the economy's slowdown in 2019, which worsened in 2020 due to the global coronavirus pandemic. The bulk of raw material manufacturing and tire retreading businesses worldwide have temporarily shut down due to the epidemic. However, throughout the projected year, the market is anticipated to rebound with the progressive opening of national lockdowns. Similar to other commodities, the price of tires is controlled by two main factors: fluctuations in the price of crude oil around the world and supply chain interruptions, and raw material demand.
Due to rising sales of both new and used cars and the increasing average age of vehicles, there are now significantly more passenger cars worldwide. The region with the most operating cars is Asia-Pacific, with 33.6%, followed by Europe and North America, each with 28.3% and 24.7%, respectively. Despite a global decline in new car sales in 2019 and 2020, the market for used passenger cars grew, leading to a rise in the number of vehicles in use or operation, or parc automobiles.
Since the coronavirus has spread worldwide, people have been compelled to take extreme precautions. Most commuters have stopped using shared transportation and switched to personal vehicles, which have a lower chance of contracting the virus. As tire retreads provide end users with financial and environmental benefits, the average age of passenger automobiles is rising, raising demand for the industry.
| Study Period | 2019-2031 | CAGR | 2.15% |
| Historical Period | 2019-2021 | Forecast Period | 2023-2031 |
| Base Year | 2022 | Base Year Market Size | USD 253.20 Million |
| Forecast Year | 2031 | Forecast Year Market Size | USD 306.63 Million |
| Largest Market | Europe | Fastest Growing Market | North America |
The global passenger car tire retreading market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA.
Europe is the most significant revenue contributor and is expected to grow at a CAGR of 2.35% during the forecast period. One of the world's biggest marketplaces for automobiles is Germany. The number of automobiles used in the nation is increasing quickly, which is anticipated to fuel expansion in the market under consideration. With more than 10,000 electric car registrations in Italy in 2019, the market for these vehicles is also expanding. Hybrid automobiles also followed a similar trajectory. The average age of the passenger car fleet is 11.3 years in Italy, one of the major nations, which is older than the union's average of 10.9 years. Retreads made in Europe must adhere to E.C. Regulation 108 (auto tires) or 109 (truck tires) (commercial vehicle tires). According to what was proposed, retreaded tires should be put through the same arduous conditions as when testing brand-new tires (with the same load and speed criteria).
North America is expected to go up at a CAGR of 2.20% during the forecast period. During the projection period, favorable environmental legislation and increased acceptance of retreaded tires for passenger automobiles are anticipated to open up new growth prospects in North America. Retreaded tires are becoming increasingly popular in the area due to financial and environmental benefits. During the projected period, the United States is anticipated to contribute the most to market growth in the area, followed by Canada and Mexico. Jan. 20, 2021, Therefore, the United States will continue to be the most promising market for passenger car retreading during the projected period. The increased usage of rental cars and improved rules on the use of rubber, as well as other environmental effects, are two factors that have contributed to the growth of the passenger car retreading business.
Asia-Pacific is the leading/significant region in the globe in market share due to the development in passenger car manufacturing and the existence of a sizable number of market vendors in the region. MRF, Apollo Tires, J.K. Tyres, and several other large companies dominate the market share in the area. Due to the expanding population and increasing transportation needs in developing countries like China and India, there will likely be new opportunities in the Asia-Pacific market. Additionally, the abundant supply of natural rubber in Southeast Asian nations is likely to entice manufacturers worldwide to broaden the geographic scope of their clientele. Thailand is the world's biggest producer of natural rubber, followed by Vietnam, Indonesia, and 97% of the rest of Southeast Asia. India, China, and Malaysia are a few more significant rubber producers in the area.
More than 6% of South Africa's GDP comes from the car industry. The South African government recognized the car industry as one of the primary growth sectors, and the Motor Industry Development Program has resulted in tremendous growth in this sector (MIDP). In 2019, the average age of passenger and light commercial vehicles operating in South Africa was 12.2 years, up from 9.5 years in 2016. The average age of cars in the Emirates is roughly 5.2 years, significantly shorter than the 11.5-year average for vehicles in the U.S. The passenger car category accounts for over 80% of the automotive market in the United Arab Emirates. Some Chinese companies invest significantly in these nations to increase their market share.
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The global passenger car tire retreading market is segmented by production method.
Based on production methods, the global 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. Applying a non-vulcanized rubber tread directly to the top of the buffed tire is the first step in the mold cure retreading process. After the tire has been freshly rubberized, it is put into a rigid mold with the correct tread pattern. After that, the mold is heated, vulcanizing the rubber within and causing it to adhere precisely to the tire. The method is nearly identical to how the top tire producers in the world create new tires. A buffed casing receives uncured rubber that is added and then heated to between 150 and 160 °C in the mold. This temperature enables vulcanization, which creates the tread pattern by allowing uncured rubber to flow in the matrix.
Mold cure retread production is similar to new tire production in all respects. Tires that have undergone mold curing have superior bonding and aesthetics to tires that have experienced pre-curing. So the mold curing procedure is used to create most passenger care retreaded tires. Recycling used tires is becoming increasingly popular due to growing worries about the rubber ending up in landfills and the pollution that results from it. The governments of many nations, including Japan and numerous European countries, have put regulations requiring the recycling of worn tires. It is expected that this will increase demand for retreaded passenger car tires and, in turn, for tires that have been mold-cured.
The passenger automobile retreading market is currently in its infancy. To address a diverse group of clients globally, operations must be more flexible. Less investment is needed from the pre-cure retreading facility, which lowers the market entry barrier and allows for the operation of smaller production units due to the relatively cheap investment costs. As a result, the operator can increase service offerings close to customers at more affordable logistical prices. Due to the process, retreading tires is more cost-effective and practical than buying new tires, which will likely draw customers. Growing skepticism over the product's dependability and quality is another problem the tire retreading sector is now dealing with.
