|Base Year Market Size
|USD XX Billion
|Forecast Year Market Size
|USD XX Billion
|North America and Europe
|Fastest Growing Market
The SSBR (Solution Styrene Butadiene Rubber) Tires market is expected to progress with a CAGR of 9.7% during the forecast period.
The market of SSBR (Solution Styrene Butadiene Rubber) Tires is largely affected by the import and export bans and manufacturing losses incurred by the companies during the period of coronavirus outbreak. Many companies are operating with minimal employee resources at the actual manufacturing sites, which registered decrement in their manufacturing.
Additionally, as compared to the conventional rubber tires market, SSBR (Solution Styrene Butadiene Rubber) Tires market is projected to perform better in the global market due to its increased adoption across all types of vehicles. Fuel consumption optimization, the long-serving life of the tires, and better road grip are the factors projected to support the market.
SSBR (Solution Styrene Butadiene Rubber) tires show excellent viscoelasticity, which helps the tire to gain impressive mechanical properties and excellent performance in the braking standards. Additionally, the physical composition of these tires provides them far better functional abilities than conventional tires. The tires also are very cost-efficient, and with their ultra-high molecular weight, they are capable of providing supreme tear strength and mechanical properties.
The ability of the products to provide versatility for application across the range of automotive vehicles and superior functionality in any ground terrain is anticipated to drive the market growth. The SSBR tires offer high wet-grip, which makes them suitable in the rainy seasons and damp environments.
SSBR Tires market of North America is spearheaded by the U.S. As per the recent statistics published by the U.S. Tire Manufacturers Association, the U.S tire industry witnessed a turnover of around USD 148 billion. The industry directly employs more than 737,000 laborers and can employ 284,000 employees through retailing, distribution, and marketing chains. Thus, an established value chain and strong manufacturing perspectives help North America to retain its stronghold in the global market
The rapid manufacturing of automotive vehicles in China and Japan is expected to drive Asia-Pacific’s market growth. During the COVID-19 pandemic, China emerged as the sole country that registered a positive growth in its economy, which will further help the country to sustain its growth prospects in the market, outpacing the rest of the economies. Additionally, the automotive manufacturers are planning to move their manufacturing facilities to India, further driving the regional market growth.
|By Vehicle Type
|By Distribution Channel
|By Rim Size
|Michelin, Taiwan Synthetic Rubber Corporation Goodyear Tire and Rubber Company Sumitomo Chemicals Styron (Trinseo) LG Chemicals Dynasol Elastomers Asahi Kasei Sinopec Lanxess Versalis (Polimeri Europa) Bridgestone Corporation Sibur Holding JSC Trinseo S.A.
|U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
|China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
|Middle East and Africa
|UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
|Brazil Mexico Argentina Chile Colombia Rest of LATAM
|Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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The aftermarket segment is anticipated to progress at a rapid pace due to the preference for SSBR tires in the replacement scenario. SSBR Tires are capable of serving for a longer span of time due to their high abrasion wear and resistance to wear and tear. Also, due to the lower friction resistance, the vehicles perform efficiently, improving the fuel optimization abilities of the vehicles. The OEM manufacturers, on the other hand, are right now struggling to maintain their ongoing manufacturing operations due to the contraction in the fund liquidity and curbed profit margins.
Volatility in the price of fossil fuels has increased the demand for fuel-efficient vehicles across the globe. Impressive balance grip and a significant reduction in the rolling resistance offered by these tires serve the said purpose quite effectively. Additionally, increasing events of catastrophic accidents due to poor wet traction of the conventional tires and their limitations in winter performance bolster the SSBR tires sales across the globe.
The light commercial vehicles segment holds the largest market share on account of the increasing use of light commercial vehicles in North America and Europe. Additionally, the extensive installation of SSBR (Solution Styrene Butadiene Rubber) tires in the commercial vehicles bolster the market growth. Light Commercial vehicles have higher average travel miles, further driving the demand for SSBR tires. Stringent regulatory guidelines increased consumer proclivity towards the use of green tires, and the unparalleled vehicle balance offered by these tires drive the market growth.
As per the data published by the U.S. Tire Manufacturers Association, due to the disruption in the value chain of the automotive industry after the outbreak of the COVID-19 pandemic, in the year 2020, the market of North America witnessed a record low supply of automotive tires. The market registered a sharp decline of 18% as compared to the sales of 2019.
Many manufacturers with a substantial hold on the sales of SSBR tires have listed considerable decrement in their net revenue generation and profit margins. The massive dip in the production and sales of the products are underpinning the weak performance of these companies across the global market. For instance, Bridgestone, a global manufacture of SSBR tiers recorded a reduction in revenue by 11%, with operating profit plummeted almost twice between the first quarters of 2020. Hankook observed a reduction of 20% in its revenue and a reduction of 29% in its profit margin.
The strategic exit of the global market players from the unprofitable markets has accelerated and significantly decreased the development prospects. Additionally, the exits resulted in market consolidation in particular regions affecting the overall performance of the market. The suppliers operating in the market are facing intense cash liquidity issues and retailers are also unable to cope up with the sudden change and volatility in the economic behavior of the market. The entire automotive value chain may succumb to the disruptive situation.