|Base Year Market Size
|USD 15.9 Billion
|Forecast Year Market Size
|USD 29.5 Billion
|Fastest Growing Market
The global truck and bus radial (TBR) tire market size was valued at USD 15.9 billion in 2022 and is projected to reach a value of USD 29.5 billion by 2031, registering a CAGR of 7.1% during the forecast period (2023-2031). The increasing need for commercial vehicles, the developing transportation and logistics industry, and technological developments in tire manufacturing drive the growth of the truck and bus radial (TBR) tire market.
Truck and Bus Radial (TBR) tires are a type of tire intended primarily for heavy-duty commercial vehicles such as trucks and buses. TBR tires, instead of bias-ply tires, have a radial structure, which means the reinforcing plies run radially around the tire from bead to bead, perpendicular to the tread. This radial design has various benefits, including enhanced riding comfort, higher traction, and increased fuel efficiency.
The overall expansion of the global automotive sector is a primary driver of the Truck And Bus Radial Tire Market, as increased commercial vehicle production and sales directly affect consumer demand for TBR tires. Economic development, urbanization, and the growing transportation and logistics industry all impact the need for commercial vehicles, particularly trucks and buses, which drives the demand for TBR tires. TBR tires are designed to be more fuel-efficient than bias-ply tires, which can assist commercial vehicle owners in saving money and reducing greenhouse gas emissions. Rising awareness and laws about sustainability and fuel economy are also driving the Truck and Bus Radial (TBR) Tire Market share. However, the price volatility of raw materials used in tire manufacturing, such as rubber, steel, and chemicals, may impact the manufacturing costs and profit margins of TBR tire producers.
TBR tire demand is directly related to commercial vehicle sales, which include trucks and buses. Increased sales of commercial vehicles drive demand for TBR tires as the logistics and transportation industries grow. In 2023, over 559,000 LCV trucks were sold in India. These vehicles were mostly utilized for last-mile cargo transport. Daimler Truck sold 520,291 units in 2022, a 14.2% increase over the previous year. Despite supply chain obstacles, this was achieved. The company's revenue was over 50 billion euros, a 28% rise from 2021. Furthermore, according to the China Association of Automobile Manufacturers, overall vehicle sales, including trucks and buses, would climb by 2.1% to 26.9 million in 2022.
The global expansion in e-commerce activity has resulted in a significant increase in the need for freight transportation. In 2022, the e-commerce industry will witness a spike, with worldwide sales surpassing USD 5.4 trillion. This represented a huge increase over previous years. In 2022, e-commerce sales accounted for over a quarter of all retail sales. E-commerce behemoths like Amazon, Alibaba, and others rely largely on commercial vehicles to deliver items on time and efficiently. This trend has greatly increased commercial vehicle sales, contributing to the Truck and Bus Radial (TBR) Tire Market trend.
TBR tires are made from various materials, including natural rubber and synthetic compounds. Price fluctuations in these materials can impact tire manufacturers' production costs. Rising raw material prices might reduce manufacturers' profit margins unless they can pass these additional costs on to consumers, thus hurting market growth. Natural rubber is an important component in tire production. Natural rubber prices can fluctuate due to changes in weather, diseases affecting rubber plants, and geopolitical concerns. Natural rubber prices climbed by roughly 20% in 2022, while crude-based ingredient prices increased by 40-50%. These basic materials account for approximately 70% of the raw materials used in tire manufacture.
Another important raw resource is synthetic rubber, manufactured from petroleum-based chemicals. Synthetic rubber prices are tightly linked to oil prices, which are impacted by geopolitical events and market dynamics. Prices for synthetic rubber fluctuated in the third and fourth quarters of 2022. The export price peaked at $1,985 per ton in August 2022. However, export prices failed to regain momentum from September 2022 to July 2023. As a result, fluctuations in raw material prices directly impact tire manufacturers' production costs. The figure below depicts how changes in raw material pricing might affect overall tire production costs.
The TBR tire industry is poised to benefit from the continuous rise of e-commerce and the desire for efficient last-mile delivery services. TBR tires are required for commercial trucks involved in logistics and last-mile deliveries. The ongoing expansion of e-commerce behemoths such as Amazon, Alibaba, and others has significantly increased demand for freight transportation. Last-mile delivery vehicles like trucks and vans are critical components of the e-commerce supply chain. In 2022, e-commerce expanded rapidly. According to Forbes, by the end of 2022, e-commerce will account for 20.4% of worldwide retail sales. This is an increase from 10% five years ago.
According to Statista, retail e-commerce revenues will top 5.7 trillion US dollars in 2022. As urbanization trends continue, more people will be concentrated in cities, increasing demand for last-mile delivery services. E-commerce enterprises face challenges delivering goods to clients in densely populated urban areas, needing strong last-mile logistics. The global urbanization rate was 57% in 2022. This means that 57% of the world's population resides in urban regions. A mix of population density and physical proximity determines urbanization. The World Bank predicts that the urban population will triple by 2050. At that point, cities will house approximately 7 out of every ten people. This has a favorable impact on the market during the forecast period.
The global truck and bus radial (TBR) tire market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.
Asia-Pacific is the most significant global Truck and Bus Radial (TBR) Tire market shareholder and is estimated to grow at a CAGR of 6.9% over the forecast period. The Asia-Pacific region has the greatest market share owing to the region's continued strong economic expansion, which has spurred urbanization and industrialization. TBR tire demand in the area has increased due to the increased necessity for commercial vehicles, such as trucks and buses, to transport goods and people. Furthermore, countries such as China and India have emerged as key hubs for commercial vehicle manufacture.
North America is anticipated to exhibit a CAGR of 7.2% over the forecast period. The increase in demand for commercial cars is contributing to market expansion in the region. Increased use of sophisticated tire manufacturing methods is also projected to raise the size of the North American TBR tire market shortly. The demand for truck and bus radial tires in the United States is expected to rise by the end of the forecast period. This can be ascribed to various factors, including the growth of e-commerce, greater freight transportation, and the replacement cycle of commercial vehicle tires.
Additionally, as the e-commerce sector grows, so does the demand for last-mile delivery services, increasing the requirement for dependable and long-lasting TBR tires. Furthermore, increased freight transportation due to economic expansion and commercial activity drives the demand for TBR tires. The emphasis on fuel efficiency and environmental sustainability also pushes the adoption of low-rolling resistance trucks and bus tires.
Europe holds a significant market share. Germany has the largest country share. This is because of Germany's emphasis on quality, safety, and environmental norms. TBR tires must adhere to severe rules, particularly those about performance, traction, and rolling resistance. As a result, there is an ongoing demand for high-quality TBR tires that provide exceptional performance and longevity. The trend toward sustainable mobility, emphasizing lowering emissions and improving fuel efficiency, increases demand for TBR tires with innovative technologies.
|By Vehicle Type
|By Tire Axle
|By End Use Industry
|By Distribution Channel
|By Sales Channel
|Bridgestone Corporation Continental AG Goodyear Tire & Rubber Company Pirelli & C. S.p.A Hankook Tire Sumitomo Rubber Industries Yokohama Rubber Company Double Coin Holdings Toyo Tire
|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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Vehicle type is further segmented into Buses and trucks.
Trucks generate the most revenue. Trucks are necessary for the transportation of goods in a variety of sectors. TBR truck tires are built to resist big loads, long distances, and various road conditions. Trucks are utilized extensively in various industries, including transportation, construction, mining, agriculture, and manufacturing. This diverse range of applications leads to the high demand for TBR truck tires. Off-road trucks in industries such as construction and mining demand TBR tires with strong structure, aggressive tread patterns, and resilience to damage from hard terrain. Truck domination is partly due to the widespread use of trucks in many industries, such as transportation, construction, and logistics. Trucks are essential for carrying goods and materials, assisting with building activities, and managing logistical operations. Buses are essential for public transportation, including urban, intercity, and long-distance travel. TBR bus tires are designed to satisfy passenger transportation needs, ensuring safety, comfort, and longevity. TBR tires for city buses must have outstanding traction, agility, and wear resistance because of the frequent stops and starts in urban situations. The expansion of the passenger transportation industry, particularly in emerging nations, is driving demand for bus TBR tires. As populations grow and urbanization spreads, the demand for efficient and dependable public transit grows, boosting the demand for buses and, as a result, TBR tires designed expressly for bus operations.
Based on tire axles, the market is fragmented into steer, drive, and trailer tires.
Steer Tires account for the largest share. Commercial vehicles, whether buses or trucks, have steer tires positioned on the front axle. They are essential in steering and guiding the vehicle. Steer tires are the most dangerous on a truck or bus because they are important in vehicle control and steering. As a result, consumers are prepared to invest in high-quality steer tires to ensure the safety of their vehicles and passengers. To ensure the driver's control of the vehicle, steer tires must provide outstanding traction and precise handling. Steer tires have seen major technological breakthroughs in recent years, increasing durability, performance, and fuel efficiency. These developments make steer tires more appealing to buyers looking for the best performance. Drive tires are mounted on commercial vehicles' powered (drive) axles. They are in charge of transferring power to the road surface. Drive tires must provide excellent traction to improve power transfer from the engine to the road, which is especially critical for trucks traversing different terrain.
The end-use industry can further bifurcate the segment into Construction Vehicles, Cement, Mining, Transportation and Logistics.
Construction Vehicles are a significant contributor to the market. The transportation and logistics industry includes various uses, from long-distance trucks to localized delivery services. The transportation and logistics industry relies on a massive network of roads, highways, and other infrastructure to transfer goods and materials long distances. This broad network necessitates a big fleet of TBR-equipped trucks and buses. The growth of e-commerce and online shopping has boosted the demand for efficient and dependable transportation services, contributing to Transportation and Logistics supremacy. The need for TBR tires in transportation and logistics is predicted to rise as more items are moved by truck and bus. Construction vehicles work in harsh situations that necessitate TBR tires with strong structure and resistance to cuts and punctures. Off-road applications on construction sites require traction and stability. Heavy-duty construction equipment must be both durable and load-bearing.
The market is sub-segmented into OEM and Aftermarket based on the distribution channel.
The aftermarket largely serves the replacement demand for TBR tires, far greater than the demand for new tires sold through OEM channels. As vehicles age and their tires wear down, they require replacement tires, fueling aftermarket demand. It includes replacement demand and changes to existing cars; the aftermarket segment represents a considerable market opportunity for TBR tire manufacturers. TBR tires are sold directly to vehicle manufacturers for use in the assembly of new automobiles. OEMs frequently have tire specifications based on vehicle design, performance criteria, and intended applications. OEMs have a significant market position because of their tight association with car manufacturers and their skill in providing tires specifically adapted to new vehicles.
By Sales Channel, the market is divided into Online and offline.
The offline sales channel has a well-established infrastructure of tire dealers, shops, and car parts outlets where clients can explore, purchase, and obtain TBR tire installation services. This tangible presence instills trust and confidence in purchasers, especially regarding heavy-duty tires like TBRs. Online sales platforms provide customers with convenience and accessibility by allowing them to explore and purchase TBR tires from the comfort of their own homes or offices. Tire producers and dealers may reach a larger audience and provide more detailed product information through digital channels.