TIRE CHORD AND TIRE FABRICS MARKET ANALYSIS

The global tire cord and tire fabrics market is projected to reach around US$ 9.37 Billion by the end of 2030, in terms of revenue, growing at a CAGR of 6.5% during the forecast period (2023-2030).

Global Tire Cord and Tire Fabrics Market: Drivers

Increase in automotive industry

Tire cord fabrics are used to reinforce tires and are created to support vehicle weight while maintaining tire shape, having a big impact on tire performance. The market growth of tire cords and tire fabrics is primarily being driven by the robust growth in the automotive sector throughout the developing world as a result of the rising production of automobiles. According to the India Brand Equity Foundation 2023, the Indian passenger car market had a value of US$32.70 billion in 2021, and it is anticipated to grow at a CAGR of over 9% from 2022 to 2027 to reach US$ 54.84 billion.

Rise in demand for steel cords

The automotive industry's high demand for steel cords is accelerating market expansion. High-carbon steel is used to make steel cords, which are used to reinforce radial tires on almost all types of vehicles. Additionally, steel cords offer greater strength and comfort while riding. They are thus ideal for use in personal vehicles. Thus, it is anticipated that over the course of the forecast period, the robust demand for steel cords will spur market growth. The demand for steel cords in the automotive industry is further fueled by the increased focus on vehicle performance and safety.

Global Tire Cord and Tire Fabrics Market: Restraints

Rapid change in price of raw materials

A significant factor limiting market expansion is the fluctuating cost of the fabric materials used in tires. The cost of raw materials used to make these tire skeletons varies depending on supply and demand chain scenarios. The availability of these materials is hampered by the changing nature of trends and the supply of materials. However, ongoing progress in the industry to address raw material shortages will encourage market participants to eventually lower prices.

Rapid change in price of crude oil

The market's potential for expansion is severely hampered by the fluctuating price of crude oil, a crucial raw material for tire cords. The supply chain may be disturbed by changes in crude oil prices, which may also have an effect on the total cost of production. Manufacturers find it challenging to accurately plan and forecast due to the unpredictable political environment's additional impact on the pricing dynamics. For the market to continue to grow, it becomes essential to reduce this risk through the use of alternative raw materials or effective cost-management techniques.

Global Tire Cord and Tire Fabrics Market: Opportunity

Increasing usage of hybrid tire cord technology

Hybrid tire cord technology for producing cords is expected to provide lucrative market opportunities in the near future. This helps in achieving the enhanced properties of the tire cords. Materials such as rayon, polyester, nylon, and aramid can be used to produce hybrid materials that can be further used in different vehicular performance needs. Thus, the use of different materials in combination for producing hybrid materials which helps in obtaining the desirable properties of the tire cords is propelling the market growth.

Development of eco-friendly materials

Manufacturers are developing bio-based and eco-friendly materials for producing tire cords due to growing awareness regarding the negative environmental impact of the raw materials used in manufacturing the tires. Nylon and polyester are two materials that are derived from crude oil. Due to rising awareness regarding the environmental hazards associated with petroleum-based products producers are developing bio-based materials for tire cords. This is projected to provide potential market opportunities over the forecast period. 

Global Tire Cord and Tire Fabrics Market: Trends

Rapid usage of cord fabric in aircraft tires

One of the market's current trends is the expanding use of cord fabric in the manufacture of aircraft tires. Again, it is anticipated that strong airline industry growth caused by expanding travel demand globally will drive up demand for cord fabric in aircraft. Additionally, it is anticipated that over the course of the forecast period, rising aircraft production will support market growth for tire cords and tire fabrics. The adoption of cord fabric is being driven by the demand for lightweight, high-performance materials for aircraft tires, which is boosting the aviation industry's market expansion.

Rising sales of bicycles

Bicycle sales are rising as a result of the expanding health and wellness trend, which is boosting market expansion. The creation of bicycle tires involves the use of tire cords and tire fabrics. Additional factors that are anticipated to support market growth in the bicycle segment include rising pollution awareness and an increase in the use of bicycles for both sports and leisure. The growing popularity of cycling as a sustainable and active lifestyle choice, as well as the shift toward eco-friendly transportation alternatives, are driving up demand for tire cords and tire fabrics in the bicycle industry.

Global Tire Cord and Tire Fabrics Market: Key Developments 

In June 2022, as part of its commitment to boosting Polyethylene Terephthalate - PET recycling capacity, Indorama Ventures (IVL), a global manufacturer of chemicals, finished buying the Texas facility of CarbonLite Holdings.

In June 2023, the world's first PET bio recycling facility will be built in France by a joint venture between Indorama Ventures Public Company Limited (IVL) (Bloomberg ticker IVL.TB), a producer of sustainable chemicals, and Carbios (Euronext Growth Paris: ALCRB), a biotech firm developing and industrializing biological solutions to reinvent the life cycle of plastic and textiles.

In October 2022, in collaboration with Coca-Cola Beverages Philippines, the country's Coca-Cola bottling division, Indorama Ventures Public Company Limited (IVL), a global sustainable chemical company, announced the official opening of its PETValue bottle-to-bottle recycling plant in the Philippines.

In January 2023, A Comprehensive Mobility Service Provider is Officially Launched by Kolon Mobility Group.  Goals for 2025 include 3.6 trillion KRW in sales and 100 billion KRW in operating profit.

Global Tire Cord and Tire Fabrics Market: Market Segmentation 

Figure 1: Global Tire Cord and Tire Fabrics Market Share (%) in terms of Value, By Region, in 2022

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The Asia Pacific region dominated the global tire cord and tire fabrics market in 2022, accounting for a 55% share in terms of value, followed by North America and Europe, respectively.

Global Tire Cord and Tire Fabrics Market: By Product Type

Figure 2: Global Tire Cord and Tire Fabrics Market Share (%) in terms of Value, By ProductType, in 2022

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On the basis of Product Type, in 2022, the nylon dipped cord section accounted for the largest market share of 37% in terms of value, followed by steel cord and polyester.

Global Tire Cord and Tire Fabrics Market: Impact of Coronavirus (COVID-19) Pandemic

The sudden emergence of the novel coronavirus is expected to slow the growth of the automotive market in the near future. Over 95% of the auto manufacturing facilities in Europe and about 90% in North America have stopped operations as of March 2020. As a result, over 20% fewer vehicles are sold in 2020 than in 2019. Thus, over the course of the forecast period, the global tire cord and tire fabrics market's growth was restrained.

Global Tire Cord and Tire Fabrics Market: Key Companies

The key companies operating in the global car rental market are Kolon Industries, Inc., Kordsa Global, Inc., Hyosung Corporation, SRF Ltd., Milliken & Company Inc., Firestone Fibers & Textile Company, Cordenka GmbH & Co. KG, Kordarna Plus A.S., Teijin Ltd., and Tokusen U.S.A., Inc.

*Definition: Tire cords and tire fabrics are fabrics manufactured using superior-quality yarns. These cords and fabrics have better abrasion resistance, high tensile strength, controlled deformation, etc. They are majorly used across the tire industry, especially in rubber hoses, air springs, and expansion joints. Polyester, steel, nylon, and rayon cords are some of the tire cords.