Aircraft tire is highly engineered and complex parts of the aircraft. The raw materials involved in manufacturing of aircraft tire include steel, cord fabric, natural or artificial rubber, and other chemicals. Aircraft tire have cords, which serve as reinforcing material in the tire that provides dimensional stability, supporting the aircraft weight, as well as keeping the tire in shape on different road conditions.
One of the major factors affecting growth of the aircraft tire market size is growth in the aviation sector. Aircrafts are prominently used in commercial, industrial, and defence sectors. One the major factors affecting the aircraft market is significant increase in the air passengers.
Increasing number of air passengers is the major driving factor for growth of the aircraft tire market
The recent past has witnessed growth in the airline industry, particularly in the commercial airlines. Increasing globalization and high economic growth has led to rising number of people travelling through aeroplanes. According to World Bank Organization, in 2017, the world GDP was 3.0% up from 2.4% in 2016. In addition to this, declining airline fare also plays a major role in growth of air passengers, globally. According to Bureau of Transportation, in 2016, the average fare of airlines was US$ 370 which witnessed a decline of 5% in 2017 accounting for US$ 352. Moreover, according to International Air Transport Association (IATA), 2017, it is expected that overall 7.8 billion passengers will be travelling in the year 2036, globally, which is almost double of 4 billion passengers flying in year 2017. Hence, this increasing passengers have led to increased demand for new aircrafts, which in turn is expected to fuel growth of the market of airline tire over the forecast period (2018 – 2025).
Growing travel and tourism industry is also one of the major factors for growth in the airline industry. Passengers prefer airways as it more convenient and less time consuming way of travelling. According to the statistics provided by Directorate General of Civil Aviation (DGCA), passengers carried by domestic airlines during January-April 2018 were 45.3 million as against 36.4 million during the corresponding period of previous year 2017, thereby registering a growth of 24.41%. Moreover, the increasingly spending on leisure tourism also plays a major role for the growth of the market. For instance, according to a 2016 report of economic impact by World Travel & Tourism Council, the leisure travel spending in 2015 accounted for 76.6% of the direct travel tourism GDP, globally, whereas, business travel spending accounted for 23.4%, globally. Another application area for aircrafts is transportation. According to IATA, around 35% of the total world trade is carried out by airline transportation in 2015, which accounts for 52.2 million metric tons of goods valued at US$ 5.6 trillion. Hence, airline companies are focusing on expanding their market share through new and advanced airplanes. With rise in the number of aircrafts for various applications, demand for aircraft tire will significantly increase.
Increasing government investment in the defense and commercial aircraft is expected to aid in growth of the market
Government of various countries are focusing on increasing investments in the defense sector such as in air defense equipment and others. According to National Investment Promotion and Facilitation Agency, in India, an increase of 5.3% was reported in the budget for defense in the year 2017-2018, compared to 2016-2015, accounting for around US$ 41 Bn, out of which 22.5% is the estimated investment in the Air Force. As per these stats, India contributes around 3.3% to the global military expenditure. Growth in the Air Force aircrafts is expected to lead to high demand for aircraft tire. Governments of countries are also focusing on increasing investments in civil aviation sector. For instance, according to IBEF, Government of India allocated funds valued at US$ 979.5 million under the Union Budget 2018-2019. The objective is to improve Civil Aviation sector in order to handle growing air traffic. This in turn is expected to aid in growth of the market.
Aircraft Tire Market: Regional Insights
On the basis of geography, the global aircraft tire market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East, and Africa. Asia Pacific is expected to exhibit the highest CAGR in the forecast period. Growth in the aviation industry in Asia Pacific is one of the major driving factors for growth of the market. India, China, and Japan are the major growth engines in this region. According to International Air Transport Association, 2015, demand for air transport is expected to be highest in the Asia Pacific region and is predicted to outpace both Europe and North America by 2034. According to the same source, by 2022, China is expected to be the world’s largest aviation market, which will include the traffic to and from China and also passengers traveling within the country. Hence, this increasing aviation market in China is expected to aid in high demand for aircraft tire, in turn driving growth of the aircraft tire market in Asia Pacific.
Aircraft Tire Market: Competitive Insight
Some of the key players operating in the aircraft tire market are Goodyear, Michelin, Bridgestone, and Dunlop Aircraft Tires.
Aircraft Tire Market: Taxonomy
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