Tire cords and tire fabrics are used to provide tires shapes and support the overall weight of the vehicle. They are classified into nylon tire cord fabrics, chafer fabrics, cords fabrics, polyester tire cords fabrics, and cycle tire cord fabrics. Out of these polyester tire cords fabrics are commonly used cords due to their dimensional stability, heat resistance property, and controllability.
The global tire cord and tire fabrics market was estimated to account for US$ 4,783.7 Mn in terms of value and 2,060.2 Kilo Tons in terms of volume by the end of 2019.
The revival of the automotive industry in the U.S. is increasing number of the suppliers in the market. This also includes manufacturer of tire and tire cord. Increasing sale of personal and commercial vehicles in the country coupled with the growing disposable income of the consumers is again anticipated to boost the demand for automobiles. Hence, the growing sale of the automotive is projected to foster the market growth.
Rapid growth in the urban population coupled with improving lifestyle of the consumers is projected to bring profitable opportunities in the market. Increasing urban population across the developing region is driving demand for the personal car which is further propelling the market growth of tire cords and tire fabrics. According to the United Nations, at present, 55% of the world’s population lives in urban areas, and the number is expected to increase to 68% by 2050. This is driven by a gradual shift in the residence of the human population from rural to urban areas coupled with the overall growth of the population around the globe which could add another 2.5 billion people to urban areas by 2050.
The decline in demand for automobiles in the Europe region is expected to hinder the market growth. According to the European Automobile Manufacturers Association, in June 2020, registrations of new passenger cars in the EU1 totaled 949,722 units, a drop of 22.3% compared to the same month last year, when 1,222,942 cars were sold.
Nylon dipped cord segment dominated the global tire cord and tire fabrics market in 2019, accounting for 36.7% share in terms of value, followed by steel cord and polyester segment, respectively
The growing development of a new adhesion solution for textile reinforcement materials used in the tire production is a growing trend in the market. For instance, in August 2017, Continental and Kordsa, enter into partnership for sustainable adhesion system standard for bonding textile reinforcing materials to rubber based compounds. The purpose of this partnership is to develop a technology in which the substances resorcinol and formaldehyde are replaced by more eco-friendly chemicals.
The establishment of new facility by key manufacturers for increasing the production capacity is one of the key trends. For instance, in September 2018, Kolon Industries Binh Duong Co. Ltd., a subsidiary of South Korea-based Kolon Group, opened a new plant in Vietnam's Binh Duong Province., to manufacture polyester tire cord. The plant has an annual capacity of 1,400 tons. Thus, increasing such initiatives by major players will favor market growth.
Global Tire Chord and Tire Fabrics Market - Impact of Coronavirus (Covid-19) Pandemic
The automotive industry has seen disruption across vehicle production and supply chain, causing a temporary shutdown of many major automobile production facilities. This is attributed to factors including nationwide lockdown, sealed international border, and short term imbalance in demand. India’s vehicles and components export to Europe and North America are stalled and India’s export market has witnessed a fall of US$ 9 billion in first quarter of 2020. Moreover, in China, about 75% of auto production is directly affected by shutdown with a larger impact on suppliers of automotive components. The aforesaid reasons are key factors hindering the market growth over the forecast period.
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