Retread Tire Market

Retread Tire Market Snapshot (2023 to 2033)

The global retread tire market is expected to attain a valuation of USD 11.2 billion in 2023, and is projected to reach USD 20 billion by 2033. From 2023 to 2033, sales of retread tires are likely to rise at a CAGR of 6%.

The growth of the logistics sector and the surging need for freight services have fostered a conducive environment for the sales of retreaded tires. With tires experiencing greater wear and tear due to heightened usage, there is a rising demand for tire retreading. Fleet operators, aiming to reduce expenses while ensuring sustainability and safety of their vehicle fleets, have turned to the utilization of retread tires, which numerous individuals find advantageous.

In recent years, the quality of retread tires has witnessed a remarkable improvement owing to the introduction of advanced technology. Furthermore, as consumers become more aware of tire types and the average sale prices of new tires continue to rise, the market demand is expected to surge during the projected period.

The environment-friendly nature of retreaded tires plays a significant role in driving the market's growth, as consumers increasingly prioritize sustainable solutions. This preference for environmentally friendly options contributes to the overall expansion of the market.

As per the Retread Tire Association, the price of a new set of four tires for a large sport utility vehicle is approximately USD 1,000. However, adopting retreaded tires for light-duty vehicles can save nearly 50% of this cost. In line with this trend, several tire manufacturing companies are introducing retread tires. For instance, Michelin recently expanded its range of tire retread technologies by launching two new pre-mold retreads.

Attribute	Details
Expected Market Value (2023)	USD 11.2 billion
Anticipated Forecast Value (2033)	USD 20 billion
Projected Growth Rate (2023 to 2033)	CAGR 6%

2017 to 2022 Retread Tire Demand Analysis vs. Forecast 2023 to 2033

The retread tire market was worth USD 8.5 billion in 2017. It accumulated a market value of USD 10.8 billion in 2022 while growing at a CAGR of 4.9% during the historical period.

The rising demand for cost-effective and economical tires has been aiding the expansion of the retread tires market. Expansion of the logistics industry and the rising demand for freight transportation have created an environment conducive to retread tire sales. As a result of the increased wear and tear on tires, the demand for retread tires has increased. Fleet operators are looking at opportunities to save costs while maintaining a sustainable and safe vehicle fleet. Fleet owners have sought to tackle this problem is the use of retread tires, which many are finding to be beneficial.

Leading tire manufacturers in the automobile industry are introducing techniques to develop retread tires that are fairly similar to their original tires in terms of quality. In recent years increasing demand for retread tires in the motorsport industry has encouraged leading market players to launch retread tires with unique characteristics. This is intended to cater to the customer preferences within the sector. According to FMI’s analysis, retread tire sales have grown at a 4.9% CAGR between 2017 and 2022.

The rising demand for retread tires in the commercial vehicle sector has been creating lucrative prospects for tire manufacturers and distributors. Last-mile distribution applications, such as walk-in vans and lightweight delivery vehicles are exceeding other segments in terms of expansion. As a result, more fleets are likely to use retreading to reduce their average cost per mile. Private fleet owners and public/government-municipal fleets are turning to retreading to manage environmental commitments and budget concerns.

Retread tire quality also has improved significantly in recent years as a result of the introduction of advanced technology. Besides this, increasing awareness among consumers about the type of tire, coupled with rising average sale prices of new tires, may push the demand in the market over the forecast period.

Which are Some Prominent Drivers Spearheading the Retread Tire Market?

Booming Logistic Industry Expected to Propel Market Growth

Retread tires are common, cost-effective, and environmentally friendly options. These attributes have been driving their sales. Some of the leading retread tire manufacturers are implementing innovative production technologies and techniques to eliminate operational issues and provide end-users with high-quality retread tires. The growing demand for retread tires in the commercial vehicle sector is expected to create lucrative prospects for manufacturers and distributors alike.

The light and heavy commercial vehicles used in construction, mining, and agriculture equipment are often installed with retread tires. Due to the growth in logistics operations and transportation around the world, the vehicle fleet is increasing. Fleet owners generally prefer retreading which is expected to create opportunities for sales of retread tires in the coming years.

What are the Challenges Projected to be Faced by the Market?

Availability of Cost-effective Tires Holding Back Market Growth

The market is witnessing growing popularity of new budget tires, which are being imported from Asian countries like China, offering more affordable prices. Many vehicle owners are opting for these tires due to budget limitations. The availability of these cost-effective budget tires is posing a challenge to the retreaded tire market worldwide.

Region-Wise Insights

What is the Growth Outlook in the United States?

United States leading North American industry with a Promising CAGR

Future Market Insights has estimated the United States to remain the most potential market throughout the course of the projection period. The United States is expected to dominate the North American market in 2023. The market in this region is expected to grow at a CAGR of 5.8% throughout the forecast period. One of the factors enabling growth is the increased fleet vehicles, rental vehicles, and improved regulations on the use of rubber as well as the environmental effects.

Showcasing integration of various technologies and innovations within the automotive sector, the United States remains one of the most prominent markets for retread tires in the world. Coupled with this, the rising vehicle production is anticipated to aid the overall expansion of the market. According to the Trading Economics, car production in the United States increased from 2.03 million units in December 2020 to 2.04 million units in January 2021.

The not-so-satisfactory performance from the automotive sector amid COVID-19, production continued to increase. This also continued presenting attractive opportunities for retread tire sales in the United States.

How Big Is the Opportunity in China?

China Driving Growth with a Significant CAGR

China is anticipated to dominate the retread tire market in Asia Pacific during the forecast period. China is expected to account for over 26.4%% market share by end of the forecast period. The regional market is expected to grow with a CAGR of 6.2% during the forecast period.

The expanding automotive sector of China has been attracting some of the leading vehicle producers in the world. Besides this, the country’s thriving automotive aftermarket has already created a conducive environment for retread tire sales. In 2019, China drafted policies to encourage reuse and recycling of spent rubber tires. This was intended at tackling the mounting waste problem.

According to the China Tire Recycling Association, the country has an accumulated total of over 300 million used and un-recycled tires, and nearly 13 million are added to this number each year. The association has said that if China can recycle 13 million tons of waste each year, it could create an industrial chain worth more than USD 14 billion. Implementation of favorable policies supporting tire retreading has placed China as a key market in the global landscape.

Category wise Insights

By Vehicle Type, Which Segment is Most Likely to Give Best Output?

HCVs Driving Market Growth with a Promising CAGR

The heavy commercial vehicle segment is expected to lead the market by growing at a CAGR of 6.5% from 2023 to 2033. Heavy commercial vehicle (HCV) type holds the leading share in the market.

Companies such as Michelin, and Continental are providing retread tires for off-road and heavy commercial vehicles with various retread designs for greater efficiency of the retread tire. Consistent efforts by leading companies to improve their services and solutions are anticipated to continue fuelling demand in the category.

By Process, Which Segment is Expected to Hold a Sizeable Share?

Pre-cure Retreading Segment Driving Market Growth

The pre-cure retreading segment is expected to grow with a CAGR of 6.6% during the forecast period. This segment is expected to lead the segment by accounting for around 67.8% market share by end of the forecast period.

Retreading of a tire is effective if the tire is retreaded 2 to 3 times at specific intervals. There are two processes of retreading - pre-cure and mold cure. Vehicle owners usually prefer pre-cure retreading process as this process offers more flexibility and saves cost. The segment is poised for growth due to factors such as the need for lower initial investment and follow-up maintenance compared to the mold cure process.

By Sales Channel, Which Segment is Expected to Account for a Sizeable Share?

Independent Service Providers Fueling Growth

The independent service providers segment is projected to exhibit a CAGR of 6.9% throughout the forecast period. Retread tires are provided by original equipment manufacturers as well as independent service providers.

Major vehicle fleet owners prefer buying retread tires from independent service providers, which has sealed their dominance as preferred sales channels within the market.

Start-ups in Retread Tire Market

Start-ups are crucial in identifying growth opportunities, including retread tire market. They efficiently convert inputs to outputs and adapt to market changes, contributing to the industry's expansion. Some start-ups are expected to drive growth in the retread tire market.

• TyreFlow is a technology provider specializing in the upcycling of used tires. Their innovative solutions enable the conversion of scrap waste tires into high-quality engineered materials that can be readily reused across various industries.
• RoboTire is a provider of advanced automotive tire-changing robots. These robots are equipped with built-in AI technology, enabling them to efficiently remove and replace automotive tires.
• Bandvulc is a prominent manufacturer, supplier, and exporter of tires. Specializing in the production of tires for trucks and buses, the company offers a wide range of high-quality components. Bandvulc serves renowned customers including Alltruck, Argos, Evans Transport, and Tesco, providing them with reliable tire solutions.

Market Competition

The retread tire market is highly competitive, with several key industry players investing heavily in the production of these tires.

Key industry players are Continental AG, MRF, YOKOHAMA RUBBER COMPANY, Rosler Tech Innovators, Michelin, Bridgestone, The Goodyear Tire & Rubber Company, Carloni Tire, JK TYRES, Eastern treads, Nokian tyres plc, KRAIBURG Austria GmbH & Co.KG, Pilipinas Kai Rubber Corporation, Kit Loong Commercial Tyre Group, Fortune Tire Tech Limited, Tread Wright Tire, CIO Tyres Pvt. Ltd., Vaculug Tyres, King Meiler Tyres.

Some recent developments in the market are:

Key market players are leveraging organic growth strategies like acquisition, mergers, tie-ups, and collaboration to bolster their product portfolio. This is expected to propel the global retread tire market.

• In February 2022, Bridgestone Corporation revealed that its ALENZA 001 tire had been chosen as the official original equipment for the Nissan Ariya, a compact crossover electric vehicle (EV) SUV.
• In July 2021, Continental Tires introduced the 'Conti Bharosa' warranty program, which provides a comprehensive 5-year warranty for truck and bus tires. Notably, this program also includes coverage for the initial retread in normal load applications.
• In July 2021, Michelin North America broadened its portfolio of tire retread technologies with the introduction of two new pre-mold retreads. One of these innovations is the Michelin X ONE Line Energy T2 Pre-Mold Retread, designed specifically to improve the total cost of ownership for the line-haul market in North America.
• In November 2021, Nokian Tires declared its plans to substantially boost the production capacity of passenger car tires at its factory in Nokia, Finland.

Report Scope

Attribute	Details
Market Value in 2023	USD 11.2 billion
Market Value in 2033	USD 20 billion
Growth Rate	CAGR of 6% from 2023 to 2033
Base Year for Estimation	2022
Historical Data	2017 to 2022
Forecast Period	2023 to 2033
Quantitative Units	Revenue in USD billion and CAGR from 2023 to 2033
Report Coverage	Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis
Segments Covered	Vehicle Type, Process, Sales Channel, Region
Regions Covered	North America; Latin America; Europe; Asia Pacific; Middle East & Africa
Key Countries Profiled	United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, India, China, Japan, South Korea, Singapore, Thailand, Indonesia, Australia, New Zealand, GCC Countries, South Africa, Israel
Key Companies Profiled	Michelin; Bridgestone; The Goodyear Tire & Rubber Company; Continental AG; MRF; YOKOHAMA RUBBER COMPANY; Rosler Tech Innovators; Carloni Tire; JK TYRES; Eastern treads; Nokian Tyres Plc.; KRAIBURG Austria GmbH & Co.KG; Pilipinas Kai Rubber Corporation; Kit Loong Commercial Tyre Group; Fortune Tire Tech Limited; Tread Wright Tire; CIO Tyres Pvt. Ltd.; Vaculug Tyres; King Meiler Tyres
Customization & Pricing	Available Upon Request

Key Segments Profiled in the Retread Tire Market Industry Survey

By Vehicle Type:

• Passenger Cars
• LCV
• HCV
• Off-Road Vehicle

By Process:

• Pre-cure
• Mold cure

By Sales Channel:

• OEM
• Independent Service Provider

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East & Africa

Frequently Asked Questions

What is the anticipated growth of the retread tire market until 2033?

FMI projects the global retread tire market to expand at a 6% value CAGR by 2033.

What is the estimated market value of the retread tire market expected in 2033?

The global retread tire market is expected to garner a market value of USD 20 billion by 2033.

Which region is forecasted to be promising for retread tire market growth?

FMI has projected China to be one of the promising regions for retread tire market.

Which region is expected to grow with a promising CAGR during the forecast period?

India is anticipated to grow at 6.1% CAGR throughout the forecast period.

By vehicle type, which segment is expected to grow with a significant CAGR during the forecast period?

Heavy commercial vehicle segment is expected to grow with a CAGR of 6.5% during the forecast period.

What was the market value of retread tire in 2017?

The retread tire market was worth USD 8.5 billion in 2017.

What is the expected value CAGR of United States market during the forecast period?

The market in United States is projected to grow with a CAGR of 5.8% during the forecast period.