A number of factors, such as the rapid growth in the automotive industry, high replacement rate of tires, existence of a large customer base, and availability of a highly skilled and cheap workforce, are projected to drive the growth of the Asia-Pacific (APAC) automotive tire market at a CAGR of 10.0% during the forecast period (2019–2024). According to P&S Intelligence, the market size is projected to reach $109,007.4 million by 2024 from $61,523.4 million in 2018. Moreover, the market is witnessing a trend of next-generation, high-performance tires.
One of the prime factors aiding the rise in the demand for tires here is the growing automotive industry. APAC is the largest market for automobiles across the world due to the presence of several global automotive component and vehicle manufacturers, large customer base, availability of skilled laborers and cheap raw materials, and open investment policy in the region. Moreover, the increasing demand for green tires and stringent government regulations are driving the market growth in the region.
Moreover, the APAC automotive tire market is being propelled by the rising vehicle age. With the increasing competition in the auto sector and surging stringency of government regulations regarding vehicle safety, automobiles are becoming sturdier. As the tire replacement rate is already higher than the auto replacement rate, the rising vehicle age is prompting people to replace their tires more often than before. This is also a key reason tire sales via aftermarket entities are higher than via original equipment manufacturers (automakers).
Geographically, China led the APAC automotive tire market in 2018, and it is set to witness the same trend in the coming years. China is the largest automotive producer and buyer in the world due to its huge population. Moreover, as per the China Association of Automobile Manufacturers, the country had been expected to produce 30 million units and 35 million units of passenger cars by 2020 and 2025, respectively. Thus, China is producing the largest volume of automotive tires in the world, to cater to its expanding vehicle user base.
Thus, the growing automotive industry and the high replacement rate of tires in passenger cars will propel the market growth during the forecast period.
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