Increase in the demand for mobility-as-a-service (MaaS) is anticipated to drive the growth in the global automotive tire market
The global automotive tire market accounted for US$ 233.15 Bn in 2017 and is expected to grow at a CAGR of 3.8% over the forecast period 2018–2025, to account for US$ 306.44 Mn in 2025. Concept of mobility-as-a-service is increasing nowadays. It has increased the demand of passenger cars and both light and heavy commercial vehicle at a global scale. This increase would help to ultimately growth the automotive tire market in forthcoming period.
In the current scenario, due to increase in the traffic, individuals prefer to opt for mobility-as-a-service which further increase the demand for passenger cars among the users. This increase accelerate the production of passenger cars and related components, parts, and accessories. This increase is observed globally. The service supports to boost the adoption of taxis, car sharing, or on-demand services. The services under Maas majorly focuses on car-sharing, ride-sharing, and micro-mobility services. In addition to this, growing need of integrated mobility services is at a rapid pace pertaining to the fact of increased demand for better quality, reliability, and to reach at the destination within a short period of time. The services also enable MaaS users to use a streamline application to book, ride, and pay for the ride at the same time.
This rise of transportation and logistics services across the country and cross-country has provided ample opportunities for mobility as a service in the emerging economies. Continuous growth in the adoption of MaaS would also increase the possibility of tire wear out incidents in a shorter period of time. It has positively impacted towards the growth of automotive tire market. As it has increased the demand for automotive tire and has also offered new opportunities to the aftermarket services providers throughout the countries. Similarly, manufacturer of tires are also providing their tires using different channel such as sales representative, collaborating with other e-commerce websites, online distribution channel, or using their own website to enable users to purchase and install the desired tires. Moreover, use of online distribution channel supports to fuel the automotive tire market internationally. Some of the online stores providing automotive tires comprise of Walmart, Onlinetires.com, and others.
Furthermore, several initiatives to propel the automotive tire market has undertaken by varied players. For instance, Goodyear completed the acquisition of Ventech Systems GmbH, from Grenzebach Maschinenbau GmbH in 2017, to support its fleet services in the European market and other region throughout the world. Also, other players has entered into other strategies to grow the automotive tire market. For instance, MRF Ltd has become an official Tyre Partner of Albion for 2017/18 season and it was formed and planned by SportQuake which is an international sport marketing agency. The agency offers end-to-end services to its clientele including buying activation, planning, and valuation.