The Global Fire Cord and Tire Fabrics Market was valued at US$ 5.65 Billion in 2022, exhibiting a CAGR of 6.5% in terms of revenue, over the forecast period (2023 to 2030) to reach US$ 9.37 Billion by 2030.
Market Drivers
Steady growth in the automotive industry
The revival of the automotive industry is increasing number of the suppliers in the market. This also includes manufacturer of tire and tire cord. Increasing sales 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 automotive is projected to foster market growth.
Market Opportunities
Rise in urban population
Rapid growth in the urban population coupled with the improving lifestyle of the consumers is projected to bring profitable opportunities in the market. The 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 - UNCTAD, in 2021, 56.5 percent of the population was expected to live in urban areas. In general, it will be higher in developed countries (79.5%) than in developing ones (51.8%) in 2021.
Market Restraints
Decrease in demand for automobile
The decline in demand for automobiles in the Europe region is expected to hinder the market growth. According to the ACEA, European Automobile Manufacturers’ Association (ACEA) is calling for a policy framework that enables the market to both recover and make the shift to zero emissions. As it expects that the market will shrink, slipping by 1% to 9.6 million units. Compared to the 2019 pre-pandemic figures, this represents a drop of 26% in car sales in the space of just three years.
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Key Takeaways:
On the basis of region, during the forecast period, rising auto sales in China, Japan, and South Korea are anticipated to increase demand for tire cords in the Asia Pacific region.
Nylon dipped cord segment dominated the global tire cord and tire fabrics market in terms of value, followed by the steel cord and polyester segment, respectively.
Market Trends
Increase in development of adhesion solutions for textile reinforcement materials
The growing development of a new adhesion solution for textile reinforcement materials used in tire production is a growing trend in the market. For instance, in April 2023, TenaxTM ThermoPlastic Woven Fabric (TPWF) and TenaxTM ThermoPlastic Consolidated Laminate (TPCL), both of which are based on Polyether ether ketone (PEEK) and carbon fiber-reinforced thermoplastic, received qualification from NCAMP (National Center for Advanced Materials Performance).
Expansion in production capacity
The establishment of new facilities by key manufacturers for increasing production capacity is one of the key trends. For instance, in January 2021, at its Performance Fibers facility in Kaiping, Guangdong Province, China, Indorama Ventures Company Limited (IVL), a sustainable chemical company with a global integrated lead in PET and fibers, expanded its tire cord manufacturing line. Due to the expansion, the company's position in the high-value-added automotive safety market will be strengthened.
Global Tire Cord 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 borders, and short-term imbalance in demand. For instance, 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 the first quarter of 2020. Moreover, in China, about 75% of auto production is directly affected by the shutdown with a larger impact on suppliers of automotive components. The aforesaid reasons are key factors hindering the market growth over the forecast period.
Competitive Section:
Company Names
Key Companies
- Kolon Industries, Inc.
- Kordsa Global, Inc.
- Hyosung Corporation
- SRF Ltd.
- Milliken & Company Inc.
- Firestone Fibers & Textile Company
- Cordenka GmbH & Co. KG
- Kordarna Plus A.S.
- Teijin Ltd.
- Tokusen U.S.A., Inc.
