Growing Demand for Tires in Automobile Industry to Fuel Growth of the Steel Cord Market
An increase in demand for radial tires, particularly from the automotive sector, is expected to drive market growth in the coming years. Steel cords are used in tire reinforcing to provide strength and resistance to expansion during tire rotation, as well as to withstand deformations caused by bumps or other road obstacles. Increased research and development activities in the automotive industry aid in the introduction of new design variants and manufacturing processes to ensure tire performance improvement. The steady increase in automobile production after COVID-19 across the globe is projected to drive market growth in the coming years. According to the International Organization of Motor Vehicle Manufacturers (OICA), the production of automotive cars reached 80, 145, 988 units in 2021 compared to 77,711, 725 in 2020.
Leading tire manufacturers are searching for innovative design solutions to meet vehicle safety and comfort standards. Due to the demand for specialized materials for strengthening tires and sidewalls, technological advancements such as eco tires, flat run tires, and nitrogen tires are driving the steel cords market. In addition, the rising popularity of electric vehicles, luxury and premium vehicles, and self-driving cars in the automotive industry is expected to boost the tire cord market during the forecast period. For instance, in 2021, the electric vehicle (EV) market in the United States is expected to break records, with just under 607,600 light electric vehicle sales.
Growing Demand for Radial Tires to Drive Growth of Tires Category in Steel Cord Market
Increasing manufacturing of automobiles, such as cars, trucks, and off-road vehicles, is expected to boost radial tire demand in the market. Automobile production is predicted to increase at a steady rate over the forecasted period, prompting tire producers to expand manufacturing capacity to meet demand. Steel cords are commonly used in conveyor belts to provide durable, wear-resistant reinforcement with minimal elongation, as well as high splice strength due to increased service life and safety standards. Steel mills, mining, power plants, tunnelling, stone quarries, and ports all use these belts for heavy-duty applications. In these industries, the rising use of conveyor belts to unload bulk freights is expected to boost the market growth in the future years.
Increasing Demand from Building and Infrastructure Projects in Asia Pacific to Drive Growth of Steel Cord Market
With the increasing demand from building and infrastructure projects, growing automobile production, developing energy transfer infrastructure, and increasing industrial manufacturing, Asia Pacific has the highest share of the steel cord market. The region has a large number of tire producers, and the region's electricity usage is increasing, creating great opportunities for steel cord markets in these sectors. Moreover, the rising need for radial tires, particularly in the automobile industry, the steel cord market is predicted to rise steadily in this region. Steel cords are used in tire strengthening to offer strength and resistance to tire expansion during turning and rotation. It can also endure deformations produced by bumps or other road barriers.
To accommodate the growing demand from potential customers, major tire manufacturers are expanding their presence in countries such as China and India. However, global electric vehicle sales are estimated to reach 23 million by 2030, according to the International Energy Agency, and global lightweight vehicle usage is expected to reach approximately 105 million tonnes by 2025. This is projected to increase demand for radial tires, which will, in turn, feed product demand in the coming years which will further boost the growth of the steel cord market. Moreover, the European steel cords market is developing year on year, mainly to rising green tire usage in Germany, Italy, Russia, and France. For instance, in May 2021, the European Union (EU) established a new tire labelling scheme, which is in line with its aggressive climate goals. Wet grip, fuel economy, ice grip marking, and snow grip marking are all new additions to the new label. The presence of numerous major automobile manufacturers, such as Volkswagen, Peugeot, and Renault, will boost product usage. Over the next six years, increased expenditures in the European tires sector to create fuel-efficient, cost-saving, and sustainable solutions will result in a higher deployment of steel cords for tires.
Global Steel Cord Market: Competitive Landscape
Companies in the market are introducing new products alongside initiation collaborations, alliances and partnership agreements. For instance, in 2020, Continental AG is investing more than 160 million Real (25 million euros or $31.14 million) in Brazil to expand its steel cord conveyor belt manufacturing capacity. On the other hand, in October 2019, Jiangsu Xingda Steel Cord announced the start of construction on its first overseas plant in Thailand. The production factory, which has a yearly capacity of roughly 100 kilotons, will enable quick and flexible delivery of high-quality steel cable goods to tires (both automotive and non-automotive) producers in Thailand.
A few of the players in the steel cord market include Bekaert, ArcelorMittal, Hyosung, Tokusen Kogyo Co., Toyo Tire Corporation, Apollo Conveyor Pvt. Ltd, Sumitomo Electric Industries, Bridgestone, Henan Hengxing, and Jiangsu Xingda Steel Tires Cord.
Global Steel Cord Market is Segmented as Below:
Key Elements Included In The Study: Global Steel Cord Market
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