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Analyst Pin-board Overview of the tire industry in 2020

In 2019, global tire demand was expected to increase by 4.1%, reaching 3.0 billion tires. In terms of value, the industry's estimated revenue grew by 7% to 258 billion USD. The two main drivers for the industry’s expansion are (1) the rise in individual income in developing countries, which will lead to an increase in demand for transport vehicles, indirectly boosting the tire demand, (2) people use vehicles more often, so this created an increase in the demand for replaced tires. Motorcycle tires grew faster than automobile tires and was estimated to reach 900 million tires in 2019, an increase of 5.8% y/y. Although the growth rate is not high, at about 3.3% (approximately 2 billion units), car tires still accounted for the highest proportion of the industry (65% -70%). The demand for light trucks in industrializing countries is the main reason for the growth of automobile tires in 2019. Geographically, the Asia-Pacific market is the most active market and took over half of global consumption. China, Thailand, Indonesia and India had tremendous growth in the past year. In contrast, there was a slight decrease in tire demand in the Japanese market. Demand for tires from the rich and developed countries in North America and Western Europe has not changed significantly. The growth rate was around 1% (mostly came from the replacement market).