(Following is adapted from TYRE TRADE NEWS)
Valued at $64.6 billion in 2021, global demand for
fleet (light vehicle, truck and bus) tyres will grow year-on-year at a rate of 8.7% to $97.8 billion in 2026. The new Smithers study highlights the importance of fleet tyre contracts moving forward, as the tyre industry looks to recover from the radical drop in demand for passenger vehicle tyres in 2020.
The impact of COVID-19 was greatest in consumer tyres. In contrast haulage became an essential service, supplemented by a pool of new smaller urban delivery vehicles for the e-commerce segment. In 2021, total fleet tyre use will be 413 million units – up from 398.2 million in 2020. Recovering the volumes seen in 2019 will not happen before 2023, however.
Future growth will be concentrated in light commercial fleet tyres, which will account for 64.5% of incremental growth over the next 5 years, as total consumption worldwide is forecast to approach 634 million units in 2026. The market for connected, autonomous, shared and electric (CASE) transport in fleet operations is a major strategic growth topic. These will lay the foundation for the larger shifts in mobility that will define the evolution of transportation and tyres through 2040.
From a regional perspective, Europe has large passenger car/light vehicle fleets, and will be the second fastest growing region through to 2026. Asia-Pacific, led by China, will lead the world in growth with robust fundamentals for its tyre market and a trend to expansion in fleet.
penetration and management services. North America is the third largest region; it will still see a compelling compound annual growth rate (CAGR) 8.3%, by volume.
R&D priorities for tyres include meeting fuel-efficiency goals via lower rolling resistance models, and supplying Intelligent tyres. Smart tyres with sensors that communicate tyre pressure or replacement needs are easier to justify to fleets where the initial investment will be realised more quickly across the multiple vehicles via increased uptime and less maintenance.
As this happens, there will be deeper participation of vehicle OEMs – such as Ford, Daimler, Volvo and Tesla – in fleet services. In the longer term, this will foster a transition towards a tyres-as-a-service business model.
