The Global Steel Tire Cord Market was worth US$ 7.16 billion in 2022 and is anticipated to reach a valuation of US$ 10.24 billion by 2028 and is predicted to register a CAGR of 6.8% during 2023-2028.
Market Drivers:
The rapid expansion of the global automotive industry is one of the major factors prompting the demand of the market. As more vehicles are being manufactured around the world, the market demand for steel tire cords is increasing. This growth is propelled by increasing vehicle ownership, urbanization, and the need for durable and high-performance tires to meet safety and regulatory standards. As a result, Steel tire cord plays an important role in ensuring the durability and safety of tires, making them an essential component in the automotive sector and driving the market growth.
The steel tire cord market benefits from the growing rate of tire replacements. Whether it's due to wear and tear or seasonal changes, more consumers are replacing their tires. This increased tire replacement activity fuels demand for steel tire cords, as manufacturers need a constant supply to meet consumer needs. Steel tire cord is a crucial component in creating durable and resilient tires, which aligns with the consumer's preference for long-lasting and high-quality products. This trend further strengthens the market's position and growth in the automotive and tire manufacturing sectors.
Infrastructure and Construction Projects is the driving factor of the Steel Tire Cord Market.
The steel tire cord market is growing due to its use in various construction and infrastructure projects, such as bridges and conveyor belts. With ongoing infrastructure development worldwide, the market demand for steel tire cords has increased. Also, It plays a vital role in reinforcing concrete structures and ensuring the strength and stability of these projects. As a result, This diversification of applications strengthens the steel tire cord market, as it becomes essential in various industries outside of automotive, aligning with the broader growth in global infrastructure and construction activities.
Market Restraints:
The steel tire cord market faces significant restraints due to the fluctuating costs of its primary raw material, steel wire rods. These variations in steel prices can have a significant impact on the manufacturing expenses for steel tire cords. When steel prices rise, it can lead to higher production expenses, potentially impacting the final cost of steel-reinforced tires for consumers. This cost volatility poses challenges to both manufacturers and consumers, potentially affecting the stability of the market.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2022-2028 |
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Base Year |
2022 |
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Forecast Period |
2023-2028 |
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CAGR |
6.8% |
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Segments Covered |
By Type, Material, End-user, and Region. |
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Various Analyses Covered |
Global, Regional and Country Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa. |
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Market Leaders Profiled |
Sumitomo Electric Industries, Ltd., Bekaert Tata Wiron, ArcelorMittal Rongcheng Steel Cord Co. Ltd., Jiangsu Xingda Steel Tyre Cord Co., Ltd., Hyosung, Henan Hengxing Science & Technology Co., Ltd. Bekaert, ContiTech ΙΜΑΣ Α.Ε., TOKUSEN KOGYO Co.,ltd., Forech India Private Limited, and Others. |
By Tire, Radial tires are dominating the market and are estimated to showcase the highest CAGR during the forecast period. These tires are renowned for their innovative construction, featuring steel cords that run perpendicular to the direction of travel. This design offers numerous benefits, such as increased fuel efficiency, superior traction, enhanced steering control, and extended tread life. Radial tires find widespread use in passenger cars, trucks, and commercial vehicles thanks to their exceptional performance attributes. Their dominance is a result of their wide adoption, particularly in the passenger car and truck segments.
Bias tires had a substantial share and are expected to grow at a moderate CAGR during the forecast period. These tires employ a distinct construction method with cords set at an angle to the direction of travel. Known for their durability and resistance to damage, bias tires excel in specific off-road and heavy-duty applications. Nevertheless, they typically come with lower speed ratings and exhibit reduced fuel efficiency when compared to radial tires.
By Material, the Steel cord segment holds the largest market share with a CAGR of 6.2% during the forecast period. They offer the necessary structural integrity to withstand the stresses encountered during tire usage. Steel cords are preferred for their capacity to elevate tire performance, extend lifespan, and bolster safety. Their market dominance arises from their unparalleled tensile strength, heat resistance, and robustness, establishing them as a vital constituent in the production of top-tier and high-performance tires.
The nylon segment is estimated to showcase a notable CAGR during the forecast period. These cords are prized for their durability and their capacity to maintain tire shape under varying loads and conditions. Although not as robust as steel, nylon cords excel in fatigue resistance. This property is crucial for passenger vehicle tires, which regularly undergo flexing and deformation, ensuring their reliability and longevity on the road.
By End-User, the Heavy commercial vehicles (HCVs) segment, such as trucks and buses, hold the highest CAGR of 7% and a revenue of 2.8 billion in 2022. Steel tire cords play a crucial role in reinforcing HCV tires, providing the strength needed to support heavy payloads, improve tire lifespan, and ensure stability on the road. The constant transportation of goods and passengers worldwide sustains the consistent demand for HCV tires, establishing this sector as a noteworthy driving force in the Steel Tire Cord Market.
The light commercial vehicles (LCVs) segment is predicted to witness a healthy CAGR during the forecast period. These versatile vehicles serve a multitude of roles, from transporting goods to carrying passengers. Steel tire cords integrated into LCV tires are essential to guarantee load-bearing capability, overall performance, and safety. With the growing requirement for efficient urban logistics and transportation services, the demand for LCV tires continues to rise, solidifying steel tire cords as the dominant choice for this segment.
By Region, the Asia-Pacific region is dominating the market share of 35%, primarily due to its prominent automotive industry and strong economic growth. Countries like China and India feature large automotive markets, resulting in substantial demand for passenger cars and commercial vehicles. The region's cost-effective manufacturing and the presence of an extensive production base, especially in China, have established it as a tire production hub. This advantageous position enables Asian steel tire cord manufacturers to cater to global demand effectively.
Following Asia Pacific, North America is leading with the dominant share of the market.
Steel tire cords are vital in this industry to guarantee tire safety and durability. Additionally, the demand for steel cords is reinforced by the region's extensive fleet of commercial vehicles and trucks used for logistics and transportation. This combination of factors positions North America as a significant contributor to the market.
Europe is expected to grow the fastest during the forecast period with a CAGR of 6.6% due to its robust automotive industry focused on manufacturing high-quality vehicles. Steel tire cords are essential to meet stringent safety and performance standards imposed by European automakers. Additionally, the region's dedication to sustainability and environmental regulations has stimulated the development of eco-friendly and energy-efficient tires, further increasing the demand for steel cords.
The Middle East and Africa region show notable growth in the Steel Tire Cord Market. This region has seen increased automotive sales and production due to urbanization, economic growth, and infrastructure development. The construction and mining sectors, which require off-road vehicles with steel-reinforced tires, contribute to the demand for steel tire cords. As these industries continue to grow, the region's importance in the steel cord segment is on the rise.
Latin America is expected to grow with a healthy CAGR during the forecast period. It continues to be an essential component of the global market, particularly in the context of its automotive industry's growth and the use of steel-reinforced tires.
The COVID-19 pandemic had a notable impact on the Steel Tire Cord Market. Initially, the automotive and manufacturing sectors faced disruptions; there was a decline in tire production, leading to reduced demand for steel tire cords. With lockdowns and reduced economic activity, global vehicle sales slumped, further impacting the tire industry. However, the pandemic also emphasized the importance of quality and durability in tires, as essential workers and goods transport relied heavily on vehicles. The need for reliable, long-lasting tires revived the market for steel tire cords, especially for commercial and heavy-duty vehicles. Overall, the Steel Tire Cord Market is poised to rebound. As economies recover, the automotive industry is expected to bounce back, particularly with a growing focus on electric vehicles and sustainable transportation. This will drive the demand for high-performance tires, and steel tire cords will remain integral in enhancing tire strength, stability, and longevity.
Market Key Players:
Market Key Developments:
Frequently Asked Questions
The Steel Tire Cord Market is expected to grow with a CAGR of 6.8% during the forecast period.
Asia-Pacific is currently dominating the Steel Tire Cord Market share by region.
The "Heavy commercial vehicles (HCVs)" segment dominates the Steel Tire Cord Market by End-User type.
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