Wellesley, Mass., Jan. 24, 2017 (GLOBE NEWSWIRE) — Stricter environmental laws and new governmental goals will require tire reinforcement material makers to manufacture more recyclable tire cord fabric and bead wire.
BCC Research reveals in its new report that raw material shortages will force manufacturers to produce more recyclable products, an up-trend in the global market for tire reinforcement materials.
Tire reinforcement materials include steel cord fabric, steel wire, polyester cord fabric, rayon cord fabric, nylon cord fabric, aramid cord fabric and PEN cord fabric.
The global market for tire reinforcement materials should grow from $13.6 billion in 2016 to $16.0 billion by 2021, demonstrating a five-year compound annual growth rate (CAGR) of 3.3%. Tire cord fabric, the largest segment, should reach almost $12.6 billion by 2021, up from $10.7 billion in 2016, growing at a five-year CAGR of 3.2%. Steel bead wire should increase from nearly $2.9 billion in 2016 to almost $3.5 billion by 2021, with a CAGR of 3.8%.
The performance of most tire reinforcement materials will improve through 2021. Higher tensile strength will allow tire manufacturers to use fewer reinforcement materials and to reduce tire weight. In the past 30 years, innovation has increased the tensile strength of carbon steel. Looking ahead five years, ultra-high tensile carbon steel should gain more market share. Manufacturing tire reinforcement materials will incorporate stronger polyester and nylon, as well.
Run-flat and high-speed tires should increase their market shares due to high-performance features. A vehicle with a run-flat tire avoids carrying a spare tire, which slightly reduces vehicle weight and increases fuel efficiency. Thus, reinforcement materials for run-flat and high-speed tires such as PEN and rayon tire cord fabric should see growing demand.
Waste from tire reinforcement materials, a growing environmental issue, has yielded new markets. Recycling tire cord fabric has become a fast-growing industry. To protect the environment and reduce recycling costs, governments the world over have established laws or targets to boost the output and application of recyclable tire reinforcement.
“China’s recyclable industrial fibers, including tire reinforcement fibers, reached 15% of the country’s total industrial fiber output in 2015, up from 9.6% in 2010. The percentage could reach about 20% by 2020,” says BCC Research analyst Jason Chen. “This means that China-based production facilities had to produce 30,000 metric tons of recyclable polyester fibers, representing a market value of $80 million to $90 million, to make tire cord fabric in 2015. This will provide an opportunity for production expansion in this region.”
Tire Reinforcement Materials: Technologies and Global Markets (AVM077C) analyzes tire reinforcements manufactured with steel, polyester, rayon, nylon, aramid, PEN (polyethylene naphthalate), and other materials. The report also identifies key properties and advanced technologies of raw materials. Global market drivers and trends, with data from 2015, estimates for 2016, and projections of CAGRs through 2021 also are provided.
About BCC Research
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CONTACT: Editors and reporters who wish to speak with the analyst should contact Steven Cumming at email@example.com.
Source: Nasdaq Automotive News