The demand for commercial vehicles is underpinned by several macro and micro economic factors impacting the sectorial growth across various countries. Construction and logistics are few of the prominent industries which have been driving the demand for commercial vehicles across the globe. However, growth of these industries is impacted by macro-economic factors such as crude oil prices, inflation, exchange rate fluctuation, interest rates and liquidity condition of the countries. Increasing commercial vehicle production and sales across developed, as well as developing nations is likely to act as a catalyst in the growth of the commercial vehicle tire market at global level.
Global Commercial Vehicle Tire Market: Outlook
In 2015, the global commercial vehicle tire market witnessed an era of doldrums. Slump in the crude oil price has impacted the construction and logistics sectors across the world, thereby impeding the growth of commercial vehicles and related products such as tires. However, as per the IMF, crude oil prices are forecast to stabilize by 2017, which is likely to support the construction and logistics sector of several countries, thereby supporting the demand for commercial vehicle tires.
Global Commercial Vehicle Tire Market: Key Drivers
The market for commercial vehicle tires is anticipated to expand at a steady pace over the next five years. Most of the countries are in the process of launching a series of plans and programs focusing on the development of infrastructure, construction and industrial sectors. As a consequence, it is anticipated that the demand for Light, Medium & Heavy Commercial Vehicles would witness an increase in upcoming years.
Further, several oil dependent economies such as Angola, Saudi Arabia, UAE, Kuwait, Qatar–which has witnessed a slowdown in its construction sector–are likely to gain momentum in the development of their construction sector in coming years. Key reasons for the same can be attributed to anticipated stabilization of crude oil prices by 2017, which is likely to generate the demand for commercial vehicles. Further, in emerging countries, stagnant economic development over the past few years and shrinking demand for commercial vehicles is restricting the growth of the commercial vehicle tire market. However, it is expected that these emerging nations would witness considerable growth in the forecast period on the back of growing government initiatives.
Global Commercial Vehicle Tire Market: Region Wise Outlook
The report is divided into five major regions: North America, South America, Europe & CIS, Asia Pacific and MEA. For each stated region, the market size is closely estimated and future forecasts have been given. The Asia-Pacific region along with the North America region dominated the Global Commercial Vehicle Tire Market in 2015. Further, both the regional markets are expected to register promising growth during the forecast period, thereby resulting in continued dominance in the Global Commercial Vehicle Tire market over the next five years.
On the other hand, the European region managed to grab the third largest market share in the Global Commercial Tire market.