April 15, 2024

Aircraft Tire Market is Poised to Grow at a High CAGR Due to Increased Aircraft Procurement

The aircraft tire market has witnessed a significant growth owing to the rising number of aircraft fleet worldwide. Aircraft tires are equipped with advanced materials that provide durability, enhanced grip, and reduced wear and tear. They ensure safe take-off and landing of aircraft across various terrains and weather conditions. The high-performance tires enable aircraft to carry heavy payloads over long distances at high speeds. The global demand for new commercial and military aircraft has prompted tire manufacturers to develop tires that can withstand extreme pressure and temperatures during taxi, take-off, and landing operations.

The Global Aircraft Tire Market is estimated to be valued at US$ 2.38 Bn in 2024 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the aircraft tire market are Michelin (France), Goodyear Tire and Rubber Company (US), Bridgestone Corporation (Japan), Dunlop Aircraft Tyres Ltd. (UK), Qingdao Sentury Tires Company Limited (China), Wilkerson Aircraft Tires (US), Petlas Tire Corporation (Turkey), Aviation Tires and Treads, LLC (US) and Specialty Tires of America (US) among others. Key players are focusing on developing lightweight and fuel-efficient tires to reduce operating costs for airlines.

The rising global passenger traffic is prompting airlines to expand their fleet sizes. This is expected to create significant opportunities for aircraft tire manufacturers to supplying new radial and bias tires. Furthermore, increasing procurement of military aircraft by defense forces worldwide will also augment the demand for aircraft tires during the forecast period.

Technological advancements such as introduction of self-sealing tires and nanocomposite materials for reducing weight are fueling the growth of aircraft tire market. Manufacturers are investing heavily in R&D to develop tires with optimized tire pressure monitoring systems and durable casing materials.

Market drivers

Growing aircraft deliveries for commercial and military applications is a major factor driving the aircraft tire market growth. As per Airbus estimates, over 39,000 new aircraft would be required over the next 20 years to meet rising global air travel demand. Additionally, modernizing aging aircraft fleet across regions presents new requirements for advanced radial tires. These factors will positively influence the market revenues during the forecast period.

Challenges in Aircraft Tire Market

The aircraft tire market faces some key challenges currently. Stringent regulations associated with aircraft safety are putting pressure on manufacturers to produce tires capable of withstanding high speeds and take-off/landing cycles. Meeting such stringent quality and performance standards increases R&D and manufacturing costs. raw material prices fluctuations also impact profit margins. For example, continual rise in crude oil prices pushes up natural rubber costs. Market fragmentation with the presence of many localized and regional players adds to supply chain complexities. Further, the aviation industry’s cyclical nature ties the demand directly to broader economic conditions. Any slowdowns can negatively impact demand from airlines.

SWOT Analysis

Strength: Advancements in materials like composites and lightweight alloys allow for manufacturing sturdy yet fuel efficient tires.

Weakness: High R&D and manufacturing costs reduce profit margins.

Opportunity: Growth in air passenger traffic in emerging markets especially in Asia Pacific creates new demand avenues.

Threats: Inflationary pressures from volatile commodity prices can squeeze margins if not passed on via price hikes. Intense competition exerts pricing pressures.

Geographical Regions

North America currently accounts for the largest share of the global aircraft tire market in terms of value due to heavy investments in fleet modernization and expansion by major airlines in the region. Asia Pacific is witnessing the fastest market growth on account of the rising middle class population and increasing disposable incomes driving greater air travel in countries like China and India.

The Asia Pacific region has emerged as the fastest growing market for aircraft tires globally. This is attributed to factors such as growing passenger air traffic, increasing fleet size of Asian airlines, greater focus on air cargo transportation in countries including China and India. Continuous modernization of existing fleets as well as procurement of new aircrafts are fueling demand growth.