How big is the automotive tyre industry?
Tyres! Well this is not a topic people usually look for unless they seek certain information about it. But we are going to discuss things all about tyres today with some statistics and interesting useful information. The world is witnessing a rapid growth in the automobile industry because of the rising middle class in nations like China & India.
This has contributed to the bigger use of tyres which is estimated to be more than automobiles! Above 1 billion tyres are being produced in more than 400 factories worldwide. Big indeed! Here again tyre producers consist of 100 companies in US generate revenue of about $15 billion annually. The major US companies like Goodyear, Michelin and Cooper provide the maximum share of the total revenue in the tyre industry in US market.
A kind of tropical plant is the source of natural rubber and these plants are available in Malaysia, Indonesia, Thailand & Brazil in particular. On the contrary, synthetic rubber is being produced with a different criteria keeping its properties similar to the kind of the natural ones. It has been found that the usage of rubber in non-tyre applications is dominant and accounts for the larger portion i.e. 53 to 55 percent of the whole usage.
Let us have a little time to look at how tyre is produced. A simple way to explain this is that a mixing of both rubber and various additives and then cooling the mixture and finally cutting it into strips after rolling it flat. After producing uncured green tyre with reinforcing materials and adhesives it is heated at a high temperature to give it a final produce.
The tyre industry is highly dependent on technological development. The stakeholders are pushing for more cutting-edge technologies for the sake of consolidating their position in the global market. We already know that tyres are made up of rubber and this comes from two distinct sources i.e. natural and synthetic.
It is surprising that as many as 200 individual raw materials are needed in the production of a single tyre. It is not unusual that variations in components in rubber while making tyres are used to suit different vehicles and driving conditions.
Because of advanced technologies, the longevity of tyre in motor vehicles has increased and the producers are expecting the slowing down of tyre consumption. On the contrary it is evident now that the increasing demand of commercial vehicles like vans, trucks etc. are contributing to the growth of this industry both in developed and developing nations.
Now we might want to focus on the word’s famous and biggest tyre manufacturers leading their way and reining the industry for many years. Some of these companies were founded centuries before and still their dominating the world tyre market.
Let’s talk about Bridgestone Tyres founded in the 1930’s by Mr. Shojiro Ishibashi and how it is now the world’s largest tyre and rubber company. The company employs more than one hundred thousand people in 150 countries and carries its test & research throughout the globe. The motto of Bridgestone since its inception was “serving society with superior quality” still exists.
Another big name for tyre industry is Continental Tyres which was found in Germany in 1871. The company produces tyre that is one of the best in the world. With 130 years of experience it produces tyres of all kinds for all vehicles. It has been made for EU manufactured cars like BMW, Mercedes and Volvo etc.
Goodyear Tyres are also one of the largest manufacturers of tyres supplying its product round the global automobile companies. They began with just 13 employees in 1898 and it is now one of the largest and no. 1 tyre producers in Northern and Latin America.
And lastly I want to tell about Dunlop the most respected brand from Dublin since 1889. You will be surprised to know that the company developed tyres for cars which have speeds of over 200mph and that was in the 1920s! It has had business cooperation with Motorsport for a long time.
During the economic slowdown the tyre producers witnessed a major downfall. It can be said now that the tyre industry is on the rise with a hell of a boom especially for markets with rising developing nations with incredibly huge populations. An increase in the shipment of tyres round the globe reflects an overwhelming burgeoning of the industry.
In 2011 the turnover of the tyre industry was $190 billion with employment of over 600,000 people directly. This scenario tells us just how big this industry is and has been consistently in a pivotal role in the global economy.