The aircraft tires market is anticipated to register a CAGR of over 3.5% during the forecast period.
- The procurement of newer generation aircraft in the commercial and military sectors, is one of the major reasons for the development of the aircraft tires market.
- With the intent of increasing air travel, the airlines are making plans to operate in new destinations and travel routes. This is expected to make the commercial segment to grow with the highest CAGR, during the forecast period.
- The long-term contracts with the existing top players in the market is expected to act as a barrier for the entry of new players into the market.
Key Market Trends
Commercial Segment to Experience the Highest Growth During the Forecast Period
The commercial segment of the market, currently, has the highest market share, and is expected to register the highest CAGR during the forecast period. There is a steep rise in air travel in the past five years. Airlines, in order to increase their market dominance, are expanding and introducing new routes, which has generated the demand for new aircraft. Additionally, the growing success of LCC in emerging economies has also increased the sales of single-aisle aircraft, over the years. In addition to these, the demand for wide-body aircraft has been increasing for longer routes. Procurement of new aircraft will simultaneously generate the demand for new tires. Also, aircraft tires are subjected to a high amount of impact force on landing, as they, unlike the other land vehicle tires, are prone to high impact velocities. The tire also has to bear the whole weight of the aircraft, during contact with the land surface, making them more susceptible to wear and tear. This generates the need for replacing the tires of commercial aircraft, after more than 200 landings, in order to avoid accidents due to wear and tear of tires, which will further strengthen the growth of the aftermarket segment of commercial aircraft tires.
Asia-Pacific Region to Experience the Highest Growth During the Forecast Period
The Asia-Pacific region is anticipated to have the highest growth during the forecast period. Airlines in this region are investing to procure newer generation aircraft. The growing tourism in countries, like China, India, Indonesia, Singapore, South Korea, Malaysia, Thailand, Australia, and Vietnam, has increased the passenger traffic of this region. The aviation market in the Asia-Pacific region is expected to move ahead of the North American aviation market in the next few years. Sensing potential in the aviation market of Asia-Pacific, several companies are expanding their operations in this region. For instance, in March 2018, Lufthansa Group announced its plans to expand its operation in countries, like China, Japan, Southeast Asia, and India. Additionally, the poor connectivity between the metros and smaller cities, have led to growth in the general aviation segment of the region. With increasing military spending, fueled by growing political tension in the region, on-going procurements of military aircraft, along with increasing manufacturing capabilities of the region are boosting the growth of the region, during the forecast period.
The prominent players in the market of aircraft tires are Bridgestone Corporation, Michelin, Goodyear Tire and Rubber Company, Specialty Tires of America Inc., and Dunlop Aircraft Tyres Limited. In the commercial and military segments, Michelin and Goodyear Tire and Rubber Company are the major players in the market, owing to their high brand value and long-term contracts, with the aircraft OEMs. Additionally, the investments of the companies in the tires for flying taxis or flying cars, which is currently in its initial stages, is expected to help the companies to maintain a prominent position in the market. Recently, Goodyear introduced its latest concept, AERO, a concept tire for autonomous and flying cars at the 2019 Geneva International Motor Show, with advanced features, like multimodal design, non-pneumatic structure, magnetic propulsion, optical sensing, and artificial intelligence. Such new concepts of tires are expected to attract new customers and help the companies gain a competitive advantages over others.
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