Originally published on Technavio: US Tire Retreading Market Analysis 2024-2028: Growth Drivers, Trends, and Challenges
Overview:
The US Tire Retreading Market is projected to experience substantial growth, with an estimated increase of USD 814.89 million at a CAGR of 3.85% from 2023 to 2028. The market's expansion is influenced by factors such as the cost-effectiveness of tire retreading, environmental advantages associated with the practice, and the rising demand for Medium and Heavy Commercial Vehicles (M and HCVs).
Market Dynamics:
Key Drivers, Trends, and Challenges have been analyzed, based on data from 2023, to provide a comprehensive understanding of the market dynamics. Companies can refine their marketing strategies by gaining insights into the key drivers that contribute to a competitive advantage.
Key Driver:
The surge in demand for M and HCVs is a significant driver for market growth. The global commercial vehicle industry has witnessed transformative changes, including advanced system integration, electrification, and increased demand for M and HCVs, especially in developing economies. Infrastructure developments, urbanization, and advancements in logistics contribute to the growing demand, positively impacting the tire retreading market.
Key Trends:
Premium quality retreading is gaining prominence in the US market, driven by a preference for high-quality retreads over budget tires. Large fleets and heavy goods vehicles increasingly favor retreaded tires with enhanced durability and rolling resistance. Market players, like Marangoni Tread North America Inc., are introducing premium retreading systems to cater to niche segments and avoid price wars with Chinese players.
Key Challenge:
The availability of low-cost new tires poses a challenge to market growth. Despite a historical shortage that boosted the retreading tire industry, increased demand and the recession have led to an oversupply of new tires in the market, bridging the price gap significantly. Imports from China further contribute to reducing prices, negatively impacting the retreading market.
Customer Landscape:
The market trends and analysis report include the adoption lifecycle, covering innovators to laggards, and emphasize adoption rates in different regions based on penetration. Key purchase criteria and drivers of price sensitivity are provided to assist companies in developing growth strategies.
Major Market Companies:
Companies are adopting various strategies, such as alliances, partnerships, mergers, acquisitions, geographical expansion, and product/service launches, to strengthen their market presence.
Aviation Tires and Treads LLC: The company offers tire retreading services, inspecting all components of the tire for internal defects that may limit retreadability.
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The precure segment is anticipated to witness significant growth during the forecast period. Precure retreading, with lower investment and operational costs, dominates the market, allowing flexibility in curing multiple tires simultaneously. This segment's growth is attributed to increased revenue-generating opportunities for manufacturers.
The US Tire Retreading Market presents growth opportunities, driven by factors such as cost-effectiveness, environmental benefits, and the demand for M and HCVs. Understanding key drivers, trends, and challenges is essential for companies to navigate and capitalize on growth prospects from 2024 to 2028.
