February 21, 2024
Ict

Aircraft Tire Market to Flourish with Rising Commercial Aircraft Fleet by 2030 owing to Growing commercial aviation industry

The aircraft tire market has experienced significant growth in the recent years owing to increasing aircraft movements across the globe. Aircraft tires experience extreme operational conditions and require high wear resistance and strength properties. Their design and manufacturing involves the integration of various advanced materials to ensure safety, longevity and reduced friction during taxi, take-off and landing operations. Some of the key advantages of aircraft tires include flexibility, robustness, low weight and self-cleaning capabilities. With rising air passenger traffic, there has been a substantial increase in aircraft procurement which is driving demand for new as well as replacement aircraft tires.

The Global Aircraft Tire Market is estimated to be valued at US$ 2.38 Bn in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023-2030. Rapid fleet modernization and expansion plans by commercial airlines are fueling the sales of aircraft tires. The market is also supported by growing air cargo volume globally. However, long replacement cycles and useful life of aircraft tires poses a challenge for market growth.

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. These players are focusing on new product development, mergers & acquisitions and regional expansion strategies to strengthen their market position.

There is high growth potential in developing economies of Asia Pacific and Middle East regions owing increasing aircraft deliveries. Key aircraft manufacturers are also shifting their production base to these low-cost regions offering opportunities for local tire makers.
With increasing international passenger traffic, airlines are replenishing and expanding their fleet size to cater to the growing demand. This provides major growth opportunities for Aircraft Tire manufacturers for new equipment sales as well as replacement tires. Aircraft tire makers are eyeing opportunities in MRO sector through long-term tire care contracts with airlines.

Market Drivers
Growing commercial aviation industry: Commercial aircraft fleet is anticipated to double in next 20 years creating significant demand for new radial and bias aircraft tires during the forecast period.
Stringent safety regulations: Regulatory authorities have implemented stringent tire performance standards regarding design, material specifications and testing. This ensures reliability and safety during critical operations.

Market Restraints
Long lifecycle of aircraft tires: Aircraft tires have an average lifespan of 15-20 years resulting in infrequent OEM purchases and replacement demand. This poses a challenge for industry revenue growth.
Volatility in raw material prices: Continuous fluctuation in prices of key raw materials including synthetic and natural rubber affects the operating margins of tire manufacturers.
Segment Analysis
The aircraft tire market is dominated by the commercial aircraft sub segment. Rising air passenger traffic and increasing demand for new aircraft from budget carriers are driving demand for aircraft tires used in commercial aircrafts. Commercial aircraft account for over 60% share of the total aircraft tire market owing to larger fleet size and higher replacement rate of tires compared to other aircraft types like military and general aviation. Within commercial aircraft, narrow body aircraft tires form the largest sub segment currently.

Global Analysis
The North America region currently dominates the global Aircraft Tire Market with over 35% share. Presence of largest fleet of commercial and military aircraft primarily in the US is driving tire replacements. However, the Asia Pacific region is projected to witness the highest growth during the forecast period supported by strong aviation sector growth in China and India. Countries like China and India are witnessing increased passenger traffic which is translating to new aircraft deliveries. This in turn will fuel demand for aircraft tires in the Asia Pacific region making it the fastest growing regional market by 2030. Countries like Japan are also contributing to the aircraft tire demand growth in the region supported by their aircraft manufacturing capabilities.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it