SupplierBusiness Trends in the Global Tire Industry 2013 Edition Trends in the Global Tire Industry CONTENTS Chapter 1: What Is A Tire? ........................................................................................ 10 Who makes tires? ................................................................................................... 11 What is a tire? ........................................................................................................ 13 Steelcord ............................................................................................................. 15 Textile Reinforcement ......................................................................................... 16 Rubber Compound .............................................................................................. 16 Processes ............................................................................................................. 19 Key Raw Materials .............................................................................................. 21 Reinforcing Fillers ............................................................................................... 23 Reinforcing Fibres ............................................................................................... 25 Types of tire ........................................................................................................... 25 Off-road / earthmover tires (OTR) ....................................................................... 25 Agricultural tires .................................................................................................. 27 Racing tires ......................................................................................................... 28 Truck tires ........................................................................................................... 28 Aircraft tires ........................................................................................................ 30 Motorcycle tires ................................................................................................... 31 Buggy tires .......................................................................................................... 32 Chapter 2: Big picture ................................................................................................ 34 Global production .................................................................................................. 37 Raw materials ........................................................................................................ 39 Globalisation .......................................................................................................... 41 Segments, sectors, and branding .............................................................................. 42 Technology ............................................................................................................ 45 Low-cost manufacture ............................................................................................ 46 China ..................................................................................................................... 47 Legislation ............................................................................................................. 48 Chapter 3: Internal Drivers and Change ..................................................................... 51 Winter tires ............................................................................................................ 52 Consumer Vehicles ................................................................................................. 55 Commercial Vehicles .............................................................................................. 57 Chapter 4: External Drivers ....................................................................................... 59 Raw Materials ........................................................................................................ 59 Making natural rubber ............................................................................................ 61 Butadiene is also short ............................................................................................ 63 Legislation ............................................................................................................. 64 Environmental Issues ............................................................................................. 66 Diversification ........................................................................................................ 67 Electronic chips in tires are now commercialised. .................................................... 68 © 2013 IHS Global Limited 3 Trends in the Global Tire Industry OE Relationships ................................................................................................... 68 Chapter 5: Tire labelling ............................................................................................ 70 Why labels ............................................................................................................. 70 Communications .................................................................................................... 71 EU labels ............................................................................................................... 73 Winter tires and the label ..................................................................................... 75 Labels and selling price ........................................................................................ 76 Enforcement ........................................................................................................ 78 Impact since introduction .................................................................................... 79 Japanese scheme .................................................................................................... 80 The United States ................................................................................................... 81 Other countries ....................................................................................................... 83 Marketing communications .................................................................................... 84 On-line sales ........................................................................................................... 85 Chapter 6: Retail and Service ..................................................................................... 86 On-line retailing ..................................................................................................... 89 Chapter 7: Key Profit Opportunities ........................................................................... 92 Car/Light Truck ..................................................................................................... 92 Winter Tires ........................................................................................................... 93 UHP segment ......................................................................................................... 97 Runflat Tires .......................................................................................................... 98 Truck Tires ............................................................................................................ 100 Moto Tires ............................................................................................................ 101 Aircraft Tires ......................................................................................................... 102 Agricultural ........................................................................................................... 104 Off-Road ............................................................................................................... 105 Chapter 8: Technologies ........................................................................................... 107 Bio technology ...................................................................................................... 110 Extended Mobility ................................................................................................. 111 Air Maintenance Technology .............................................................................. 115 Sensors in the Tire .............................................................................................. 116 Compounding Ingredients ..................................................................................... 118 Solution-SBR ..................................................................................................... 119 Polybutadiene .................................................................................................... 120 Reinforcement ....................................................................................................... 120 Steelcord ............................................................................................................... 121 Manufacturing Technology .................................................................................... 122 Recycled rubber ..................................................................................................... 122 Chapter 9: Industry response ..................................................................................... 126 Michelin ..............................................................................................................