Bead Wire Market To Witness High Growth Owing To Increasing Demand From Automotive Industry
The global Bead Wire Market is estimated to be valued at US$ 1.24 Bn in 2023 and is expected to exhibit a CAGR of 3.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The bead wire is used in automotive industries for car tires reinforcement. It helps in maintaining integrity and stability of tire structure during high speeds. The increasing automotive industry especially in developing regions of Asia Pacific and Latin America is driving the demand for bead wires from tire manufacturers. As per statistics, over 90 million vehicles were produced across the globe in 2022 indicating a Y-o-Y growth of 4%. This rise in automotive sales will directly boost consumption of bead wires.
Market Overview
Bead wire is a high carbon steel strand that is wound around the bead area of a tire. It acts as a fastener that bonds the bead area of the tire to the rim duringinflation and use. There are two types of bead wires namely, carbon steel and high carbon steel bead wires. Carbon steel bead wires are primarily used in passenger car tires owing to their moderate strength capabilities while high carbon steel bead wires are used in commercial vehicle tires that require higher strength characteristics.
Market Dynamics
Rising automotive production and Growing usage of high-performance tires: The expanding automotive industry is one of the major factors augmenting the growth of the bead wire market. As per statistics, annual vehicle production across the globe crossed 90 million units in 2022, exhibiting a growth rate of over 4% year-on-year. This surge in automotive sales will directly increase the demand for tires which in turn is expected to drive the consumption of bead wires. Additionally, increasing demand for high-performance tires from premium and luxury vehicles is also contributing to the market growth.
Stringent fuel efficiency norms: Stricter regulations regarding vehicular emissions and fuel economy have bolstered the demand for lightweight yet durable tires. Bead wires manufactured using advanced materials and engineering assist in producing stronger and lighter tires. This helps enhance the fuel efficiency of vehicles.
SWOT Analysis
Strength: The bead wire market has strong growth prospects due to rising demand from the automotive industry. The bead wire helps provide structural integrity to tire sidewalls. Many key players are focusing on developing advanced bead wires to improve durability and performance of tires. Weakness: High dependency on raw material prices could hamper the market growth. Frequent fluctuations in prices of steel and other raw materials increases production cost for manufacturers. Lack of standardized process adds to inefficiencies.
Opportunity: Growing automotive production in Asia Pacific and Central and South America provides new opportunities for bead wire manufacturers. Increasing use of high-performance tires in luxury vehicles and sports cars are also driving the need for superior quality bead wires. Threats: Rising popularity of 3D printing technology poses a threat to conventional bead wire manufacturing methods. Substitutes such as rubber tapes are also gaining traction.
Key Takeaways
The Global Bead Wire Market Demand is expected to witness high growth, exhibiting CAGR of 3.7% over the forecast period, due to increasing automotive production worldwide. Lightweight commercial vehicles and passenger cars are primary contributors to the rising demand for bead wires.
Regional analysis: Asia Pacific currently dominates the global bead wire market and is expected to maintain its lead over 2023-2030. China, India, Japan, and South Korea are major automotive manufacturing hubs driving the region's market growth. Central and South America are projected to emerge as high potential markets due to expanding vehicle parc and developing road infrastructure.
Key players operating in the bead wire market are Bekaert, Kiswire, Rajratan Global Wire, Shandong Daye, Snton Steel, ArcelorMittal, Hyosung, Tokusen Kogyo, Heico Wire Group, TATA Steel. Leading companies are focusing on partnerships, acquisitions, and new product development to enhance their product portfolio and geographical footprint.
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https://insightskies12.blogspot.com/2023/12/tire-beads-segment-is-fastest-growing.html
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