Low Rolling Resistance Tires (LRRT) Market Size, Share, Growth, And Industry Analysis, By Type (All-Steel Tire, Semi-Steel Tire), By Application (Passenger Cars, LCVs, Others), Regional Forecast To 2031

Updated On: 22 April 2024

Low Rolling Resistance Tires (LRRT) Market Report Overview

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global low rolling resistance tires (lrrt) market size was USD 12430 Million in 2022 and market is projected to touch 43338.14 Million by 2031, exhibiting a CAGR of 14.9% during the forecast period.

The market for low rolling resistance tires (LRRT) is experiencing rapid growth due to the increasing adoption of fuel-efficient tires by the automotive industry. LRRTs are specifically designed to reduce the amount of energy required to move a vehicle, resulting in improved fuel efficiency and a decrease in greenhouse gas emissions. Innovative materials and construction techniques, such as silica-infused rubber and specialized tread patterns, are utilized in LRRTs to reduce friction and improve grip on roads. LRRTs are widely used in passenger cars, commercial vehicles, and heavy-duty trucks, where the benefits of improved fuel economy and operating costs are particularly vital. With the demand for environmentally friendly products on the rise, the LRRT market is poised for continued growth in the future. This trend is expected to persist in the coming years.

The market for low rolling resistance tires (LRRT) is on the rise due to their ability to enhance fuel efficiency and reduce emissions. In response to the rising concern for the environment and the push for sustainable transportation, numerous consumers are seeking ways to lower their carbon footprint. LRRT not only results in reduced carbon emissions but comes with lower costs as well. Consequently, the LRRT industry is growing rapidly, with multiple companies offering an array of options. Moreover, countries worldwide have enforced strict regulations concerning greenhouse gas emissions, consequently increasing the demand for LRRT. In the current market, customers and businesses alike are eagerly investing in environmentally friendly products such as LRRT, thereby turning them into a highly required technological advancement.

COVID-19 Impact: Fuel-Efficient Vehicle Demand Affected by Raw Material Shortages and Consumer Behavior

The global market for low rolling resistance tires (LRRT) has experienced substantial growth in recent years, driven primarily by the growing demand for fuel-efficient vehicles and increasing global concerns regarding the environment. However, the outbreak of the COVID-19 pandemic has significantly impacted the LRRT market. The pandemic has disrupted the supply chains of the raw materials necessary to produce LRRTs. It has changed the purchasing behavior of consumers, resulting in a decrease in demand for these tires. Moreover, the economic slowdown caused by the pandemic has led to a decline in automobile production and sales, further impacting the demand for LRRTs. In the short term, COVID-19 is expected to significantly impact the LRRT market, but economic activity and consumer confidence are anticipated to recover, allowing the market to rebound in due course.

Latest Trends

"LRRT Market Soars with Growing Demand for Fuel-Efficient and Eco-Friendly Vehicles"

The low rolling resistance tires (LRRT) market growth is skyrocketing owing to the surging

demand for fuel-efficient vehicles. The increasing preference for eco-friendly and sustainable transportation has additionally propelled the demand for LRRTs. Prominent players within the market are directing considerable funds towards research and development to introduce new-fangled products and technologies. This includes utilizing advanced materials and trailblazing tread designs that enhance fuel efficiency while decreasing carbon emissions. Companies like Michelin, Bridgestone, Continental, and Goodyear are among the leading competitors in the LRRT market, striving to capture a greater market share by offering high-performance, eco-friendly solutions to their clients. The future prospects for the LRRT market appear promising, supported by the growing environmental awareness and the mounting initiative towards sustainable transportation, thus driving the market's expansion.

Low Rolling Resistance Tires (LRRT) Market Segmentation

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• By Type

According to type, the market can be segmented into all-steel tires, semi-steel tires.

• By Application

Based on application, the market can be divided into passenger cars, LCVs, and others.

Driving Factors

The LRRT market has been gaining momentum in recent years, driven by various factors that aim to create a sustainable future.

"Tightening Government Regulations"

Governments worldwide have recognized the role of transportation in climate change and have been taking measures to curb vehicle emissions. One crucial step has been setting fuel economy standards for vehicles that require automakers to manufacture cars that use less energy. In the US, the Corporate Average Fuel Economy (CAFE) standards set by the National Highway Traffic Safety Administration (NHTSA) require automakers to produce cars with average fuel efficiency levels of 54.5 miles per gallon by 2025. The European Union (EU) has the Euro 6 emissions standard, which limits the amount of nitrogen oxides (NOx) and particulate matter (PM) that can be emitted by vehicles.

These regulations have incentivized the adoption of LRRTs, as they help automakers meet fuel efficiency standards. With increasing fines and incentives for automakers to produce eco-friendly cars, LRRTs have become an attractive option for several reasons. Firstly, LRRTs are designed to reduce energy loss while driving, leading to improved fuel efficiency. Secondly, the reduced rolling resistance also leads to a decrease in tire wear, resulting in lower maintenance costs. Lastly, as carbon emissions decrease, automakers can lower their carbon footprint, which also leads to a better public image.

"Consumer Awareness and Demand for Sustainable Transportation"

Apart from regulations, consumer awareness and demand have been driving forces behind the adoption of LRRTs. People and companies are increasingly concerned about the environmental impact of their actions, leading to a shift in their preferences toward sustainable products. A survey by Accenture showed that 60% of consumers consider sustainability when purchasing a car, and 53% would opt for a car with better fuel efficiency, even if it cost more.

LRRTs offer a significant advantage here. Improving fuel efficiency leads to significant cost savings for drivers, making them an attractive option to reduce fuel expenses. Additionally, the environmental benefits of LRRTs align with the values of people looking for sustainable transportation options. Reducing carbon emissions helps reduce one's impact on the environment, and LRRTs can play a crucial role in achieving this goal.

Restraining Factors

"High Cost of LRRTs Remains a Hindrance to Market Growth, Despite Tire Specialization"

The market for low rolling resistance tires (LRRT) has exhibited a consistent growth trend in recent years due to the rise in awareness about environmentally friendly products. Nevertheless, there exists a constraining element that hinders the growth in demand for LRRTs, namely the high cost of these specialized tires. The process involved in LRRTs production incorporates significant research and development expenses coupled with limited economies of scale. Consequently, these costs ultimately translate into augmented retail prices for the end user, rendering LRRTs an expensive alternative for numerous car owners. Consequently, the growth rate in the LRRT market is being slowed down by this factor. Despite this challenge, new-fangled tire technologies are expected to drive down costs and reduce prices for LRRTs over time, thereby enhancing their demand.

Low Rolling Resistance Tires (LRRT) Market Regional Insights

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"North America leads the market with sustainable innovation and advanced manufacturing"

The market for low-rolling resistance tires (LRRT) is mainly dominated by North America, which is considered the leading region in the industry. This accomplishment can be attributed to the region's well-established infrastructure and remarkable innovation capabilities, which have enabled them to acquire the largest low rolling resistance tires (LRRT) market share in the industry. Notably, North America is committed to sustainable practices and places great emphasis on cutting-edge technology through tire industry research and development. Consequently, the region maintains its leadership position in the development of low-rolling-resistance tires, which offer fuel efficiency and sustainability. The industry is expected to grow steadily in the coming years, and North America is poised to maintain its leadership role due to its robust distribution networks, strong economic foundation, and innovative tire manufacturing practices. As a result, North America's dominance in the LRRT market is set to continue for the foreseeable future.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Michelin (HQ: France)
• Bridgestone (HQ: Japan)
• Continental (HQ: Germany)
• Pirelli (HQ: Italy)
• Goodyear (HQ: United States)

Report Coverage

This report examines an understanding of the low rolling resistance tires (LRRT) market’s size, share, growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.