Uncovering Opportunities in Aircraft Tires Procurement Intelligence

The aircraft tires category is anticipated to grow at a CAGR of 5.5% from 2023 to 2030. The U.S. is the world's largest market, with a share of 40%, while Europe is the second largest with 33%. Michelin, Goodyear, Bridgestone, and Dunlop are among the leading manufacturers, accounting for approximately 85% of the market.

This category is driven by the demand for military aircraft, UAVs, and commercial planes. They experience wear and tear during takeoff, landing, and taxiing due to intense temperatures and pressures. The condition of the tires is influenced by a series of factors, e.g. weather, rough landing conditions, crossing winds, Antiskid braking actions, and rough runway surfaces, all leading to frequent tire replacement or retreading which leads to increased growth in this category.

RFID technology was implemented in the aircraft tire sector in 2021, allowing for efficient and automated tracking of tire information. Michelin introduced its "RFID-enabled Connected Tire" solution, which incorporates RFID tags embedded in the tires. This technology enables real-time monitoring of tire condition and performance, helping airlines and maintenance teams manage maintenance schedules, identify potential issues, and optimize tire usage. It improves operational efficiency, reduces manual data entry errors, and enhances safety and maintenance practices. The use of elastomers in tire manufacturing improves performance significantly. Tire rubber's chemical systems benefit from intermediates that give durability, flexibility, and reliable seal qualities that elastomers provide directly.

Business jets are adopting tubeless tires, which are expected to be adopted by commercial planes as well. Hence, the tubeless tire segment is expected to grow by 3.4% between 2022 and 2030. Furthermore, the usage of elastomers reduces tire maintenance costs while improving traction. Heat and cold resistance also improve, extending tire life and assisting in maintaining optimum inflation throughout temperature changes.

Order your copy of the Aircraft Tires Procurement Intelligence Report, 2023 – 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

The Covid-19 pandemic has had a negative impact on the aviation tire industry, causing manufacturing to decline and export activities to shift to other modes of transportation. Even when the lockdown was relaxed, the production rate was not enough to meet demand.

This sector is dominated by Goodyear, Michelin, Dunlop Aircraft Tires, and Bridgestone, leading to an oligopolistic structure that controls 85% of the market share and accounts for most of the retread. The industry is subject to strict regulations and certifications to ensure safety and compliance with international standards. New entrants face high entry barriers due to the research and development required to meet stringent safety and performance standards. The procurement of this category requires consideration of several factors, such as tire size, load capacity, speed rating, aircraft type, and operational conditions and construction

Natural and synthetic rubber are the primary raw materials used in the production of aircraft tires. The raw materials account for around 65 % to 75 % of the production costs, with natural and synthetic rubber as major raw materials. Tires used in commercial planes cost USD 1,200 to USD 5,500. Commercial aircraft tires, on the other hand, are more difficult to locate in a distributor's store. The majority of airlines have long-standing relationships with tire manufacturers. These agreements allow manufacturers to subsidize the cost of each tire unit. Airlines and tire manufacturers have a lease agreement under which the manufacturer owns the tires and the airline pays for each landing cycle. The manufacturer also covers all necessary maintenance costs under this agreement. 

Browse through Grand View Research’s collection of procurement intelligence studies:

• Bearings Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Conveyor Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Aircraft Tires Procurement Intelligence Report scope 

• Aircraft Tires Category Growth Rate: CAGR of 5.5% from 2023 to 2030

• Pricing Growth Outlook: 6 - 8%

• Pricing Models: Volume-based pricing model, spot pricing model

• Supplier Selection Scope: Quality and Reliability, Cost and pricing, Past engagements, Productivity, Geographical presence

• Supplier selection criteria: Product Range and Compatibility, Manufacturing Capacity and Facilities, Sustainability and Environmental Responsibility, technical specifications, operational capabilities, regulatory standards and mandates, category innovations, and others.

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Key companies 

• Michelin

• Goodyear

• Bridgestone

• Dunlop

• Safran

• Honeywell Internationalc

• Meggit

• GKN Aerospace

• Rosen Aviation