Rechargeable Tires Market Is Estimated To Witness High Growth Owing To Opportunity In Reduced Vehicle Maintenance Costs

Rechargeable Tires Market Is Estimated To Witness High Growth Owing To Opportunity In Reduced Vehicle Maintenance Costs

Rechargeable tires are tires that allow users to charge the tire through an electronic induction charger and extend tread life by nearly 50 percent. These are an eco-friendly alternative to conventional tires as they greatly reduce waste and can be recharged multiple times before full replacement is needed. The use of advanced nano materials and embedded electronics allows the tires to last longer through multiple recharges compared to regular retreading.

The global Rechargeable Tires Market is estimated to be valued at US$ 177.7 million in 2023 and is expected to exhibit a 34% CAGR over the forecast period 2023 to 2030, as highlighted in a new report published by CoherentMI.

Market Opportunity:

Reduced vehicle maintenance costs offer a major market opportunity for growth in the rechargeable tires market. The ability to extend tread life through periodic recharging eliminates the need for frequent tire replacements and reduces overall operating expenses of fleet owners and commercial vehicle users. As rechargeable tires can last over 5 years with multiple charges, it significantly lowers lifetime tire costs. This provides strong incentives for adoption across industries with large vehicle fleets such as transportation, logistics and e-commerce companies. The cost savings are estimated to be over 30% compared to conventional tires over the lifetime of use. Several tire manufacturers are actively working on improved rechargeable tire designs to better capitalize on this sizable opportunity.

Porter's Analysis:

Threat of new entrants: Low-to-medium as the rechargeable tire market requires high R&D investments, production capabilities and brand recognition which new entrants may find difficult to achieve.
Bargaining power of buyers: Medium as there are many established manufacturers offering rechargeable tires however differentiated products give buyers more choices.
Bargaining power of suppliers: Low as raw materials required for rechargeable tires such as rubber, carbon steel wire etc. are commodity materials available from numerous global suppliers.
Threat of new substitutes: Low as there are currently no cost-effective substitutes that can offer the fuel-efficiency and safety benefits of rechargeable tires.
Competitive rivalry: High among the top tire manufacturers as they compete on product innovation, production efficiencies and marketing.

SWOT Analysis :
Strengths: Rechargeable tires provide better fuel-efficiency and lower carbon emissions. Established brands have strong brand equity and global distribution networks.
Weaknesses: Higher costs than conventional tires act as a barrier for some customer segments. Complex manufacturing processes require high investments.
Opportunities: Stringent fuel-efficiency norms and emissions regulations present a massive growth opportunity. Developing markets in Asia Pacific are driving increasing vehicle ownership.
Threats: Volatility in raw material prices can impact profits. Technology advancements in electric vehicles may reduce long-term demand for gasoline-powered vehicles.

Key Takeaways :

The global Rechargeable Tires Market Size  is expected to witness high growth over the forecast period of 2023 to 2030 supported by rising vehicle ownership worldwide and stringent regulations favoring green technologies. The global Rechargeable Tires Market is estimated to be valued at US$ 177.7 million in 2023 and is expected to exhibit a 34% CAGR over the forecast period 2023 to 2030.

The Asia Pacific region dominates the market currently and faster adoption of electric vehicles in China presents substantial opportunities for tire manufacturers.

Key players operating in the rechargeable tires market are Michelin, Goodyear, Pirelli, Hankook, Continental, Yokohama, Cooper Tire, Kumho Tire, Toyo Tires, Nokian Tyres. Michelin is a market leader with its patented technologies for energy resilient tires. Goodyear and Pirelli are also major manufacturers focusing on product development to advance tire performance. The market is consolidating as large players acquire smaller tire brands to leverage synergies across their global operations. Regional manufacturers from Asia are also ramping up capacities to grab a share of the fast growing rechargeable tire segment.

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