We caught up with Art Mayer, author of new report The Impact of Electric Vehicles on Tires to 2027
. He shares his insights on the key trends and challenges facing the industry over the next five years.
What major trends related to electric vehicles and tires are addressed in this report?
With automakers committed to electrification, this report looks at the increasing threat of total conventional vehicle phase-out beyond the forecast period. It provides detailed forecasts of future scenarios for the tire industry as use of EVs increases, and the impact on the value chain – from materials supply, through manufacturing, and beyond. The study identifies comprehensive trends associated with the transition to electric vehicles, including new mobility, car sharing, new technology and performance requirements.
What do you see as market challenges?
The momentum for EVs and EV tire uptake continues despite the complicating factors of threatened or actual recession, inflation, war escalation/expansion, or worse financial and supply chain crises. To the extent that this environment is raising conventional fuel prices, it supports accelerated transition to electric vehicles.
What can readers expect from this report?
The global market for EV tires is forecast to increase from an estimated $15.6 billion in 2022 to $46.2 billion in 2027 for a compound annual growth rate (CAGR) of 24.3%. Beyond delving in growth rates and the reasons for them, this report explains the dynamics of the overall tires market and the tire market for EVs within it, both current and forecast. It outlines tire developments for electric vehicles and evaluates opportunities and threats for suppliers of tires for EVs over the forecast period.
What subjects are examined in the report?
This report examines end-use sectors (light vehicles, trucks and buses, and motorcycles) and regions (Asia-Pacific, Europe, North America, South and Central America, and Middle East and Africa), taking a look at the main drivers of EV tire demand. Report content also covers global agreements and national regulations relating to greenhouse gas emissions, accompanied by technology subsidies and mandates, with OEMs committed to electrification. Implications for EV tires from the eventual future domination of autonomous vehicles are also considered.
What pressures are being placed on the tire industry as the demand for sustainability grows?
Even with significant previous development of “green” tires, the accelerating market expansion of EVs is placing further pressure on tire development due to the unique requirements of EVs. Tires for EVs are required to deliver ever lower rolling resistance, address road noise and wear particles generation, while handling increased torque and vehicle weight. Technology and developments are covered in this report from the perspectives of consumers, producers and vehicle suppliers, including new feedstocks and materials, and evolving performance parameters, new tire designs, capabilities and value.