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Aircraft tires are an integral component supporting aircraft movement on the ground. They provide traction and cushioning during take-off, landing, and taxiing operations. Aircraft tires come equipped with tread patterns optimized for wet and dry runways. Their robust rubber construction withstands extreme pressures during high-speed landings and launches. Aircraft tires also undergo rigorous testing to certify their durability for prolonged service periods under heavy loads. With air passenger traffic surging worldwide, demand for new commercial aircraft has risen steadily. Airlines are expanding their fleets with new fuel-efficient planes to accommodate more passengers. Similarly, business jet operators are procuring additional aircraft to meet the mobility needs of corporate executives and high net worth individuals. This growth in the global aircraft fleet size is driving substantial requirements for new aircraft tires during the installation and fitment of landing gears across various aircraft platforms.
The global Aircraft Tire Market is estimated to be valued at US$ 2.38 Billion in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends witnessed in the aircraft tire market is the development of sustainable or eco-friendly tires. Companies are focusing on employing eco-friendly materials like bio-based compounds in aircraft tire manufacturing. For instance, in May 2022, Michelin launched its first aircraft tire made from sustainable materials, comprising mostly bio-sourced raw materials and recycled steel. Such initiatives are helping reduce aircraft tires’ carbon footprint. Furthermore, manufacturers are optimizing tire designs to reduce weight while maintaining high performance. Lightweight aircraft tires help improve fuel efficiency. Investments in tire technology innovations will remain a key driving force behind the aircraft tire market’s growth over the next few years.
Porter’s Analysis
Threat of new entrants: Low. High capital requirements and stringent regulatory protocols act as entry barriers for new players.
Bargaining power of buyers: High. The presence of numerous suppliers gives buyers bargaining power in terms of competitive pricing.
Bargaining power of suppliers: Moderate. Well-established aircraft tire brands have significant bargaining power over customers due to differentiated products.
Threat of new substitutes: Low. Aircraft tires have no close substitutes due to technical requirements.
Competitive rivalry: High. The presence of numerous global brands results in tough competition based on product quality, pricing, and innovation.
Key Takeaways
The global Aircraft Tire market is expected to witness high growth. The OEM segment accounted for over 55% share in 2018 and is projected to dominate between 2023 and 2030 due to rapidly increasing aircraft procurement. The global Aircraft Tire Market is estimated to be valued at US$ 2.38 Billion in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023 to 2030.
North America held the largest share in the aircraft tire market in 2018 owing to high demand for commercial aircraft from domestic airline carriers. The Asia Pacific region is projected to be the fastest growing market for aircraft tires between 2023 and 2030. This can be attributed to factors like increasing air passenger traffic, growing economy, and rising middle-class population in countries such as China and India. Airbus forecasts that China alone will require nearly 7,400 new aircraft worth $1.2 trillion over the next 20 years to support sustained traffic growth. Such factors are anticipated to drive the demand for new aircraft and replacement tires in the Asia Pacific region during the forecast period.
Key players operating in the Aircraft Tire market include Michelin, Goodyear, Bridgestone, and Dunlop. Michelin accounted for over 30% of the global aircraft tire market share in 2018. The company supplies tires for all major commercial and military aircraft manufacturers.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
