Global Steel Tire Cord Market

Global Steel Tire Cord Market Overview

• The Global Steel Tire Cord Market is valued at USD 7.6 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for high-performance tires in the automotive sector, rising vehicle production worldwide, and the expansion of construction and logistics industries. Additional growth drivers include the surge in tire replacement rates and the adoption of electric vehicles, which require durable, high-torque tires reinforced with steel cords. Steel tire cords are essential for enhancing tire durability, safety, and performance, making them indispensable in both passenger and commercial vehicles.
• Key players in this market include countries such as China, the United States, and Germany, which dominate due to their advanced manufacturing capabilities and robust automotive industries. China leads the market with large-scale production facilities and significant investments in tire manufacturing technology, while the U.S. and Germany are recognized for their high-quality standards and ongoing innovation in tire design and materials. The Asia Pacific region, driven by China, India, South Korea, and Japan, is the fastest-growing hub for steel tire cord production and consumption.
• In 2024, the European Union implemented Regulation (EU) 2020/740, issued by the European Commission, which sets mandatory standards for tire performance, rolling resistance, wet grip, and external rolling noise. This regulation requires that all tires sold in the EU meet specific performance criteria, thereby increasing demand for high-quality steel tire cords that improve tire efficiency, longevity, and environmental compliance.

Global Steel Tire Cord Market Segmentation

By Type:The market is segmented into various types of steel tire cords, including Normal Tensile (NT), High Tensile (HT), Super Tensile (ST), Ultra Tensile (UT), Brass Coated, Zinc Coated, Copper Coated, and Others. Among these,High Tensile (HT)steel cords dominate the market due to their superior strength, durability, and ability to meet stringent safety and performance standards required for modern tires. The growing demand for fuel-efficient, long-lasting tires in both passenger and commercial vehicles is driving the preference for HT steel cords, especially as electric vehicles and high-performance vehicles become more prevalent.

By End-User:The end-user segmentation includes Passenger Vehicles, Commercial Vehicles, Two-Wheelers, Aircraft, Industrial Vehicles, and Others. ThePassenger Vehiclessegment leads the market, driven by increasing global car production, rising consumer preference for high-performance and fuel-efficient tires, and urbanization trends that boost vehicle ownership. Commercial vehicles also represent a significant share due to the need for durable tires in logistics and heavy-duty applications. The demand for steel tire cords in electric vehicles and premium segments is rising, reflecting broader shifts in mobility and sustainability.

Global Steel Tire Cord Market Competitive Landscape

The Global Steel Tire Cord Market is characterized by a dynamic mix of regional and international players. Leading participants such as NV Bekaert SA, ArcelorMittal S.A., Hyosung Advanced Materials Corporation, Kiswire Ltd., Shandong Xingda Steel Cord Co., Ltd., Jiangsu Hongji Wire & Cable Co., Ltd., Bridgestone Corporation, Michelin, Sumitomo Electric Industries, Ltd., Tokusen Kogyo Co., Ltd., Henan Hengxing Science & Technology Co., Ltd., Zhejiang Tianli Steel Cord Co., Ltd., Pirelli & C. S.p.A., Snton Steel Cord Group Co., Ltd., Shandong Daye Co., Ltd. contribute to innovation, geographic expansion, and service delivery in this space.

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Global Steel Tire Cord Market Industry Analysis

Growth Drivers

• Increasing Demand for High-Performance Tires:The global demand for high-performance tires is projected to reach 300 million units in future, driven by consumer preferences for enhanced safety and performance. This trend is particularly evident in regions with growing automotive markets, where the demand for tires that offer superior grip and durability is surging. The automotive sector's shift towards performance-oriented vehicles is a significant factor, as manufacturers increasingly prioritize tire quality to meet consumer expectations.
• Growth in Automotive Production:In future, global automotive production is expected to exceed 90 million units, reflecting a robust recovery from previous downturns. This increase is primarily fueled by rising consumer demand in emerging markets, particularly in Asia-Pacific, where production is anticipated to grow by 5 percent annually. As automotive manufacturers ramp up production, the demand for steel tire cord, essential for tire reinforcement, will correspondingly rise, supporting market growth.
• Rising Focus on Fuel Efficiency:The global push for fuel-efficient vehicles is intensifying, with the average fuel economy of new cars projected to improve to 54 miles per gallon in future. This trend is prompting tire manufacturers to innovate, creating lighter and more efficient tires that reduce rolling resistance. Consequently, the demand for high-quality steel tire cord, which enhances tire performance and longevity, is expected to increase significantly, driving market growth.

Market Challenges

• Fluctuating Raw Material Prices:The steel industry is currently facing significant volatility, with raw material prices fluctuating between USD 600 and USD 800 per ton in future. This instability poses a challenge for tire cord manufacturers, as rising costs can erode profit margins and lead to increased prices for end consumers. Manufacturers must navigate these fluctuations carefully to maintain competitiveness in the market while ensuring product quality.
• Stringent Environmental Regulations:Governments worldwide are implementing stricter environmental regulations, particularly concerning emissions and waste management in tire manufacturing. In future, compliance costs are expected to rise by 15 percent due to new regulations aimed at reducing carbon footprints. These challenges compel manufacturers to invest in cleaner technologies and processes, which can strain financial resources and impact overall market growth.

Global Steel Tire Cord Market Future Outlook

The future of the steel tire cord market appears promising, driven by technological advancements and a growing emphasis on sustainability. As manufacturers adopt innovative production techniques, the efficiency and performance of tire cords are expected to improve significantly. Additionally, the increasing integration of smart technologies in vehicles will likely create new demand for specialized tire products, further enhancing market dynamics. The focus on eco-friendly materials will also shape product development, aligning with global sustainability goals.

Market Opportunities

• Technological Advancements in Tire Manufacturing:Innovations in tire manufacturing processes, such as 3D printing and advanced composite materials, present significant opportunities for market growth. These technologies can enhance tire performance and reduce production costs, allowing manufacturers to meet evolving consumer demands more effectively.
• Expansion into Emerging Markets:Emerging markets, particularly in Asia and Africa, are witnessing rapid urbanization and increased vehicle ownership. This trend is expected to drive demand for steel tire cords, as manufacturers seek to establish a presence in these regions. Targeting these markets can yield substantial growth opportunities for companies looking to expand their global footprint.