The Future of Tyres: Sustainability, Technology & Market Shifts

Tyre manufacturing consumes around 70% of the world’s natural rubber (NR) production, making it the largest single user of NR. Because of this, tyre demand has a major impact on NR pricing.

Ironically, most major tyre companies are not based in NR-producing countries but in industrialised nations with strong automobile industries. Efforts to attract these companies to NR-producing countries have had limited success.

Case in point, Goodyear recently pulled out of Malaysia, possibly due to declining NR production.

Sustainability is becoming a major factor in the tyre industry leading to  tyre manufacturers going green by using NR, recycled rubber and bio-based materials in their production methods. Tyre recycling and reuse initiatives are also growing.

Additionally, electric vehicles (EVs) are reshaping how tyres are designed - able to handle higher torque, heavier weight and deliver lower rolling resistance. Manufacturers are also developing quieter, more durable tyres.

Smart tyre technology is also advancing, with sensors monitoring pressure, temperature, and tread wear - making predictive maintenance possible. Research is also ongoing into self-healing tyres that repair minor punctures.

In addition to this, the shift in consumer trends cannot be denied too. High-performance and all-weather tyres are in demand. The rise of SUVs and off-road vehicles has increased demand for rugged tyres too.

Stricter global regulations are also pushing manufacturers to develop fuel-efficient, low-rolling-resistance tyres. Many countries now require tyres to display fuel efficiency, wet grip, and noise levels.

Consumption in growing markets such as China, India, Africa and Latin America are also on the rise due to urbanisation and growing vehicle ownership.

With competition heating up, many large companies are acquiring smaller firms for example, Continental’s acquisition of Czech brand Barum. Competition has also led to a boom in e-commerce and has made tyre buying easier with more transparent pricing.

However, with all this, safety and durability is still emphasised evident in technologies such as the run-flat tyres allow vehicles to keep moving after a puncture. Additionally, modern day consumer demand is also on the rise for longer lasting tyres - brands pushing to improve tread life.

Despite all this however, supply chain issues do still persist leading to constant raw material price fluctuations, a matter made worse by the recent COVID-19 pandemic and geopolitical tensions which disrupted production and increased costs.

In addition to these, automation and AI technology are improving efficiency. Research into 3D printing for tyre production is ongoing and tyre aesthetics are evolving, with custom designs gaining popularity.

With all these changes happening at an expedited rate, the tyre industry is evidently evolving - sustainability, digitalisation and innovation are the new driving factors shaping its future. The catalyst to these - EVs and autonomous vehicles growth requiring tyre makers to play catch-up and adapt.

However, for all these to be successful, NR producers must stay informed about industry trends and ensure their rubber can at all times meet new quality and performance standards.

Source: MalayMail - by Ahmad Ibrahim, Ungku Aziz Centre for Development Studies (UAC), Universiti Malaya