Tires used on material handling equipment in ports, warehouses, and logistics centers make up a subset of the worldwide tire market known as the port and handling equipment tire market. Tires for forklifts, container handlers, reach stackers, and other port and material handling equipment make up the bulk of this industry's consumer base. From 2024 to 2032, the worldwide market for tires used on port and handling equipment is projected to expand at a CAGR of 5.6%. Rising investments in port infrastructure and logistics, increased demand for material handling equipment, and widespread expansion of international trade are all factors driving this expansion. The rising demand for cars is a major factor in this expansion, especially in developing countries like China and India. Since electric and hybrid vehicles need specialist tires, this shift in consumer preference is also projected to contribute to the industry's expansion.
Increasing investments in port infrastructure and logistics is one of the main drivers of the tire market for port and handling equipment. More efficient port infrastructures are required to accommodate the rising volume of international trade. There has been a worldwide boom in the construction and expansion of ports as a result of this, driving up demand for tires designed specifically for use on port and handling equipment. The government of India, for instance, has just initiated a program dubbed Sagarmala to upgrade the country's ports and link them to the interior via new rail and road infrastructure. A substantial increase in the demand for tires used on port and handling equipment is anticipated as a result of this program.
The growing demand for material handling equipment is also fueling the tire market for port and handling equipment. The rising demand for effective and inexpensive logistics operations in many sectors, including manufacturing, retail, and e-commerce, is largely responsible for this trend. Tires designed specifically for material handling equipment like forklifts reach stackers, and container handlers are crucial to the success of these businesses. For instance, the US Material Handling Institute predicts a CAGR of 6.8% from 2018 to 2025 for material handling equipment, which would in turn fuel the demand for tires for port and handling equipment. Growing international trade is the third factor propelling the tire market for port and handling equipment. A rise in global trade has resulted in a proliferation of ports and logistics centers, driving up demand for port and handling equipment tires. Tires for port and handling equipment may see increased demand as a result of initiatives like the African Continental Free Trade Area (AfCFTA) agreement, which was signed by 54 African countries in 2018.
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The volatile prices of raw materials used in tire manufacturing are one of the primary limitations of the port and handling equipment tire market. Supply and demand, geopolitical events, and even weather can all have a significant impact on the price of raw commodities including natural rubber, synthetic rubber, carbon black, and steel. Natural rubber, used in the production of tires, has seen its price fluctuate wildly in recent years due to weather events and illnesses that have ravaged rubber tree plantations in major producing countries like Thailand and Indonesia. Because of this, the price of raw materials has risen dramatically, cutting into the profit margins of tire makers. The demand for tires used in port and handling equipment can be affected by the shifting prices of raw materials, which in turn affects the profitability of tire manufacturers and the prices of tires. Tire producers are hampered in their efforts to increase production efficiency and reduce environmental impact by the volatility of raw material costs.
While rubber tires are anticipated to maintain their dominant revenue share, polyurethane tires are projected to increase rapidly in the next years due to technical innovations and rising consumer demand for environmentally friendly products. In terms of revenue, rubber tires accounted for more than 80% of the market in 2023. This is because rubber tires outperform their competitors in terms of longevity, resistance to punctures, and capacity to carry weight. More people can afford rubber tires since they are less expensive than polyurethane tires. The polyurethane tire market, however, is projected to grow at the fastest rate between 2024 and 2032. The rising demand for high-performance tires with higher traction, durability, and noise reduction is likely to propel the polyurethane tire market to new heights in the coming years. As a reusable material, polyurethane tires are also more eco-friendly than their rubber counterparts.
The market is now dominated by forklifts, however, reach stackers are anticipated to grow at a far faster rate than their forklift counterparts over the next few years. In 2023, forklifts made up 36% of the market and generated the most money for the industry as a whole. Growing demand for container handling equipment at ports and terminals is expected to fuel the fastest expansion in the reach stackers market during the forecast period. Tires designed to withstand enormous loads while maintaining stability on uneven ground are necessary for reach stackers, which are used to transport containers in port and terminal operations. From 2024 to 2032, the market for reach stackers is projected to grow at a CAGR of 5.6%.
The Asia-Pacific region is currently the market's most important and will likely remain so in the future as well. The fast industrialization and infrastructure development in nations like China and India have made the Asia-Pacific region the largest market for tires used on port and handling equipment. The demand for port and handling equipment, which is driven by the increasing investments in port infrastructure and the increased trade volumes, is driving the demand for tires. Forecasts put the CAGR for the Asia Pacific tire market for port and handling equipment at 6.2% between 2024 and 2032. In terms of revenue, by 2023, the region had the greatest share of the market at 38%. Tires for port and handling equipment are big businesses in North America because of the industry's penchant for automation and cutting-edge electronics. Demand for tires is being fueled by the rising popularity of online shopping and the related need for more efficient storage and logistics, both of which are in turn boosting demand for port and handling equipment. Tires are the main driver for European markets, and the expansion of e-commerce and the requirement for efficient warehousing and logistics are major factors in this expansion.
The tire market for port and handling equipment is crowded with numerous manufacturers and suppliers. Bridgestone Corporation, Continental AG, Michelin, Goodyear Tire & Rubber Company, Yokohama Rubber Co., Ltd., Titan International Inc., Trelleborg AB, Sumitomo Rubber Industries Ltd., and Apollo Tyres Ltd. are only a few of the major competitors in the market. To improve their market standing and increase the variety of products they offer, these businesses are concentrating on a number of different growth tactics. In 2020, for instance, Bridgestone Corporation bought Transense Technologies PLC's iTrack Solutions Division to expand its mining and construction tire offerings. In order to keep up with their customers' ever-evolving needs, businesses are increasingly allocating resources to R&D. In 2020, Michelin, for instance, released its CrossGrip line of tires specifically for use on material-handling equipment in port and terminal environments. These tires are built to perform well in harsh conditions, so they offer enhanced traction, stability, and longevity.
