US TBR Tire Market

The U.S. Truck and Bus Radial (TBR) tire market is shaped by several dynamic factors, including economic conditions, technological advancements, regulatory changes, and shifts in consumer behavior. Demand is closely linked to the performance of key industries like logistics, transportation, and e-commerce, as well as fluctuating fuel prices and vehicle fleet utilization. Supply chain disruptions, raw material costs, and manufacturing capabilities further influence tire prices and availability. Additionally, advancements in tire technology, including improvements in durability and fuel efficiency, are driving innovation, while sustainability trends push for the adoption of eco-friendly materials and processes in tire production. FIGURE 2 US TBR TIRE MARKET: MARKET GROWTH FACTOR ANALYSIS (2019-2032) Index Impact Type Impact Analysis Market Factors Base (2023) 2019–2022 2023–2024 2025–2032 Growth Inhibiting Factor Driving Factors Growth Promoting Factor Growth in Freight Transportation Growth Steading Factor E-Commerce Boom To Drive The Market Growth Note: Impact of Infrastructure Investments and Policy Initiatives on the US TBR Tire ➢ The Impact indicated the measure of Market influence on market growth Rising Demand for Retreading ➢ Each Factor is graded based on historic impact and estimated influence on the market. Restraining FACTORS Fluctuating Raw Material Prices Competition from Low-Cost Imports Source: MRFR Analysis

4.2.1 GROWTH IN FREIGHT TRANSPORTATION The US freight transportation sector is the backbone of the TBR tire market, with trucks moving 72% of the nation’s freight by weight (American Trucking Associations). This growth is due to the rise in e-commerce, manufacturing, and cross-border trade under agreements like the USMCA. A potential Trump presidency in 2024 could further boost freight activity through policies favoring domestic manufacturing and reshoring. For instance, Trump’s proposed 10% universal tariff on imports would incentivize companies to source goods domestically, increasing the need for long-haul trucking and TBR tires. However, geopolitical tensions, such as the US-China trade war, could disrupt supply chains for raw materials like synthetic rubber, raising production costs. espite this, the freight sector’s expansion, combined with Trump’s pro-industry policies, ensures sustained demand for TBR tires. Additionally, the Infrastructure Investment and Jobs Act (2021) is modernizing US roads, reducing wear and tear on tires while increasing vehicle usage. This dual effect drives both new tire sales and replacements, making freight transportation a key driver of the TBR market. Copyright © 2024 Market Research Future 37 4.2.2 E-COMMERCE BOOM TO DRIVE THE MARKET GROWTH The e-commerce sector has transformed the logistics industry, with US online sales reaching $1.1 trillion in 2023. This growth has led to a surge in last-mile delivery fleets, with companies like Amazon and Walmart expanding their networks. Amazon’s delivery fleet grew by 40% in 2023 to 30,000 vehicles, and the company plans to add 10,000 more by 2025. This expansion directly fuels demand for TBR tires, as commercial vehicles require replacements every 3–5 years. However, global supply chain disruptions, exacerbated by Trump’s potential 2024 tariff hikes on Chinese goods, could increase costs for e-commerce giants. For example, a 60% tariff on Chinese tires might force companies to source domestically, benefiting US manufacturers like Goodyear but raising short-term prices. Meanwhile, the Red Sea shipping crisis (2023–2024) has increased global freight costs by 15%, pushing retailers to rely more on domestic trucking. This shift indirectly boosts TBR tire demand, as e-commerce companies prioritize efficient logistics. 4.2.3 IMPACT OF INFRASTRU CTURE INVESTMENTS AND POLICY INITIATIVES ON THE US TBR TIRE MARKET The US TBR tire market stands to benefit significantly from the Infrastructure Investment and Jobs Act (2021), which allocates $1.2 trillion to modernize roads and bridges. With over 20,000 bridge repairs and 4,000 highway projects underway, improved infrastructure will lead to reduced tire wear. However, increased vehicle usage as a result of better roads will also drive faster replacement cycles. The potential for a Trump presidency in 2024 could further accelerate road spending through public-private partnerships, continuing the momentum seen in his 2017 infrastructure plan. While geopolitical tensions, such as the Ukraine-Russia conflict, have inflated construction material costs, including steel prices, the US government’s commitment to infrastructure remains strong. With $110 billion earmarked specifically for roads and bridges, there is long-term demand for TBR tires, as improved infrastructure supports greater vehicle movement. Additionally, the Inflation Reduction Act provides tax incentives for energy-efficient fleets, promoting the use of advanced TBR tires. These policies, along with the significant infrastructure investments, are positioning the TBR tire market for sustained growth, due to both the increased demand for tire replacements and the adoption of more sustainable tire technologies. 4.2.1 RISING DEMAND FOR RETREADING Retreading presents a cost-effective and eco-friendly alternative to new tires, offering savings of up to 70% of the cost and significantly reducing landfill waste by 4 million tons annually. The rising raw material costs, due to the factors such as OPEC+ oil production cuts, which have inflated synthetic rubber prices by 18%, further heighten the appeal of retreading. While sustainability mandates are encouraging the adoption of retread tires, the shift toward eco-friendly practices faces challenges. For instance, former President Trump's deregulatory agenda could weaken environmental policies, potentially slowing the adoption of retreading in the US. His rollback of EPA emissions standards in 2017 reduced the pressure on fleets to implement green initiatives. Biden administration's Inflation Reduction Act provides tax credits for eco-friendly retreading, creating incentives for fleets to adopt more sustainable solutions. Additionally, geopolitical issues, such as the EU’s carbon border taxes set to take effect in 2026, may drive US exporters toward adopting sustainable tires to remain competitive internationally. These combined factors, including the economic pressures from rising raw material costs, solidify retreading as a critical driver for the TBR market, ensuring its continued importance in the face of evolving sustainability demands. Copyright © 2024 Market Research Future 38 FIGURE 3 DRIVER IMPACT ANALYSIS (2024-2032) 2022-2023 2024-2032 Growth in Freight Transportation E-Commerce Boom To Drive Rising Demand for Retreading The Market Growth Impact of Infrastructure Investments and Policy Initiatives on the US TBR Tire

4.4.1 SUSTAINABILITY TRENDS IN THE US TBR TIRE MARKET Sustainability is becoming a key focus in the US TBR (Truck and Bus Radial) tire market as eco-friendly technologies gain prominence. One of the major trends in this space is the rise of "green tires," which are made using alternative materials such as dandelion rubber and silica. Dandelion rubber, for instance, has been gaining attention as a sustainable alternative to traditional rubber sources. This material is not only renewable but also helps reduce the dependency on rubber plantations, which are often associated with environmental degradation. Michelin, a major player in the tire industry, has committed to investing $500 million in the development of bio-sourced materials, demonstrating its commitment to creating sustainable products. The push for green tires is also influenced by governmental policies like the European Union’s Carbon Border Adjustment Mechanism, set to take effect in 2026. This mechanism is designed to reward the production of low-carbon products, including tires, which could open significant export opportunities for US manufacturers who invest in sustainable tire production. Additionally, President Biden’s Clean Truck Initiative is expected to incentivize the adoption of eco-friendly fleets by offering subsidies for electric trucks and low-emission vehicles. This will drive up the demand for sustainable TBR tires, as fleets look for ways to reduce their carbon footprints. 4.4.2 GOVERNMENT INCENTIVES Government policies are playing an influential role in driving the demand for TBR tires, particularly those compatible with electric trucks. The Inflation Reduction Act, for example, provides tax credits of up to $40,000 per electric truck, which is helping to make electric trucks more affordable and increasing their adoption in the commercial sector. As the number of electric trucks rises, so does the need for EV-compatible TBR tires that offer enhanced durability, rolling resistance, and traction specific to electric vehicles. In addition to federal incentives, state-level programs such as California’s Hybrid and Zero-Emission Truck Voucher Project (HVIP) are providing additional financial support to fleets purchasing electric trucks. These state-level initiatives further promote the growth of electric fleets and the demand for specialized TBR tires. However, the political landscape could influence the future of these incentives. If Trump’s 2024 infrastructure plan includes policies focused on fossil fuels, it could skew the benefits toward traditional internal combustion engine (ICE) trucks and their corresponding tires, which might limit the demand for electric vehicle tires. Despite this, the overall trend toward electrification and government support for sustainable transportation is likely to continue driving the demand for eco-friendly and EV-compatible TBR tires in the coming years. Copyright © 2024 Market Research Future 41 FIGURE 5 OPPORTUNITY IMPACT ANALYSIS (2024-2032) Quadrant Analysis High Intensity Opportunity Pockets Outreach Sustainability Trends inIOT the US Growth of industrial TBR Tire Market US Global Availability of Materials & Government Incentives US Global Components Short Term Long Term Low Intensity

4.3.1 FLUCTUATING RAW MATERIAL PRICES The TBR tire market is highly dependent on raw materials like natural rubber, synthetic rubber, and carbon black. The prices of these materials are volatile, influenced by global demand, geopolitical factors, and supply chain disruptions. For instance, natural rubber prices surged by 30% in 2023 due to climate disruptions in Southeast Asia (e.g., Thai floods). Synthetic rubber, tied to crude oil, rose 22% amid OPEC+ supply cuts. A Trump presidency in 2024 could exacerbate this volatility through aggressive trade policies and tariffs on imported raw materials. For example, his proposed tariffs on Malaysian rubber imports (a key US supplier) could further strain supply chains. Meanwhile, Biden’s strategic petroleum reserve releases (2022–2023) temporarily eased oil prices, but long-term volatility persists. The TBR market’s 40% reliance on imported materials (USITC) makes it vulnerable to geopolitical shocks, such as the Taiwan Strait tensions disrupting shipping routes. These fluctuations increase production costs, squeezing profit margins for manufacturers and leading to higher prices for consumers. 4.3.2 COMPETITION FROM LOW -COST IMPORTS Chinese tires, 30–40% cheaper than US brands, dominate 35% of the global market. Trump’s 2024 tariff proposals aim to counter this but risk retaliation; for example, China’s 25% tariff on US automotive parts (2023) hurt domestic manufacturers. India’s PLI scheme (Production- inked Incentives) further boosts its tire exports, undercutting US prices. The USMCA’s rules of origin help somewhat, but Mexico’s $1.5 billion tire export industry (2023) remains a threat. This intense competition from low-cost imports creates pricing pressure for US manufacturers, affecting their market share and profitability. The potential for further trade wars in 2024–2025, particularly under a Trump presidency, adds to the market’s challenges. Copyright © 2024 Market Research Future 39 FIGURE 4 RESTRAINT IMPACT ANALYSIS (2024-2032) 2022-2023 2024-2032 Fluctuating Raw Material Prices Competition from Low-Cost Imports Copyright © 2024 Market Research Future 40