May 25, 2024

The Global Bead Wire Market Driven By Rapid Growth In The Automotive Industry

Bead wire is a critical component used in tire manufacturing as it serves to strengthen the bead area of a tire, which is the part that contacts the rim. It helps provide an excellent seal that prevents air pressure leaks. The rapid growth of the automotive industry has driven a significant increase in the demand for new vehicle tires each year. As consumers increasingly prefer personal transport over public transportation, the sales of passenger cars and commercial vehicles have witnessed a steady surge. Furthermore, rising international trade has translated to higher commercial vehicle usage for transportation and logistics needs.

The global Bead Wire Market is estimated to be valued at US$ 1.43 Mn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Development of lightweight bead wire
This is mainly important for electric vehicles where reducing tire weight can help increase vehicle range. Manufacturers such as Bekaert are developing new metallurgy and production processes to produce bead wires that are 20-30% lighter than conventional ones through use of advanced materials like copper and its alloys. Lightweighting of tires through novel bead wire technology will be a major trend in the coming years to support e-mobility goals.

Porter’s Analysis

Threat of new entrants: The bead wire industry requires significant capital investment for setting up production facilities and infrastructure. Established players enjoy economies of scale which make it difficult for new players to enter.

Bargaining power of buyers: The bead wire industry has numerous buyers from tire manufacturing companies. However, individual buyers don’t have significant influence over price as bead wire is a commodity product.

Bargaining power of suppliers: Raw material suppliers for bead wire manufacturing have moderate bargaining power due to availability of substitute materials. However, industry consolidation has reduced their bargaining leverage.

Threat of new substitutes: There exist few substitutes for bead wire in tire manufacturing currently. Alternatives lack functionality or are much costlier. The threat is moderate over long term as new materials are developed.

Competitive rivalry: The bead wire industry has numerous global and regional players. Competition is intense based on pricing, quality, and relationship with tire manufacturers.

Key Takeaways

The Global Bead Wire Market Size is expected to witness high growth over the forecast period supported by rising automobile production and sales worldwide. The global Bead Wire Market is estimated to be valued at US$ 1.43 Mn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024-2031.

Regional analysis: The Asia Pacific region is expected to continue dominating the bead wire market through 2031 supported by China which account for over 30% of global automobile sales. Countries like India are also witnessing high vehicle growth. North America and Europe are relatively mature markets but demand will increase moderately due to recovery in automobile demand post pandemic.

Key players: Nestlé, PepsiCo, The Coca-Cola Company, DANONE, Primo Water Corporation, FIJI Water Company LLC, Gerolsteiner Brunnen GmbH & Co. KG, VOSS WATER, Nongfu Spring, National Beverage Corp., and Keurig Dr Pepper Inc. are some of the prominent players in the global bead wire market. The industry is moving towards consolidation as larger manufacturers acquire regional players to expand geographical footprint.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it