Steel Cord for Tire Reinforcement Market, Global Outlook and Forecast 2025-2032

MARKET INSIGHTS

Global steel cord for tire reinforcement market was valued at USD 410 million in 2024 and is projected to reach USD 529 million by 2032, exhibiting a CAGR of 3.8% during the forecast period. This growth trajectory is closely tied to the expanding automotive sector, particularly in emerging economies, where increasing vehicle production continues to drive demand for high-performance tires.

Steel cords are high-tensile strength reinforcement materials embedded in tire casings, primarily composed of carbon steel wires twisted into strands. These components serve as the tire's backbone, providing dimensional stability, impact resistance, and durability under extreme conditions. The market offers three main product variants: Normal Tensile (NT) for standard applications, High Tensile (HT) for enhanced performance, and Super Tensile (ST) for specialized heavy-duty use.

China dominates both production and consumption, accounting for approximately 19.42% of global tire sales as of 2022. The country's 856 million tire casing output and 7.65 million tons of tire exports significantly influence market dynamics. Key players like Bekaert, Bridgestone, and Sumitomo Electric Industries are responding to this demand through technological advancements in cord manufacturing, focusing on weight reduction without compromising strength. While radial tires remain the primary application, growing electric vehicle adoption presents new opportunities for specialized steel cord solutions.

MARKET DYNAMICS

MARKET DRIVERS

Growth in Automobile Production and Tire Demand Accelerates Market Expansion

The global automotive industry has witnessed substantial growth, with vehicle production reaching over 85 million units in 2022. This directly correlates with increased demand for tires, which saw global sales of 1.749 billion units in the same year. Steel cord, as a critical reinforcement material in radial tires, benefits significantly from this upward trend. China, the world's largest tire producer, accounted for approximately 856 million tire units in 2022, reinforcing the market's expansion. The durability and high tensile strength of steel cords make them indispensable for modern tire manufacturing, particularly as vehicle weights and performance requirements increase. Emerging economies in Asia-Pacific are contributing substantially to this growth due to expanding middle-class populations and rising vehicle ownership rates.

Advancements in Steel Cord Technology Enhance Performance Characteristics

Recent technological developments in steel cord manufacturing are revolutionizing tire performance. Innovations in alloy compositions and cord structures have led to high-tensile (HT) and super-tensile (ST) variants that offer 15-20% better strength-to-weight ratios compared to traditional normal-tensile (NT) cords. These advancements enable lighter tires with improved fuel efficiency while maintaining durability - a critical factor as automotive manufacturers face stringent emissions regulations. Major producers have introduced corrosion-resistant steel cords that extend tire lifespan, particularly valuable in commercial vehicle applications where tires face extreme operational conditions. Such technological improvements are making steel cord reinforcement increasingly attractive to premium tire manufacturers.

➤ The commercial vehicle segment, representing about 30% of global tire demand, particularly benefits from these advancements as fleet operators prioritize tire longevity and retreadability.

Furthermore, the industry is seeing increased investment in R&D from leading players like Bekaert and Bridgestone, focusing on developing next-generation steel cords compatible with emerging electric vehicle tire requirements. This technological evolution positions the market for sustained growth throughout the forecast period.

MARKET RESTRAINTS

Volatility in Raw Material Prices Creates Cost Instability

While the steel cord market shows strong growth potential, it remains vulnerable to fluctuations in raw material costs. Steel accounts for approximately 60-70% of production costs, and global steel prices have shown volatility of up to 25% year-over-year. This instability creates challenges for manufacturers in maintaining consistent pricing and profit margins, particularly when supplying original equipment manufacturers (OEMs) with long-term contracts. The situation is exacerbated by recent trade policies and supply chain disruptions that have affected steel availability in key markets. Such unpredictability in input costs poses a significant restraint on market expansion and profitability across the value chain.

Environmental Regulations Increase Production Complexities

The steel cord manufacturing process faces growing scrutiny under environmental regulations targeting carbon emissions and energy consumption. Producing one ton of steel cord generates approximately 1.8-2.2 tons of CO2 emissions, making sustainability a pressing concern. New regulations in Europe and North America are mandating reduced carbon footprints, requiring substantial investments in cleaner production technologies. Meanwhile, the tire industry's push toward sustainability creates pressure to develop recyclable or bio-based alternatives to traditional steel cords. These regulatory demands increase operational costs and complicate production processes, potentially slowing market growth in regions with stringent environmental policies.

MARKET OPPORTUNITIES

Electric Vehicle Revolution Creates New Application Potential

The rapid adoption of electric vehicles (EVs), with global sales exceeding 10 million units in 2022, presents significant opportunities for steel cord manufacturers. EV tires require specialized reinforcement to handle increased vehicle weights (20-30% heavier than conventional vehicles) and instant torque delivery. Steel cords with enhanced durability characteristics are proving ideal for meeting these demands. Furthermore, the need for low-rolling-resistance tires in EVs complements the development of advanced steel cord formulations that reduce energy loss. As EV penetration is projected to reach 30% of new car sales by 2030, this segment offers lucrative growth potential for innovative steel cord products specifically engineered for electric mobility applications.

Emerging Markets Offer Untapped Growth Potential

Developing economies in Southeast Asia, Latin America, and Africa represent promising growth frontiers for steel cord adoption. These regions are experiencing accelerated automotive sector expansion, with tire production growing at 6-8% annually compared to 2-3% in mature markets. The increasing preference for radial tires over bias-ply tires in these regions - currently at 45% penetration versus 85% in developed markets - creates substantial upside potential. Additionally, local governments are implementing policies to develop domestic tire manufacturing capabilities, further driving demand for high-quality reinforcement materials. Strategic partnerships with regional players and capacity expansions in these emerging hubs present significant opportunities for market leaders.

MARKET CHALLENGES

Competition from Alternative Materials Intensifies

The steel cord market faces mounting competition from synthetic reinforcement materials like aramid and rayon fibers. These alternatives offer weight reduction benefits of 15-20% compared to steel cords, appealing to manufacturers prioritizing fuel efficiency. While steel maintains advantages in cost and durability, continued advancements in synthetic materials are eroding this competitive edge in certain applications. For instance, some premium passenger vehicle tires now incorporate hybrid reinforcement systems combining steel with synthetic fibers. This trend requires steel cord manufacturers to continually innovate and demonstrate superior performance characteristics to maintain market share against these emerging alternatives.

Supply Chain Disruptions Impact Production Stability

Recent global supply chain challenges have exposed vulnerabilities in steel cord production networks. The industry relies on specialized wire drawing equipment and alloy coatings that often come from concentrated supplier bases. Disruptions in these supply chains - as seen during recent global events - can cause production delays and capacity constraints. Additionally, the just-in-time manufacturing models prevalent in the automotive sector amplify these challenges, as tire manufacturers maintain minimal inventory buffers. Building resilient, diversified supply chains while managing costs represents an ongoing challenge for industry participants navigating an increasingly complex global trade environment.

Segment Analysis:

By Type

High Tensile (HT) Segment Dominates the Market Due to Superior Strength and Durability in Tire Manufacturing

The market is segmented based on type into:

• Normal Tensile (NT)

• High Tensile (HT)

• Super Tensile (ST)

• Others

By Application

Passenger Car Tires Segment Leads Due to Increasing Global Vehicle Production

The market is segmented based on application into:

• Passenger Car Tires

• Commercial Vehicle Tires

• Others

By Region

Asia Pacific Holds the Largest Market Share Fueled by China's Tire Manufacturing Dominance

The market is segmented based on region into:

• North America

• Europe

• Asia Pacific

• South America

• Middle East & Africa

By End-User

OEM Segment Shows Strong Growth Due to Expansion of Automotive Manufacturing Facilities

The market is segmented based on end-user into:

• OEM (Original Equipment Manufacturers)

• Replacement Market

• Others

COMPETITIVE LANDSCAPE

Key Industry Players

Strategic Expansion and Innovation Drive Market Leadership

The global steel cord for tire reinforcement market features a highly competitive and moderately consolidated landscape dominated by established manufacturers with strong regional footholds. Bekaert emerges as the market leader, holding approximately 22% revenue share in 2024, owing to its vertically integrated production capabilities spanning Europe, Asia, and the Americas. The company's dominance stems from its patented high-tensile cord technology and partnerships with major tire manufacturers like Michelin and Bridgestone.

Jiangsu Xingda Steel Cord and Hyosung follow closely, collectively accounting for nearly 30% market share, primarily through cost-competitive production in China and Southeast Asia. These companies leverage China's position as the world's largest tire producer - where domestic manufacturers supply 65% of APAC's steel cord demand. Their growth is further propelled by increasing exports, with Chinese steel cord shipments growing 4.7% year-over-year in 2022.

The competitive intensity is increasing as mid-tier players like Tokusen and TESC expand their production capacity. Tokusen recently commissioned a new $85 million facility in Thailand to serve growing Southeast Asian demand, while TESC has doubled its output through technological upgrades at its Jiangsu plant. Such expansions enable these challengers to compete on both quality and price points.

List of Key Steel Cord for Tire Reinforcement Manufacturers

• Bekaert (Belgium)

• Jiangsu Xingda Steel Cord (China)

• Hyosung (South Korea)

• Shandong SNTON Steel Cord (China)

• Bridgestone (Japan)

• TESC (China)

• Tokusen (Japan)

• Tokyo Rope MFG (Japan)

• Hubei Fuxing New Material (China)

• BMZ (Germany)

• Junma Tyre Cord (China)

• Sumitomo Electric Industries (Japan)

• Sodetal (France)

STEEL CORD FOR TIRE REINFORCEMENT MARKET TRENDS

Shift Toward High-Performance Tires Drives Demand for Advanced Steel Cords

The global steel cord for tire reinforcement market is experiencing significant growth, driven by the increasing demand for high-performance tires in passenger and commercial vehicles. Recent data indicates that China alone produced approximately 856 million rubber tire casings in 2022, reinforcing its position as the world's largest tire manufacturer. As vehicle manufacturers focus on improving fuel efficiency and durability, high-tensile (HT) and super-tensile (ST) steel cords are gaining traction due to their superior strength-to-weight ratio. Furthermore, advancements in steel cord manufacturing technologies, such as optimized alloy compositions and enhanced coating processes, are enabling better adhesion to rubber, ultimately extending tire lifespan by up to 15-20% compared to conventional materials.

Other Trends

Electrification and Tire Weight Reduction

The rise of electric vehicles (EVs) is reshaping tire reinforcement requirements, with automakers prioritizing lightweight materials to offset battery weight. Steel cord manufacturers are responding by developing thinner yet stronger cord variants, which contribute to 5-7% weight reduction per tire without compromising load-bearing capacity. Meanwhile, commercial vehicle tires are also evolving, as stricter emission norms in Europe and North America push fleets toward low-rolling-resistance tires. In 2022, commercial vehicle tires accounted for nearly 40% of global steel cord demand, a figure expected to grow as logistics networks expand globally.

Regional Manufacturing Shifts and Supply Chain Realignments

While Asia dominates steel cord production—China exported 7.65 million tons of rubber tires in 2022, a 4.7% year-on-year increase—supply chain disruptions have prompted tire makers to diversify sourcing strategies. Companies in Europe and North America are investing in localized production to mitigate geopolitical risks and logistics bottlenecks. For example, Michelin and Bridgestone have announced capacity expansions in Eastern Europe and Mexico, signaling a trend toward regional self-sufficiency. Concurrently, sustainability initiatives are accelerating the adoption of recycled steel in cord production, with leading players targeting 30-35% recycled content in their products by 2030 to align with circular economy goals.

Regional Analysis: Steel Cord for Tire Reinforcement Market

North America
The North American steel cord market benefits from strong OEM tire demand and stringent safety regulations in the automotive sector. The United States accounts for over 75% of regional consumption, driven by major tire manufacturers like Goodyear and Michelin. While replacement tire demand remains steady, the shift toward lightweight high-tensile steel cords for fuel efficiency aligns with CAFE standards. However, competition from synthetic alternatives in premium tire segments presents a moderate challenge. The CAGR for 2024-2032 is projected at 2.9%, reflecting mature but stable demand patterns. Recent infrastructure investments under the Bipartisan Infrastructure Law (2021) may indirectly boost commercial vehicle tire requirements.

Europe
Europe's focus on sustainable mobility accelerates innovation in steel cord technology, particularly for electric vehicle tires requiring enhanced durability. Germany and France lead adoption, with Michelin and Continental driving 60% of regional R&D investments in high-performance cords. EU tire labeling regulations (EU 2020/740) emphasizing rolling resistance have increased demand for optimized cord constructions. However, the market faces margin pressures due to energy-intensive production processes conflicting with the EU Emissions Trading System. The Nordic countries show above-average growth potential (4.1% CAGR) owing to winter tire specialization and stringent safety norms.

Asia-Pacific
Dominating 58% of global consumption, APAC's growth stems from China's tire manufacturing hub status and India's expanding automotive sector. China's annual production exceeds 850 million tires, with steel cord demand growing at 4.8% CAGR through 2032. Local players like Jiangsu Xingda control 30% of regional supply, benefiting from integrated steel production. Southeast Asian markets (Thailand, Indonesia) attract investment due to labor cost advantages, though quality standardization remains inconsistent. Japan maintains technological leadership in ultra-high-tensile cords for premium applications while balancing export and domestic demand.

South America
Brazil drives regional demand, accounting for 65% of Latin American steel cord consumption due to robust truck/bus tire production. Argentina shows intermittent growth linked to agricultural tire cycles. The Andean Pact countries face volatility from fluctuating steel prices, causing 3-5% annual cost variability for local manufacturers. While radialization rates improved to 72%, bias-ply tires still utilize lower-grade cords in price-sensitive markets. Recent trade agreements with China have increased import competition, pressuring domestic producers to enhance product quality.

Middle East & Africa
The GCC countries lead market development through tire plant investments like Pirelli's Saudi joint venture. Africa's informal tire retreading sector creates parallel demand for reinforcement materials, though only 12% meets international quality benchmarks. Turkey serves as a strategic bridge between Europe and MEA, with exports growing at 7% annually. Infrastructure projects like Egypt's Suez Canal Zone spur commercial vehicle demand, yet political instability in some regions disrupts consistent supply chains. South Africa remains the only sub-Saharan producer with integrated steel-to-cord manufacturing capabilities.

Report Scope

This market research report offers a holistic overview of global and regional markets for the forecast period 2025–2032. It presents accurate and actionable insights based on a blend of primary and secondary research.

Key Coverage Areas:

• ✅ Market Overview

  • Global and regional market size (historical & forecast)

  • Growth trends and value/volume projections

• ✅ Segmentation Analysis

  • By product type or category

  • By application or usage area

  • By end-user industry

  • By distribution channel (if applicable)

• ✅ Regional Insights

  • North America, Europe, Asia-Pacific, Latin America, Middle East & Africa

  • Country-level data for key markets

• ✅ Competitive Landscape

  • Company profiles and market share analysis

  • Key strategies: M&A, partnerships, expansions

  • Product portfolio and pricing strategies

• ✅ Technology & Innovation

  • Emerging technologies and R&D trends

  • Automation, digitalization, sustainability initiatives

  • Impact of AI, IoT, or other disruptors (where applicable)

• ✅ Market Dynamics

  • Key drivers supporting market growth

  • Restraints and potential risk factors

  • Supply chain trends and challenges

• ✅ Opportunities & Recommendations

  • High-growth segments

  • Investment hotspots

  • Strategic suggestions for stakeholders

• ✅ Stakeholder Insights

  • Target audience includes manufacturers, suppliers, distributors, investors, regulators, and policymakers

FREQUENTLY ASKED QUESTIONS:

What is the current market size of Global Steel Cord for Tire Reinforcement Market?

-> Global Steel Cord for Tire Reinforcement market was valued at USD 410 million in 2024 and is projected to reach USD 529 million by 2032, growing at a CAGR of 3.8% during the forecast period.

Which key companies operate in Global Steel Cord for Tire Reinforcement Market?

-> Key players include Bekaert, Jiangsu Xingda Steel Cord, Hyosung, Shandong SNTON Steel Cord, Bridgestone, Michelin, Sumitomo Electric Industries, and Tokusen, among others.

What are the key growth drivers?

-> Key growth drivers include rising global tire production (1.749 billion units in 2022), increasing demand for commercial vehicle tires, and expansion of Chinese tire manufacturers who accounted for 19.42% of global tire sales in 2022.

Which region dominates the market?

-> Asia-Pacific is the largest market, driven by China's position as the world's largest tire producer (856 million tire casings in 2022) and exporter (7.65 million tons exported in 2022).

What are the emerging trends?

-> Emerging trends include development of high-tensile and super-tensile steel cords, adoption of advanced manufacturing technologies, and increasing focus on sustainable tire production.