Updated Oct 2, 2022 05:50

Aircraft Tyre Market in Brazil

Market Overview
For the fourth year in a row, the Brazilian aircraft tyre market recorded growth in sales value, which increased by % to $ in . In general, consumption showed a remarkable increase. As a result, consumption reached the peak level and is likely to continue growth in the immediate term.

In value terms, aircraft tyre production dropped modestly to $ in estimated in export price. Over the period under review, production showed a noticeable reduction. The pace of growth appeared the most rapid in 2014 when the production volume increased by % against the previous year. Aircraft tyre production peaked at $ in 2008; however, from 2009 to , production failed to regain momentum.


Consumption
In , aircraft tyre consumption in Brazil contracted to units, dropping by -% against the previous year's figure. In general, consumption showed a relatively flat trend pattern. Aircraft tyre consumption peaked at units in 2012; however, from 2013 to , consumption remained at a lower figure.

The revenue of the aircraft tyre market in Brazil contracted slightly to $ in , waning by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption, however, enjoyed a pronounced expansion. As a result, consumption reached the peak level of $, and then reduced slightly in the following year.


Market Forecast
Depressed by shrinking demand for aircraft tyre in Brazil, the market is expected to continue its downward consumption trend over the next eight-year period. The performance of the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to depress the market volume to units by the end of .

In value terms, the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Brazil remains a net importer of aircraft tyre; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of units, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.