Press Release

Central America Tire Market to Flourish During 2024-30 Owing to the Rising Inclination Towards EVs

The Central America Tire Market is projected to grow at a CAGR of 2.80% during the forecast period of 2024-30, cites MarkNtel Advisors in the recent research report. The mounting vehicle ownership, inclination towards ride-sharing, expanding mining sector, and growing preference towards electric vehicles are contributing to the surge in the growth of tires in Central America. The economic conditions of the Central American countries have improved in the past few years, owing to which there has been a surge in the cost of expenditure. The rising net disposable income is facilitating the sales of automotive vehicles in Central American countries, consequently uplifting the demand for tires in Central America.

In addition, the strategic location of the Central American Countries, like Costa Rica, Cuba, etc., and preferential trade agreements, such as CAFTA-DR (Central America-Costa Rica Free Trade Agreement) are providing a large consumer base and export opportunities to foreign companies. As a result, several companies, like Eaton, Yazaki Corporation, etc., are setting up their manufacturing plants in the country. The construction of these industries is boosting the requirement for earthmoving vehicles such as excavators, graders & loaders, consequently elevating the requirement for their tire replacements to maintain the operational efficiency of these vehicles.

Moreover, the economy of Central American nations relies on the mining sector. Therefore, to uplift the countries' economies, the governments of the Central American nations are encouraging the expansion of mining sites. This is resulting in the surge in mining activities & extensive usage of mining vehicles, like graders, excavators, etc. The expanded usage of the vehicles used for mining operations undergo tire wear & tear. As a result, there is consistent demand for tire replacements in Central America, driving market growth, further states the research report, “Central America Tire Market Analysis, 2024.”

Central America Tire Market Segmentation Analysis

Radial Tires Outperform in Central America Tire Market

Based on the tire type, the market is further bifurcated into, Radial and Bias. Among them, Radial held the prominent share in the Central America Tire Market owing to the superior features offered by these types of tires. Radial tires have a flexible sidewall construction that allows the tire to maintain better contact with the ground, resulting in improved traction and stability. As a result, the end-users operating the vehicles in challenging terrains such as construction sites, mines, quarries, and off-road environments use Radial tires.

In addition, radial tires have multiple layers of steel belts running radially across the tire that distribute the load more evenly and reduce sidewall flexing. The improved load-bearing capabilities make radial tires suitable for heavy-duty applications, such as carrying heavy loads, equipment, and materials. Hence, end users opt for these tires, further augmenting the market growth.

Costa Rica Leads the Central America Tire Market

Of all the countries across Central America, Costa Rica held a noteworthy share of the Tire Market. Costa Rica boasts the presence of several architectural heritage and leisure & attraction sites. As a result, travelers from around the globe are visiting Costa Rica. Therefore, the major hotel groups, like Marriott, ITC, Radisson Blu, etc., are expanding their hotels in the country. This surge in the construction of hotels & resorts is augmenting the usage of building & construction vehicles, like excavators, graders & loaders, and leading to their tire wear & tear. Also, the deterioration of the tires hampers the operational efficiency of the automobiles, hence to ensure the vehicle’s output, the end-users such as real estate developers & construction contractors frequently replace the tires, uplifting Costa Rica Tire Market.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including (Bridgestone Corporation, Goodyear Tire and Rubber Company, Michelin, Continental AG, Hankook Tire and Technology, Yokohama Rubber Co.Ltd., Cooper Tire Rubber Company, Pirelli Tyre S.p.A, Sumitomo Rubber Industries, Toyo Tire Corporation, Maxxis International, Others) are looking forward to strengthening their market position.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the region?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping across various countries?
6. How has the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?