The European market for tires is expected to witness healthy growth at a CAGR of ~5%, in value terms, during the forecast period. The majority of demand is expected to emanate from passenger car vehicle category during the forecast period and it is expected to dominate the tire market in Europe. Replacement demand is also expected to dominate the tire market, holding a considerable market share in Europe tire market in 2019. The market is poised to grow on account of expansion in tire production capacity by the leading manufacturers, mergers and acquisition activites, large existing vehicle fleet and increasing per capita income in the region.
Rapid urbanization and high demand for light weight commercial and passenger vehicles has also fueled the demand for tires in the region, during the forecast period. Radial automobile tires are expected to maintain their prominence in the market due to high demand emanating from passenger vehicles segment due to its high performance, long lasting and efficient design, when compared to bias tires. Moreover, Germany remains to be the largest country market in the European region, on account of presnece of large automotive manufacturing hub, high investments in reseach and development activities and augmented demand for luxury vehicles. Presence of global leading original equipment manufacturers of the automobile industry further propels the demand for tires in the country. The German tire market is closely followed by the French tire market due to the presence of regions largest tire manufacturer, large vehicle fleet and increasing discretionary income of the population.
According to MarkNtel Advisors’ research report “Europe Tire Market Analysis, 2020”, the market for tires in the region is highly competitive, almost 70% of the European tire market is captured by the top 5 manufacturers. The market is expected to remain consolidated, despite the implementation of tire labelling measures by the tire manufacturing association in Europe. The leading manufacturers are anticipated to remain ahead in the market and the mid-level competitors and the companies supplying tires imported from Asia-Pacific region are expected to experience price pressure and end up generating lower profit margins, on the onset of tire labelling initiative in the region since 2012. As a result, the mid-level tire manufacturers have experienced significant drop on their hold in the market in the recent years.
To overcome the pressure on profit margins due to tire labelling could be offset by enhancing the customer outreach through dealer and distribution network. The companies are working on broadening of their service portfolio to cater to the tire demand in the competitive European tire market. Leading manufacturers in the countries such as Germany are investing heavily on research and development activities are expected to propel the demand for tires in the region, during the forecast period, revealed by MarkNtel Advisors’ research report “Europe Tire Market Analysis, 2020”.
Advent of Industry 4.0 and Artificial Intelligence are expected to boost the Automobile Industry
As per MarkNtel Advisors’ study, the advent of industry 4.0 and transformation in the tire manufacturing industry through the tire labelling measures are expected to propel the demand for tires in Europe. The rapid implementation of CARS 2020 Action Plan is expected to improve the situation of the automobile industry in the region. With the integration of 3D printing technology and principles of Industry 4.0, the production of vehicles is expected to boost over the next five years, thereby, projecting growth to the demand for tires in the region, till 2025.
Economic downturn in the regional markets of South and South East Europe, declining profit margins of the suppliers, drop in the business of winter tires especially in Slovakia, Czech Republic, Denmark, Sweden, Scandinavia and eastern Europe and the online web shops are posing threats to the growth of the tire industry in the region. However, measures by the government and increasing focus on devising innovative solutions is expected to offset the impact of these challenges in the European automobile industry.
“Europe Tire Market Analysis, 2020” provides comprehensive qualitative and quantitative insights on the market potential, regional opportunities, key factors impacting sales and purchase decisions, hotspots, and opportunities available for tire suppliers across the globe. Moreover, the report also encompasses the expert verbatim, key strategic imperatives for success for competitors along with strategic factorial indexing measuring competitor's capabilities on 16 parameters. This will help companies in the competition assessment, formulation of Go to Market Strategies and identifying the blue ocean for their offerings.
1. By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Medium and High Commercial Vehicles, Two-Wheelers, Three-Wheelers and OTR)
2. By Demand Category (OEM & Replacement)
3. By Tire Type (Radial and Bias)
4. By Sales Channel (Direct Sales, Online, Channel Partners)
5. By Season (All Season, Winter, Summer)
6. By Rim Size (Up to 12”, 188.8.131.52. 12.1” to 15”, 15.1” to 18”, 18.1” to 20”, 20.1” to 22.5”, 22.6” to 26”, 26.1” to 35”, 35.1” to 47”, 47” and above)
7. By Country (Germany, France, Italy, United Kingdom, Poland, Netherlands, Belgium, Romania, Spain, Slovakia and Others)
8. By Company (Continental AG, Bridgestone, Goodyear, Hankook and Yokohama among others)
Key questions answered in the study:
1. What are the current and future trends of the Europe Tire Market?
2. How the market has been evolving in terms of vehicle type demand, technology trends and demand category?
3. What is the expert opinion on the future current and future outlook of the Europe Tire Market?
4. How the competition has been shaping across various regions followed by competitor’s comparative factorial indexing?
5. What are the key growth drivers, challenges and hotspots coming up in the Europe Tire Market across various geographies?
6. What are the margins of stakeholders at various levels of the value chain of Tire Market?