The North American tire market is expected to witness healthy growth over the forecast period, at a CAGR of ~5%, in value terms from 2020-2025. The growth of market is supported by the United States tire market which stood at around $ 55 billion in 2019, on account of expanding vehicle fleet and growing construction industry in the country. Moreover, increase in the production and sales volumes of pasenger cars, primarily in luxury and sport segments, followed by the growth in demand for light commercial vehicles from the expanding logistics sector. Additionally, subdued growth in the aftermarket sales of tires is estimated to fuel growth in the demand for tires in the region, compensating the slight offset in the demand from the OEM segment. The high performance passenger car tire are trending and supporting growth of the overall tire market in the region. The high performance tires demand segment is the fastest growing demand generating sub-segment in the passenger car tire segment and the tire manufacturers are banking on the demand for ultra-high performance tires to generated augmented revenues out of their business units. In the recent times in the market, the ultra-high performance tires are experiencing broader consumer acceptance due to their attributes such as advaned durability, ease of use for long distance drives and appealing aesthetics which are directing the customer’s purchasing decisions. To cater to this trend of shift in demand patterns, tire manufacturers have invsted heavily to design products offering vast range of features and benefits such as comfort, reduced noise generation, enhanced durability and better fuel efficiency.
According to MarkNtel Advisors’ research report “North America Tire Market Analysis, 2020”, the market for tires in the region is highly competitive, almost 60% of the North American tire market is captured by the top 4-5 manufacturers. The market is expected to remain consolidated. The leading manufacturers are anticipated to remain ahead in the market and the mid-level competitors and the companies supplying tires to cater to the regional or local demand, on the onset of tire labelling initiative in the region since 2012 and small distribution network, the small scale manufacturers are witnessing pressure on their profit margins. As a result, the small scale tire manufacturers have experienced significant drop on their hold in the market in the recent years and the international players remain competitive through measures to expand their distribution footprint and high expenditure on research, development and product advertisement activities.
The companies are working on enhancing their customer reach by broadening of their distribution network service portfolio to cater to the tire demand in the high competitive North American tire market. Leading manufacturers in the countries such as the United States and Canada 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 “North America Tire Market Analysis, 2020”.
Impact of US-China Trade War and High Custom Tariffs
As per MarkNtel Advisors’ study, steep slowdown in the demand for replacement tires in the United States tire industry was offset by the overall growth in demand for tires in North America in the second quarter of 2019. The United States tire industry witnessed a decline in the sales of tires by 1%, in comparison to robust growth in the first quarter of 2019, experiencing 8%, growth in value terms. This growth in first quarter can be attributed to high tariff duties on the imports from China. As a result of the US – China Trade War, the trading partners and dealers focused on stocking their warehouses.
The truck segment in the North American market rose 9% in the first couple of quarters in 2019, the demand from replacement sector dropped down by 10% in the second quarter which was eventually offset by the rise in sales of truck tires through the original equipment manufacturers. Despite the increase in the freight rates, the demand for tires from the replacement sector in the United States, was outgrown by the demand from the OEM sector in the country. The demand for tires in the Canadian market is expected to show sluggish growth in 2020. Moreover, Triangle tire USA is expected to commence production of tires in the country in 2020.
“North America 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”, 22.214.171.124. 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 (United States, Canada and Mexico)
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 North America 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 North America 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 North America Tire Market across various geographies?
6. What are the margins of stakeholders at various levels of the value chain of Tire Market?