With the strengthening transport system, expanding the middle-class population and rising disposable income has been contributing to the growth of the global automobile industry. Moreover, automobile sales have been catalyzed by the emergence of ride-hailing app taxi service providers including Lyft, Ola, Uber, Didi, etc, which have contributed to the expansion of car fleet on the roads. Therefore, these continuous developments in the global automobile market are projected to boost the demand for tires across the globe. Moreover, growth in trade activities including logistics and distribution, coupled with construction and mining have been promulgating the global tire market
According to the MarkNtel Advisors’ research report, “Global Tire Market Analysis, 2020 (A real-time tire database tracking 100 countries)”, the global tire market size is set to snowball at a CAGR of around 5.48%, in terms of revenue during 2020-25. Burgeoning passenger car sales, coupled with rising charm towards sporty two-wheelers along with the growth initiatives of regional connectivity via roads has been pushing the demand for tires.
A temporary global slowdown in the global auto sector in 2019 impacted the tire sales. A feeble decline was observed in the OEM tire demand owing to around 5% decline in global automobile production. MHCV OEM tire market was the worst hit, contracting 4% in 2019 over 2018.
Replacement tires seized a major market share in the global tire market in 2019. The replacement demand for tires was also hit by the global auto downturn. The European replacement tire market declined by around 1% in 2019, simultaneously the world replacement tire market grew by 1.1% in 2019 (in terms of units sold). However, the demand is projected to restore normalcy by the third quarter of 2020, as the auto manufacturing industry began its rejuvenation process in the fourth quarter of 2014.
The United States Lead the Market with the Highest Market Share
The motorization rate of the United States was highest in the world in 2019. There were more than 820 vehicles per 1,000 people in the United States. The country had a fleet size of more than 265 million vehicles registered in 2019. Therefore, these massive fleet size has been the major proponent of demand for replacement tires. Also, the United States is a global automobile manufacturing powerhouse. In 2019, the country produced more than 11 million automobiles. As a result, the OEM demand for tires had been persistent in the country, revealed by MarkNtel Advisors in its research report, “Global Tire Market Analysis, 2020 (A real-time tire database tracking 100 countries)”
Rapid Adoption of Winter Tires in Europe
Major part of Europe witness prolonged winter with a considerable amount of snow. Therefore, the Governments in certain countries of Europe has framed regulations to boost the usage of winter tires for a duration of up to 6 months to reduce road fatalities. The Governments in countries in Northern and Eastern Europe such as Sweden, Finland, Baltic States, Romania, Ukraine, etc. the winter tires have been made compulsory. The adoption of winter tires is rising from North America, North East Asia Pacific, etc. These developments are set to promulgate the demand for winter tires.
The Big fours of Tire market
The global tire industry has been dominated by Bridgestone, Michelin, Continental, and Goodyear. These four majors occupied around 45% of the global tire market in 2019. It has been found that Michelin has been focused on expansion in North America, while Goodyear has been expanding its footprints in the OTR market in Middle East and Africa. While Europe remains the major source of earning for Continental. However, the company has been targeting the opportunities in North Africa and the Middle East. Other leading players in the market include Pirelli, Sumitomo, Hankook, Yokohama, Cheng Shin, Zhongce Rubber, GITI, Cooper, Toyo, Kumho, Apollo, CEAT, MRF, etc.
“Global Tire (Tyre) Market Analysis, 2020 (A real-time tire database tracking 100 countries),” provides comprehensive qualitative and quantitative insights on the market potential, tire sales trend, sales by type of vehicle tires, OEM and replacement sales, Radial Vs bias tire sales, global and regional competition, key factors impacting sales and purchase decisions, hotspots, and opportunities available for Tire Manufacturers, sales trend in terms of seasons and performance tires, tire rim size, price range, etc. across the globe. Moreover, the report also encompasses the 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 Type of Vehicle (Passenger Cars, Two Wheelers, Three Wheelers, Light Commercial Vehicles, Medium & High Commercial Vehicles, Off the Road Vehicles)
2. By Demand (OEM Vs Replacement)
3. By Radial Vs Bias
4. By Countries (The United States, Canada, Mexico)
5. By Season (All Season, Summer, Winter)
6. By Sales Channel (Online, Distributors Channel, Others)
7. By Price Category (Budget, Economy, Premium)
8. By Rim Diameter (Upto 12”, 12.1” to 15”, 15.1” to 18”, 18.1” to 20” 20.1"- 25", 26"-35", 36"-48", Above 48")
9. By Company (Bridgestone, Michelin, Goodyear, Continental, Pirelli, Sumitomo, Hankook, Yokohama, Cheng Shin, Zhongce Rubber, GITI, Cooper, Toyo, Kumho, Apollo, CEAT, MRF, etc.)
Key questions answered in the study
1. What are the current and future trends of the Global Tire Market?
2. How the industry has been evolving in terms of end-user demand and application areas?
3. What are the future plans and customer expectations of end-users across the region?
4. How the competition has been shaping across the region followed by their comparative factorial indexing?
5. What are the key growth drivers and challenges for the Global Tire Market?
6. What are the customer orientation, purchase behavior, and expectations from the tire manufacturers across various regions?