Canada Tire

Canada Tire Market Research Report Forecast: (2022-2027)

By Type of Vehicles (Passenger Car, Light Commercial Vehicle, Medium and Heavy Commercial Vehicles, Off the Road (OTR), Two Wheelers), By Demand Category (OEM and Replacement), By Type of Tires (Radi Read more

  • Tire
  • Mar 2022
  • 136
  • TR10208

Market Definition

Despite the local manufacturing of tires being historically higher in Canada than the total number of automotive & component imports, the Canada Tire Market mainly relies on imports and is the second-largest market across North America. The country is witnessing escalating sales of passenger, commercial, and Electric Vehicles, among others, which, in turn, is making a positive impact on the overall tire industry. The most prominent tire manufacturing companies in Canada include Goodyear, Michelin, and Bridgestone, among various others.

Market Insights

The Canada Tire Market is projected to grow at a CAGR of around 2% during the forecast period, i.e., 2022-27. The market has a great influence on the sales of vehicles in the country. Back in 2019, the automotive industry witnessed substantial growth in terms of vehicle sales. However, with the Covid-19 pandemic in 2020, the market underwent a downfall. However, vehicle sales are reviving swiftly & have been displaying persistent growth since 2021, which, in turn, is augmenting the demand for tires across the country. 

Report Coverage Details
Study Period Historical Data: 2017-20
Base Year: 2021
Forecast Period: 2022-27
CAGR 2%
Key Companies Profiled Continental Tire Canada, Bridgestone Canada (BSCA), Yokohama Tire (Canada), Hankook Tire Canada, Goodyear Canada, Michelin North America (Canada), Kumho Tire Canada, Pirelli Tire, Toyo Tire Canada, Others
Unit Denominations USD Million/Billion

 

In addition, the coming years are likely to demonstrate an upscale in the sales of vehicles, which would directly impact the tire market. The growing penetration of online channels & rapid digitalization is further instigating tire manufacturers to increase their production & import capabilities to deliver an extensive range of tires & meet the mounting consumer demand across the country. 

Moreover, the increasing inclination of Canadians toward the adoption of Electric Vehicles (EVs) owing to the rising concerns over environmental degradation is another crucial aspect anticipated to contribute significantly to the soaring demand for tires in the country and boost the market over the forecast years.

Key Trend in the Canada Tire Market

  • Growing adoption of Winter Tires in Canada

While winters in Canada are usually cold & snowy, the adoption of winter tires witnessed an upswing in the coldest months as they provide a better grip on snowy & icy terrains. As a result, the government of Canada is encouraging the adoption of these tires to enhance safety & reduce the number of road accidents in the country.

Additionally, since winter tires are meant to perform at low temperatures, they have better cornering grip, braking, & traction and deliver greater vehicle control. Hence, winter tires are swiftly gaining traction across Canada. Besides, growing consumer awareness about the benefits of winter tires, such as easy cut through snow, enhanced durability & road safety, and superior traction, among others, are other crucial aspects projected to boost their adoption and drive the market through 2027.

Impact of Covid-19 on the Canada Tire Market

In 2020, the Covid-19 pandemic had a decelerating impact on both the automotive industry & the tire market across Canada. Difficulties & challenges associated with the import of passenger vehicles & commercial vehicles were undetermined as the sales went significantly down along with the transportation of goods like tires. As a result, the prominent market players witnessed substantial revenue losses amidst the crisis owing to the reduced production capabilities due to the declining vehicle sales, shortage of raw materials, fluctuating prices, travel bans, and delays in production & deliveries, among others.

Although the sales of Electric Vehicles (EVs) were also affected, Canada witnessed a few new registrations for EVs that projected a temporary hike in the tire demand. However, the declining number of Covid-19 cases compelled the government to uplift restrictions & allow the recommencement of business operations. It, in turn, generated opportunities for the leading players in the market to resume & increase their production capabilities and suffice the burgeoning demand for tires throughout Canada. Further, manufacturers recommenced their export & import businesses and are currently recovering from financial losses.

Market Segmentation

Based on the Type of Tire:

  • Radial 
  • Bias

Of both, Radial Tires dominated the Canada Tire Market with the largest share in recent years. The surging number of industrial projects leading to the escalating sales of heavy vehicles is the prime aspect driving the demand for radial tires. These vehicles require robust grip, low rolling resistance, minimal vibrations, & enhanced stability on different terrains, to which radial tires are the preferred choice.

Radial tires offer various advantages like low rolling resistance, reduced fuel consumption, high performance, & safer ride, among others. As a result, their demand is anticipated to expand significantly for heavy-duty trucks. Moreover, the rapidly growing transportation & logistics sector shall also boost the adoption of radial tires to facilitate convenience in transportation.

Furthermore, since the government of Canada is encouraging the use of public transportation to reduce traffic congestions & carbon emissions, the production & sales of commercial vehicles are swiftly increasing and positively influencing the demand for radial tires in the country. 

Based on the Demand Type:

  • OEM 
  • Replacement

Here, the 'Replacement' demand dominated the Canada Tire Market with the largest share in recent years and is anticipated to prevail the same trend during the forecast period. It owes principally to the increasing collaborations between several prominent manufacturers & replacement tire providers to cater to the growing demand for tires in Canada.

In addition, the easy availability of high-performance replacement tires is attracting vendors to invest massively in the tire industry to expand their visibility as brands and tap into the profitability of aftermarkets in the country. It, in turn, is further enabling tire manufacturers to enhance their overall product portfolio.

On the other hand, OEMs (Original Equipment Manufacturers) are anticipated to display the fastest growth in the Canada Tire Market during 2022-27, owing principally to the mounting vehicle sales encouraging automakers to accelerate their production capabilities, and propel the demand for tires from OEMs across Canada.

In addition, the growing need to meet a wide range of performance requirements of the brand-new vehicle is another prominent aspect projected to shift consumer inclination toward OEMs and drive the market in the coming years.

Recent Developments by Key Competitors

  • In November 2021, leading players Bridgestone & Micheline projected a joint perspective on increasing the utilization of recovered carbon black in tire manufacturing while reducing the reliance of the tire industry on petrochemicals.
  • In October 2018, Bridgestone announced investments in its Canadian tire plant (Passenger & Light Truck tire manufacturing facility in Joliette, Québec) to construct an automated warehouse to achieve enhanced operational efficiency & production capabilities. This automated warehouse would help the company in sufficing the burgeoning requirements of tire dealers & customers across the country.

Market Dynamics:

Key Driver: Stringent Norms Associated with Vehicle Safety

With an escalating number of road accidents, the Canadian government is encouraging automakers to manufacture tires with utmost safety while urging vehicle owners to replace tires timely and have periodic inspections on their conditions to ensure vehicle & passenger safety at all times. These aspects are likely to instigate the leading players in the Canada Tire Market to introduce new products and enhance their overall product portfolio while delivering safer tires to the customers.

Possible Restraint: Volatile Prices of Raw Materials

The automotive & tire industries alone rely heavily upon raw materials like rubber & crude oil, the fluctuating prices of which are likely to restrain the growth of the Canada Tire Market in the coming years. This price volatility is slowing down the tire production in the country and, in turn, increasing the demand-supply gaps, which is another prominent aspect that might hinder the market growth in the coming years.

Growth Opportunity: Increasing Government Initiatives Targeting Carbon Neutrality

Since the automotive industry is one of the prominently contributes to carbon emissions, the government of Canada is focusing on bringing carbon neutrality and thus generating growth opportunities for the leading players in the tire market to develop emission-free tires. In addition, the government is immensely investing in enhancing the infrastructure & developing a green economy in the coming years, which, in turn, would boost construction activities and provide lucrative opportunities to the tire industry.

Key Questions Answered in the Market Research Report:

  1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Canada Tire Market?
  2. What are the region-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the Canada Tire Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Canada Tire Market based on the competitive benchmarking matrix?
  5. What are the key results derived from surveys conducted during the Canada Tire Market study?

Frequently Asked Questions

A. The Canada Tire Market is projected to grow at a CAGR of around 2% during 2022-27.

A. The Replacement demand type is anticipated to emerge as an area of remunerative opportunities for the leading players in the Canada Tire Market through 2027.

A. Various initiatives & massive investments by the Canadian government in bringing carbon neutrality ould generate opportunities for the Canada Tire Market to expand during the forecast period.

A. The leading players in the Canada Tire Market are actively working on increasing their production capacities to meet the burgeoning demand for tires across the country. It, in turn, would help them recover from financial losses faced amidst the crisis and contribute to the overall market growth in the coming years.

1.     Introduction

1.1.   Product Definition

1.2.   Research Process

1.3.   Assumptions

1.4.   Market Segmentation

2.     Executive Summary

3.     Experts Verbatim-What our experts say?

4.     Canada Tire Market Voice of Customer

4.1.   Brand Awareness

4.2.   End User Expectations

4.3.   Key Factors Impacting Vendor Selection

4.4.   Key Issues Encountered

4.5.   Vendor’s Receptiveness to Address Key Customer Issues

4.6.   Future Requirements

5.     Canada Tire Market Analysis, 2017- 2027

5.1.   Market Size & Analysis

5.1.1. Market Revenue

5.1.2. Units Sold

5.2.   Market Share & Analysis

5.2.1. By Type of Vehicles

5.2.1.1.  Passenger Car

5.2.1.2.  Light Commercial Vehicle

5.2.1.3.  Buses and Trucks

5.2.1.4.  Medium and Heavy Commercial Vehicles

5.2.1.5.  Off the Road (OTR)

5.2.1.6.  Two Wheelers

5.2.2. By Demand Category

5.2.2.1.  OEM

5.2.2.2.  Replacement

5.2.3. By Type of Tire

5.2.3.1.  Radial

5.2.3.2.  Bias

5.2.4. By Sales Channel

5.2.4.1.  Dealer/Exclusive Outlets

5.2.4.2.  Online

5.2.4.3.  Direct Sales

5.2.5. By Season

5.2.5.1.  All season

5.2.5.2.  Summer

5.2.5.3   Winter

5.2.6. By Price Category

5.2.6.1.  Budget (Up to USD90)

5.2.6.2.  Economy (USD91-USD140

5.2.6.3.  Premium (Above USD140)

5.2.7. By Rim Diameter

5.2.7.1.  Up to 12”

5.2.7.2.  12.1” to 15”

5.2.7.3.  15.1.” to 18”

5.2.7.4.  18.1” to 20”

5.2.7.5.  20.1” to 22.5”

5.2.7.6.  22.6” to 26”

5.2.7.7.  26.1” to 35”

5.2.7.8.  35.1” to 47”

5.2.7.9.  Above 47”

5.2.8. By Region

5.2.8.1.  West

5.2.8.2.  North

5.2.8.3.  South

5.2.8.4.  East

5.2.9. By Company

5.2.9.1.  Revenue Shares

5.2.9.2.  Strategic Factorial Indexing

5.2.9.3.  Competitor Placement in MarkNtel Quadrant

6.     Canada Passenger Car Tire Market Analysis, 2017- 2027

6.1.   Market Size & Analysis

6.1.1. Market Revenue

6.2.   Market Share & Analysis

6.2.1. By Type of Vehicle

6.2.1.1.  Sedan

6.2.1.2.  SUV

6.2.1.3.  Hatchbacks

6.2.1.4.  Others

6.2.2. By Demand Category

6.2.3. By Type of Tire

6.2.4. By Sales Channel

6.2.5. By Season

6.2.6. By Price Category

6.2.7. By Rim Diameter

6.2.8. By Region

7.     Canada Light Commercial Vehicle Tire Market, 2017-2027

7.1.   Market Size & Analysis

7.1.1. Market Revenue

7.2.   Market Share & Analysis

7.2.1. By Type of Vehicle

7.2.1.1.  Light Trucks

7.2.1.2.  Light Buses

7.2.1.3.  Pick-up Trucks and Vans

7.2.2. By Demand Category

7.2.3. By Type of Tire

7.2.4. By Sales Channel

7.2.5. By Season

7.2.6. By Price Category

7.2.7. By Rim Diameter

7.2.8. By Region

8.     Canada Medium Heavy Commercial Vehicle Tire Market, 2017-2027

8.1.   Market Size & Analysis

8.1.1. Market Revenue

8.2.   Market Share & Analysis

8.2.1. By Type of Vehicle

8.2.1.1.  Trucks

8.2.1.2.  Buses

8.2.2. By Demand Category

8.2.3. By Type of Tire

8.2.4. By Sales Channel

8.2.5. By Season

8.2.6. By Price Category

8.2.7. By Rim Diameter

8.2.8. By Region

9.     Canada Two-Wheeler Tire Market, 2017-2027

9.1.   Market Size & Analysis

9.1.1. Market Revenue

9.2.   Market Share & Analysis

9.2.1. By Type of Vehicle

9.2.1.1.  Scooters

9.2.1.2.  Mopeds

9.2.1.3.  Motorcycles

9.2.2. By Demand Category

9.2.3. By Type of Tire

9.2.4. By Sales Channel

9.2.5. By Season

9.2.6. By Price Category

9.2.7. By Rim Diameter

9.2.8. By Region

10.  Canada OTR Vehicle Tire Market, 2017-2027

10.1.Market Size & Analysis

10.1.1.   Market Revenue

10.2.Market Share & Analysis

10.2.1. By Type of Vehicle

10.2.1.1.   Earthmoving Equipment

10.2.1.2.   Construction and Agricultural Vehicles

10.2.1.3.   Material Handling Vehicles

10.2.2.   By Demand Category

10.2.3.   By Type of Tire

10.2.4.   By Sales Channel

10.2.5.   By Season

10.2.6.   By Price Category

10.2.7.   By Rim Diameter

10.2.8.   By Region

11.  Canada Tire Market Policies, Regulations, Product Standards

12.  Canada Tire Market Trends & Insights

13.  Canada Tire Market Dynamics

13.1.Growth Drivers

13.2.Challenges

13.3.Impact Analysis

14.  Canada Tire Market Hotspot & Opportunities

15.  Canada Tire Market Key Strategic Imperatives for Success & Growth

16.  Canada Competition Outlook

16.1.  Competition Matrix

16.1.1. Product Portfolio

16.1.2. Brand Specialization

16.1.3. Target Markets

16.1.4. Target End Users

16.1.5. Research & Development

16.1.6. Strategic Alliances

16.1.7. Strategic Initiatives

16.2.  Company Profiles (Business Description, Product Segments, Business Segments, Financials, Strategic Alliances/ Partnerships, Future Plans)

16.2.1.     Continental Tire Canada

16.2.2.     Bridgestone Canada (BSCA)

16.2.3.     Yokohama Tire (Canada)

16.2.4.     Hankook Tire Canada

16.2.5.     Goodyear Canada

16.2.6.     Michelin North America (Canada)

16.2.7.     Kumho Tire Canada

16.2.8.     Pirelli Tire

16.2.9.     Toyo Tire Canada

17.  Disclaimer

Canada Tire Market Segmentation