Canada Tire Market Research Report: Forecast (2024-2030)

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 & Analysis: Canada Tire Market (2024-30)

The Canada Tire Market size is valued at USD 5.1 billion in 2023 & is estimated to grow at a CAGR of around 2.4% during the forecast period, i.e., 2024-30. 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. 

In addition, the coming years are likely to demonstrate an upscale in the sales of vehicles, which would directly impact the tyre 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.

Canada Tire Market 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 companies in the Canada Tire Market to introduce new products and enhance their overall product portfolio while delivering safer tires to the customers.

Canada Tire Market Challenge:

Volatile Prices of Raw Materials - The automotive & tyre 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 tire production in Canada and, in turn, increasing the demand-supply gaps, which is another prominent aspect that might hinder market growth in the coming years.

Canada Tire Market Opportunity:

Increasing Government Initiatives Targeting Carbon Neutrality - Since the automotive industry is one of the prominent contributors 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.

Canada Tire Market Trend:

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 tyre 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 2030.

Canada Tire Market (2024-30): Segmentation Analysis

The Canada Tire Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the level. According to the analysis, the market has been further classified as:

Based on the Type of Tire:

• Radial 
• Bias

among all, 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 congestion & carbon emissions, the production & sales of commercial vehicles are swiftly increasing and positively influencing the demand for radial tires in the canada. 

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 tyre 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 2024-30, 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.

Canada Tire Industry Recent Developments 

• 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.

Gain a Competitive Edge with Our Canada Tire Market Report

1. Canada Tire Market Report by Markntel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations to gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Canada Tire Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.