Canada Tire Market Research Report: Forecast (2025-2030)

Market Insights & Analysis: Canada Tire Market (2025-30):

The Canada Tire Market size was valued at around USD 7.84 billion in 2024 and is projected to reach USD 10.28 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 4.62% during the forecast period, i.e., 2025-30. Factors contributing to the market growth include rising aftermarket & E-commerce expansion, road infrastructure development & LCV sales growth, and rising adoption of electric vehicles. All these factors are augmenting the size & volume of the Canadian Tire Industry.

Moreover, the rise in light commercial vehicles (LCVs) due to e-commerce logistics has increased the need for high-durability tires. As LCVs operate in high-load conditions, they require regular tire replacements due to intensive usage. And, the expanding road infrastructure, especially in urban and suburban areas of the country further increasing the demand for reliable, high-endurance tires for covering long distances and varied terrains. Furthermore, the growing expansion in the automotive industry is creating an opportunity for the Canadian tire industry. As more vehicle production facilities are getting established, the need for high-performance and reliable tires is also rising to meet the requirements, such as enhanced traction, durability, and efficiency.

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The growing adoption of IoT-enabled smart tires is one of the trends boosting the overall Canada Tire Market for the upcoming years. Unlike traditional ones, these smart tires have advanced technologies that include real-time data, enhanced safety, etc., making them a preferred choice. 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 size & volume of the market over the forecast years.

Canada Tire Market Driver:

Stringent Safety Norms Driving Market Growth – Over many years, the drastically rising number of road accidents in the country has prompted regulatory authorities to focus the setting norms related to manufacturing or tires and replacement tenure of the tires, etc. In 2022, according to Transport Canada’s National Collision Database (NCDB) report, the figure of 91,500 reported road collisions in Canada. 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 on time and have periodic inspections on their condition to ensure vehicle & passenger safety at all times.

For instance, the regulations enforced by Transport Canada on tires to enhance safety include, Motor Vehicle Safety Act, which states that all tires sold in Canada must comply with the Motor Vehicle Tire Safety Regulations (SOR/2013-198) set. 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. Therefore, strict norms related to the safety of the vehicles & drivers are increasing the market demand.

Canada Tire Market Opportunity:

Growing Automotive Industry – The increasing vehicle production across the country has been presenting lucrative growth opportunities for the tire industry of Canada. For instance, in 2025, Honda announced around four new manufacturing facilities to be established in Alliston and operated by 2028. Additionally, the demand for electric vehicles is witnessing significant growth, which is further leading to the expansion of EV manufacturing plants. For instance, in 2023, Ford announced transforming Oakville Assembly into an EV-focused complex and building a cathode-material plant in Bécancour, which is projected to begin by the year 2026.

With many new automotive production facilities, there’s a strong push for customized, high-performance tires designed for specific needs, including better traction, quieter ride, and lower rolling resistance. Therefore, the expanding automotive production is anticipated to generate significant demand for different types of tires in the country, which ultimately will augment the size & volume of the tire industry.

Canada Tire Market Challenge:

Volatile Prices of Raw Materials and Import Dependency – Rising raw material and import costs are a major challenge for the growth & expansion of the Canadian tire market. This is attributed to the industry’s heavy reliance on globally sourced materials like rubber, crude oil, and steel, all of which are subject to price volatility due to geopolitical tensions, climate factors, or supply chain disruptions. Since a large number of tires sold in Canada are imported from other regions like Asia and the U.S., which has led to fluctuation in exchange rates and international shipping delays, significantly increasing procurement costs and reducing pricing stability. Hence, 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 Trend:

IoT-enabled Smart Tires Gaining Traction – The growing emergence of IoT-enabled smart tire solutions is one of the key trends in the Canadian Tire Industry because these advanced technologies in tires make them smarter, more convenient, and a preferred option rather than a traditional one. Such smart solutions provide real-time data, improved safety, reduced operational costs, and enhanced vehicle performance, thus attracting a large group of end-users.

Moreover, many leading tire manufacturers are also investing in advanced smart tire manufacturing in Canada, because consumers are demanding smart products that are studded with modern-day smart features. For instance, in 2024, Goodyear, one of the largest tire manufacturers globally, announced an investment of around USD419.75 million to upgrade its plant in Ontario for a long-term commitment to advanced tire production in Canada. Therefore, these upgradations in the tire are significantly changing market dynamics and presenting a new path for the growth & development of the tire industry in Canada.

Canada Tire Market (2025-30): 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 2025–2030 at the national level. Based on the analysis, the market has been further classified as:

Based on the Type of Tire:

• Radial 
• Bias

Among all, Radial Tires dominate the Canada Tire Market with the largest market share of more than 60%. 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; thus, such vehicles are heavily reliant on radial tires, resulting in the higher market demand for this specific form of tire in the country. Additionally, the rapidly growing transportation & logistics sector also boosts 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 Canada.

Based on Demand Category:

• OEM
• Replacement

Here, the replacement demand dominates the Canada Tire Market with a market share of more than 70% in recent years and is anticipated to follow the same trend during the forecast period as well. 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 revenue growth in the Canada Tire Market during 2025-30, 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 Development:

• 2024: Goodyear Canada announced a USD419.75 million expansion plan of its Napanee, Ontario plant, aiming to boost EV and all-terrain tire production, create ~200 jobs, and achieve net-zero waste by 2040.
• 2024: Continental Tire Canada launched the UltimateContact tire family exclusively at Canadian Tire, aiming to increase presence and cater to premium tire demand in Canada.

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 & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses 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, businesses can develop strategies to minimize risks & optimize their operations.

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