Denmark is one of the highly populated countries in Europe where people have a high per capita income, which demonstrates a rapidly increasing number of vehicle fleets across the country and a steadily growing tire industry. However, since the country lacks manufacturing facilities for automobiles & tires, it is highly import-driven and portrays the prominence of tires exported from China, Germany, the Netherlands, etc.
Market Insights
The Denmark Tire Market is projected to register around 1.14% CAGR during the forecast period, i.e., 2022-27. The majority of the market expansion is likely to be driven by the growing government focus on enhancing the automotive & tire sectors and laying out favorable policies for attracting foreign investments by prominent brands in establishing their manufacturing facilities across the country.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR(2022-27) |
1.14% |
| Key Companies Profiled | Continental, Michelin, Bridgestone, Yokohama, Pirelli, Goodyear, Toyo, Hankook, Apollo Vredestein, Others |
| Unit Denominations | USD Million/Billion |
Moreover, the alarming emission levels are instigating the government to encourage the public to adopt Electric Vehicles (EVs) as a step forward in reducing carbons from the environment. It, in turn, is generating growth opportunities for the leading market players to manufacture & offer EV-compatible tires to meet the rising consumer requirements during the forecast period.
Furthermore, growing awareness among people about the significance & benefits of providing timely repairs & replacement of tires for vehicle & passenger safety is another prominent aspect propelling the demand for affordable & durable tires and contributing to the overall expansion of the Denmark Tire Market.
Impact of Covid-19 on the Denmark Tire Market
The advent of Covid-19 in 2020 had a decelerating effect on most businesses across Denmark, where the tire industry was no exception. With the imposition of stringent movement restrictions & lockdowns to curb the spread of this dreadful disease, the leading players witnessed several unprecedented challenges associated with tire imports & distribution throughout the country.
Besides, disruptions in the supply chain caused unavailability & delays in deliveries of tires across different locations, which, in turn, led to a severely declining market growth and massive financial losses for the prominent tire manufacturers amidst the crisis.
Nevertheless, the leading market players, in order to sustain, shifted to online platforms to offer a digital medium for customers to purchase tires without stepping out of their houses, coupled with benefits like doorstep deliveries & installation, exciting discounts, multiple brands, etc.
Later, with the declining number of Covid-19 cases, the government uplifted the restrictions and allowed the recommencement of business operations, which portrayed an upsurge in the growth of the tire market in Denmark.
Market Segmentation
Based on the Type of Vehicle:
Amongst all vehicle types, Medium & Heavy Commercial Vehicles are anticipated to demonstrate the fastest growth in the Denmark Tire Market during 2022-27. It owes principally to the rapid expansion of the transportation & logistics sector, i.e., propelling the requirement for these commercial vehicles to transport goods across locations. Since these vehicles can be driven rigorously in different terrain & climatic conditions for long hours, their tires require frequent repairs & replacement. Hence, the soaring demand for tires for medium & heavy commercial vehicles is playing a crucial role in augmenting the overall market growth.
On the other hand, Passenger cars are projected to acquire the largest market share through 2027. It attributes to the improved purchase power of people & their mounting inclination toward private ownership of vehicles, i.e., demonstrating a rapidly increasing passenger car fleet & demand for tires, thereby fueling the growth of the tire market in Denmark.
Based on the Demand Category:
Here, the Aftermarket category is anticipated to dominate the market over the forecast years. Denmark is an import-driven country for tires & other vehicle components due to the absence of automobile & tire manufacturing facilities, i.e., leading to the growing prevalence of imported tires from the Netherlands, Germany, China, etc.
Hence, the easy availability & affordability of a wide variety of these imported tires are driving the market. Moreover, the increasing frequency of tire replacements by consumers to maintain the highest level of vehicle safety is another crucial aspect projecting remunerative prospects for the market growth across the aftermarket category through 2027.
Market Dynamics
Possible Restraint: Fluctuating Prices of Raw Materials for Tire Production
The fluctuating prices of raw materials required for making tires are creating challenges for tire manufacturers across Denmark to produce tires at fixed prices. As a result, the final cost of tires imported into the country is unstable & poses difficulties in streamlining their distribution across end-users and, in turn, project hindrance to the growth of the Denmark Tire Market through 2027.
Growth Opportunity: Mounting Inclination of Tire Makers toward Manufacturing EV-Compatible Tires
The alarming levels of carbon emissions are instigating the government of Denmark to encourage the adoption of Electric Vehicles (EVs) as a step forward in curbing these emissions and bringing environmental sustainability. It, in turn, is generating growth opportunities for the leading players in the Denmark tire Market to manufacture, import, & distribute tires compatible with EVs and meet the rapidly increasing consumer requirements throughout the country.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Denmark Tire Market is projected to grow at a CAGR of around 1.14% during 2022-27.
A. The growing consumer inclination toward private ownership of vehicles entwined with awareness about the need for timely repairs & replacement of tires is the most prominent factor likely to drive the Denmark Tire Market through 2027. However, the volatile prices of raw materials are causing difficulties in maintaining the final costs of tires, which might hamper the market growth in the years to come.
A. Various government initiatives toward promoting the EV adoption among consumers to curb the rising carbon emissions, i.e., leading tire manufacturers to develop EV-compatible tires, is the key trend in the Denmark Tire Market.
A. Medium & heavy commercial vehicles are projected to emerge as an area of remunerative opportunities for the leading players in the Denmark Tire Market over the forecast years.
