As car owners across Europe are becoming increasingly aware of the importance of timely tire inspection & replacement to ensure utmost safety & excellent driving experience, more and more tire manufacturers are expanding their production facilities in the region. As a result, the tire industry in Europe is expanding at a rapid pace and generating lucrative prospects for the leading tire makers.
The Europe Tire Market is projected to grow at around 5% CAGR during the forecast period, i.e., 2023-28. The growth of the market would be propelled mainly by the increasing sales of vehicles due to the changing living standards and greater inclination of the people toward private vehicle ownership across Europe, i.e., directly impacting the demand for tires.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Country Covered||The UK, Germany, France, Italy, Spain, Poland, The Netherlands, Romania, Belgium, Slovakia, Finland, Norway, Sweden, Denmark, Rest of Europe|
|Key Companies Profiled||Michelin, Continental, Bridgestone, Pirelli, Dunlop, Hankook, Goodyear, Nokian, Yokohama, Cooper Tires, Kumho, Vredestein, Toyo, other|
|Unit Denominations||USD Million/Billion|
Besides, with mounting concerns over the alarming carbon emission levels, governments of different regional countries are encouraging the adoption of Electric Vehicles (EV) and generating growth opportunities for the leading players to manufacture EV-compatible tires, thereby boosting the overall tire industry. In addition, the active participation of tire manufacturers in making Ultra-High-Performance (UHP) tires & smart tires are other crucial aspects projected to promote the growth of the tire market across Europe through 2027.
Moreover, governments of different countries in the region are actively promoting the adoption of a circular economy to tire manufacturers to ensure their production processes employ raw materials with the technical possibility of reducing waste generation and replacing those that challenge recycling. Hence, with all these aspects, the Europe Tire Market is all set to witness lucrative opportunities in the coming years.
Key Driver: Ever-Increasing Demand for Replacement Tires to Cater to the Large Vehicle Fleet
Europe has a massive vehicle fleet, which includes passenger cars, commercial vehicles, and two-wheelers. As the number of these vehicles on the road is increasing, so is the need for replacing their tires, mainly due to their wear & tear over time on account of diverse terrains, climates, & driving conditions. Hence, in order to ensure optimal performance, safety, and fuel efficiency, replacement tires are witnessing huge demand in the region and, consequently, driving the Europe Tire Market.
Growth Restraint: Stringent Regulatory Standards being imposed on Tire Manufacturers
The EU is implementing several regulations to address rising concerns over safety, environmental impact, & energy efficiency in order to ensure consumer protection & sustainability, which, in turn, are posing challenges for tire manufacturers. Ensuring compliance with these regulations involves massive R&D investments in testing & production adjustments, i.e., leading to increasing complexity & cost of the tire manufacturing processes.
Moreover, manufacturers are increasingly focusing on sustainability and reducing the environmental impact of tire production & usage, which includes minimizing CO2 emissions, expanding the use of recycled materials, and improving tire durability, adhering to which may require further big investments in sourcing sustainable materials and implementing eco-friendly manufacturing processes. Hence, the addition of these costs for manufacturers to meet the regulatory standards is the major aspect that may hamper the growth of the Europe Tire Market in the coming years.
Based on Type of Vehicle:
Of them all, passenger cars, which include sedans, hatchbacks, SUVs, & sports cars, dominate the Europe Tire Market with the largest share. Europe has a dense population as well as a well-established automotive sector that contributes to the high demand for passenger car tires, which typically have a limited lifespan and thus require regular replacement due to wear & tear. Hence, car owners & drivers need to replace worn-out or damaged tires to ensure safety, performance, & adherence to stringent regulations related to fuel efficiency, tire labeling, wet grip performance, & noise emission.
Consequently, massive investments by tire manufacturers in R&D of high-quality & technologically advanced tires for passenger cars in order to comply with these standards are driving the tire industry in Europe. Moreover, the ever-growing penetration of EVs (Electric Vehicles), coupled with the growing sales of winter or all-season tires to suffice the cold weather conditions of the region, are other prominent aspects spurring growth in the tire market of Europe for passenger cars.
Based on Demand Category:
Here, the Replacement demand category dominated the Europe Tire market with the largest share in previous years, and the same trend is likely during the forecast period. It owes principally to the abundant availability of aged & second-hand vehicles in different countries across the region, i.e., projecting a constant need for timely inspection, maintenance, repairs, & replacement of tires.
Besides, stringent government regulations for vehicle & passenger safety to periodically replace tires, which must have a minimum tread depth of at least 3mm, are augmenting the sales of replacement tires. Moreover, benefits like easy availability, affordability, and an extensive range of options are other prominent aspects promoting the demand for replacement tires and fueling the overall growth of the Europe Tire Market.
Of all countries across Europe, France is more likely to dominate the Tire Market with the largest share during 2023-28. It attributes principally to the country's rich history in tire manufacturing, the strong presence of tire companies like Michelin, and its innovation in tire technology & sustainable manufacturing practices. In addition, the mounting prevalence of two-wheelers in France, i.e., augmenting the demand for timely tire inspection and repairs & replacement if & as required, is another crucial aspect driving the tire industry in the country.
With the swift improvement in France's economy, changing living standards, and growing private vehicle ownership, the leading tire manufacturers worldwide are witnessing lucrative prospects to establish manufacturing units in the country and offer an extensive range of tires. Moreover, the surging internet penetration, coupled with the rapidly expanding e-commerce sector, i.e., offering a wide variety of tires of different brands, along with discounts & attractive deals, are other crucial aspects projected to propel the tire industry growth in France over the coming years.
Recent Developments in the Europe Tire Market
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Frequently Asked Questions
A. The Europe Tire Market is expected to record around 5% CAGR during 2023-28.
A. The ever-growing sales of replacement tires to cater to the massive vehicle fleet in the region is the prime aspect projected to drive the Europe Tire Market during 2023-28.
A. Michelin, Continental, Bridgestone, Pirelli, Dunlop, Hankook, Goodyear, Nokian Tires, Yokohama, Cooper Tires, Kumho, Vredestein, and Toyo are the key companies operating in the Europe Tire Market.
A. Stringent regulatory standards being imposed on tire manufacturers might hinder the growth of the Europe Tire Market in the forecast period.
A. The mounting demand for replacement tires would create lucrative prospects for the leading companies in the Europe Tire Market during 2023-28.
A. In Europe, France is expected to generate remunerative opportunities for the Tire Market to witness profitable opportunities over the forecast years.