Europe Tire Market Research Report: Forecast (2023-2028)

Market Insights & Analysis: Europe Tire Market (2023-28)

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. 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 & generating lucrative prospects for the leading tire makers, thus enhancing the Europe Tire Market size as well.

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.

Market Dynamics

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.

Market Segmentation

Based on Type of Vehicle:

• Passenger Cars
• Light Commercial Vehicles
• Medium & Heavy Commercial Vehicles
• Two Wheelers
• Off-the-Road (OTR) Vehicles

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 the Europe Tire Market share.

Based on Demand Category:

• OEM
• Replacement

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.

Country Projection

• Germany
• Italy
• France
• The United Kingdom
• Spain
• Poland
• The Netherlands
• Belgium
• Slovakia
• Romania
• Finland
• Norway
• Sweden
• Denmark

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

• December 2022: Toyo Tire Corporation officially opened a new passenger vehicle tire factory in the Municipality of Indjija, the Republic of Serbia.
• November 2022: Nokian Tyres announced plans to invest in a new zero-carbon emission passenger car tire production factory in Oradea in the North-West of Romania, near the Hungarian border, with an annual capacity of 6 million tires and an expansion potential in the future.
• May 2022: Goodyear Tire & Rubber Company officially opened its new manufacturing facility in Dudelange, Luxembourg, following a $77 million investment in its Industry 4.0 digital manufacturing process.

Gain a Competitive Edge with Europe Tire Market Report

1. Europe 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. Europe 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.