Japan is an automotive hub and a swift adopter of technologies, entwined with the extensive presence of prominent automakers & tire manufacturers, participating actively in the production, distribution, & development of various vehicles & their components. The immense support from the government through investments & favorable policies are playing a crucial role in attracting new tire manufacturers for establishments and expanding the tire industry in Japan.
The Japan Tire Market is projected to grow at a CAGR of around 4% during the forecast period, i.e., 2021-26. The growth of the market is likely to be driven by the swiftly increasing vehicle sales owing to improving economic conditions, growing purchasing power, changing living standards, & escalating vehicle ownerships, i.e., surging the production & sales of vehicles and, in turn, driving the Japan Tire Market.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||Bridgestone Corporation, Sumitomo Rubber Industries Limited, Yokohama Rubber Company Limited, Toyo Tires & Rubber Company Limited, Kumho Tire Japan Inc., Japan Michelin Tire Co Ltd., Japan Goodyear Inc., Japan Pirelli Inc., Hankook Tire Japan|
|Unit Denominations||USD Million/Billion|
Besides, the growing inclination toward adopting Electric Vehicles (EVs) to reduce carbon emissions and the mounting demand for energy-efficient tires are also stimulating the growth of the tire industry. Moreover, since the country is a prominent hub for automakers & tire manufacturers, it is likely to attract foreign investments in the development of technologically advanced vehicles & tires, i.e., another crucial aspect expected to boost the market in the coming years.
Impact of Covid-19 on the Japan Tire Market
The advent of Covid-19 in 2020 had a decelerating impact on the entire automotive sector of Japan, where the tire market was no exception. The imposition of stringent movement restrictions & lockdown by the government to curb the spread of this dreadful disease introduced several unprecedented challenges to the tire industry. While the borders of different countries had to close, the country witnessed disruptions in tire imports & exports.
In addition, severely affected transportation & logistics in the country hampered the deliveries of pre-produced tires and brought a shortage of raw materials like rubber & crude, unavailability of labor, etc., which further led to massive gaps between the demand & supply of tires. Besides, since the production of tires was becoming difficult and the prices of raw materials like rubber & crude were fluctuating, the overall tire prices rose swiftly amidst the crisis.
Based on the Type of Vehicle:
Amongst them all, Passenger cars dominated the Japan Tire Market with the largest share in recent years, and the same trend is expected during the forecast period. It owes principally to the swiftly increasing vehicle ownership in the country, i.e., displaying a swift growth in the sales & production of passenger cars. It, in turn, is directly impacting the demand for passenger car tires and driving the market.
Besides, massive encouragement from the Japanese government to adopt passenger Electric Vehicles (EVs) is also instigating tire manufacturers to launch tires with advanced features to meet the requirements of specific vehicles. It, in turn, is anticipated to further augment the overall growth of the Japan Tire Market during the forecast period.
Based on the Demand Type:
Here, the Replacement demand acquired the largest market share in recent years, owing principally to the massive vehicle fleet in the country entwined with a vast import network for tires from countries like Thailand, Indonesia, & Malaysia, among others. It, in turn, is augmenting the demand for replacement tires and fueling the overall market growth.
Besides, rising awareness among people about the need for timely inspection of tire conditions & providing replacement to them shall further boost the market for replacement demand. Moreover, stringent government regulations to reduce the number of road accidents are instigating vehicle owners to purchase replacement tires and enhance the safety of the vehicle & passengers. Hence, the burgeoning replacement demand would significantly accelerate the growth of the japan tire market over the forecast years.
Key Driver: The Growing Penetration of Electric Vehicles (EVs) in Japan
With the escalating need to curb carbon emissions from the environment, the government of Japan is encouraging the public to adopt EVs and reduce the utilization of fossil fuels since it aims to bring 100% transition to EVs by 2035, which is when all new vehicles would be environmentally friendly. Hence, the government is offering several favorable policies & subsidies for purchasing EVs, which, in turn, is generating lucrative growth opportunities for the leading players to develop & introduce an extensive range of tires for EVs and boost the Japan Tire Market during 2021-26.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Japan Tire Market is projected to grow at a CAGR of around 4% during 2021-26.
A. Passenger cars are anticipated to emerge as an area of remunerative opportunities for the leading players in the Japan Tire Market through 2026.
A. The burgeoning EV sales in Japan, owing to growing awareness about reducing carbon emissions, is the key growth opportunity projected to drive the Japan Tire Market in the coming years.