Market Definition
Japan has been 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 plays a crucial role in attracting new tire manufacturers for establishments and expanding the tire industry in Japan.
Market Insights & Analysis: Japan Tire Market (2023-28)
The Japan Tire Market sales volume was 119.32 million units in 2022 and is projected to grow at a CAGR of around 1.8% during the forecast period, i.e., 2023-28. For several years, Japan has been an automotive hub and held its position as the fourth-largest automotive market worldwide in 2022. Such dominance is predominantly characterized by the extensive presence of renowned automakers like Toyota, Honda, & Nissan, which ensures a steady production & sales of vehicles and, consequently, high-quality tires to match the industry standards.
Report Coverage | Details |
---|---|
Study Period | Historical Data: 2018-21 |
Base Year: 2022 | |
Forecast Period: 2023-28 | |
CAGR(2023-28) | 1.8% |
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 |
Sales Volume | 119.32 Million Units |
Besides, the country is home to one of the leading global tire manufacturers, such as Yokohama Rubber Company Limited, Bridgestone Corporation, Yokohama, and more, widely recognized for their cutting-edge engineering & groundbreaking designs. As the Japanese automotive industry seeks to diversify its efforts and attract domestic & foreign investors, there are increased research & development investments, leading to advancements in tire technology.
Collaborations and partnerships between automotive companies & potential investors are also extending to tire manufacturers, consequently driving innovation & competitiveness in the market. Moreover, the accelerated adoption of EVs, which was once considered a weakness, has widened avenues for tire manufacturers to capitalize on the rising demand for specialized EV tires, thereby creating lucrative prospects for the Japanese tire industry through 2028.
Japan Tire Market Opportunity
Leveraging the Electric Vehicle Trend: The government of Japan aims to bring a 100% transition to EVs by 2035, resulting in a growing emphasis on exploring electric vehicles (EVs) trends. EVs often demand specialized tires designed for better energy efficiency and reduced road noise. This preference change might open up new opportunities for tire manufacturers in Japan to cater to the emerging electric vehicle market. By embracing this trend, the Japanese automotive industry garners international investors and partners, positioning itself as an attractive destination for EV-related investments and collaborations. This fosters technology transfers and elevates the industry's global competitiveness. Besides, re-entering the EV segment allows Japanese tire manufacturers to consolidate their dominance as a major player in the world's automotive market, further solidifying their reputation for innovation and sustainable mobility solutions.
Japan Tire Market Growth Challenge
Intense Competition from other Asian Tire Manufacturers - Japanese automakers are facing challenges when it comes to transitioning to electric vehicles. For instance, no carmaker from Japan could make it to the Top 20 EV makers globally, hinting at their lag in terms of EV tires. Besides, the country faces fierce competition from tire manufacturers in other Asian countries, where production costs are often lower. These regional competitors offer competitive prices, putting pressure on Japanese tire companies to enhance their product offerings and improve cost efficiency, posing a challenge for the market growth.
Japan Tire Market (2023-28): Segmentation Analysis
The Japan Tire Market study from MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–28. Based on the analysis, the market has been further classified:
Based on the Demand Type:
Of both, the demand for replacement tires has witnessed a significant surge during the historical period. In 2022, the sales volume of replacement tires for four-wheeled vehicles reached 67.53 million units, marking a notable rise of 7.4% compared to 2021, cites JATMA (Japan Automobile Tyre Manufacturers Association). It ascribed to the massive aging vehicle fleet in the country entwined with a vast import network for tires from countries like Thailand, Indonesia, & Malaysia, among others.
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.
Based on Type of Vehicle:
Here, passenger cars dominate the Japan Tire Market with the largest share, and the same trend is likely during 2023-28. 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, directly impacts the demand for passenger car tires and drives the market.
Moreover, the utilization of modern tire manufacturing techniques that leverage a diverse range of materials, such as natural rubber (NR), synthetic rubber (SR), and thermoplastic elastomer (TPE), have proven to be exceptionally advantageous for passenger car tires. It aids in delivering high mileage and ensuring extended longevity for these tires, paving the way for their widespread adoption.
Using these materials results in lower rolling resistance, improving fuel efficiency and reducing carbon emissions. The passenger car tires' grip on wet roads is unparalleled, ensuring enhanced safety for drivers and passengers alike. Notably, these cutting-edge materials exhibit superior wear resistance compared to the traditional steel-belted radials previously employed, further solidifying the prominence of passenger cars as the primary choice in the ever-evolving Japanese tire industry.
Japan Tire Industry Recent Developments:
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Frequently Asked Questions
A. The Japan Tire Market is projected to grow at a CAGR of around 1.8% during 2023-28.
A. The Japan Tire Market sales volume was 119.32 million units in 2022.
A. The prominent players anticipated to stiffen the competition globally are 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.
A. Replacement Demand is anticipated to emerge as an area of remunerative opportunities for the leading players in the Japan Tire Market during the forecast period.
A. Leveraging the electric vehicle trend is expected to present remunerative opportunities for the leading players in the Japan Tire Market during the forecast period.
A. Japan Tire Industry faces fierce competition from tire manufacturers in other Asian countries, hampering the market growth.
Japan Tire Market Research Report (2023-2028) - Table of Contents