Market Definition
The tire industry across Latin America is vast & expanding on the back of the more massive automotive sector, i.e., positively influencing the sales of tires. The active participation & extensive presence of prominent tire manufacturers across the region are contributing notably to the growth of the automotive & tire industries. Besides, governments of different countries in Latin America are laying out favorable policies for establishing tire manufacturing facilities, which projects lucrative prospects for the leading players in the tire industry over the coming years.
Market Insights
The Latin America Tire Market is projected to grow at a CAGR of around 2.6% during the forecast period, i.e., 2023-28. The growth of the market is likely to be driven primarily by the rapidly expanding automotive & tire industries owing to the increasing automobile production & exports across several countries across Latin America. Besides, the gradually improving economic conditions of people & their mounting inclination toward private ownership of vehicles are also driving tire sales in the region.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2023-28 | |
| CAGR(2023-28) | 2.6% |
| Country Covered | Mexico, Brazil, Argentina, Columbia, Venezuela, Chile, Peru, Uruguay, Paraguay, Cuba Ecuador |
| Key Companies Profiled |
Pirelli Tires, Bridgestone Tyres, Cooper Tire Rubber Company, CEAT Tyres, Apollo Tyres, Goodyear Tires, Continental Tires, JK Tyres, Michelin Tyres, Maxxis Tyres, Yokohama Rubber Company, Other |
| Unit Denominations | USD Million/Billion |
Moreover, growing consumer awareness about the significance & benefits of timely replacement of tires for enhanced passenger safety & driving experience is another prominent aspect contributing to the expansion of the tire market in Latin America.
Additionally, the rising competition between the leading tire manufacturers has led to the extensive availability of tires of multiple brands & budgets and with advanced features. Furthermore, an escalating need for enhanced fuel efficiency & safety in vehicles is another potential driver for the Latin America Tire Market through 2028.
Impact of Covid-19 on the Latin America Tire Market
The advent of Covid-19 in 2020 severely affected the automotive & tire industries and introduced several challenges for the leading players operating in the Latin America Tire Market. As the spread of this dreadful disease was rapid, governments of different countries across the region imposed lockdowns & stringent movement restrictions and suspended all business operations associated with the tire industry. Consequently, tire manufacturers faced massive revenue losses while witnessing a shortage of raw materials, disruptions in the supply chain, delays in delivery & production of tires, & fluctuations in prices amidst the crisis.
Yet, with a gradual decline in the number of Covid-19 cases, the governments began uplifting the restrictions & allowed the recommencement of different industries. As a result, tire manufacturers resumed their production units to cater to the growing consumer requirements for tires across Latin America. Furthermore, several tire manufacturers adopted digital sales channels to sell their products online via e-commerce websites & offer door-step delivery & installation to their customers, which helped the market revive and steadily grow in 2020 during the pandemic.
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Market Segmentation
Based on the Vehicle Type:
Amongst all vehicle types, Medium & Heavy Commercial Vehicles are anticipated to dominate the Latin America Tire Market with the largest share during 2023-28. It owes to the mounting focus of governments of different countries across the region on infrastructural developments, i.e., showcasing an increasing number of construction activities and accelerated demand for medium & heavy commercial vehicles. It, in turn, is positively influencing the production & sales of tires across Latin America.
Besides, since several countries in the region undergo various mining & construction activities, the demand for medium & heavy commercial vehicles is prevalent. It, in turn, is generating growth opportunities for the leading players to increase their production & distribution capacities to meet the rising consumer requirements for tires. Furthermore, Mexico being one of the prominent manufacturers & exporters of heavy commercial vehicles is another notable aspect anticipated to promulgate the demand for tires and drive the Latin America Tire Market over the forecast years.
Based on the Demand Category:
Here, the mounting demand for aftermarket tires across Latin America is anticipated to contribute substantially to the expansion of the tire market across the region through 2028. Aftermarkets offer a wide tire range of different brands, features, & budgets. The growing consumer awareness about the importance of providing timely repairs & replacements to tires is driving the market for aftermarket tires across several countries in the region.
On the other hand, OEMs are projected to emerge as an opportunity area for the leading market players during 2023-28. It owes principally to the extensive presence of prominent tire manufacturers across different regional countries and the mounting inclination of brands toward expanding their visibility & customer base rigorously. It, in turn, is showcasing a growing establishment of OEMs and positively impacting the growth of the tire industry across Latin America.
Country Landscape
Geographically, the Latin America Tire Market expands across:
Amongst all countries across Latin America, Mexico is expecting rapid growth in the tire market over the forecast years. It attributes principally to the improving economic conditions of Mexicans & their rising inclination toward private ownership of vehicles, i.e., demonstrating a rapidly increasing vehicle fleet and frequent tire repairs & replacements for enhanced safety & driving experience.
As a result, the leading players in Mexico Tire Market are witnessing lucrative opportunities to expand their visibility, product portfolio, & consumer base across the country in the coming years. Besides, Mexico is among the prominent manufacturers & exporters of automobiles across several countries and benefited regionally from sharing the market with the Americas, thereby likely to emerge as an opportunistic area for the leading tire manufacturers in the years to come.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Latin America Tire Market is projected to grow at a CAGR of around 2.6% during 2023-28.
A. The swiftly expanding automotive sector & its direct & positive influence on the demand for tires is a prominent growth driver for the Latin America Tire Market through 2028.
A. A significant rise in private ownership of vehicles is a key trend benefitting the tire industry across Latin America.
Latin America Tire Market Research Report (2023-2028) - Table of Contents
