Luxembourg Tire Market Research Report Forecast: (2024-2030)

Market Insights & Analysis: Luxembourg Tire Market (2024-30):

The Luxembourg Tire Market size was valued at around USD 68 million in 2023 and is estimated to grow at a CAGR of around 2.25% during the forecast period, i.e., 2024-30. The market is growing rapidly due to the country’s high and rapid growth of the passenger car market, which ultimately augments the demand for tires and thriving the Luxembourg tire industry. Also, citizens prefer to buy their vehicles in the country not because they prefer luxury, but because they see vehicles as a necessity, they want to have for their daily use in movement and transportation.

However, the country stands among the top countries due to high disposable income, and individuals here also prefer owning a car to using a public vehicle for transport but the rising number of the use of retreated tires is spreading concern among the Luxembourg Tire companies. They provide many benefits such as they are cheaper, as safe as new ones, looking the same, and requiring a lower amount of oil, thus attracting consumers to use them. Which is adversely impacting the Luxembourg Tire Market Growth.

Further due to the high focus on sustainability and environmental concerns, the use of Electronic vehicles is promoted globally. Initiatives and subsidies provided by the government for E-Vehicles are also attracting consumers in this country to buy their vehicles. The growing establishment of charging stations for electronic vehicles in the country further makes the buyers feel more confident about their preference towards E-Vehicles, which creates the demand for tires and augments the size & volume of the market.

Although the country is very small in terms of population and area, surprisingly the country left behind big economies like the USA, Germany, Japan, and many others countries when it comes to the topic of GDP per capita and disposable income. Thus the demand for passenger cars in the country is expected to rise in the future as well, with time, there will be more consumers demanding passenger cars, which will keep on helping in the growth of the Luxembourg tire industry in the coming years as well.

Luxembourg Tire Market Driver:

Higher GDP Per Capita & Disposable Income Driving Market Growth – The country is way ahead in terms of GDP per capita and standards of living compared to other developed and developing countries in Europe or globally. This small nation of Europe leads all the countries in the world in terms of GDP per capita income, which is in itself a resilient fact when we talk about the reason for the growth of the tire market in the country, as individuals here have more disposable income that they can spend on the luxuries and necessities that maintain their standard of living.

The Organization for Economic Cooperation and Development (OECD) Better Life Index has presented some valuable results supporting this fact, this index states that the mean household net-adjusted disposable income of Luxembourg is approximately USD 44,773 a year, which is way larger than the average for OECD countries of approximately USD 30,490 a year. Being a rich country in terms of disposable income, individuals find owning a car as a necessary item, for their daily ups and downs, and travel solutions. Thus, these factors are augmenting the Luxembourg Tire Market size & volume.

Luxembourg Tire Market Opportunity:

Increasing Demand for Passenger Cars to Offer Growth Opportunities – The continuously growing demand for passenger cars in the country is expected to boost the Luxembourg tire industry in the forecast period, owing to the surge in vehicle fleets in the country. The higher GDP per capita and disposable income of the country make it easy for individuals to spend on the purchase of their vehicles and fulfill their necessities and luxuries. The increasingly wide spending capabilities of the country are making the ownership of cars and other personal vehicles a necessary item for daily use for transportation and travel solutions. So to meet the rapidly growing demand coming from the car market for tires is expected to boost the tire industry in the country. Therefore, the increasing inclination of individuals towards the ownership of the vehicle is projected to create lucrative opportunities for the Luxembourg Tire companies.

Luxembourg Tire Market Challenge:

Increasing Inclination Towards Retreading Tires to Hinder Market Growth – The inclination towards the use of retreated tires is increasing everywhere, also they are low in cost and have no harm to the safety of the tire, they are not illegal, and their wearing rate is not faster than the new tires, with no effect on the performance of the tires. The consumption of oil is comparatively lower in retreated tires than the new ones, making the use of retreated tires environmentally friendly as well, which further adds to the attraction of the consumers towards the remolded tires. All these associated benefits with the use of retreated tires result in higher adoption of retreading tires but hinder the market demand for new tires. Thus, this increasing inclination towards retreading tires is impeding the growth & expansion of the top market players in the industry.

Luxembourg Tire Market (2024-30): Segmentation Analysis

The Luxembourg Tire Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Type of Vehicle:

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

In recent years, the passenger cars segment held a major portion of the Luxembourg Tire Market Share in the category of type of vehicles, and it is estimated that this trend will continue during the forecast period as well. This is mainly due to the high demand from the individuals for the passenger cars. The inclination of individuals towards self-owned vehicles is augmenting the demand for them, which is further lifted by the high GDP per capita in the country.

This European country has a higher GDP per capita income than most of the developed countries like New Zealand, the USA Germany, etc. Due to this high level of GDP per capita of the country, citizens prefer private vehicles to public transport options. Moreover, due to the high standards of living citizens here see owning a car as a necessary item for their daily life which is further boosting the demand for passenger cars segment and ultimately boosting demand for the tire industry in the country.

Based on Type of Tire:

• Radial
• Bias

In recent years, the largest share of the Luxembourg Tire Market was taken up by the radial tires segment, and it is estimated that this trend will go on during the forecast period. This is mainly due to the lower gap between the prices of both radial and bias tires and bias tires and the high performance offered by radial tires. Further, the durability of the radial tires is comparatively higher than the Bias tires, which also adds to the increasing demand for radial tires. Therefore, benefits associated with radial tires are positioning this segment in the leading position in the tire industry of the country.

Luxembourg Tire Industry Recent Development:

• 2024: Bridgestone launched a new premium type of winter van tire which in all winter conditions delivers some special benefits like longevity, safety, and efficiency.
• 2023: Continental became the first manufacturer in the European Union to launch Series tire which has a large share of the sustainable materials in the manufacturing.

Gain a Competitive Edge with Our Luxembourg Tire Market Report

1. The Luxembourg 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 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. The Luxembourg 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.