Luxembourg Tire Market Research Report Forecast: (2022-2027)

Market Definition

Luxembourg has the highest per capita income worldwide & a stable business environment which is why its automotive & tire industries are likely to witness significant growth prospects in the coming years. Moreover, favorable government policies for international tire brands to establish their manufacturing facilities in the country further project lucrative expansion for the tire industry in the nearer future.

Market Insights

The Luxembourg Tire Market growth is projected to expand at around 2.25% CAGR during the forecast period, i.e., 2022-27. The flourishing automotive sector, owing to the growing public interest in private vehicle ownerships, is driving the tire industry in Luxembourg. With the increasing fleet size of vehicles due to increasing cross-border trade agreements & low-interest rates for businesses, there are ever-increasing tire imports into the country.

Moreover, the massive financial sector & easy finance options for people, i.e., leading to constantly rising new vehicle registrations across Luxembourg, are other prominent aspects generating remunerative growth opportunities for the tire market through 2027.

Recently, Goodyear established a tire production plant in Luxembourg, featuring an industry 4.0 digital manufacturing process for producing large-rim UHP & UUHP tires four times quicker than a standard manufacturing process. The new facility would aid in progressing small-batch tire manufacturing with minimized lead times, i.e., another crucial aspect likely to fuel the overall growth of the Luxembourg Tire Market in the years to come.

Impact of Covid-19 on the Luxembourg Tire Market

The Covid-19 pandemic in 2020 had significant impacts on the automotive & tire industries and introduced numerous unprecedented challenges for the companies operating in the Luxembourg Tire Market. Since the spread of this dreadful disease was exponential, the government had to impose lockdowns, stringent movement restrictions, & suspend all business operations associated with the industry.

As a result, the leading players in the market witnessed massive financial loss with the advent of challenges like supply chain disruptions, delays in the deliveries & import of tires, shortage of raw materials, & fluctuations in the prices of raw materials & tires, among various others, amidst the crisis.

Yet, as these players had to sustain during the pandemic, many of them made a strategic transformation to online platforms to sell their products via e-commerce websites & provide door-step delivery & installation to their customers.

Later, with the gradual improvement in the pandemic situation that demonstrated a gradual decline in the number of Covid-19 cases, the government uplifted the restrictions & allowed the reopening of industries, which, in turn, enabled stakeholders & players to resume their business operations & cater to consumer requirements.

Market Segmentation

Based on the Season:

• All Season
• Summer
• Winter

Amongst these three, winter tires are anticipated to dominate the Luxembourg Tire Market with the largest share during 2022-27. It attributes principally to the prominence of colder weather in the country owing to its geographic position entwined with government mandates for deploying winter tires in vehicles to avoid road accidents.

Besides, the growing consumer awareness about the benefits of winter tires like excellent gripping cold, dry, snowy, & icy roads, extra deep treads, easy water dispersion, reduced aquaplaning, & enhanced vehicle handling, among others, is another prominent factor augmenting their demand across Luxembourg and fueling the overall market growth.

Based on the Vehicle Type:

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

Of them all, passenger cars have been acquiring the largest market share over the previous few years, and the same trend is likely to be continued in the coming years. It owes to the mounting demand for passenger car tires due to the high per capita income of the people, their growing inclination toward private ownership of vehicles for the daily commute, and easy finance options available for them.

Besides, since people in Luxembourg see cars more as a necessity than a luxury, the vehicle fleet is surging rapidly across the country and, in turn, accelerating the sales of passenger car tires. Hence, with increasing sales of passenger cars, the leading players operating in the tire industry of Luxembourg are actively expanding their import & distribution capacities to meet the burgeoning consumer requirements for tires.

Key Questions Answered in the Market Research Report:

1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Luxembourg Tire Market?
2. What are the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Luxembourg Tire Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Luxembourg Tire Market based on the competitive benchmarking matrix?
5. What are the key results derived from surveys conducted during the Luxembourg Tire Market study?

Frequently Asked Questions