North America, amongst the prominent industries for automobiles & tires, holds immense growth potential for automakers & tire manufacturers. Their active participation in the industry has led to various new launches of vehicle models & tires in recent years. Based on these aspects, the coming years are projected to be highly profitable for the tire industry across North America.
The North America Tire Market is projected to grow at a CAGR of around 4.2% during the forecast period, i.e., 2022-27. The growth of the market is likely to be driven principally by the swiftly increasing vehicle fleet, owing to the growing private vehicle ownership as a result of changing living standards & improving economic conditions of North Americans.
Besides, the growing awareness about the importance & benefits of timely inspection & maintenance of vehicles & tires is further generating growth opportunities for the leading players in the market to expand their product portfolio and offer lucrative tire replacement deals to customers.
Moreover, an increasing number of construction projects in line with burgeoning infrastructural developments is surging the demand for heavy vehicles & construction equipment and, in turn, is infusing the production & sales of tires across the region.
Furthermore, various efforts by governments of different countries in North America toward encouraging the adoption of Electric Vehicles (EVs) to address environmental issues & curb carbon emissions are displaying a growing number of vehicles in the region. As a result, the leading tire manufacturers are actively working on upgrading their product offerings to suffice the requirements of EVs, which is another crucial aspect expected to drive the market through 2027.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: USA, Canada, Mexico|
|Key Companies Profiled||Goodyear, Bridgestone, Michelin, Continental, Sumitomo, Hankook, Kumho, Pirelli, Yokohama, Toyo|
|Unit Denominations||USD Million/Billion|
Impact of Covid-19 on the North America Tire Market
The advent of Covid-19 in 2020 had a harsh impact on most industries across North America, where the automotive & tire markets were no exception. As governments across different North American countries imposed stringent movement restrictions & lockdowns to curb the spread of this dreadful disease, the tire industry witnessed several unprecedented challenges.
The cross-border trade limitations hampered the import of vehicles & tires as their sales significantly declined. As a result, prominent players in the market witnessed substantial financial losses owing to lower requirements for tires amidst the crisis as the majority of the people were spending only on essentials. Consequently, tire manufacturers reduced their production capacities, which, in turn, hampered the market growth.
However, the gradual improvement in the pandemic situation, with a declining number of Covid-19 cases, led to the upliftment of restrictions & recommencement of business operations. It, in turn, allowed the leading players in the market to accelerate their production capacity to meet the burgeoning consumer requirements across the region and benefit the market growth trajectory.
Based on the Vehicle Type:
Amongst them all, passenger cars dominated the North America Tire Market with the largest share in the previous few years. The increasing inclination of people toward private vehicle ownership entwined with improving economic conditions & changing lifestyles is driving the sales of passenger cars across North America.
It, in turn, is instigating prominent automakers & tire manufacturers to surge their production capacities & introduce new product lines to the market. As a result, the growing fleet of passenger vehicles is fueling the growth of the tire market across North America.
Besides, rapid developments in infrastructure & road connectivity are other aspects playing a crucial role in expanding the sales of passenger cars & tires, especially across countries like the US & Canada. Additionally, there are numerous government initiatives toward boosting the adoption of Electric Vehicles (EVs) to reduce carbon emissions. It would generate remunerative prospects for tire manufacturers to develop & distribute EV-compatible tires and, in turn, propel the overall market growth in the coming years.
Geographically, the North America Tire Market expands across:
Of all countries across North America, the US leads the tire market with the largest share. It owes principally to the extensive presence of prominent automakers & tire manufacturers in the country, indulged actively in the production & distribution of new vehicles & tires and stimulating the market growth.
Besides, the rapid expansion of the import & export business in the US owing to favorable government policies, coupled with the mounting inclination of tire manufacturers on developing airless tires in order to reduce the overall vehicle weight & increase fuel efficiency, are other crucial aspects projected to promote the overall market growth through 2027.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The North America Tire Market is expecting around 4.2% CAGR during 2022-27.
A. Passenger Cars are anticipated to emerge as an area of remunerative opportunities for the leading players in the North America Tire Market through 2027.
A. The increasing inclination of tire manufacturers toward the development of Airless Tires and the mounting penetration of EVs are the key growth opportunities anticipated to drive the North America Tire Market in the coming years.