The two-wheeler tires are engineered with specialized features to meet the unique requirements of two-wheeled vehicles, including factors such as size, tread pattern, load capacity, and speed rating. It involves a range of stakeholders, including tire manufacturers, distributors, retailers, and aftermarket service providers, who cater to both original equipment manufacturers (OEMs) and aftermarket customers. Ultimately, the two-wheeler tire plays a vital role in ensuring the safety, performance, and efficiency of two-wheeled vehicles.
Market Insights & Analysis: South America Two Wheeler Tire Market (2023-28):
The South America Two Wheeler Tire Market is projected to witness significant growth during the forecast period of 2023-2028, with a projected compound annual growth rate (CAGR) of around 12.25%. One of the key drivers is the increasing adoption & usage of two-wheelers in the region. Countries like Brazil, Argentina, and Colombia have witnessed a surge in urbanization, resulting in higher demand for affordable & convenient transportation options. These vehicles, including motorcycles & scooters, have become popular choices for commuting in congested urban areas. As a result, the demand for two-wheeler tires has seen a significant uptick. This growth has created a substantial outlook for the Two-Wheeler Tires Market, both in terms of original equipment & replacements.
The replacement tire segment is expected to contribute significantly to the market growth. South America has a diverse landscape, including varied terrains & climates, which results in faster tire wear & the need for frequent replacements. Hence, this presents a lucrative market opportunity for tire manufacturers & retailers. Furthermore, technological advancements in tire manufacturing & design have played a crucial role in driving Two-Wheeler Tires Market growth.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Country Covered||Brazil, Argentina, Chile, Colombia, Peru, Paraguay, Ecuador, Uruguay, Rest of South America|
|Key Companies Profiled||Michelin, Bridgestone, Pirelli, Dunlop, Maggion Tires, Borilli, Rinaldi Tires, Pneus Technic, Maxxis, Kenda Tire, Others|
|Unit Denominations||USD Million/Billion|
Manufacturers are introducing innovative tread patterns, enhanced grip & traction, and improved durability in their tire offerings, thus attracting consumers towards premium & specialized two-wheeler tires offering better performance & safety. Companies like Pirelli, Michelin, and Bridgestone have introduced advanced tire models specifically designed, catering to different riding conditions such as city commuting, long-distance touring, or off-road adventures. These tires utilize advanced rubber compounds & tread designs to provide superior grip, stability, and longevity, meeting the demands of South American riders.
Moreover, government regulations & initiatives promoting road safety & the usage of quality tires are also expected to positively impact the South America Two Wheeler Tire Market. For instance, governments across South America are implementing stringent safety standards & conducting mandatory periodic vehicle inspections to ensure roadworthiness. These regulations emphasize the importance of using quality tires that comply with safety standards. As a result, consumers are becoming more aware of the benefits of using high-quality tires, thereby driving the demand for reliable two-wheeler tires in the forthcoming years.
South America Two Wheeler Tire Market Driver:
Rapid Urbanization to Fuel the Demand for Two-wheeler Tires in the Region – As urban areas rapidly expand & population increases, there is a surging demand for efficient & cost-effective transportation options, particularly in countries like Brazil & Colombia. Thus, it is presumed that the flourishing urbanization would drive the growth of the South America Two Wheeler Tire Market.
In Brazil, cities such as Sao Paulo & Rio de Janeiro have experienced rapid urbanization, resulting in increased traffic congestion. As a result, motorcycles & scooters have become popular choices for daily commuting, offering agility & fuel efficiency in navigating through crowded city streets. As more individuals opt for motorcycles & scooters as their preferred mode of transportation in urban areas, the demand for reliable & high-quality two-wheeler tires is expected to rise, presenting lucrative opportunities for tire manufacturers & retailers operating in the South American market.
Tire manufacturers & retailers that cater to this market can capitalize on the growing urbanization trends by offering high-quality &reliable tires designed for urban environments. Additionally, government initiatives & infrastructure development aimed at improving urban mobility will further stimulate the demand for two-wheelers, subsequently enhancing the South America Two-wheeler Tire Market size.
South America Two Wheeler Tire Market Opportunity:
Increasing Demand for High-performance Sports Two-wheeler Tires – As the population continues to modernize & more riders seek exhilarating riding experiences, there is an elevation for sport-oriented motorcycles & scooters. This, in turn, would aid in creating an opportunity for the Two Wheeler Tire Market expansion in South America. These vehicles are designed for enhanced speed, agility, and cornering capabilities, requiring specialized tires that can deliver optimal performance under demanding conditions. This presents an opportunity for tire manufacturers to cater to the performance segment & provide high-quality sports tires tailored to the preferences of South American riders. For instance, the popularity of MotoGP racing in South America, particularly in countries like Brazil & Argentina, has fueled the interest in sport-oriented motorcycles.
The adrenaline-pumping races & the enthusiasm of the local fan base have contributed to a growing market for sports bikes. As riders aspire to experience similar performance & thrill on their motorcycles, the demand for high-performance sports tires would rise, creating an opportunity for tire manufacturers to introduce technologically advanced tires that offer exceptional grip, stability, and responsiveness for spirited riding.
Furthermore, South America has a vibrant street racing culture, especially in cities like Sao Paulo and Bogota. Street racers & motorcycle enthusiasts seek powerful bikes with high-performance capabilities to navigate through city streets & showcase their riding skills. These riders demand tires that can provide superior traction, handling, and durability to withstand the challenges of aggressive riding styles, thus supporting in creating a positive outlook for the South America Two Wheeler Tire Market in the future years.
South America Two Wheeler Tire Market Challenge:
Presence of a Price-sensitive Consumer Base to Limit the Market Growth – Price sensitivity is indeed creating a hindrance to the sales of premium tires in the South American Market. The presence of a price-sensitive consumer base poses a significant challenge for tire manufacturers & retailers who aim to introduce high-quality tires with advanced technologies. Economic factors in South America, such as income disparities & fluctuating exchange rates, contribute to price sensitivity among consumers, thus restricting the South America Two Wheeler Tire Market growth.
Countries like Brazil & Argentina, where income distribution is uneven, have a significant portion of the population belonging to lower income brackets. These consumers often have limited budgets & tend to prioritize cost-effective options when purchasing two-wheeler tires. As a result, consumers willingly opt for lower-priced, entry-level tire brands. Thus, a substantial penetration of localized tire brands in the country has exacerbated a challenge for premium tire manufacturers, further creating a barrier to market expansion.
South America Two Wheeler Tire Market Trend:
Growing Demand for Eco-friendly & Sustainable Tires – With increasing awareness about environmental concerns & a shift towards sustainable practices, consumers are seeking tires that are designed to minimize their impact on the environment. The growing inclination of consumers towards sustainable products, coupled with government regulations & sustainability initiatives, is fueling the growing demand for eco-friendly & sustainable tires.
Simultaneously, the introduction of green label certifications, like the Brazilian Labeling Program for Tires (PBE), to boost awareness among consumers is further augmenting the adoption of eco-friendly tires in South America, thus becoming a trend in the Two Wheeler Tire Market.
South America Two Wheeler Tire Market (2023-28): Segmentation Analysis.
The South America Two Wheeler Tire Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the analysis, the market has been further classified as:
Based on Vehicle Type:
Motorcycles hold a dominating share of the South America Two Wheeler Tire Market owing to their substantial use in transportation activities, particularly in urban areas with heavy traffic congestion. Motorcycles with engine displacements between 101cc & 125cc, and 126 to 150cc, hold a notable share in the overall two-wheeler fleets due to better fuel efficiency, power, and affordability. Considering the surging demand, motorbike manufacturers such as TVS & Yamaha, among others, are expanding their product portfolios in the region under the 125-150cc segment.
Additionally, companies like iFood, Cornershop, etc., are increasingly utilizing motorcycles for efficient & timely transportation of goods in congested urban environments, as they offer greater maneuverability, which makes them ideal for navigating heavy traffic. This leads to continuous wear & tear in motorbike tires from frequent running, which, in turn, drives the sales of motorbike tires in the region.
Further, the rising trend in the region towards off-road bikes, due to rising enthusiasm among the population for recreational riding activities & the launch of various motorbike racing events conducted across South America, including MotoGP, is leading to a rise in the sales of racing bikes & their tires, respectively.
Based on Sales:
The South American Two Wheeler Tire Market is experiencing a significant shift towards Online sales, presenting a promising opportunity for future market growth. While multi-brand stores have traditionally been dominant in the industry, the convenience & expanding e-commerce landscape are driving the rise of online sales. With increasing internet penetration & a growing preference for online shopping, consumers are turning to these platforms to purchase two-wheeler tires.
The advantages of online shopping, such as browsing through a wide selection, comparing prices, and doorstep delivery, have made online channels highly appealing. The success of e-commerce platforms like Mercado Libre & specialized automotive marketplaces exemplifies the trend toward online dominance. For instance, in 2023, Mercado Libre reached & connected more than 130 million unique active users in its entire ecosystem. With its user-friendly interface, secure payment options, and reliable delivery services Mercado Libre has become a go-to destination for online tire purchases in South America.
As this mode of shopping continues to gain momentum & consumer attraction, the segment is expected to witness a notable growth rate in the coming years. Thus, presenting an opportunity for businesses to tap into the expanding e-commerce market & cater to the evolving preferences of consumers.
South America Two Wheeler Tire Market Regional Projection:
Geographically, the South America Two Wheeler Tire Market expands across:
Brazil overpowers the South American Two Wheeler Tire Market among other regions by exerting a significant influence on the industry. The country's supremacy is rooted in various factors that have solidified its position. Brazil possesses a substantial market size, with a considerable population & a strong demand for motorcycles & scooters. This robust demand perpetuates a consistent need for tires for replacement within the country.
Further, the growing penetration of 5G services, increasing income standards, and expansion of various e-commerce & mobility service-providing companies in the country is uprooting the sales of two-wheeler & their tires in the country, hence upscaling the growth graph of the market.
South America Two Wheeler Tire Industry Recent Development:
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Frequently Asked Questions
A. The South America Two Wheeler Tire Market is projected to grow at a CAGR of around 12.25% during 2023-28.
A. The increasing demand for high-performance sport tires for two-wheelers is the major factor driving the South America Two Wheeler Tire Market.
A. Michelin, Bridgestone, Pirelli, Dunlop, Maggion Tires, Borilli, Rinaldi Tires, Pneus Technic, Maxxis, Kenda Tire, and Others are the top players in the South America Two Wheeler Tire Market.
A. Motorcycles is the leading vehicle type in the South America Two Wheeler Tire Market.
A. The growing demand for eco-friendly & sustainable tires is the key trend shaping the growth of the South America Two Wheeler Tire Market.
A. The increasing demand for high-performance sport tires for two-wheelers is the growth opportunity pushing the growth of the South America Two Wheeler Tire Market through 2028.
A. The presence of a price-sensitive consumer base for two-wheelers is a possible restraint affecting the growth of the South America Two Wheeler Tire Market.
South America Two Wheeler Tire Market Research Report (2023-2028) - Table of Contents