Market Overview
The geographic location of Turkey is seen as a pathway for trade across the Middle East, Asia-Pacific, and Europe, which makes it a prominent hub for import, export, manufacturing, and distribution of automotive components & tires. Hence, several leading automakers & tire manufacturers view the country as an area of lucrative opportunities in their respective industries.
Besides, since the population in Turkey is young, the demand for modern vehicles, sports cars, & upgraded tires with robust features is instigating manufacturers to meet the consumer demands and introduce new products in the automotive & tire sector. Hence, the country leverage itself as an asset in the global value chain due to its logistical advantage, young population, low-cost labor, and flexible production capacities.
Market Insights
The Turkey Tire Market is projected to grow at a CAGR of around 3.45% during the forecast period, i.e., 2022-27. The growth of the market attributes primarily to the increasing government focus on infrastructural developments, i.e., projecting numerous construction projects throughout the country and propelling the demand for heavy vehicles while directly impacting the requirement for robust tires.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR(2022-27) | 3.45% |
| Key Companies Profiled | Yokohama, Kumho, Sumitomo, Anlas Anadolu, Michelin Lastikleri, AbdulKadir Ozcan, Turk-Pirelli, Goodyear Lastikleri, Barisa, Bridgestone, ÖZKA Lastik ve Kauçuk Sanayi Ticaret A.S |
| Unit Denominations | USD Million/Billion |
Turkey is the home to trade for Asia-Pacific, the Middle East, and Europe, which projects a vast import & export business for tires to meet the burgeoning requirements in these regions. Besides, favorable policies by the government entwined with memberships in trade relations like European Custom Union are playing a crucial role in strengthening the trade relations of Turkey across different countries and boosting the tire market.
Moreover, growing sales of vehicles due to improving economic conditions, changing living standards, & growing purchasing power is projecting an expanding vehicle fleet in the country. It. in turn, is instigating the leading players to increase their production capacities & stimulate market growth in the coming years.
Furthermore, the presence of profitable opportunities for the leading players in the market owing to the high penetration of European, Middle Eastern, and Central Asian markets shall also contribute to a significant expansion of the Turkey Tire Market in the years to come.
Impact of Covid-19 on the Turkey Tire Market
The advent of Covid-19 in 2020 had a catastrophic effect on the entire automotive industry of Turkey, where the Tire Market was no exception. Travel bans, hampered transportation & logistics, supply chain disruptions, unavailability of raw materials & labor, delays in deliveries of pre-produced tires, etc., were some severe challenges faced by the leading players in the tire industry of Turkey.
Additionally, increasing demand & supply gaps, volatile prices of raw materials, and shut down of manufacturing units were other aspects that hampered the overall market growth amidst the crisis. Besides, cross-border trade restrictions further affected the imports & exports of the tire industry in Turkey, failing to meet deadlines.
However, the declining number of Covid-19 cases enabled the Turkish government to uplift the restrictions and allow the recommencement of business operations. Consequently, the market players were back on track to recover from revenue losses they faced amidst the crisis. Currently, they are actively working on introducing new tires in their product portfolio and expanding their scalability, which, in turn, would boost the overall growth of the Turkey Tire Market in the years to come.
Market Segmentation
Based on the Type of Tire:
Of both, Radial tires dominated the Turkey Tire Market with the largest share in the historical years, and the same trend is likely to be followed during the forecast period. It owes principally to the rapidly increasing construction of roads, highways, airports, complexes, malls, etc., in the country due to the growing government focus on infrastructure developments. It, in turn, is propelling the demand for heavy vehicles, which is directly influencing the requirement for robust radial tires & driving the market.
Besides, benefits like lower fuel consumption, improved traction & flotation, better-cut resistance in the tread, & cooler run are other crucial aspects augmenting the demand for radial tires and fueling the overall market growth.
Moreover, since Turkey is one the prominent locations for trade, countries in the Middle East are soaring the demand for radial tires to suffice the requirements for heavy vehicles used in construction activities and, consequently, would augment the growth of the Turkey Tire Market through 2027.
Based on the Type of Vehicle:
Here, Passenger cars acquired the largest market share in recent years, owing prominently to their rapid sales due to improving economic conditions, growing preference for vehicle ownership, and changing living standards. It, in turn, is directly & positively impacting the tire market of Turkey.
Besides, the expanding tourism and the rising migrant population is another vital aspect propelling the demand for passenger vehicles and, as a result, for tires. Moreover, the availability & affordability of an extensive range of tires provided by prominent players for people with different budgets is also playing a crucial role in boosting the sales of tires for passenger cars across Turkey and driving the market.
Based on the Sales Channel:
Here, the demand for tires through Online sales channels is likely to witness the fastest growth in the Turkey Tire Market during the forecast period. It attributes to the growing digital transformation across different sectors, including the tire industry. Several tire manufacturers are coming up with online platforms for customers to choose from an extensive range of tires as per their needs & vehicles.
Besides, growing consumer preference toward online platforms as a primary store for shopping due to the multiple options, low costs, & high-quality, easy comparison, etc., is also encouraging tire manufacturers to increase their production capacity to suffice the mounting requirements. It, in turn, is enabling the leading players to increase their visibility across the country by expanding their product portfolio and, as a result, fuel the overall market growth in the coming years.
Recent Development by Leading Companies
Market Dynamics
Key Driver & Opportunity: Swift Expansion of the Commercial Sector
With rapid infrastructural developments, Turkey is witnessing a swift expansion of its commercial sector, exhibiting the construction of hospitals, hotels, educational institutions, office spaces, among others. It, in turn, is boosting the demand for heavy commercial vehicles, trucks, buses, & vans, among others, and, consequently, for tires, thereby driving the Turkey Tire Market.
Additionally, the same factors are also instigating the trade of commercial vehicles & tires across different countries, augmenting the export & import business of tires, and stimulating the expansion of the Turkey Tire Market through 2027.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Turkey Tire Market is projected to grow at a CAGR of around 3.4% during 2022-27.
A. Passenger Cars are anticipated to emerge as an area of remunerative opportunities for the leading players in the Turkey Tire Market during 2022-27.
A. The growing focus of the Turkish government on infrastructure developments is leading to a swift expansion of the commercial sector, with an escalating number of constructions associated with hospitals, hotels, airports, office complexes, shopping malls, etc. It, in turn, is fueling the demand for heavy commercial vehicles and thereby generating lucrative growth opportunities for the Turkey Tire Market through 2027.
A. Currently, the Turkey Tire Market is in the recovery phase. With the resumption of import, export, manufacturing, and distribution of tires, along with the active participation of leading players in introducing new tire models to meet the burgeoning customer requirements, the coming years are likely to generate significant growth opportunities for the market.
