North America Tire (Tyre) Market Outlook, 2027

North America Tire (Tyre) Market Outlook, 2027

Automotive tire is the circular vehicle component made of rubber used to cover the wheel’s rim externally. The major function of the tire is to protect the wheel rim and offer tractive force between the road surface and the vehicle. Since it is manufactured from rubber, it also provides a flexible cushion, thereby reducing the impact of the vibrations and absorbs the shock of the vehicle. Rubber tire consists of tread, jointless cap piles, beads, and other materials, which include synthetic rubber, carbon black, and fabric.

The North America tyre market is developed well progressed towards maturity. As vehicles are getting more efficient, roads are getting smoother; the North American tyre market finds itself on a suitable pedestal to grow upon. As per the market research report published by Bonafide Research, under the title, “North America Tyre Market Outlook, 2027” the market is evaluated to be selling 650.23 Million tyres annually as of 2021 and is expected to grow to USD 109.90 Billion in size by the year 2027. In order to assess and study the regional trends and patterns in the North America tyre market, the research has been approached by looking at the market through appropriate segments and classification. The segments that aided in the comprehensive evaluation of the markets were based on vehicle types, end-use demand, and the demand of tyres on the basis of their construction design. The vehicle types include vehicles such as passenger cars, light commercial vehicles, medium and heavy vehicles, 2 wheeler vehicles, 3 wheeler, and other vehicles including bicycles. The categorization on the basis of end-use demand includes demand for replacement tyres and OEM demand for tyres. Based on design types, the tyre market is segmented as radial tyres and bias-ply tyres. To have a broader understanding of the North America landscape of the tyre market, further segmentation has been made based on countries, and the sales channels through which the products are made available to the distributors and customers.

North America represents one of the largest tire markets accounting to escalating demand for automobiles as a result of outpaced economy and high disposable income of consumers. Apart from this, increasing number of infrastructure projects, developed construction industry and high demand for replacement tires in the region have fuelled the tire market. Expanding vehicle fleet for agricultural purposes along with the new technological advancements will continue to spur the demand in the upcoming years. 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.

The North America tyre market is majorly driven by the USA having almost a little more than 85% of the overall market’s share. Canada, Mexico combined share a little over 14% of the market leaving a minuscule share for the rest of the North American tyre market. The USA and Canada are more developed economies and have a more saturated tyre market than Mexico. Mexican tyre market is the fastest growing tyre market in the region, forecasted to register a CAGR little shy of 7% during the forecast period of 2022 to 2027. As the North American region is highly developed economically, where the automotive industry is well penetrated, the radial tyres have one of the highest adoption rates in the region as compared to the rest of the world. When the market is segmented on the basis of vehicle types, it has been observed that the LCV tyres were the most demanded in the region historically from 2016 to 2021. One of the reasons for the higher growth is due to the expansion of urban inter and intra city logistics in the region facilitating small and growing businesses.

COVID-19 Impact
The Covid-19 pandemic affected almost every industry vertical across the globe and the tire market in the region of North America was no exception. The enforcement of lockdowns along with the travel restrictions across countries significantly affect the tire market. The situation of lockdowns caused production in the automobile industry to stop which affected the demand from the OEM sector. On the other hand the market was also observing decline from the replacement sector during the pandemic as the requirement for new tires declined.

Key Players
Apollo Tires, Bridgestone, CEAT Tires, Continental, Giti, Goodyears Tires, Hankook, JK tires, Kenda Kumho, Maxxis International, Michelin, MRF, Nexen Tire Corp, Nokian Tires, Pirelli, Sailun Group Co., Ltd, Sumitomo Rubber Industries, Titan International , Toyo Tire Corporation, Triangle Tire Co, Zhongce Rubber Group Co, Yokohama, Doublestar Tire, Linglong, Nankang

Considered in the report
• Geography: North America
• Base Year: 2021
• Historical year: 2016
• Forecasted Year: 2027

Countries covered
• USA
• Canada
• Mexico
• Rest of North America

Aspects covered in the report
• Market Size by Value (2016-2027F)
• Market Size by Volume (2016-2027F)
• Market Share by Vehicle Type
• Market Share by End Use
• Market Share by Design
• Market Share by Sales Channel
• Market Share by Country

The approach of the report:
We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

Intended Audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Automotive and Transport industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.