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The automotive tires e-retailing market size is estimated to grow at a CAGR of 15.3% between 2022 and 2027. The market size is forecast to increase by USD 10,797.53 million. The growth of the market depends on several factors, including the rise in sales of passenger vehicles globally, consumer inclination toward online tire purchases, and the convenience of presenting a wider portfolio of automotive products.
This automotive tires e-retailing market report extensively covers market segmentation by type (radial tire and base tire), application (passenger cars, light commercial vehicles, and heavy commercial vehicles), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The rise in sales of passenger vehicles globally is notably driving the market growth, although factors such as the difficulty in retention of loyal customers online the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rise in sales of passenger vehicles globally is notably driving the automotive tires e-retailing market growth. Increased sales of various passenger vehicles such as sedans, hatchbacks, mini vehicles, sport utility vehicles (SUVs), multi-purpose vehicles (MPVs), crossovers, and personnel carriers are driving the growth of the global e-retail market for automotive tires. Vehicles currently produced on the market have a longer service life. The average age of vehicles in use in the United States is increasing year by year. Canada has a larger car population because the average life expectancy of a car is longer than in the US. The average age of vehicles has been steadily increasing, increasing by almost two years from 2007 to 2017. Vehicles sold in America have better construction, with sturdier construction and more durable engines.
This encourages consumers to keep their vehicles longer, increasing the average vehicle age. Therefore, the demand for auto spare parts such as tires is increasing all over the world. Since cars are used by users for a long time, they require regular maintenance in order to function properly. This increases demand for tires to replace old and worn tires through offline or online channels. Therefore, with the increase in passenger vehicle sales, the global e-retail market for automotive tires is expected to grow significantly during the forecast period.
Increasing adoption of RTB is identified as the key trend in the global automotive tires e-retailing market. Real-time bidding (RTB) is an online bidding process that enables marketers, advertising agencies, and media buying agencies to trade display ad inventory in real-time. The provider will provide a suitable platform to carry out this auction process. When a visitor visits her website, she sends a request to the provider. The provider sets a minimum price for its visitors and various advertisers can see the visitor and the minimum price and bid accordingly. The provider then selects the highest bidder and the highest bidder's advertisement is shown to the visitor.
E-commerce is a market expected to make extensive use of RTB to target customers during the forecast period. A similar concept could be adopted for the online trading of car tires. As more vendors enter the market, RTB implementations may become a differentiator between vendors. Therefore, increasing adoption of RTB is a trend that is likely to drive the growth of the focused market during the forecast period.
Difficulty in retention of loyal customers online may impede the growth of the automotive tires e-retailing market growth. Retaining customer interest is one of the biggest challenges for online tire retailers. In offline retail stores, employees help shoppers make the right product choices and engage with customers to ultimately make the purchase. However, online retail gives customers complete control over their purchasing decisions. Therefore, online tire suppliers will find it difficult to attract customers. Additionally, creating a customer-facing website is expensive and requires a lot of research to understand customer behavior.
Purchasing tires significantly increases the customer's overall shopping cart. Due to the undifferentiated product, there is a risk of intense price competition in the market, and the multiple options available to customers present a significant challenge for online tire suppliers. Hence, the difficulty in keeping loyal customers online will pose a challenge to the growth of the global e-retail automotive tire market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Tires E-Retailing Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
1A Auto Inc.: The company offers automotive tire e-retailing solutions such as brakes and wheel bearings.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the radial tire segment will be significant during the forecast period. Radial tires are expected to account for the bulk of this expansion due to their high-performance characteristics such as improved fuel economy, improved handling, and increased durability.
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The radial tire segment was valued at USD 3,001.87 million in 2017 and continued to grow until 2021. Long-established tire manufacturers such as Michelin, Bridgestone, Goodyear, and Continental offer a wide range of radial tires for passenger cars, light trucks, and commercial vehicles through their respective e-commerce platforms. For example, Michelin offers a range of radial tires on their website, including the Michelin Defender, which is designed for durability and performance all year round. Similarly, Bridgestone makes the Turanza Serenity Plus, a premium touring tire that offers a smooth ride and excellent wet traction. Overall, as the demand for more durable and fuel-efficient tires increases, the demand for radial tires is also expected to increase during the forecast period.
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North America is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In North America, the demand for motorcycles is increasing due to the increase in recreational motorcycles. Online commerce, electronic retail, and e-commerce are growing rapidly around the world and represent a significant portion of the overall retail market. The number of online shoppers is increasing as more people do most of their shopping in physical stores.
There is a high awareness of auto parts in this region. Additionally, the region has a strong presence of organized online auto tires retailers such as Amazon.com, Goodyear Tire and Rubber Company, and TIRE RACK, serving a diverse online customer base. The US is one of the world's largest automotive markets and is at the forefront of technological advancements and the introduction of new vehicles. Various car dealers and car manufacturers in the country have entered the e-commerce arena. In addition, factors such as growing local consumers' preference for online shopping, well-developed infrastructure, and growing demand for hassle-free shopping are driving the growth of the e-retail market for automobile tires in the region.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The outbreak of COVID-19 in 2020-2021 adversely affected the e-retail auto tire market in the region. The pandemic led to the imposition of lockdowns in various countries, including the US and Canada. However, the introduction of various COVID-19 vaccines in the region in the first half of 2021 has allowed the government to launch a massive vaccination campaign and lift lockdown restrictions. Such factors have led to the resumption of operations in several industries, including auto parts and equipment. In addition, the increased propensity of people to shop online due to the pandemic also boosted the growth of the regional market.
The automotive tires e-retailing market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global automotive tires e-retailing market as a part of the global automotive components and accessories market within the global auto components market. The global automotive components and accessories; market covers companies engaged in the production of parts and accessories for automobiles like passenger cars (PCs), electric vehicles (EVs), commercial vehicles (CVs), heavy-duty vehicles, off-road vehicles, motorcycles, scooters, quad bikes, and three-wheelers. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
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Automotive Tires E-Retailing Market Scope |
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Report Coverage |
Details |
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Page number |
163 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 15.3% |
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Market growth 2023-2027 |
USD 10,797.53 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
14.55 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 40% |
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Key countries |
US, China, Japan, India, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
1A Auto Inc., Advance Auto Parts Inc., Alibaba Group Holding Ltd., Amazon.com Inc., AutoZone Inc., CarParts.com Inc., Cummins Inc., Delticom AG, DENSO Corp., eBay Inc., HELLA GmbH and Co. KGaA, Icahn Automotive Group LLC, JD.com Inc., LKQ Corp., PARTS iD Inc., Rakuten Group Inc., Robert Bosch GmbH, RockAuto LLC, The Goodyear Tire and Rubber Co., and Walmart Inc. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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