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The global market for passenger vehicle replacement tires will experience steady growth and will post a CAGR of over 7% by 2020. The falling rubber prices will act as a boon for this market as it will help vendors to increase their profit margins. Over the past few years, the profiles of tire manufacturers have improved owing to increased global vehicle production, rising pool of aging vehicle population leading to high volume sales, and lower rubber prices elevating profit margins. The recent drop in rubber prices coincides with a lower remote method invocation (RMI) 1-year aggregate probability of default (PD), which means cash position and financial default likelihoods for 44 globally listed tire manufacturers will be lowered drastically. This decrease in the cash position of vendors will indicate the healthy cash making ability of these companies.
In this market study, it has also been observed that the advent of newer tire brands has started influencing the buying preferences of consumers. Over the last few years, young riders have been more receptive than their older counterparts to tire brands that are less established in the market. In the US, large, well-established tire brands such as BFGoodrich, Goodyear, and Michelin have the highest popularity rates among all generations. However, it has been observed that the millennial population prefers smaller or newer brands in the US market, such as Cooper, Hankook, and Pirelli, when replacing the original equipment tires on their vehicles.
This market is highly fragmented owing to the presence of players that offer tires in a variety of shapes and sizes to the customers. In this market, most of the market shares are dominated by OEM replacement tires and aftermarket players. The prospects for growth in this market will be driven by the increasing sales of passenger cars and the growing popularity of high-performance tires.
Top vendors in this market are -
Other prominent vendors in this market are Yokohama, Hankook, Dunlop, and Cooper Tire and Rubber Company.
At present, the original equipment manufacturers (OEM) segment dominates this market and is envisaged to increase its market hold by the end of 2020. With the evolution of vehicles, original equipment tires have changed in terms of design and configurations. Tire characteristics, such as weight and rolling resistance, have been reduced and handling has been improved by OEMs. According to Technavio’s market research analysts, the OEM market segment will account for a profound market share of around 94% by 2020.
In this market analysis, analysts have estimated the APAC region to account for an impressive market share of approximately 61% by 2020. The increasing usage of road networks through personal vehicles, high prevalence of poor road conditions in some countries, and the high sale of passenger cars in the region will aid in the strong growth of this market in APAC.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market landscape
PART 06: Market drivers
PART 07: Market challenges
PART 08: Market trends
PART 09: Market segmentation by geography
PART 10: Market segmentation by type
PART 11: Vendor landscape
PART 12: Key vendor analysis
PART 13: Appendix
PART 14: Explore Technavio
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