The 2021-2025 version of this report is just being published. Buy it now and get up to $1000 worth of free customization!
According to a study by the World Bank, 500 out of 1000 people own a car in Europe. The demand for passenger car tires is directly related to passenger car sales, and Germany is one of the most mature markets in this space. With close to 43 million cars running on German roads, the market is particularly driven by the replacement tires segment.
The region includes diverse intra-Europe conditions ranging from economic well-being to weather conditions. While the tire market was affected by the global financial crisis, conditions have improved over the years. Countries in Northern Europe have displayed better growth as compared to the rest of Europe, and the trend is expected to continue during the forecast period. Low-cost manufacturers from China have specifically leveraged the European market since the recession. However, the market currently witnessing a renewed demand for premium brands also. The competition in the market is intense, and it is leading to significant investments in the latest technology.
Germany’s climate varies from northern inland areas to its coastal areas. For instance, temperatures vary in the average annual range of 24 Fahrenheit in Zugspite to 80 Fahrenheit in southwest Germany. This mixed weather necessitates the use of different type of tires advocated as per climatic suitability.
Furthermore, falling crude oil prices have positively impacted the passenger car tire segment. It has reduced the cost of synthetic rubber and carbon black used for manufacturing tires. In 2014, the German market generated sales of over 65 million tires, and it continues to grow on account of design innovation and improved quality tires.
Vendors are introducing improved quality of winter, summer, and all weather tires in this market. The focus is on improving the fuel efficiency and longevity in the long run. There are many local players in this market who provide cost-effective tires with limited features while international players offer highly advanced features.
The leading vendors of the market include Apollo, Bridgestone, Brisa, Continental, Cooper tire, Debica, Deldo, Falken,Giti Tires, Goodyear, HWA Fong, Interstate Tire, Kumho Tire, Marangoni, Maxxis, Michelin, Nankang Rubber, Nexen, Nokian Tyres, Pirelli, ROSAVA, Sailun, Sumitomo, Toyo, Triangle Group, Vee Rubber, and Yokohama rubber.
The growth of replacement tires is closely associated with the rise in passenger car movement (miles driven per annum). Falling crude oil prices and growth of the German has thus provided traction to this segment. In 2014, the replacement tire segment led the passenger car tire market in Germany in terms of volume. Rising sales of passenger cars has also led to the growing consumer base for tire replacements in the country.
With passenger cars sales in Germany through April 2015 going beyond 1 million units, the ongoing growth is also expected to fuel the demand for tires in the OEM segment through 2019.
Germany opted for winter tire regulations in 2010 after which the usage of winter tires was made compulsory. The scope of the regulation includes all types of vehicles and provisions for steep fines in cases of non-adherence mandates the use of winter tires in the country. These fines are imposed primarily depending on the type of offense, such as accidents caused by vehicles, etc., and it ranges anywhere from Euro 40-100 or $42-127.
Also, in many parts, studded tires are not allowed as these are capable of damaging roads. With growing utility and an increase in passenger car sales, the market is witnessing a relative surge in the demand for winter tires in Germany.
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.
Get the report (PDF) sent to your email within minutes.
Get lifetime access to ourTechnavio Insights
Get lifetime access to our Technavio Insights
This report is available in English.
Did you know?
Want to customize this report?
This report can be personalized according to your needs. Our analysts and industry experts will work directly with you to understand your requirements and provide you with customized data in a short amount of time.
Technavio's SUBSCRIPTION platform
Register for a free trial today and gain instant access to 17,000+ market research reports.
START YOUR FREE TRIAL