According to IMARC Group, the North America tire market size reached 385.5 Million Units in 2022. Looking forward, the market is expected to reach 455.0 Million Units by 2028, exhibiting a growth rate (CAGR) of 3% during 2023-2028.
Factors Affecting the Growth of the North America Tire Industry:
- Vehicle Ownership and Replacement Demand:
A primary driver of the North America tire market is the high vehicle ownership rate in the region, particularly in the United States. With many personal vehicles, there is a constant demand for tire maintenance and replacement. Tires are subject to wear and tear due to regular use, driving conditions, and climate factors, necessitating frequent replacements. This replacement market is significantly larger than the original equipment manufacturer (OEM) market, as vehicle owners seek to replace worn tires or upgrade to higher-quality or specialized tires. Additionally, the trend of keeping vehicles longer contributes to the recurring need for tire replacement, which is further bolstering the market.
- Advancements in Tire Technology and Preferences for Specialized Tires:
Technological advancements in tire manufacturing are another critical factor. There is an increasing demand for tires that offer enhanced safety, better fuel efficiency, and improved performance. Innovations such as low-rolling-resistance tires contribute to better fuel economy, aligning with the growing environmental concerns and regulations. In addition to this, the popularity of SUVs and light trucks in North America is raising demand for all-terrain and all-season tires, which provide better traction and durability under various driving conditions. The market is also witnessing a rise in demand for high-performance tires, driven by the segment of consumers who prioritize driving dynamics and vehicle performance.
- Economic Factors and Regulatory Policies:
The economic environment and regulatory policies in North America significantly influence the tire market. Economic growth and consumer spending power directly impact vehicle sales and, consequently, tire sales. In periods of economic downturn, consumers may delay tire purchases, affecting market dynamics. Regulatory policies concerning vehicle safety and environmental standards also play a crucial role. Stricter regulations on tire quality and performance, including tread depth and wear limits, can drive market growth by necessitating the production and purchase of higher-quality tires. Additionally, regulations aimed at reducing carbon emissions push for advancements in eco-friendly tire technologies.
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North America Tire Market Report Segmentation:
The report is organized into distinct sections as follows:
Breakup by Segment:
- OEM Market
- Replacement Market
The replacement segment is the largest segment in the North American tire market due to the high vehicle ownership rates and the regular need for tire replacement after wear and tear, surpassing the demand in the original equipment manufacturer (OEM) segment.
Breakup by Application:
- Passenger Car/ Light Truck
- Commercial Tires (Trucks)
- Commercial Tires (Off- Highway)
The passenger car/light truck is the largest application segment in the market, reflecting the high number of personal vehicles in North America, which require tires suited for everyday use and varied road conditions.
Breakup by Country:
- United States
- Canada
The United States is the largest market by country within North America, attributed to its larger population, higher vehicle ownership per capita, and more extensive road network as compared to its regional counterparts, Canada, and Mexico.
North America Tire Market Trends:
The growing demand for eco-friendly and sustainable tires represents one of the key factors driving the growth of the market across North America. This is primarily due to the increasing environmental awareness and regulatory standards that are leading to advancements in tire technology, focusing on low-rolling resistance designs and the use of sustainable materials, thus enhancing fuel efficiency, and reducing carbon emissions.
The market is also driven by the rise in demand for high-performance and all-season tires, catering to the diverse climate conditions across North America and the popularity of sports utility vehicles (SUVs) and crossovers. The adoption of advanced technologies such as smart tires equipped with sensors is also emerging, providing real-time data on tire health and road conditions, thereby enhancing safety and performance. In addition to this, the impact of the COVID-19 pandemic is accelerating the shift towards online tire retail, offering consumers convenience and a wider selection.
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Other Key Points Covered in the Report:
- COVID-19 Impact
- Porters Five Forces Analysis
- Value Chain Analysis
- Strategic Recommendations
If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.
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