The Europe automotive tire market size is projected to reach USD 68.4 billion in 2023. Over the next ten years (2023 to 2033), automotive tire sales in Europe are set to rise at around 4.8% CAGR. The market is likely to surpass a valuation of USD 108.7 billion by 2033.
The demand for automotive tires in Europe is closely tied to vehicle sales. High production of vehicles including passenger cars, light commercial vehicles, and heavy commercial vehicles, can impact tire demand.
Factors such as economic conditions, consumer purchasing power, and government regulations play a role in vehicle sales and, consequently, tire demand.
According to the European Automobile Manufacturers’ Association (ACEA), in 2022 about 10.9 million passenger cars were produced in the European Union in 2022. This high production of vehicles in turn is bolstering automotive tire sales and the trend is expected to continue through 2033.
Europe experiences varying weather conditions throughout the year, including summer and winter seasons. This creates a demand for specific types of tires, such as summer tires and winter tires, which are designed to provide optimal performance in different weather conditions. Seasonal fluctuations can influence the demand for these specialized tires.
Government regulations and standards related to tire safety, labeling, and environmental impact can affect the tire market. Regulations such as the EU tire labeling requirements, which provide information on fuel efficiency, wet grip, and noise levels, impact consumer choices and market dynamics.
Rising popularity of autonomous vehicles is triggering innovations in automotive tires. Autonomous vehicles prioritize safety and reliability, as they operate without human intervention.
Tires play a crucial role in ensuring the safety and performance of these vehicles. Tire manufacturers are focusing on developing tires with advanced tread designs, materials, and construction techniques to provide excellent grip, stability, and durability, contributing to the overall safety and reliability of autonomous driving systems.
Advanced tread patterns optimize water evacuation, improve grip on wet surfaces, and reduce braking distances. Specialized rubber compounds are formulated to provide better grip, wear resistance, and reduced rolling resistance, ensuring optimal performance and safety.
Growing need for replacement tires is another key factor boosting the Europe market. As vehicles age, tires experience wear and tear, reducing their performance and safety. The need for tire replacement increases as older vehicles require new tires to maintain optimal traction, handling, and overall safety on the road.
Other Drivers Propelling the Europe Automotive Tire Industry:
Opportunities in the Europe Automotive Tire Market:
Latest Trends in the Europe Automotive Tire Market:
Challenges for Companies /Manufacturers in the Europe Automotive Tire Market:
Price competition is a significant challenge in the tire market. Companies often face pressure to offer competitive pricing while maintaining profitability. Fluctuations in raw material costs, currency exchange rates, and intense competition can put downward pressure on tire prices, impacting manufacturers' profit margins.
The rapid pace of technological advancements poses both opportunities and challenges for tire manufacturers. Keeping up with the latest technologies, such as smart tires, connected systems, and advanced manufacturing processes, requires significant investments in research, development, and production capabilities.
Factors such as increased demand for fuel-efficient tires, eco-friendly options, and enhanced performance have created challenges for manufacturers. Suppliers need to adapt their product offerings and meet changing consumer expectations.
Disruptions in the supply chain, such as raw material shortages or transportation challenges, can impact production schedules and customer satisfaction.
Attributes | Key Insights |
---|---|
Estimated Europe Automotive Tire Market Size (2023) | USD 68.4 billion |
Projected Europe Automotive Tire Market Value (2033) | USD 108.7 billion |
Value CAGR (2023 to 2033) | 4.8% |
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From 2018 to 2022, sales of automotive tires in the Europe market grew at a CAGR of 4.6%, reaching a market size of USD 68.4 billion in 2023.
Europe is one of the leading markets for automotive tires globally, driven by factors such as the expansion of automotive sector, consumer demand for new vehicles, and high need for replacement tire sales.
The demand for automotive tires from OEMs is influenced by new vehicle sales. As the automotive sector in Europe continues to introduce new models and technologies, OEM demand for tires remains important to the market. Europe has a strong market for premium and high-performance tires.
Europe also has a strong market for premium and high-performance tires. Consumers in the region value safety, performance, and handling characteristics, leading to a demand for specialized tires that offer enhanced traction, handling, and durability.
Looking ahead, the Europe automotive tire industry is expected to rise at a CAGR of 4.8% from 2023 to 2033. Total market size is projected to reach USD 108.7 billion by the end of 2033.
The rise of electric vehicles is expected to have a significant impact on the automotive tire industry. EVs typically require tires with low rolling resistance to maximize their driving range. As EV adoption increases, tire manufacturers are likely to invest in the development of specialized tires that meet the specific requirements of electric vehicles.
There is a growing focus on sustainability in the automotive sector, and this trend extends to tire manufacturing as well. In the future, there may be an increased emphasis on using eco-friendly and recyclable materials in tire production.
Manufacturers might explore alternative materials and manufacturing processes to reduce the environmental impact of tire production and disposal.
The development and deployment of autonomous vehicles will impact the automotive tire industry in several ways. AVs may require specialized tires with enhanced durability, safety features, and connectivity capabilities to support their autonomous functions.
Further, increased ride-sharing and fleet operations with AVs could lead to higher tire replacement rates, creating new opportunities for tire manufacturers.
To increase sales and expand their customer base, leading automotive tire manufacturers are focusing on improving tire performance.
Performance enhancements in tires involve the development of advanced technologies and materials to improve various aspects of tire performance. Tire manufacturers are investing in research and development to enhance handling, cornering, braking, and overall performance characteristics.
Companies are developing high-performance tires that deliver superior grip, stability, and responsiveness, catering to the demands of performance-oriented vehicle owners. These tires are designed to provide enhanced traction on both dry and wet surfaces, enabling drivers to experience improved control and safety
Growing Popularity of Electric Vehicles to Elevate Automotive Tire Demand in Germany
Country | Germany |
---|---|
Market Size (USD billion) by End of Forecast Period (2033) | USD 11.4 billion |
CAGR from 2023 to the End of Forecast (2033) | 5.7% |
Germany automotive tire industry is expected to reach a valuation of USD 11.4 billion by 2033. Overall demand for automotive tires in Germany market is likely to rise at 5.7% CAGR from 2023 to 2033.
Rising adoption of electric vehicles and strong presence of leading automakers are key factors expected to boost Germany market.
Germany has a robust automotive sector, known for its high-quality vehicles and engineering expertise. The country is home to leading automotive manufacturers such as Volkswagen, BMW, and Mercedes-Benz, which contribute to the demand for automotive tires.
Germany has a significant market for high-performance tires, driven by high adoption of sporty and luxury vehicles. The demand for tires with superior handling, grip, and speed capabilities is strong in the German market.
Surging Demand for Premium and Ultra High-performance Tires Boosting the United Kingdom Market
Country | United Kingdom |
---|---|
Market Size (USD billion) by End of Forecast Period (2033) | USD 10.8 billion |
CAGR from 2023 to the End of Forecast (2033) | 5.4% |
As per Future Market Insights, the United Kingdom automotive tire market is forecast to total a valuation of USD 10.8 billion by 2033. It is projected to thrive at a CAGR of 5.4% between 2023 to 2033.
The United Kingdom automotive tire industry is diverse, catering to a wide range of vehicles, including passenger cars, commercial vehicles, and motorcycles. The market offers opportunities for various tire segments and manufacturers.
The country experiences distinct seasons, leading to demand for both summer and winter tires. Drivers often switch between the two tire types based on weather conditions, creating seasonal demand patterns.
Demand in the United Kingdom remains particularly high for premium and ultra-high-performance tires, driven by the presence of luxury and sports car enthusiasts. Consumers prioritize tire quality, performance, and brand reputation.
Manufacturers Offering Cost-effective Automotive Tires to Boost Sales in Spain
Country | Spain |
---|---|
Market Size (USD billion) by End of Forecast Period (2033) | USD 8.7 billion |
CAGR from 2023 to the End of Forecast (2033) | 5.3% |
The automotive tire industry in Spain is anticipated to reach a market valuation of USD 8.7 billion by 2033. From 2023 to 2033, automotive tire sales in Spain are projected to soar at a CAGR of 5.3% CAGR.
Spain has a growing automotive market, with domestic manufacturers like SEAT and international brands manufacturing vehicles in the country. This growth contributes to the demand for automotive tires.
Spain is a popular tourist destination, attracting millions of visitors each year. The demand for summer tires is high due to the warm Mediterranean climate and the influx of tourists during the summer months.
The Spanish market is known for its price sensitivity, with consumers often considering affordability when purchasing tires. This creates opportunities for both budget and mid-range tire manufacturers.
To meet this demand, prominent automotive tire manufacturers are offering cost-effective solutions to their customers. This will further boost Spain market.
Rising Vehicle Production and Focus on Improving Safety Fueling Automotive Tire Demand in France
Country | France |
---|---|
Market Size (USD billion) by End of Forecast Period (2033) | USD 7.6 billion |
CAGR from 2023 to the End of Forecast (2033) | 3.7% |
France automotive tire industry is projected to cross a valuation of USD 7.6 billion by 2033. Over the next ten years, demand for automotive tires in France is likely to rise at a CAGR of 3.7%.
Increasing vehicle production and rising focus on improving vehicle & passenger safety are prominent factors boosting France market.
France has a well-established automotive market and is home to prominent manufacturers like Renault and PSA Group (Peugeot, Citroën, DS). The country's automotive sector supports a substantial demand for tires.
Safety is a key priority in France with consumers valuing tires that provide excellent grip, handling, and braking performance. There is a strong emphasis on safety standards and regulations.
France experiences winter weather conditions in some regions, leading to significant demand for winter tires. Winter tire usage is encouraged, and regulations mandate their use in certain areas during winter months or in specific weather conditions.
Passenger Cars Segment to Lead the Europe Market
Based on vehicle type, passenger cars segment is expected to dominate the Europe automotive tire industry. It is forecast to expand at a steady CAGR, creating remunerative opportunities for automotive tire manufacturers. This is due to rising production and sales of passenger vehicles globally.
Passenger car tires or touring tires are the most common tire type for regular passenger cars. They are designed to provide a balance of comfort, handling, and durability for everyday driving.
In recent years, there has been a sharp rise in passenger car ownership across European countries. This in turn is creating a plethora of growth opportunities for automotive tire manufacturers.
As per the European Automobile Manufacturers’ Association (ACEA), around 9.67 million passenger cars were registered across the EU between 1990 and 2021. Driven by this rising passenger car ownership, sales of automotive tires across Europe will rise steadily.
Growing popularity of electric vehicles or electric cars is another key factor that is expected to elevate automotive tire demand and boost Europe automotive tire industry.
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The Europe automotive tire industry is highly competitive, with several players aiming at improving their market shares. As a result, key companies need to adopt effective strategies to stay ahead of the competition.
Key Strategies Adopted by the Players
Product Innovation
In a competitive market, tire manufacturers in Europe focus on continuous product innovation and differentiation. They invest in research and development to introduce advanced tire technologies, such as all-season tires, run-flat tires, low rolling resistance tires, and eco-friendly tires. These innovations aim to enhance performance, durability, fuel efficiency, and safety, meeting the changing requirements of consumers and complying with stringent regulations.
Strategic Partnerships and Collaborations
Collaboration with automotive manufacturers, original equipment manufacturers (OEMs), and technology providers is a common strategy in the European automotive tire industry. Tire companies form partnerships to develop customized tires for specific vehicle models, enhance performance, and ensure optimal compatibility. Collaborations also help manufacturers gain insights into emerging market trends and leverage the expertise of their partners.
Expansion into Emerging Markets
Key players are also establishing local sales and service operations in emerging markets. They are setting up offices, hiring local staff, and building a local distribution network to serve customers in these regions. European tire manufacturers often expand their manufacturing footprint to cater to increasing demand and optimize production efficiency. They establish new production facilities or acquire existing ones in strategic locations to enhance their market presence and serve local markets effectively.
Mergers and Acquisitions
Prominent automotive tire manufacturers are also using the merger and acquisition strategy to solidify their position. They are acquiring smaller players or competitors to expand their customer base and improve their market share.
Key Players in the Europe Automotive Tire Industry
Key Developments in the Europe Automotive Tire Industry:
The United States leads as it acquired a revenue of USD 1.1 billion in 2022.
The overall market might follow a y-o-y growth rate of 4.8% through 2033.
The Europe market size is estimated to secure a valuation of USD 68.4 billion in 2023.
Surging demand for smart tire technology is expanding the demand for automotive tires.
The passenger cars segment commanded over 50% of the Europe market in 2022.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Key Success Factors 5. Market Demand Analysis 2018 to 2022 and Forecast, 2023 to 2033 6. Market - Pricing Analysis 7. Market Demand (in Value or Size in USD Billion) Analysis 2018 to 2022 and Forecast, 2023 to 2033 8. Market Background 9. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 9.1. Passengers cars 9.2. LCV 9.3. HCV 9.4. 2/3 Wheelers 9.5. Specialty Vehicle 10. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Tire Type 10.1. All Season Tire 10.2. Winter Tire 10.3. Touring Tire 10.4. Special Purpose Tire 10.4.1. Performance Tire 10.4.2. All Terrain Tire 10.4.3. Mud Terrain Tire 10.4.4. UTV/ATV 11. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Material Type 11.1. Natural Rubber 11.2. Synthetic Rubber 12. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Aspect Ratio 12.1. 35 to 55 12.2. 65 to 70 12.3. 75 to 85 13. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Ply Type 13.1. Radial 13.2. Bias 14. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Sales Channel 14.1. OEM 14.2. After Market 15. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Tube Category 15.1. Tube Tire 15.2. Tubeless Tire 16. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Germany Market Analysis 2018 to 2022 and Forecast 2023 to 2033 18. Italy Market Analysis 2018 to 2022 and Forecast 2023 to 2033 19. France Market Analysis 2018 to 2022 and Forecast 2023 to 2033 20. United Kingdom Market Analysis 2018 to 2022 and Forecast 2023 to 2033 21. Spain Market Analysis 2018 to 2022 and Forecast 2023 to 2033 22. Netherlands Market Analysis 2018 to 2022 and Forecast 2023 to 2033 23. Luxembourg Countries Market Analysis 2018 to 2022 and Forecast 2023 to 2033 24. Belgium Market Analysis 2018 to 2022 and Forecast 2023 to 2033 25. Russia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 26. Rest of Market Analysis 2018 to 2022 and Forecast 2023 to 2033 27. Market Structure Analysis 28. Competition Analysis 28.1. Bridgestone Corporation 28.2. Michelin 28.3. Continental AG 28.4. Pirelli & C. S.p.A 28.5. Yokohama Rubber Company Limited 28.6. Cheng Shin Rubber Ind. Co. Ltd 28.7. Goodyear Tire & Rubber Company 28.8. KUMHO TIRE Co., Inc. 28.9. Nankang Rubber Tire Corp., Ltd. 28.10. HANKOOK TIRE & TECHNOLOGY Co., Ltd 28.11. Toyo Tires 28.12. NEXEN TIRE 28.13. Sumitomo Rubber Industries (Dunlop Tires) 28.14. Cooper Tire & Rubber Company 28.15. Elangperdana Tyre Industry (Accelera Radial) 28.16. JK Tyre & Industries 28.17. Madras Rubber Factory (MRF) 28.18. Özka Tyres 29. Primary Insights 30. Assumptions and Acronyms Used 31. Research Methodology
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