Canada Tyre Market Anticipated to Grow at a CAGR of 6% till 2020
Large vehicle fleet and growth of hybrid vehicles drive tyre market in Canada
Canada tyre market is an import-dependent market since there are only three companies which have set up their manufacturing plants in the country – Michelin, Bridgestone and Goodyear. The other tyre companies operate through domestic sales and marketing offices in the country. Consequently, the growing domestic demand for tyres in Canada is being met primarily through imports from USA, China, Japan and Republic of Korea, restraining growth in the market.
According to a recently released TechSci Research report, “Canada Tyre Market Forecast and Opportunities, 2020’’, tyre market in Canada is forecast to grow at a CAGR of about 6% during 2015-20. Prominent reasons driving the market are large vehicle fleet and growth of hybrid vehicles. Citing the global issue of C-emissions and C-credits, sales of hybrid vehicles is increasing in the country. To capitalise on the growing demand for hybrid vehicles, manufacturing giants like Ford, Mitsubishi and Toyota have penetrated the market with their hybrid variants, thus generating demand for high performance tyres in OEM as well as replacement market. In addition, the large vehicle fleet is surging demand for replacement tyres in the country.
In terms of projected growth, commercial vehicle tyre segment is forecast to witness high growth rate as compared to passenger car tyre segment. This high growth can be attributed to increasing demand for commercial vehicles from country’s growing construction and logistics sector. In 2014, Ontario, Quebec and The West emerged as the major contributors to Canada tyre market. Owing to the presence of automotive OEMs and majority of automobile fleet in Canada, these regions are projected to maintain their dominance in the country’s tyre market during the forecast period.
“Currently, tyre market in Canada is being dominated by passenger cartyre segment followed by commercial vehicle tyre segment. Over the forecast period, passenger car tyre segment is estimated to retain dominance in the country’s tyre market, owing to increase in per capita income and disposable income of consumers. In addition, the market is witnessing penetration of hybrid vehicles. SUVs would be the key driver for dominance of passenger car tyre segment. Large passenger car fleet size, increased per capita income and rising sales of hybrid vehicles are expected to fuel future growth in Canada tyre market”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
“Canada Tyre Market Forecast and Opportunities, 2020”, has evaluated the future growth potential of Canada tyre market and provides statistics and information on market structure, exports, imports and future growth of Canada tyre market. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities available in Canada tyre industry.