|
Forecast Period
|
2024-2028
|
|
Market Size (2022)
|
USD 3.06 Billion
|
|
CAGR (2023-2028)
|
3.19%
|
|
Fastest Growing Segment
|
Radial
|
|
Largest Market
|
England
|
Market Overview
United Kingdom Tire Market has valued at USD 3.06 Billion
in 2022 and is anticipated to project robust growth in the forecast period with
a CAGR of 3.19%. The United Kingdom tire market has experienced remarkable
growth in recent years. This growth has been fueled by several factors,
including the increasing ownership of vehicles and the rise of e-commerce
platforms dedicated to tire sales. The convenience and accessibility of online
shopping have played a significant role in driving this growth, allowing
customers to easily browse through a wide range of products and benefit from
the strong brand recognition of international players in the market.
Despite the unprecedented challenges posed by the
COVID-19 pandemic, the tire industry has demonstrated remarkable resilience.
The essential nature of its products and the continued demand for safe and
reliable transportation have contributed to its ability to withstand the impact
of the pandemic. This resilience is a testament to the importance of the tire
industry in facilitating the movement of people and goods, even in times of
crisis.
Looking ahead, the future of the UK tire market is
poised to be shaped by advancements in tire technology. Energy-efficient and
smart tires are expected to gain traction as consumers increasingly prioritize
sustainability and connectivity in their purchasing decisions. These innovative
tire technologies will not only contribute to a greener and more connected
future but also enhance the overall performance and safety of vehicles on the
road.
As consumer preferences continue to evolve, the
landscape of the UK tire market will undoubtedly undergo further
transformations. Manufacturers and retailers will need to stay ahead of these
trends to meet the changing demands of customers. This evolving market presents
an opportunity for the development of innovative solutions that address the
specific needs of UK consumers, such as all-season tires optimized for the
country's unique weather conditions.
In summary, the United Kingdom tire market has
experienced significant growth driven by various factors, including the rise of
e-commerce and the accessibility of online shopping. The tire industry's
resilience in the face of challenges, such as the COVID-19 pandemic, highlights
its crucial role in facilitating transportation. With advancements in tire
technology and evolving consumer preferences, the future of the UK tire market
is set to be shaped by innovation and enhanced performance.
Key Market Drivers
Vehicle Ownership and Usage Trends
A primary driver of the United Kingdom tire market
is the trends in vehicle ownership and usage. The UK has a large and
continually growing population of vehicles, including passenger cars,
commercial vehicles, and motorcycles. As the number of vehicles on UK roads
increases, there is a consistent and substantial demand for tires. Vehicle
owners and fleet operators must replace tires regularly due to wear and tear,
creating a steady and predictable market for tire manufacturers and retailers.
Additionally, changes in consumer preferences, such as a preference for SUVs
and electric vehicles, can influence the type and size of tires required,
driving further demand.
Safety and Regulatory Requirements
Safety considerations are paramount in the United
Kingdom, and this is reflected in the demand for tires that meet stringent
safety standards. Regulatory requirements for tire safety, such as tread depth
and tire labeling, play a crucial role in shaping the market. The UK, in
alignment with European Union regulations, has imposed standards on tire
labeling, which provide consumers with information on key performance
attributes, including fuel efficiency, wet grip, and external rolling noise.
Compliance with these regulations is essential for manufacturers, and consumers
increasingly rely on these labels to make informed purchasing decisions,
emphasizing the importance of safety in the market.
Environmental Concerns and Sustainability
Environmental concerns and sustainability have
become significant drivers in the UK tire market. Consumers are increasingly
conscious of their environmental footprint and seek tires that not only meet
safety and performance standards but also contribute to reducing carbon
emissions. Eco-friendly tire technologies, such as those designed to lower
rolling resistance and improve fuel efficiency, are gaining popularity. The
shift towards electric vehicles (EVs) and the need for specialized
low-rolling-resistance tires further emphasize the demand for sustainable tire
options.
Technological Advancements and Tire Innovation
Technological advancements are reshaping the tire
industry, and the UK is at the forefront of adopting innovative tire
technologies. Advanced tire materials, tread designs, and manufacturing
processes have improved tire performance, safety, and longevity. Run-flat
tires, self-sealing tires, and smart tire technology, including sensors that
monitor tire pressure and wear, enhance safety and convenience for UK drivers.
The adoption of electric vehicles (EVs) also drives demand for specialized EV
tires that can withstand the unique demands of electric propulsion systems.
E-commerce and Online Tire Sales
E-commerce has witnessed significant growth in the
United Kingdom tire market. Online tire sales provide consumers with
convenience and access to a wide range of tire brands and models. Consumers can
compare prices, read reviews, and make informed decisions from the comfort of
their homes. E-commerce platforms offer a broader selection of tires, including
specialty and niche products that may not be readily available in traditional
brick-and-mortar stores. As a result, traditional tire retailers are expanding
their online presence, offering digital services such as tire fitment and
installation appointments to remain competitive in the evolving market.
Seasonal Tire Changes and Winter Tire Usage
The UK's climate, characterized by varying weather
conditions, drives the demand for seasonal tire changes, particularly the use
of winter tires. As temperatures drop and winter weather sets in, consumers
often switch to winter tires to ensure optimal traction and safety on icy or
snowy roads. The convenience and safety benefits of seasonal tire changes
contribute to the demand for two sets of tires per vehicle, maintaining a
steady market for tire manufacturers and retailers. This practice also underscores
the importance of safety in the market and the willingness of consumers to
invest in specialized tires for improved performance during adverse weather
conditions.
Download Free Sample Report
Key Market Challenges
Economic Volatility and Consumer Spending
Economic volatility is a persistent challenge for
the United Kingdom tire market. The market's health is closely tied to overall
economic conditions, and fluctuations in consumer spending can significantly
affect tire sales. During periods of economic downturns, consumers may postpone
or scale back their tire purchases, leading to decreased demand. Conversely,
during economic upturns, consumers are more likely to invest in new tires. This
cyclicality makes it challenging for manufacturers and distributors to plan
production and inventory management effectively. The recent economic
uncertainties caused by events such as Brexit and the COVID-19 pandemic have
exacerbated this issue, making it difficult for businesses to predict and
prepare for fluctuations in demand.
Environmental Regulations and Sustainability
Environmental regulations present a significant
challenge in the United Kingdom tire market. The UK government, like other
European nations, has imposed strict environmental standards to reduce the
carbon footprint of tires throughout their lifecycle. This includes measures to
improve tire efficiency, reduce rolling resistance, and enhance tire recycling
and disposal processes. Manufacturers must invest in research and development
to develop eco-friendly tire technologies, which can be expensive and time-consuming.
Additionally, tire labeling requirements that communicate information about
fuel efficiency, wet grip, and noise emissions to consumers further challenge
manufacturers to meet these standards while remaining competitive in the
market.
Competition and Market Consolidation
The United Kingdom tire market is highly
competitive, featuring a mix of domestic and international tire manufacturers
vying for market share. This competition can drive innovation and benefit
consumers by offering a wide range of choices. However, it also poses
challenges. Established tire brands have to defend their market share against
new entrants, often leading to price wars and aggressive marketing strategies.
Furthermore, market consolidation is an ongoing trend, with larger companies
acquiring smaller ones to gain market dominance. This consolidation can limit
choices for consumers and put pressure on smaller manufacturers, making it
increasingly difficult for them to compete effectively.
Technological Advancements and Changing Consumer
Preferences
Advancements in tire technology and changing
consumer preferences are reshaping the United Kingdom tire market. Consumers
are increasingly looking for tires that offer better fuel efficiency, longer
lifespan, and improved safety features. This demand for advanced technology in
tires has led to increased research and development costs for manufacturers.
Furthermore, the rise of electric vehicles (EVs) and autonomous vehicles (AVs)
presents a unique challenge, as these vehicles often require specialized tires.
Manufacturers must invest in new production processes and materials to meet the
specific demands of EVs and AVs, while also addressing the challenges of
creating quieter tires for electric vehicles.
Distribution and Retail Challenges
The distribution and retail landscape for tires in
the United Kingdom is undergoing transformation, primarily due to the growth of
e-commerce and changes in consumer buying behavior. Traditional
brick-and-mortar tire retailers face increased competition from online
platforms, which offer consumers convenience and a wider range of choices. This
shift in consumer preference has led to challenges for traditional retailers
who must adapt to the changing market dynamics or risk losing customers.
Additionally, the logistics of distributing tires, which are bulky and heavy,
pose challenges in terms of inventory management, transportation costs, and
meeting customer expectations for quick delivery and installation services.
Raw Material Costs and Supply Chain Disruptions
Raw material costs are a significant challenge for
the United Kingdom tire market. The tire manufacturing process relies heavily
on raw materials such as natural rubber, synthetic rubber, steel, and
chemicals. Natural rubber prices, for example, can be subject to price
fluctuations due to factors like weather conditions, disease outbreaks
affecting rubber plantations, and geopolitical tensions in key rubber-producing
regions. Synthetic rubber and steel prices are also influenced by global market
dynamics. As raw material costs continue to rise, tire manufacturers face the
dilemma of either absorbing these costs or passing them on to consumers, which
can impact pricing and competitiveness in the market. Additionally, supply
chain disruptions, as experienced during the COVID-19 pandemic, can disrupt the
timely availability of raw materials, further complicating production and
distribution.
Key Market Trends
Rise in Demand for Eco-Friendly Tires
One of the most prominent trends in the UK tire
market is the increasing demand for eco-friendly or green tires. This shift is
primarily driven by environmental awareness and concerns over carbon emissions.
Consumers are now more conscious of their carbon footprint and are actively
seeking tires that are designed to reduce fuel consumption and minimize
environmental impact. Green tires, also known as low-rolling-resistance tires,
use advanced materials and tread designs to improve fuel efficiency. This trend
has been further accelerated by government regulations aimed at reducing
emissions and promoting sustainable transportation options. As a result, tire
manufacturers in the UK have been investing heavily in research and development
to produce eco-friendly tire options that cater to this growing demand.
Growing Popularity of All-Season Tires
Another trend shaping the UK tire market is the
increasing preference for all-season tires over traditional summer and winter
tires. This shift in consumer behavior is driven by convenience and
cost-effectiveness. All-season tires offer a versatile solution that can
perform adequately in a variety of weather conditions, eliminating the need for
seasonal tire changes. This not only saves consumers time and effort but also
reduces the overall cost of tire ownership. Additionally, the unpredictable
weather patterns in the UK, with occasional snowfall during winter, make
all-season tires a practical choice for many drivers. As a result, tire
manufacturers have expanded their offerings of all-season tires to cater to
this growing demand.
Digital Transformation and E-Commerce
The digital transformation of the tire industry is
another significant trend in the UK market. With the proliferation of
e-commerce platforms, consumers are increasingly turning to online channels to
research, compare, and purchase tires. The convenience of online shopping,
coupled with access to a wide range of tire brands and models, has made
e-commerce a preferred choice for many consumers. Tire retailers have adapted
by enhancing their online presence, offering virtual tire buying guides, and
providing tools to help consumers select the right tires for their vehicles.
Additionally, the COVID-19 pandemic accelerated this trend as consumers sought
contactless shopping options. This shift towards e-commerce is expected to
continue reshaping the retail landscape of the UK tire market.
Impact of Electric Vehicles (EVs) on Tire Demand
The adoption of electric vehicles (EVs) in the
United Kingdom has been steadily increasing, and this transition is having a
notable impact on the tire market. EVs have different performance
characteristics compared to traditional internal combustion engine vehicles,
which has led to changes in tire requirements. EVs tend to be heavier due to
their battery packs, and they generate more torque, which can result in
increased tire wear. As a result, tire manufacturers are developing specialized
tires designed to meet the unique demands of EVs, such as high-load capacity
and reduced rolling resistance to maximize range. This trend is expected to
gain momentum as the UK government encourages the adoption of electric vehicles
to meet emissions reduction targets.
Challenges Posed by Tire Recycling and
Sustainability
Sustainability concerns continue to influence the
UK tire market, not only in the production of eco-friendly tires but also in
addressing the issue of tire disposal and recycling. Used tires pose
environmental challenges when not disposed of properly, as they can become
breeding grounds for diseases and contribute to landfill waste. Tire recycling
initiatives and regulations have gained prominence in recent years, with the
government and industry stakeholders working to find sustainable solutions.
Tire manufacturers are exploring innovations such as recycled rubber materials
and eco-friendly manufacturing processes to reduce their environmental
footprint. Consumers are also increasingly conscious of the sustainability
practices of tire brands, influencing their purchasing decisions.
Supply Chain Disruptions and Resilience
The COVID-19 pandemic exposed vulnerabilities in
global supply chains, and the UK tire market was not immune to disruptions.
Supply chain disruptions, including factory closures and transportation delays,
led to shortages and delays in tire availability. This forced consumers to
adapt to changing market conditions and sometimes opt for alternative tire
choices. As a result, the pandemic highlighted the importance of supply chain
resilience and the need for contingency planning within the tire industry. Manufacturers
and retailers have since been reevaluating their supply chain strategies to
ensure they can better withstand future disruptions, such as those caused by
pandemics, geopolitical tensions, or natural disasters.
Segmental Insights
Vehicle Type Insights
In the United Kingdom, the tire market is segmented
based on vehicle type, including passenger cars, commercial vehicles, and
two-wheelers. Among these segments, the passenger cars segment has maintained
its dominance in the market due to the high number of personal vehicles owned
by individuals. The demand for tires in this segment is driven by factors such
as regular maintenance, tire replacements, and upgrades.
However, the commercial vehicles segment is
expected to witness significant growth in the coming years. This growth can be
attributed to the increasing demand for logistics and transportation services,
fueled by e-commerce expansion and the need for efficient delivery systems. As
more businesses rely on commercial vehicles for their operations, the demand
for reliable and durable tires is expected to rise.
Additionally, the two-wheeler segment also holds
promising potential for growth in the tire market. Motorcycles and scooters
have gained popularity as affordable and convenient modes of transportation,
especially for daily commuting in urban areas. With the rising number of
two-wheeler owners, there is an increasing need for high-quality tires that
offer safety, performance, and longevity.
Tire Construction Type Insights
In the United Kingdom tire market, two primary
construction types dominate: radial and bias. Radial tires, known for their
layered construction that allows for better heat dissipation and improved
traction, hold a significant share due to their longer lifespan and fuel
efficiency. The radial construction, with its flexible sidewalls and wider
contact patch, provides enhanced stability and handling on various road
surfaces.
On the other hand, bias tires, although less
prevalent, are favored in heavy-duty applications for their robustness,
durability, and load-bearing capacity. The cross-ply construction of bias
tires, with multiple layers of crisscrossed cords, enables them to withstand
heavy loads and rough terrains.
The ongoing evolution in tire technology, driven by
advancements in materials and manufacturing processes, continues to shape the
dynamics of the tire construction market in the UK. The rising demand for
high-performance vehicles and the need for specialized tires for different
applications further contribute to the diversification of tire options
available to consumers.
Download Free Sample Report
Regional Insights
The tire market in the United Kingdom has
experienced remarkable growth over the past few years, driven by several
factors. The surge in demand can primarily be attributed to an increase in
vehicle ownership, which has been spurred on by higher living standards and
improved road infrastructure. As more people are able to afford cars and enjoy
better transportation networks, the need for tires has naturally increased.
Moreover, the proliferation of online retail
platforms has played a significant role in shaping the tire market landscape in
the UK. With the convenience of purchasing tires online, consumers now have
access to a wider variety of brands and types to choose from. This has not only
expanded the options available to consumers but has also fueled market growth.
However, like any industry, the tire market in the
UK is not without its challenges. Fluctuating raw material prices pose a
constant concern for tire manufacturers and suppliers, as it directly affects
their production costs. Additionally, stringent environmental regulations have
placed increased pressure on the industry to develop more sustainable and
eco-friendly tire solutions.
Recent Developments
- Sumitomo Rubber Industries has agreed a £215
million deal to buy Micheldever Tyre Services (MTS), the UK’s second largest
car tyre distributor.
- Wastefront AS (a Norwegian firm ) is going to build
tire recycling plant in UK.
Key Market Players
- Bridgestone
Corporation
- Continental
AG
- Goodyear
Tire & Rubber Company
- Sumitomo
Rubber Industries Ltd
- Michelin
Group
- Pirelli
& C. S.p.A.
- Yokohama
Rubber Company Limited
- Kumho
Tire Co. Inc.
|
By Vehicle Type
|
By Tire Construction Type
|
By Demand Category
|
By Region
|
- Passenger Car
- Light Commercial Vehicle (LCV)
- Medium & Heavy Commercial Vehicles (M&HCV)
- Off-the-Road Vehicles (OTR)
- Two-Wheeler
- Three-Wheeler
|
|
|
- England
- Scotland
- Wales
- Northern Ireland
|
Report Scope:
In this report, the United Kingdom Tire Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- United Kingdom Tire Market, By Vehicle Type:
o Passenger Car
o Light Commercial Vehicle (LCV)
o Medium & Heavy Commercial Vehicles (M&HCV)
o Off-the-Road Vehicles (OTR)
o Two-Wheeler
o Three-Wheeler
- United Kingdom Tire Market, By Tire Construction
Type:
o Radial
o Bias
- United Kingdom Tire Market, By Demand Category:
o OEM
o Replacement
- United Kingdom Tire Market, By Region:
o England
o Scotland
o Wales
o Northern Ireland
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the United Kingdom Tire Market.
Available Customizations:
United Kingdom Tire Market report with the
given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
United Kingdom Tire Market is an upcoming report to
be released soon. If you wish an early delivery of this report or want to
confirm the date of release, please contact us at [email protected]