United States Tire Market By Vehicle Type (Passenger Car Light Commercial Vehicle, Medium & Heavy Commercial Vehicle, Two Wheelers, Three Wheelers, OTR), By Tire Type (Radial, Bias), By Demand Category Type (OEM, Replacement), and By Region, Competition, Forecast & Opportunities, 2028

Market Overview

The tire industry in the United States is a multi-billion-dollar market and is growing at an impressive CGAR rate of 6.6% per year, according to recent research. The US domestic tire market has been driven by several factors, including increasing consumer demand for higher quality tires, advancements in automotive technology and new regulations from the government. One of the primary drivers of the US tire industry is the consumer demand for higher quality tires. Consumers have been looking for better handling, improved traction and longer lasting tires which are designed to fit a variety of vehicles. This has led to an increase in demand for premium tires from both domestic and international manufacturers.

The growth of automotive technology has also had a positive impact on the tire market in the United States. The introduction of electric and hybrid vehicles has enabled manufacturers to create tires that are more effective in reducing emissions and improving fuel economy. This has led to an increase in demand for high-performance tires from both domestic and international companies. Finally, new regulations from the government have also impacted the tire industry in the United States. In recent years, the government has imposed stricter safety regulations on tire manufacturers, as well as increased taxes and tariffs on imported tires. These changes have led to an increased cost of production for domestic tire companies, resulting in higher prices for consumers.

The tire industry in the United States is also facing several challenges. One major challenge is the emergence of low-cost imports from countries such as China and India. These imports often have lower quality than domestic tires, leading to safety concerns for consumers. Additionally, the US market is highly competitive, and companies are often forced to reduce prices to remain competitive. This has led to a decrease in profits for many tire manufacturers. Overall, the US tire industry is experiencing strong growth due to increased consumer demand for higher quality tires, advancements in automotive technology and new regulations from the government. However, the industry is also facing numerous challenges including low-cost imports and highly competitive markets. As a result, it is important for domestic tire companies to focus on developing innovative products and services that will enable them to remain competitive in this increasingly globalized market.

Key Market Drivers

Economic Growth and Consumer Spending

The United States' economic growth plays a crucial role in driving the tire market. When the economy is thriving, consumers and businesses have higher purchasing power, leading to increased vehicle sales and demand for tires. Economic growth also indicates improved consumer confidence, prompting individuals to invest in vehicle maintenance and tire replacements.

Vehicle Sales and Ownership

The number of vehicles on the road directly affects the tire market. Higher vehicle sales result in more cars and trucks requiring new tires. Additionally, as vehicles age, they require regular tire replacements due to wear and tear. With an increasing number of vehicles in operation, the demand for tires remains robust.

Technological Advancements in Tire Manufacturing

Tire manufacturers continually invest in research and development to enhance tire technology. Advancements in tire manufacturing, such as using innovative materials, tread designs, and construction techniques, lead to the production of high-performance and long-lasting tires. Consumers are often willing to pay a premium for tires that offer improved fuel efficiency, better traction, and longer tread life, driving innovation in the tire industry.

E-commerce and Online Retail

The growth of e-commerce and online retail has significantly impacted the tire market. Consumers increasingly prefer the convenience of purchasing tires online. Online platforms offer a wide range of tire options, competitive pricing, and home delivery services, which have expanded the reach of tire sales and allowed consumers to make informed choices based on reviews and ratings.

Environmental Awareness and Sustainability

With rising environmental awareness, consumers are seeking eco-friendly and sustainable products, including tires. Sustainable tire options may include those with lower rolling resistance, which improves fuel efficiency and reduces carbon emissions. Tire manufacturers are developing greener and more fuel-efficient tire options to meet consumer demands for environmentally conscious products.

Replacement Tire Market

The average age of vehicles on the road is increasing, leading to a growing replacement tire market. As vehicles age, their tires wear out and require replacements. Changing road conditions, driving habits, and weather contribute to tire wear, necessitating frequent tire replacements. The replacement market ensures a steady demand for tires, even outside of new vehicle sales.

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Key Market Challenges

Raw Material Costs

The production of tires requires significant amounts of natural rubber and other raw materials, such as synthetic rubber and petroleum-based products. The prices of these raw materials are subject to fluctuations in the global market, which can impact tire production costs. Manufacturers may face challenges in managing these cost fluctuations and may need to adjust tire prices accordingly.

Import Tariffs and Trade Disputes

The imposition of import tariffs and trade disputes between countries can disrupt the tire supply chain. Tire manufacturers that rely on imports of raw materials or finished tires from countries affected by trade disputes may face supply shortages or increased costs. The uncertainty caused by trade tensions can also lead to price volatility in the tire market.

Environmental Regulations

Environmental concerns have led to increased regulations and standards for tire manufacturing. Tire manufacturers must comply with various environmental regulations related to emissions, waste management, and sustainable practices. Meeting these standards may require investments in research and development to develop eco-friendly tire materials and manufacturing processes.

Key Market Trends

Increased Demand for High-Performance Tires

Consumers were increasingly seeking high-performance tires that offered better traction, improved handling, and enhanced safety features. The popularity of high-performance tires was driven by the growing preference for better driving experiences and increased vehicle performance.

Growing Interest in Eco-Friendly and Fuel-Efficient Tires

With a greater emphasis on environmental sustainability, eco-friendly and fuel-efficient tires were becoming more popular. These tires were designed to reduce rolling resistance, leading to improved fuel efficiency and reduced carbon emissions.

Increased Focus on Tire Safety and Technology

Tire manufacturers were incorporating advanced safety technologies into their products, such as tire pressure monitoring systems (TPMS) and improved tread designs to enhance grip and braking performance. Safety-focused features were gaining importance as consumers sought tires that could enhance overall driving safety.

Segmental Insights

Vehicle Type Insights

The Passenger Car segment holds the largest tire market share in the United States. This dominance is due to several factors, including the high rate of vehicle ownership, frequent tire replacements driven by daily use and varying road conditions, and the continuous demand for new tires because of high vehicle sales. The diverse range of tire options required to cater to various vehicle models and consumer preferences also contributes to the significant market size. Additionally, the replacement tire market plays a crucial role in this segment, as existing vehicles age and owners seek improved performance, safety, and comfort. The popularity of passenger cars for daily commuting and urban transportation needs further sustains the demand for tires in this segment.

Tire Type Insights

Radial tires hold the maximum tire market share in the United States, primarily due to their superior performance, improved fuel efficiency, and longer tread life compared to bias tires. Radial tires offer better traction, handling, and braking, making them a preferred choice for passenger cars and light trucks. Their flexible sidewalls provide a smoother and more comfortable ride, meeting consumers' demand for ride quality. Original Equipment Manufacturers (OEMs) often fit radial tires as standard equipment on new vehicles, further contributing to their prominence in the market. As consumer awareness of their advantages grows, radial tires continue to be the go-to choose for replacement tires, solidifying their dominant position in the United States tire market.

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Regional Insights

The South region has the maximum domination of the tire market due to its sheer number of population and vehicles. According to recent estimates, the region is home to over 114 million people. This makes it the most populous region in the US, with more than a third of all Americans living there. Additionally, around 24% of all automobiles registered across the US are based in this region. The South is also home to numerous states that are heavily reliant on automobiles. This includes Texas and Florida, which have some of the largest populations in the nation. Furthermore, these states boast a high number of auto dealerships and tire shops. This increases the demand for tires in this region, allowing it to maintain its lead in terms of market share. Finally, the South has numerous large cities that are home to thriving manufacturing and automotive industries. This creates a strong base of customers for tire producers in the region. Automakers also prefer to purchase tires from local suppliers, which further boosts their share of the South’s tire market.

Recent Developments

• In 2023, Kumho Tire U.S.A. Inc has announced that it is going to open a distribution warehouse of around 350000 sq. ft. which will be capable of handling about 5 million passenger and light truck tires a year.
• In 2022, Hankook Tire, a leading global tire manufacturer, has introduced its inaugural line of tires designed specifically for electric vehicles (EVs) in the United States. The iON evo AS and iON evo AS SUV mark the debut of Hankook's comprehensive range of EV tires. With a selection of 26 sizes and rim diameters ranging from 18 to 22 inches, the iON evo AS and iON evo AS SUV feature Hankook's cutting-edge EVolution technology, which prioritizes tread longevity, noise reduction, and exceptional grip performance tailored for EVs.

Key Market Players

• Michelin North America Inc.
• The Goodyear Tire & Rubber Company
• Bridgestone Americas Inc.
• Cooper Tire & Rubber Company
• Continental Tire The Americas LLC
• Pirelli Tire North America LLC
• Kumho Tire United States Inc.
• Yokohama Tire Corporation
• Toyo Tire United States Corp.
• Hankook Tire America Corp.

Report Scope:

In this report, the United States Tire Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• United States Tire Market, By Vehicle Type:

o   Passenger Car

o   Light Commercial Vehicle

o   Medium & Heavy Commercial Vehicle

o   Two Wheelers

o   Three Wheelers

o   OTR

• United States Tire Market, By Tire Type:

o   Radial

o   Bias

• United States Tire Market, By Demand Category:

o   OEM

o   Replacement

• United States Tire Market, By Region:

o   Northeast

o   Midwest

o   South

o   West

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the United States Tire Market.

Available Customizations:

United States 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).

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