The European automotive tire market is likely to reach $26,327.8 million by 2024 and is expected to grow with a CAGR of 4.5% during the forecast period. The development of the automobile industry in Europe is the key contributor to the growth of the tire market in the region. Additionally, with the increasing average lifespan of vehicles due to technological advancement, the replacement market of automotive tires is expected to boost enormously, leading to the growth of the overall tire market in Europe, according to P&S Intelligence.
Insights on market segments
Based on design, the European automotive tire market has been categorized into radial and bias tires. Between the two, the radial tires category held larger market share, in terms of sales volume, in 2018. The category is expected to continue dominating the market during the forecast period as well. This is due to the fact that radial tires are more long-lasting than bias tires due to their construction, which comprises perpendicular polyester plies and crisscrossed steel belts. Additionally, these tires are largely used in passenger cars as they provide a smoother riding experience than bias tires. These collectively contribute to the growth in demand for radial tires in the market.
On the basis of end use, the European automotive tire market has been categorized into original equipment manufacturer (OEM) and aftermarket. Between the two, the aftermarket category held larger market share, accounting for over 70% sales volume, in 2018. This is due to the fact that a tire needs to be replaced around every 50,000–80,000 km of usage. As the replacement rate of tire is much higher than the replacement rate of a vehicle, therefore, the demand for tires in the aftermarket is high.
High tire replacement rate is a major driver observed in the European automotive tire market
High tire replacement rate has led to the growth of the European automotive tire market. Due to various technological advancements in recent years, average lifespan of vehicles has significantly increased. The average lifespan of the vehicles increased from 10.5 years in 2015 to 12 years in 2018. Factors such as growing competition among automakers and rising government regulations have led to the improvement of the vehicle’s longevity and reliability over the years.
Further, recent trend in the region shows that the Europeans are buying more numbers of small crossover vehicles over the years and are also keeping their older vehicles longer than before. This changing behavior is expected to increase the replacement rate of tires used in the vehicles. Further, with the increasing number of mileage offered by vehicles, the chances of wear and tear of the tires have increased, thereby causing the need to replace the tires more often. Thus, the growing average lifespan of the vehicles has led to the high replacement rate of tires, further supporting the growth of the European automotive tire market.
Private labeling of tires offers ample opportunities in the European automotive tire market
Private labeling in the European automotive tire market offers various growth opportunities to tire manufactures. Private labeling primarily means production of tires by one company, followed by their sales under the brand of another company. Some of the tire manufacturers are involved in private labeling to meet the market demand for their products and optimize their bottom-line profits, with selling tires at high margins at high volumes. Few OEMs also maximize their production capacity by adding private labeling to their operations, which is carried out under the supervision of experts with extensive experience in manufacturing similar products. It helps them to focus on brand management, while stressing little about issues pertaining to manufacturing operations.
Germany stands as the largest automotive tire market in Europe
Geographically, Germany dominated the European automotive tire market during the historical period and is expected to continue dominating the market in the future as well. The country is the hub of automobile industry, where maximum number of passenger cars are being produced and sold each year, in the world. In 2018, over 5.1 million and over 3.4 million passenger cars were produced and sold in Germany, respectively.
Browse report overview with detailed TOC on "Europe Automotive Tire Market Research Report: By Vehicle (Two-Wheelers, Passenger Cars, Light Commercial Vehicles, Medium and Heavy Commercial Vehicles), Design (Radial, Bias), End-User (OEM, Aftermarket), Geographical Outlook (Germany, France, Italy, Spain, U.K., Poland, Netherlands, Belgium, Switzerland, Austria) – Industry Size, Share Analysis and Growth Forecast to 2024" at:https://www.psmarketresearch.com/market-analysis/europe-automotive-tire-market
European automotive tire market was consolidated in nature
The European automotive tire market was consolidated with four major players, namely Compagnie Générale des Établissements Michelin, Bridgestone Europe NV/SA, The Goodyear Tire & Rubber Company, and Continental AG, together accounted for over 70% of the market share in 2018. Compagnie Générale des Établissements Michelin is the largest player in the market, due to the existence of an extensive dealer network across all European countries as well as the presence of a loyal customer base in France. The other major players operating in the market are Cooper Tire & Rubber Company, Pirelli & C. S.p.A., Yokohama Tire Corporation, Hankook Tire Company Limited, Nokian Renkaat Oyj, Apollo Tyres Limited, and Sumitomo Rubber Industries Limited.
EUROPE AUTOMOTIVE TIRE MARKET SEGMENTATION
Market Segmentation by Vehicle
Market Segmentation by Design
Market Segmentation by Type
Market Segmentation by End Use
Market Segmentation by Country