Europe Tire Market

Market Overview:

The Europe tire market size reached 423.6 Million Units in 2022. Looking forward, IMARC Group expects the market to reach 503.5 Million Units by 2028, exhibiting a growth rate (CAGR) of 3.11% during 2023-2028. The increasing consumer demand for ultra-high-performance tires, the increasing concerns about environmental sustainability and reducing carbon emissions, and the expansion of road networks or the development of new transportation system are among the key factors driving the market growth.

A tire is a fundamental component of a vehicle that provides a crucial interface between the vehicle and the road surface. It is a resilient, cylindrical structure typically manufactured of reinforced rubber and filled with compressed air or other suitable materials. The primary function of a tire is to support the weight of the vehicle, absorb shocks, and provide traction, ensuring safe and efficient transportation. Tires consist of several layers, including the tread, sidewall, and bead, which work together to deliver optimal performance. Tires come in various types, catering to different vehicle types, terrains, and weather conditions. From all-season tires to specialized winter tires or performance-focused summer tires, the market offers a wide range of options to suit specific needs.

The increasing consumer demand for ultra-high-performance tires with high durability and reliability is driving the market in Europe. Furthermore, the growing demand for tires that offer better fuel efficiency, noise reduction, and all-terrain capabilities is contributing to the growth of the market. Additionally, the rising popularity of electric vehicles and autonomous vehicles is impelling the market. Moreover, ongoing advancements in tire manufacturing technologies, such as the development of new materials, tire designs, and manufacturing processes, are impacting the demand favorably. Besides, the increasing concerns about environmental sustainability and reducing carbon emissions have led to the implementation of stricter regulations in the automotive industry, further creating a positive market outlook. Apart from this, continual improvements in infrastructure, such as the expansion of road networks or the development of new transportation systems, are providing a boost to the market.

Europe Tire Market Trends/Drivers:

Significant Growth in the Automotive Industry

Significant growth in the automotive industry is exerting a strong influence on the Europe tire market. This can be attributed to the growth in vehicle production, including passenger cars, commercial vehicles, and electric vehicles, which increases the demand for tires.  Moreover, the rising adoption of EVs requires specialized tires designed for electric vehicles’ unique requirements, such as low rolling resistance and extended range. This shift fuels the demand for electric vehicle tires in the Europe market. Furthermore, the escalating concerns about environmental sustainability and reducing carbon emissions have led to the implementation of stricter regulations in the automotive industry. This includes regulations related to tire labeling, fuel efficiency standards, and tire recycling.

Continual Technological Advancements in Manufacturing Processes

Ongoing technological advancements are playing a crucial role in shaping the Europe tire market. The advancements have led to the development of tires with reduced rolling resistance that minimizes energy loss during rolling, resulting in improved fuel efficiency and reduced carbon emissions. Additionally, continual innovations in tire tread design, such as improved grip, handling, and braking capabilities, contribute to enhanced safety on Europe roads. Moreover, innovative approaches, including using renewable or recycled materials in tire production, reduce the environmental impact associated with tire manufacturing and disposal. Furthermore, ongoing technological advancements have led to the development of run-flat and self-sealing tire technologies as run-flat tires allow vehicles to continue driving safely even after a puncture or loss of air pressure, eliminating the need for an immediate tire change.

Europe Tire Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Europe tire market report, along with forecasts from 2023-2028. Our report has categorized the market based on radial vs bias, end-use, vehicle type, size, and distribution channel.

Breakup by Radial Vs Bias:

• Radial
• Bias
   

Radial represents the most widely used in the market

The report has provided a detailed breakup and analysis of the market based on the radial vs bias. This includes radial and bias. According to the report, radial represented the largest segment.

Radial tires dominate the Europe tire market due to several key factors. Radial tire technology revolutionized the tire industry when it was introduced and continues to be the preferred choice for vehicles in Europe.  Radial tires offer significant performance advantages over their bias-ply counterparts. The radial construction allows the tire to have a flexible sidewall, which provides improved grip, traction, and stability, resulting in enhanced handling and cornering capabilities. Radial tires also have a larger contact area with the road surface, contributing to better braking performance and overall ride comfort. They offer a smoother and more comfortable ride due to their flexible sidewalls. The design absorbs road shocks and vibrations, providing a quieter and more pleasant driving experience. The advanced construction and materials used in radial tires contribute to improved durability and resistance to wear.

Breakup by End-Use:

• OEM
• Replacement
   

Replacement account for the majority of the market share

A detailed breakup and analysis of the market based on the end use has also been provided in the report. This includes OEM and replacement.  According to the report, replacement segment accounted for the largest market share.

The replacement segment dominates the Europe tire market. Tires have a limited lifespan and wear out over time due to regular usage and exposure to various road conditions. As a result, vehicle owners need to replace their tires periodically to maintain optimal performance and safety. Europe experiences distinct seasons, including winter, summer, and transitional periods. This necessitates seasonal tire changes to ensure optimal performance and safety. Consumers often prefer to customize their vehicles and tailor them to their specific needs and preferences. This includes selecting tires that align with their driving style, performance requirements, and weather conditions. The replacement segment caters to these diverse consumer preferences, offering a wide range of tire options to choose from. The replacement tire market benefits from the presence of independent tire retailers and service centers. These establishments specialize in tire sales, installation, and maintenance.

Breakup by Vehicle Type:

• Passenger Cars
• Light Commercial Vehicles
• Medium and Heavy Commercial Vehicles
• Two-Wheeler
• Off-The-Road (OTR)
• Three- Wheelers
   

Passenger cars hold the largest share in the market

The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes passenger cars, light commercial vehicles, medium and heavy commercial vehicles, two-wheeler, three-wheelers and off-the-road (OTR). According to the report, passenger cars accounted for the largest market share.

Europe has a significant number of passenger cars on the roads, representing a majority portion of the overall vehicle population. Passenger cars are the primary mode of transportation for individuals and families, contributing to a consistently high demand for tires in this segment.  Passenger cars are widely used for daily commuting, personal transportation, and recreational purposes in Europe. The reliance on passenger cars for various activities, such as commuting to work, running errands, and leisure travel, results in frequent tire usage and replacement needs. Passenger car owners prioritize safety and performance when selecting tires. They look for tires that offer excellent grip, handling, braking, and overall safety features to ensure a comfortable and secure. Original equipment manufacturers (OEMs) work closely with tire manufacturers to provide passenger cars with specific tire fitments that complement their performance and design.

Breakup by Size:

• Passenger Cars
• Light Commercial Vehicles
• Medium and Heavy Commercial Vehicles
• Two Wheelers
• Off- The- Road (OTR)
• Three-Wheelers
   

The report has provided a detailed breakup and analysis of the market based on the size. This includes passenger cars, light commercial vehicles, medium and heavy commercial vehicles, two wheelers, off- the- road (OTR) and three-wheelers.

Light commercial vehicles (LCVs) are playing a significant role in the Europe tire market. These vehicles are widely used for commercial purposes such as transporting goods, delivery services, and small-scale logistics. The rise in e-commerce and last-mile delivery services has further fueled the demand for LCVs. They are well-suited for navigating city streets and delivering goods in congested areas. The expansion of urban areas and the need for efficient goods transportation have contributed to the dominance of LCVs in the tire market.

On the other hand, medium and heavy commercial vehicles, such as trucks and buses, are also the main users of commercial tires in Europe. The growth of e-commerce, logistics, and transportation sectors has led to a higher demand for M&HCVs, consequently propelling the demand for commercial tires.

Breakup by Distribution Channel:

• Offline
• Online
   

Offline channel represents the most widely used distribution channel

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes offline and online. According to the report, offline represented the largest segment.  

Europe has a well-developed retail infrastructure, with a vast network of brick-and-mortar tire dealerships, automotive service centers, and tire specialty stores. These physical retail outlets provide a wide range of tire brands, models, and sizes, allowing consumers to browse and make informed choices.  Offline tire retailers offer a personalized customer experience, where consumers can interact with knowledgeable staff who can provide expert advice on tire selection, fitment, and maintenance. Offline retailers often provide tire installation services, including mounting, balancing, and alignment, as well as additional maintenance and repair services. These services offer convenience to consumers, as they can have their tires professionally installed and receive ongoing support from the retailer. Additionally, they build trust and credibility over time through their established presence and reputation in the market.

Breakup by Country:

• Germany
• United Kingdom
• Spain
• France
• Italy
• Russia
• Turkey
• Netherlands
• Belgium
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Germany, United Kingdom, Spain, France, Italy, Russia, Turkey, Netherlands, Belgium and other.

Germany is a major manufacturing hub for tires in Europe. It is home to several leading tire manufacturers, including Continental, Michelin, Pirelli, and Bridgestone, among others. These companies have established production facilities in Germany, which contributes to the overall tire production capacity in Europe. The country's manufacturing prowess and technological expertise in the automotive sector have a substantial impact on the tire market. Germany is known for its strong focus on research and development (R&D) in the automotive industry, including tire technology. German tire manufacturers invest heavily in R&D to develop innovative tire solutions, improve performance, and meet the evolving demands of customers.

On the contrary, the United Kingdom is home to several prominent tire retail chains and distribution centers. These establishments play a vital role in the distribution and availability of tires across Europe. Many tire manufacturers, both domestic and international, rely on the UK's retail and distribution network to reach customers in various countries.

Competitive Landscape:

The key players in the market have made several innovations and advancements to meet the evolving demands of consumers and businesses.  They launched the michelin sustainable mobility plan, focusing on reducing CO2 emissions, using sustainable materials, and developing eco-friendly tires. The companies are introducing technologies, such as the RunOnFlat system, allowing drivers to continue driving on a flat tire for a certain distance. They have also introduced innovative tire models, such as the P Zero range, which offers high-performance capabilities for various vehicles. They have also been involved in motorsports, using it as a platform to test and improve their tire technology.  Additionally, the leading players are developing eco-friendly tires, such as the Ecopia range, designed to reduce fuel consumption and CO2 emissions. Bridgestone has also been involved in tire recycling programs to minimize waste.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• MICHELIN
• Bridgestone Corporation
• Continental AG,
• Goodyear Tire & Rubber Company
• Sumitomo Corporation,
• Pirelli Tyre S.p.A.
• Yokohama Tire Corporation
• Hankook Tire Co., Ltd
• Toyo Tire Corporation
• KUMHO TIRE CO., INC.

Europe Tire Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Europe tire market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Europe tire market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Europe tire industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.