Austria Tire Market
Austria Tire Market Size Grows at Steady CAGR of 3.87% to Cross USD 1.1 Billion by 2029
Published | 03 November 2023
Austria tire market is flourishing due to the country's robust automotive industry, increasing vehicle ownership, demand for winter tires due to its alpine climate, and government regulations promoting safety and eco-friendly tire options.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the Austria tire market size at USD 900.98 million in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the Austria tire market size to grow at a CAGR of 3.87% reaching a value of USD 1,131.4 million by 2029. Austria tire market's growth is driven by several key factors. Firstly, the country's robust automotive industry and a high rate of vehicle ownership ensure consistent demand for tires, both in the replacement and OEM markets. Also, stringent winter tire regulations in Austria boost sales of seasonal tires, as winters are severe in many regions. Further, rising awareness about safety and environmental concerns encourages consumers to invest in premium and eco-friendly tire options. E-commerce platforms have also facilitated tire sales, offering convenience and a wider product range. Overall, these factors contribute to the expansion of the Austria tire market.
Tire – Overview
A tire is a vital automotive component designed to provide traction, support, and stability to vehicles. Typically made from rubber and reinforced with various materials like fabric and steel, tires are cylindrical and mounted on a vehicle's wheels. They serve several critical functions, including grip on the road surface, shock absorption, and load-bearing capabilities. Tires come in various types, including all-season, winter, and performance variants, each optimized for specific driving conditions. Proper maintenance, such as monitoring tire pressure and tread depth, is essential for safety and fuel efficiency. Tires are a fundamental element ensuring the safe and efficient operation of automobiles.
Prolonging Wars and Escalating Geopolitical Tensions in Oil Rich Regions
The raging war between Israel and Hamas, a Palestine-based militant and nationalist organization, sends shockwaves across various industries, particularly oil & gas, transcending geographic boundaries and affecting businesses globally. The conflict between Israel-Hamas has been a longstanding, deeply entrenched geopolitical issue. On October 07, 2023, Hamas, in a surprise and heavy attack, struck Israel with thousands of rockets and infiltrations killing more than 1,100 people. In response, the prime minister of Israel declared war against Hamas and anticipated that the war would be ‘long and difficult.’ The United States has sent its warships and aid to Israel and stated that its citizens were killed in the war.
Meanwhile in the Eastern Europe, the Russia-Ukraine war has been prolonging for more than a year. Also, the war in West Asia and escalating geopolitical tensions in West Asia and Middle East will affect industries across verticals and regions. Oil & gas is one of the adversely affected industries by the war. The Middle East, including Israel, is a vital hub for oil production and transportation. Any disturbance in the Middle East region instantly raises concerns about oil supply disruptions, leading to increased oil prices worldwide. For example, oil prices increased by more than 4.5% or more than USD 4 a barrel in Asia trade on October 09, 2023. Brent crude surged USD 4.18, or about 5%, to USD 88.76 a barrel, meanwhile the US West Texas Intermediate crude was up more than 5% or USD 4.23 at USD 87.02 a barrel. This spike in oil and energy costs will have a domino effect on multiple industries. As fossil fuel is one of the main raw materials for the production of tires, companies and end users in the Austria tire market face the brunt of rising fuel prices. Volatile and higher fuel prices could increase the cost of tires, resulting in the declined demand for tires affecting their sales and market growth.
Impact of COVID-19 on Austria Tire Market
The COVID-19 pandemic significantly impacted the Austria tire market. During the initial outbreak and subsequent lockdowns, the demand for tires plummeted as travel restrictions and reduced economic activity led to decreased vehicle usage. Manufacturing and supply chain disruptions also hindered tire production and distribution. However, as restrictions eased and people sought safer alternatives to public transport, there was a gradual recovery in the market, driven by increased consumer interest in personal vehicles. This shift in consumer behavior, coupled with a growing awareness of the importance of safe tires, contributed to a resurgence in the Austria tire market as it adapts to the pandemic's challenges.
Austria Tire Market - By Tire Type
By tire type, Austria tire market is divided into Radial and Bias segments. Radial tires are known for their advanced design, featuring ply cords radiating from the tire's center, which provides improved performance, durability, and fuel efficiency. Conversely, bias tires have a diagonal ply construction, offering robustness and stability, making them suitable for specific applications. While radial tires dominate the modern automotive landscape due to their technological advancements, bias tires remain relevant in specialized industries like agriculture and off-the-road (OTR) vehicles, catering to distinct customer needs and preferences in the Austria tire market.
Austria tire market is fiercely competitive. Major companies in the market include Michelin, Continental, Pirelli, Bridgestone, Hankook, Nokian, and Kumho. These companies use various strategies, including increasing investments in their R&D activities, mergers, and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in Austria tire market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Austria Tire Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Austria Tire Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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- Austria Tire Market, By Vehicle Type (Passenger Cars, Light Commercial Vehicles (LCVs), Medium & Heavy Commercial Vehicles (M&HCVs), Off-the-Road (OTR) Vehicles, Two Wheelers, Three Wheelers); By Tire Type (Radial, Bias); By Sales Channel (Dealer/Distributor, Online); By Demand Category (OEM, Replacement), Trend Analysis, Competitive Landscape & Forecast, 2019–2029
Publish Date: November 2023
Increasing number of vehicle ownership, spurring demand for winter and all-season tires due to the country's climate, stringent safety regulations, and growing tourism and transportation industries, which boost replacement tire sales and overall market growth, all contributing to the growth of the Austria Tire Market during the forecast period between 2023 and 2029.
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