Brazil Tire Market is Forecast to Reach a Whopping USD 9.8 Billion by the End of 2028
Published | 11 January 2022
Brazil tire market is growing at a high CAGR because of the expanding automobile manufacturing in the country. Additionally, the increasing disposable income and purchasing power of the people, is influencing the domestic sales of automobiles, especially passenger cars.
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Brazil tire market was worth USD 6.3 billion in 2021. According to the study, the market is estimated to grow at a CAGR of 6.4%, earning revenue of around USD 9.8 billion by the end of 2028. The growth of the Brazil tire market is attributed to the expanding tire and automobile production in the country due to increasing demand in the domestic and global market. The presence of leading tire brands in the country such as Pirelli, Bridgestone, Continental tires, Prometeon Tyre, etc., that are investing significant amounts into expanding tire production capacity in the country is anticipated to drive the market growth in the forecast period. However, volatile prices of raw materials for tire production may act as a restraint for the Brazil tire market growth.
Expanding Online Sales Channels is Driving the Brazil Tire Market Growth
The online platform is gaining huge popularity for the sales of tires in Brazil, especially after the COVID-19 pandemic. The increasing internet accessibility is proliferating the growth of tires through online platforms, especially among adult demographics. Thus, a majority of tire brands in Brazil are launching websites to offer better accessibility to a wide range of products and boost their sales. The third-party suppliers and distributors are also resorting to popular platforms, such as Alibaba, to exploit growth opportunities. Additionally, the online platforms offer deals and discounts, along with the convenience of onsite delivery, which is luring the consumers and eventually driving the market growth.
Expanding Tire Production Capacity
Brazil has a high concentration of production plants of leading tire brands such as Pirelli, Bridgestone, Goodyear, Firestone, etc. These multinational corporations are pouring huge amounts into expanding tire manufacturing capacity into their Brazilian plants. For instance, Bridgestone Brazil recently announced the investment in the company’s tire manufacturing plant in Bahia, Brazil due to the increasing demand for premium tires in the country. Prometeon is also gearing up to increase its production capacity at its Gravatai, the Rio Grande do Sul, Brazil.
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Brazil Tire Market - By End-User
Based on end-users, Brazil tire market is segmented into OEM and replacements. The replacements segment accounts for the largest share in the Brazilian tire market because of the increasing private vehicle ownership. Vehicle tires need periodic maintenance and replacements to ensure proper grip on-road and maximum safety. However, the OEM segment is anticipated to register a high growth rate as well during the forecast period due to the presence of leading manufacturers such as Fiat and expanding automobile manufacturing operations in the country.
Impact of COVID-19 on Brazil Tire Market
As soon as the COVID-19 pandemic broke out, the Brazilian government gave a very lackluster response to the pandemic situation despite strict warnings from the World Health Organization. This led to a significant surge in the COVID-19 infections in the country as the government refused to impose lockdown during the initial phase. As a result, the businesses had to halt the tire and automotive production operations out of their own accord to prevent the COVID-19 cases at the workplace. This led to the closure of tire and replacements shops as well as limited demand for tires in the domestic market due to restricted mobility. Currently, the country is grappling with a wave of Omicron infections, which may further affect the growth of the Brazil tire market.
Brazil Tire Market- Competitive Landscape
The leading players in the Brazil tire market are Pirelli Pneus SA, Michelin, Bridgestone Americas Tire Operations, LLC, The Goodyear Tire & Rubber Company, Continental AG, Rinaldi Tires, Maggion Industrias de Pneus e Maquinas Ltda., Maxxis International, Kenda Rubber Industrial Company, LTD., Technic Tires, and other prominent players.
The market is highly concentrated and dominated by major multinational tire brands, such as Bridgestone and Firestone brands. The market players offer a wide range of tires for various types of vehicles through their integrated distribution channel. They also invest significantly in expanding local tire production to meet the growing domestic and international demand. Furthermore, the adoption of competitive strategies, such as mergers, acquisitions, partnerships, and joint ventures, etc., is also prominent in this market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the Brazil tire market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the Brazil tire market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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