Japan Tire Market Projected to Grow at a CAGR of 3.2% During the Forecast Period 2021-2027
Published | 02 December 2021
Japan tire market is growing due to the country's booming automobile manufacturing industry. A second factor contributing to the market's growth is the increase in disposable incomes and purchasing power that influences the domestic sales of automobiles, particularly passenger cars.
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Japan tire market was worth USD 10.12 billion in the year 2020. The market is estimated to grow at a CAGR of 3.2%, earning revenue of around USD 13.61 billion by the end of 2027. The anticipated growth in revenue can be attributed to the increasing automobile production in the country. Japan is among the world leaders for automobiles with leading vehicle manufacturers, such as Suzuki, Nissan, Mitsubishi, Kawasaki, etc. With the growing global demand for Japanese vehicles, the companies are investing in expanding their vehicle production capacity, fueling the market demand for tires. In addition, tire manufacturers in Japan are offering a wide range of products and introducing innovative technologies such as smart tires, which is expected to drive the Japan tire market in the forecast period. However, the monopoly of certain tire companies in Japan may act as a huge restraint on the market.
Increasing Demand for Private Vehicles Driving the Japan Tire Market
According to an estimate, there are approximately more than 82 million private vehicles in Japan, including passenger cars and motorcycles. Due to significant economic growth and rising disposable incomes, Japan’s demand for private vehicles has been surging significantly over the past few years. As a result, vehicle manufacturers are expanding production in order to boost exports and meet local demand. Growing vehicle ownership will increase OEM as well as replacement tire demand, driving Japan's tire market growth.
High Concentration of Global Tire Manufacturers in the Country Boosting the Japan Tire Market Growth
Japan is considered the hub of leading tire manufacturers, including Bridgestone, Sumitomo Rubber Industries, Yokohama Rubber Company, etc. This acts as one of the major driving factors for the tire market growth. This is because these global companies invest significantly in R&D activities to advance their tire technology and innovation. In addition, the presence of such companies in Japan also makes the product more accessible to end users, such as auto manufacturers, as reductions in transportation costs can also be achieved.
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Japan Tire Market - By Distribution Channel
Based on distribution channels, the Japan tire market is categorized into online distributors and offline distributors. The offline distributors segment accounts for the largest market share as consumers in Japan are inclined towards purchasing tires through trusted dealers and distributors. Furthermore, the high number of specialty stores for branded tires in Japan also plays a major role in fueling the growth of the offline distributor segment. The online distributor segment, on the other hand, is predicted to grow at the highest CAGR during the forecast period as tire companies are launching their own websites that offer information on a wide range of products.
Impact of COVID-19 on Japan Tire Market
The growth of the Japan tire market was negatively impacted by the country’s worsening COVID-19 outbreak. The manufacturing and supply chains were completely disrupted due to the nationwide lockdown imposed by the government in 2020. The operations of the market such as production, sales, as well as marketing were directly hindered, incurring huge losses to the tire manufacturers. Furthermore, the sales of new cars also witnessed a sharp decline during this period due to the economic recession and its impact on the disposable income of the consumers.
The leading players in the Japan tire market are Bridgestone Corporation, Sumitomo Rubber Industries, Toyo Tire & Rubber Company, Yokohama Rubber Company, IRC Tire, Shinko Tire, Falken Tire, Kyoto Japan Tire Group, Mitsubishi Corporation, Kowa Tsusho Co., Ltd., and other prominent players.
The market is dominated by global giants such as Bridgestone, Sumitomo Rubber, Yokohama, etc., to take a major share in the market. The market players focus on offering a wide range of tires for all types of vehicles to diversify their end-users. They invest heavily in research and development initiatives to launch new products and expand production capacities to stay ahead of the competition. Additionally, competitive strategies, such as partnerships, mergers, acquisitions, joint ventures, etc., are also prevalent in this market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the Japan tire market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the Japan 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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