Brazil Tire Market, By Design (Radial, Bias), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Medium, and Heavy Commercial Vehicles, Two-Wheelers, Three-Wheelers, Off-The-Road (OTR)), By End-User (OEM, Replacements), By Distribution Channel (Online Distributors, Offline Distributors) Trend Analysis, Competitive Market Share & Forecast, 2018-2028

  • Published Date: January 2022
  • Report ID: BWC22008
  • Available Format: PDF
  • Page: 117

Report Overview

Brazil's tire market has gained significant traction in recent years due to the presence of manufacturing plants owned by multinational tire companies and the expansion of tire manufacturing in the country. Additionally, the Brazilian market for tires is flourishing due to an increase in the demand for tires of different vehicle types and the adoption of advanced technologies in tires

Brazil Tire Market- Industry Trends & Forecast Report 2028

Brazil tire market was worth USD 6.3 billion in 2021 and is further projected to reach USD 9.8 billion by the year 2028, growing at the CAGR of 6.4% by 2028. Tire production plants operated by multinational tire brands and expansion of tire production operations in the country is significantly propelling the growth of the Brazil tire market. Furthermore, rising demand for tires of different vehicle types, along with the adoption of advanced technologies in tires, as well as in tire manufacturing, are anticipated to present lucrative growth opportunities to the Brazil tire market.

Brazil Tire Market

Brazil Tire Market- Overview

A tire is a rubberized component of a vehicle that protects the rim of the wheel externally. Tires are primarily designed to protect wheel rims and provide tractive force between the road surface and the vehicle. Because tires are made of rubber, they offer flexible cushion to wheels that reduces vibrations and absorbs shocks. Tires are generally made up of tread cap, jointless cap piles, beads, and other materials such as synthetic rubber, carbon black, and fabric.

Brazil Tire Market Forecast and Trends

Growth Drivers

Increasing Automobile Production Operations

Brazilian vehicle production ranks 8th in the world with a concentration of top automakers such as General Motors, Volkswagen, Fiat, Ford, Renault, and others.  As the domestic market for automobiles grows, these manufacturers are investing heavily in expanding their production capacity. With significant investments, Brazil is emerging as one of the leading manufacturers of light vehicles. This is anticipated to boost the demand for tires among the OEMs, propelling the overall market growth.

Rising Per Capita Income and Purchasing Power

Brazil has experienced significant economic growth, which has increased the purchasing power of Brazilians in recent years, which in turn is contributing to the rise of private vehicle ownership. Increasing automobile production and the penetration of international car brands in Brazil have resulted in competitive pricing of automobiles, thus driving up the number of vehicles sold on the market. Thus. the high number of private vehicles results in increasing demand for tires in the aftermarket, propelling the overall market growth.

Restraints

Highly Volatile Prices of Raw Materials

As the tire manufacturers are planning to expand the tire manufacturing capacities in the country, the volatile prices of raw materials may act as a huge obstacle for the Brazil tire market. The decline in latex production in the domestic market has resulted in huge fluctuations in rubber prices which is a crucial component in tire production. Other raw materials, such as nylon and polyester, also have to be imported to carry out manufacturing operations, which further hinders the market growth.

Impact of COVID-19 on Brazil Tire Market

After Brazil overcame the 2015-16 economic crisis, the coronavirus-induced pandemic pushed the country into another recession. According to the World Bank report, the COVID-19 pandemic led to a 4.1% decline in GDP in 2020, resulting in higher commodity prices and lower purchasing power. This tremendously affected the growth of the Brazil tire market as the demand for tires witnessed a sharp drop from both OEMs and aftermarkets during this period. The government of Brazil had to stop tire and vehicle production operations because of the intensity of the pandemic, causing the market to suffer continual losses.

Brazil Tire Market - By Design

Based on designs, the Brazil tire market is segmented into radial and bias. The radial tire segment accounts for the largest share in the Brazil tire market. The prominent use of radial tires in passenger cars plays a crucial role in driving the segment’s growth. Moreover, radial tires have less rolling resistance, which reduces fuel consumption. Today, radial tires are more popular due to highly volatile fuel prices. Radial tires are also preferred by heavy commercial vehicles due to their tougher construction and greater puncture resistance.

Brazil Tire Market - By Vehicle Type

Based on vehicle types, Brazil tire market is segmented into passenger cars, light commercial vehicles, medium and heavy commercial vehicles, two-wheelers, three-wheelers, and off-the-road (OTR). The passenger cars segment holds the largest market share.  The rising disposable incomes and growing middle-class population are expected to boost the demand for passenger cars in the domestic market. With an increasing demand for cars, car manufacturing operations are also on the rise, thereby stimulating the demand for tires in Brazil.

Brazil Tire Market - By Distribution Channel

Based on distribution channels, the Brazil tire market is segmented into online distributors and offline distributors. The offline distributor segment accounts for the largest market share. The local tire producers as well as tire importers opt for local tire shops and specialty stores as the primary sales channels for their products. It is easy to find a wide range of tires offline, which contributes to the growth of the offline distribution channel. However, the online distributors segment is projected to witness the highest CAGR during the forecast period.

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, Technic Tires, and other prominent players.

The tire market in Brazil 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 vehicle types through their integrated distribution channel. They also invest significantly in expanding local tire production to cater to 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.

Recent Developments

  • In July 2021, Sumitomo Rubber Industries Ltd. announced to be investing RUSD 1.064 billion (USD 200 million) to expand its tire production capacity for passenger cars and light truck tires at its factory in Brazil.

Scope of the Report:

Attributes Details
Years Considered Historical data – 2018-2021
Base Year – 2021
Forecast – 2022 – 2028
Facts Covered Revenue in USD Billion
Product Service/Segmentation By Design, By Vehicle Type, By End-User, By Distribution Channel
Key Players 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.

 

 

By Design

  • Radial
  • Bias

By Vehicle Type

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

By End-User

  • OEM
  • Replacements

By Distribution Channel

  • Online Distributors
  • Offline Distributors
  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Key Market Segments
  2. Research Methodology
    1. Qualitative Research
    2. Methodology
    3. Regional Split of Primary & Secondary Research
    4. Secondary Research
    5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
    6. Market Size Estimation
    7. Assumptions for the Study
    8. Market Breakdown & Data Triangulation
  3. Executive Summary
  4. Industry Insight and Growth Strategy
    1. Value Chain Analysis
    2. DROC Analysis
      1. Market Drivers
        1. Increasing Automobile Production Operations
        2. Expanding Online Sales Channels
      2. Market Restraints
        1. Highly Volatile Prices of Raw Materials
      3. Market Challenges
        1. Negative Impact of the COVID-19 Pandemic
      4. Market Opportunity
        1. Rising Per Capita Income and Purchasing Power
        2. Launch of Advanced and Innovative Tire
    3. Recent Developments
    4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
  5. Brazil Tire Market Overview
    1. Market Size & Forecast by Value, 2018-2028
    2. Market Size and Forecast, By Segment
      1. By Design
        1. Radial
        2. Bias
      2. By Vehicle Type
        1. Passenger Cars
        2. Light Commercial Vehicles
        3. Medium and Heavy Commercial Vehicles
        4. Two Wheelers
        5. Three Wheelers
        6. Off-The-Road (OTR)
      3. By End-User
        1. OEM
        2. Replacements
      4. By Distribution Channel
        1. Online Distributors
        2. Offline Distributors
  6. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis (2021)
    3. Competitive Benchmarking by Operating Parameters
  7. Impact of COVID-19 on Brazil Tire Market
  8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. Pirelli Pneus SA
    2. Michelin
    3. Bridgestone Americas Tire Operations, LLC
    4. The Goodyear Tire & Rubber Company
    5. Continental AG
    6. Rinaldi Tires
    7. Maggion Industrias de Pneus e Maquinas Ltda.
    8. Maxxis International
    9. Kenda Rubber Industrial Company, LTD.
    10. Technic Tires
    11. Other Prominent Players
  9. Key Strategic Recommendations

 

List of Figures

 

Figure 1: Brazil Tire Market Segmentation

 

Figure 2: Brazil Tire Market Value Chain Analysis,

 

Figure 3: Company Market Share Analysis, 2021

 

Figure 4: Brazil Tire Market Size, By Value (USD Billion), 2018-2028

 

Figure 5: Brazil Tire Market Share (%), By Design, By Value, 2018-2028

 

Figure 6: Brazil Tire Market Share (%), By Vehicle Type, By Value, 2018-2028

 

Figure 7: Brazil Tire Market Share (%), By End-User, By Value, 2018-2028

 

Figure 8: Brazil Tire Market Share (%), By Distribution Channel, By Value, 2018-2028

 

 

List of Tables

 

 

Table 1: Brazil Tire Market Size, By Design, By Value, (USD Billion), 2018-2028

 

Table 2: Brazil Tire Market Size, By Vehicle Type, By Value, (USD Billion), 2018-2028

 

Table 3: Brazil Tire Market Size, By End-User, By Value, (USD Billion), 2018-2028

 

Table 4: Brazil Tire Market Size, By Distribution Channel, By Value (USD Billion), 2018-2028

 

Table 5: Pirelli Pneus SA Financial Analysis

Table 6: Pirelli Pneus SA Business Overview

Table 7: Michelin Financial Analysis

Table 8: Michelin Business Overview

Table 9: Bridgestone Americas Tire Operations, LLC Financial Analysis

Table 10: Bridgestone Americas Tire Operations, LLC Business Overview

Table 11: The Goodyear Tire & Rubber Company Financial Analysis

Table 12: The Goodyear Tire & Rubber Company Business Overview

Table 13: Continental AG Financial Analysis

Table 14: Continental AG Business Overview

Table 15: Rinaldi Tires Financial Analysis

Table 16: Rinaldi Tires Business Overview

Table 17: Maggion Industrias de Pneus e Maquinas Ltda. Financial Analysis

Table 18: Maggion Industrias de Pneus e Maquinas Ltda. Business Overview

Table 19: Maxxis International Financial Analysis

Table 20: Maxxis International Business Overview

Table 21: Kenda Rubber Industrial Company, LTD. Financial Analysis

Table 22: Kenda Rubber Industrial Company, LTD. Business Overview

Table 23: Technic Tires Financial Analysis

Table 24: Technic Tires Business Overview

Market Segmentation

By Design

  • Radial
  • Bias

By Vehicle Type

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

By End-User

  • OEM
  • Replacements

By Distribution Channel

  • Online Distributors
  • Offline Distributors
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Frequently Asked Questions (FAQs):

Ans: Brazil tire market reached USD 6.3 billion in 2021.
Ans: The major factors driving the growth of the Brazil tire market are; increasing automobile production operations and expanding online sales channels.
Ans: The key 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.
Ans: The radial tire segment accounted for the largest share in the Brazil tire market.
Ans: The passenger cars segment accounted for the largest share in the Brazil tire market.