Report Overview

The growing emphasis on fuel economy, rising demand for convenience, and the high maintenance or replacement costs of conventional tires are propelling the Germany Tire Market during the forecast period between 2023 and 2029.

Germany Tire Market – Industry Trends & Forecast Report, 2029

Germany tire market size is projected to grow at a CAGR of 2.24% during the forecast period between 2023 and 2029. The increasing sales of passenger automobiles are major factors driving market expansion. Tires support a vehicle's weight, transmit accelerating and braking energy to the ground, change or maintain direction, and absorb road surface stress, all of which contribute to the vehicle's overall performance. Increasing infrastructure spending in both established and emerging markets is also expected to enhance demand for construction trucks, boosting tire sales. Aside from that, the major companies are working on innovative, environmentally friendly products including ecological, flat-run, and nitrogen-based tires.

Germany Tire Market - Overview

An air-filled, circular object with a rim-like shape is the tire on a car. Various organic and inorganic materials, including steel, rubber, wire, cotton, glass, silica, and wire that has been reinforced with carbon black, are used to create it. The tire, which comes in two varieties: tubed and tubeless, is made up of a bead, a bead filler, belts, a body ply, an inner liner, a sidewall and tread. Controlling the forces requires the tire.

Growth Drivers

Adoption of Technology Advancements

Because of the rapid advancements of technology, the majority of manufacturing enterprises are utilizing automation to boost productivity and profitability. The automotive tire market is expected to grow due to the technology advancements in the Germany tire market, such as the introduction of rimless tires, green tires, and the use of lightweight elastomers, metals, such as alloys and carbon fiber, or composites such as manganese bronze and nickel aluminum bronze, in tire production.

Restraints

Volatility in Raw Material Prices

The manufacture of automotive tires requires large amounts of both natural and synthetic rubber, Sulfur, carbon black, and other components. The quantity of natural rubber and governmental regulations against excessive deforestation of rubber trees are two factors that influence the pricing of these raw resources. The fluctuations in raw material costs present a barrier to the growth of the Germany tire market.

Impact of COVID-19 on the Germany Tire Market

The COVID-19 pandemic hampered Germany's tire market growth. The government's nationwide quarantine, imposed to stop the spread of the virus, had an influence on tire production and raw material availability. Also, the pandemic drove many people to work from home, reducing the demand for individual activity. Consumer purchasing power was also affected by the state of the nation's economy. These constraints severely limit demand for automotive tires in Germany, impeding on the industry's total growth.

Germany Tire Market

Segmental Coverage

Germany Tire Market - By Type

On basis of type, Germany tire market is divided into Passenger Car Tires, Light Commercial Vehicle Tires, Heavy Commercial Vehicle Tires, Off-the-Road Tires, Two-Wheeler Tires, and other segments. The passenger car tires segment dominates the Germany tire market, and this trend is likely to continue during the forecast period. The rising desire for private vehicle ownership is principally responsible for the growing fleet of passenger automobiles. Automakers are growing production and import capacity to meet increased customer demand for passenger automobiles. Tire demand has increased across the country, which has benefited tire manufacturing, distribution, accessibility, and affordability. Also, due to the country's huge share of cost-conscious inhabitants, used passenger car sales are rising nationwide, propelling the tire sector.

Germany Tire Market – By Sales Channel

On basis of sales channels, Germany tire market is bifurcated into Original equipment manufacturers (OEM) and Aftermarket segments.

Germany Tire Market – By Application

On the basis of application, Germany tire market is divided into Replacement tires and Original equipment (OE) tires segments. The replacement category is a higher contributor to the Germany tire market. Benefits like the ease of finding a large selection of tires for all vehicle types at different price points are likely to hasten the growth of the replacement business. As consumer awareness of the significance of routine tire replacement and maintenance increases, it is expected that demand for replacement tires would increase during the forecast period.

Germany Tire Market – By Distribution Channel

On basis of distribution channel, Germany tire market is split into Online and Offline segments.

Germany Tire Market – By Construction

On basis of construction, Germany tire market is divided into Radial and Bias segments. The radial tires segment accounts for a higher share of the Germany tire market. Radial tires are more comfortable, as they cushion the rider from shocks, collisions, and bumps. Also, the improved fuel efficiency of radial tires has a significant impact on customer demand. Radial tires are also gaining popularity due to their resistance to heat, wear, and cutting.

Germany Tire Market – By Season

On basis of season, Germany tire market is divided into Summer Tires, Winter Tires, and All-season Tires segments. The all-season tires segment dominates the market share in this area. The widespread use of all-season tires throughout the year, regardless of season, is primarily responsible for their market dominance. Winter tires are only preferred during the months with a lot of snowfall and are relatively expensive. Also, the demand for and necessity for separate tires for each season has significantly decreased since the introduction of all-season tires.

Germany Tire Market – By Material

On basis of material, Germany tire market is divided into Natural rubber and Synthetic rubber segments. The manufacture of automotive tires requires large amounts of both natural and synthetic rubber, Sulphur, carbon black, and other components. The two main synthetic rubber polymers used in tire manufacturing are butadiene rubber and styrene butadiene rubber. These rubber polymers are used in combination with natural rubber.

Competitive Landscape

Major players in the Germany tire market include Continental AG, Michelin AG, Bridgestone Corporation, Goodyear Tire & Rubber Company, Pirelli & C. S.p.A., Hankook Tire & Technology Co., Ltd., Yokohama Rubber Company, Limited, Sumitomo Rubber Industries, Ltd., Cooper Tire & Rubber Company, and Toyo Tire & Rubber Co., Ltd. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In January 2022 - Continental launched the EcoContact 6, a new tire designed for use in passenger cars. The EcoContact 6 offers improved fuel efficiency and reduced CO2 emissions. With this new tire launch, Continental aims at meeting the growing demand for environmentally friendly products in the Germany automotive market.

Scope of the Report

By Type

• Passenger car tires

• Light commercial vehicle tires

• Heavy commercial vehicle tires

• Off-road tires

• Two-wheeler tires

• Others

By Sales Channel

• Original equipment manufacturer (OEM)

• Aftermarket

By Application

• Replacement tires

• Original equipment (OE) tires

By Distribution channel

• Online

• Offline

By Construction

• Radial

• Bias

By Season

• Summer tires

• Winter tires

• All-season tires