Report Overview

United States Tire Market- Industry Trends & Forecast Report 2028

The United States tire market was worth USD 63.8 billion in 2021 and is further projected to reach USD 99.6 billion by the year 2028, growing at a CAGR of 6.8% during the forecast period (2022-2028). The market is flourishing due to the increase in private vehicle ownership due to high disposable income, the increasing lifespan of tires, and the increasing emphasis on safety and maintenance. Furthermore, technological advancements, such as the launch of smart tires, are anticipated to provide lucrative growth opportunities to the United States tire market during the forecast period.

Automobile Tires- A Brief Overview

Tires are rubberized, ring-shaped components that protect the outside of the wheel rim. Besides protecting the wheel’s rim, its key function is to provide tractive force between the road surface and the vehicle. As it is made of rubber, it also provides a flexible cushion that reduces vibrations and absorbs road shock. Despite differences in design and manufacture, tires typically contain more than 100 different components. The tires are generally made from natural rubber, steel, carbon black, silica, nylon, petroleum, polyester, synthetic rubber, etc.

United States Tire Market Forecast and Trends

Growth Drivers

Expanding Automobile Production in the United States

The United States is among the leading manufacturers of automobiles, with a high concentration of well-known brands such as Tesla, Toyota, Honda, General Motors, Hyundai, etc. Experts estimate that American automobile companies produce around 10 million units per year. They are also significantly investing in expanding their production capacities in order to meet the growing demand for automobiles on the domestic market. This is anticipated to boost the demand for tires in the forecast period, propelling the overall market growth.

Flourishing Online Sales Channels

COVID-19 significantly slowed the distribution channels for tires, causing large losses in the market, which compelled the companies to shift to online sales channels. This shift offered tremendous growth opportunities to the United States tire market. It enabled customers to browse through a wide range of tires of different brands and prices using popular websites such as Amazon.com. Additionally, many multinational tire companies are also launching their standalone websites to increase their product penetration, which is anticipated to boost the market growth during the forecast period.

Restraints

Monopoly of Certain Market Players

The tire market in the United States is highly monopolistic, with only a few players dominating a large chunk of it. The largest tire manufacturers in the United States are Michelin, Pirelli, Continental, Bridgestone, and Goodyear. These companies not only control most of the market but also supply raw materials and set the price of the product. For instance, multinational tire manufacturer Pirelli recently increased the price of its tires. The monopoly of the market eliminates the chances of competitive price, which acts as a major restraint on its growth.

Impact of COVID-19 on the United States Tire Market

The United States tire market was negatively impacted by the unprecedented COVID-19 pandemic outbreak. The United States was among the worst affected countries by the pandemic. Since COVID-19 cases spiked in the country like wild fire, the US government had to impose a lockdown to reduce the spread of the virus. Due to the lockdown, automobile and tire production activities were temporarily halted, causing a huge loss to the market. Furthermore, the restrictions on mobility during the lockdown period also resulted in a decline in market demand for tires for replacement purposes.

United States Tire Market - By Design

Based on designs, the United States tire market is segmented into radial and bias. The radial tires segment holds the largest share in the United States tire market. This type of design offers better gripping on-road and advanced durability and maneuverability, which enhances safety. Furthermore, radial tires also provide higher comfort compared to their counterparts. Radial tires are more comfortable for riders because their plies run radially rather than diagonally.

United States Tire Market - By Vehicle Type

Based on vehicle types, the United States tire market is grouped into passenger cars, light commercial vehicles, medium, and heavy commercial vehicles, two-wheelers, three-wheelers, and off-the-road (OTR) segments. Among these, the passenger cars segment holds the largest market share. The increasing demand for passenger cars for private utilization owing to the high purchasing power of the buyers in the United States acts as a major driving factor for the growth of this segment. On the other hand, the light commercial vehicles also cover a substantial market share due to their prominent use in the manufacturing sector.

United States Tire Market - By End-User

Based on end-users, the United States tire market is segmented into OEM and replacements. The OEM segment accounts for the largest market share owing to the presence of leading automobile manufacturers in the United States, such as Fiat, Hyundai, Honda, BMW, General Motors, etc. These manufacturers are also significantly investing in expanding their production capacities to meet the increasing demand for vehicles, which is anticipated to boost the demand for tires in the forecast period. On the other hand, the replacement segment is also gathering steam and grabbing a significant market share.

United States Tire Market - Competitive Landscape

The leading players in the United States tire market are Goodyear Tire and Rubber Company, Cooper Tire & Rubber Company, Michelin, Bridgestone Corporation, Continental AG, Hankook Tire & Technology, Pirelli & C. S.p.A., Yokohama Rubber Company, Hoosier Racing Tire, Sumitomo Rubber Industries, Ltd., and other prominent players.

The United States tire market is highly consolidated and concentrated among leading multinational tire brands, such as Pirelli, Goodyear, Hankook, etc. The market players offers a wide range of products for different types of vehicles to grab a larger portion of the market. They also constantly introduce technological advancements into their tires to boost the safety of vehicles. Furthermore, the adoption of competitive strategies, such as partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.

Recent Development

• In December 2021, Bridgestone announced that it has been officially selected as the tire supplier for the Audi e-Tron, for which the company is developing custom-engineered ultra-low rolling resistance summer tires with ENLITEN Technology.

Scope of the Report

By Design

• 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. Surging Automobile Production In United States
         2. Expanding Online Sales Channels
      2. Market Restraints
         1. Monopoly Of Certain Market Players
      3. Market Challenges
         1. Negative Impact of the COVID-19 Pandemic
      4. Market Opportunity
         1. Advancements In Tire Technology
         2. Partnerships And Collaborations Between Automobile And Tire Manufacturers
   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. United States 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 United States Tire Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Goodyear Tire and Rubber Company
   2. Cooper Tire & Rubber Company
   3. Michelin
   4. Bridgestone Corporation
   5. Continental AG
   6. Hankook Tire & Technology
   7. Pirelli & C. S.p.A.
   8. Yokohama Rubber Company
   9. Hoosier Racing Tire
   10. Sumitomo Rubber Industries, Ltd.
   11. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: United States Tire Market Segmentation

Figure 2: United States Tire Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2021

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

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

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

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

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

List of Tables

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

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

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

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

Table 5: Goodyear Tire and Rubber Company Financial Analysis

Table 6: Goodyear Tire and Rubber Company Business Overview

Table 7: Cooper Tire & Rubber Company Financial Analysis

Table 8: Cooper Tire & Rubber Company Business Overview

Table 9: Michelin Financial Analysis

Table 10: Michelin Business Overview

Table 11: Bridgestone Corporation Financial Analysis

Table 12: Bridgestone Corporation Business Overview

Table 13: Continental AG Financial Analysis

Table 14: Continental AG Business Overview

Table 15: Hankook Tire & Technology Financial Analysis

Table 16: Hankook Tire & Technology Business Overview

Table 17: Pirelli & C. S.p.A. Financial Analysis

Table 18: Pirelli & C. S.p.A. Business Overview

Table 19: Yokohama Rubber Company Financial Analysis

Table 20: Yokohama Rubber Company Business Overview

Table 21: Hoosier Racing Tire Financial Analysis

Table 22: Hoosier Racing Tire Business Overview

Table 23: Sumitomo Rubber Industries, Ltd Financial Analysis

Table 24: Sumitomo Rubber Industries, Ltd Business Overview