United Kingdom Tire Market By Vehicle Type (Passenger Car, Light Commercial Vehicle, Medium & Heavy Commercial Vehicle, Two Wheelers, Three Wheelers, OTR), By Tire Construction Type (Radial, Bias), By Demand Category Type (OEM, Replacement), By Region, Competition, Forecast & Opportunities, 2018-2028
Published Date: April - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 3.06 Billion |
| CAGR (2023-2028) | 3.19% |
| Fastest Growing Segment | Radial |
| Largest Market | England |
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Market Overview
United Kingdom Tire Market is worth USD 3.06 Billion in 2022 and is expected to project strong growth during the forecast period with a CAGR of 3.19%.
The United Kingdom tire market has seen tremendous growth over the past few years. This growth has been driven by a number of factors, such as the growing ownership of vehicles and the emergence of e-commerce websites specializing in tire sales. The ease and convenience of shopping online have been an important factor behind this growth, enabling customers to simply surf through a vast variety of products and take advantage of the high brand recall of international brands in the market.
In spite of the unprecedented difficulties brought about by the COVID-19 pandemic, the tire industry has shown incredible resilience. The criticality of its products and the unabated need for secure and dependable transportation have helped it weather the effects of the pandemic. This resilience is a reflection of the tire industry's significance in enabling the transport of people and goods, even during times of crisis.
In the years to come, the future of the UK tire market will be defined by technological progress in tires. Smart and energy-efficient tires are likely to be in vogue as customers become more environmentally conscious and digitally connected in their purchasing behavior. Such cutting-edge tire technologies not only will create a greener and more connected future but also improve the performance and safety of vehicles on the road.
As customer tastes continue to change, the UK tire market will certainly see changes. The manufacturers and dealers will have to keep up with these trends in order to address customers' shifting needs. This changing marketplace offers the potential for creating innovative products that respond to the unique needs of UK motorists, including all-season tires designed specifically for UK weather patterns.
Key Market Drivers
Vehicle Ownership and Usage Trends
A primary driver of the United Kingdom tire market is the trends in vehicle ownership and usage. The UK has a large and continually growing population of vehicles, including passenger cars, commercial vehicles, and motorcycles. As the number of vehicles on UK roads increases, there is a consistent and substantial demand for tires. Vehicle owners and fleet operators must replace tires regularly due to wear and tear, creating a steady and predictable market for tire manufacturers and retailers. Additionally, changes in consumer preferences, such as a preference for SUVs and electric vehicles, can influence the type and size of tires required, driving further demand.
Safety and Regulatory Requirements
Safety considerations are paramount in the United Kingdom, and this is reflected in the demand for tires that meet stringent safety standards. Regulatory requirements for tire safety, such as tread depth and tire labeling, play a crucial role in shaping the market. The UK, in alignment with European Union regulations, has imposed standards on tire labeling, which provide consumers with information on key performance attributes, including fuel efficiency, wet grip, and external rolling noise. Compliance with these regulations is essential for manufacturers, and consumers increasingly rely on these labels to make informed purchasing decisions, emphasizing the importance of safety in the market.
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Environmental Concerns and Sustainability
Environmental concerns and sustainability have become significant drivers in the UK tire market. Consumers are increasingly conscious of their environmental footprint and seek tires that not only meet safety and performance standards but also contribute to reducing carbon emissions. Eco-friendly tire technologies, such as those designed to lower rolling resistance and improve fuel efficiency, are gaining popularity. The shift towards electric vehicles (EVs) and the need for specialized low-rolling-resistance tires further emphasize the demand for sustainable tire options.
Technological Advancements and Tire Innovation
Technological advancements are reshaping the tire industry, and the UK is at the forefront of adopting innovative tire technologies. Advanced tire materials, tread designs, and manufacturing processes have improved tire performance, safety, and longevity. Run-flat tires, self-sealing tires, and smart tire technology, including sensors that monitor tire pressure and wear, enhance safety and convenience for UK drivers. The adoption of electric vehicles (EVs) also drives demand for specialized EV tires that can withstand the unique demands of electric propulsion systems.
E-commerce and Online Tire Sales
E-commerce has witnessed significant growth in the United Kingdom tire market. Online tire sales provide consumers with convenience and access to a wide range of tire brands and models. Consumers can compare prices, read reviews, and make informed decisions from the comfort of their homes. E-commerce platforms offer a broader selection of tires, including specialty and niche products that may not be readily found at in traditional brick-and-mortar retailers. As a result, traditional tire retailers are expanding their online presence, offering digital services such as tire fitment and installation appointments to remain competitive in the evolving market.
Seasonal Tire Changes and Winter Tire Usage
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Key Market Challenges
Economic Volatility and Consumer Expenditure
Economic volatility is a recurring issue for the United Kingdom tire industry. The wellbeing of the market is strongly linked with general economic performance, and consumer spending fluctuations will have a major impact on tire sales. In times of economic slumps, consumers will delay or reduce buying tires, resulting in lower demand. On the contrary, during economic booms, consumers spend more on new tires. This cyclical nature is difficult for producers and distributors to forecast production and inventory management properly. The current economic uncertainties generated by events like Brexit and the COVID-19 pandemic have aggravated this problem, rendering it impossible for companies to forecast and prepare for demand volatility.
Environmental Regulations and Sustainability
Environmental regulations pose a major challenge in the United Kingdom tire industry. The UK government, as is the case in the rest of Europe, has adopted stringent environmental policies to cut tire carbon intensity from cradle to grave. Among these is promotion of tire efficiency, decreasing the rolling resistance of tires, as well as implementing more effective recycling and waste-disposal systems. The industry must spend time and money developing eco-friendly technologies that will suit environmental standards. In addition, the need for tire labeling that provides consumers with information on fuel efficiency, wet grip, and noise emissions puts additional pressure on manufacturers to achieve these labels while competing in the market.
Competition and Market Consolidation
The UK tire market is competitive with a blend of local and foreign tire producers competing for market share. This competition can facilitate innovation and serve customers with numerous options. However, it also poses challenges. Established tire brands have to defend their market share against new entrants, often leading to price wars and aggressive marketing strategies. Furthermore, market consolidation is an ongoing trend, with larger companies acquiring smaller ones to gain market dominance. This consolidation can limit choices for consumers and put pressure on smaller manufacturers, making it increasingly difficult for them to compete effectively.
Technological Developments and Evolving Consumer Trends
Technological developments in tire technology and evolving consumer trends are transforming the United Kingdom tire market. Consumers are becoming more interested in tires that are more fuel-efficient, have a longer lifespan, and provide better safety features. This need for high-tech development in tires has resulted in higher research and development expenses for manufacturers. In addition, the emergence of electric cars (EVs) and autonomous cars (AVs) poses a special challenge because these cars tend to need specialized tires. The producers need to spend money on new manufacturing procedures and materials in order to fulfill EVs' and AVs' distinct requirements as well as to cope with producing quieter tires for electric cars.
Distribution and Retail Challenges
The retail and distribution environment for tires in the United Kingdom is evolving, mainly as a result of the expansion of e-commerce and shifts in consumer purchasing behavior. Conventional brick-and-mortar tire retailers are increasingly being challenged by online stores, which provide consumers with convenience and greater choices. Such a change in consumer preference has posed challenges to conventional retailers who have to conform to the new market realities or else lose customers. Moreover, the supply chain logistics for carrying tires, which are heavy and bulky, are challenging in terms of inventory management, transportation costs, and satisfying customers with speedy delivery and installation services.
Raw Material Costs and Supply Chain Disruptions
Raw material prices are a big issue for the United Kingdom tire industry. Raw materials like natural rubber, synthetic rubber, steel, and chemicals form the core of the manufacturing process of tires. Natural rubber prices, for instance, are susceptible to price changes based on factors such as weather patterns, rubber plantation disease outbreaks, and geopolitical tensions in the major rubber-producing countries. Prices of synthetic rubber and steel are also affected by world market trends. With rising raw material prices, tire producers are caught between either having to absorb these or charging consumers, affecting pricing and market competitiveness. Moreover, supply chain interruptions, such as the ones during the COVID-19 pandemic, can affect the timely delivery of raw materials, making production and distribution even more difficult.
Key Market Trends
Increase in Demand for Environmental Friendly Tires
One of the strongest trends in the UK tire industry is the growing demand for environmental friendly or green tires. This movement is mainly based on environmental consciousness and carbon emissions concerns. Consumers are increasingly aware of their carbon footprint and actively looking for tires that are made to save fuel and have low environmental impact. Green tires or low-rolling-resistance tires have been relying on new technology materials and new designs in tires for better fuel consumption. These were further helped along by regulatory push from government programs to drive emissions down while embracing sustainable ways to travel. It has not been long enough before tire producers across the UK had been allocating heavy resources in researching and developing better eco-friendly products that reflect the increasing trend.
Growing Popularity of All-Season Tires
A growing trend in the UK tire industry is the consumer preference for all-season tires versus the traditional seasonal summer and winter tires. Consumers are motivated to make this shift by convenience and cost savings. All-season tires provide a universal solution that works well in diverse weather conditions and does away with the hassle and expense of regular seasonal tire switches. This not only is time- and effort-saving for consumers but also lowers the cost of tire ownership overall. On top of this, the temperamental weather in the UK with occasional snow falls in winter months makes all-season tires a realistic option for the majority of motorists. Therefore, tire manufacturers have increased their productions of all-season tires to address this increasing need.
Digital Transformation and E-Commerce
The online revolution in the tire business is yet another major trend observed in the UK market. In the wake of the increasing presence of e-commerce websites, online channels are finding greater traction as consumers opt to research, compare, and make tire purchases. The ease and convenience of doing business online along with access to a broad pool of tire makes and brands has made online stores a sought-after option among numerous consumers. Tire dealers responded by strengthening their web presence, providing internet tire purchasing guides, and creating tools for customers to determine which tires are appropriate for their cars. The COVID-19 pandemic further enhanced the trend as consumers required contactless purchases. This growth in the use of e-commerce will continue to redefine the UK tire market's retail scenario.
Impact of Electric Vehicles (EVs) on Tire Demand
The use of electric vehicles (EVs) in the United Kingdom has been progressively growing, and this shift is significantly affecting the tire market. EVs possess varying performance levels from those of conventional internal combustion engine vehicles, and this has resulted in shifts in tire requirements. EVs are heavier in weight because they carry battery packs, and they produce more torque, which may lead to increased tire wear. Consequently, tire manufacturers are creating specialist tires that can address the special needs of EVs, including high-load carrying capacity and lower rolling resistance to achieve maximum range. This development is likely to pick up speed as the UK government promotes the use of electric vehicles to help achieve emissions savings targets.
Challenges Presented by Tire Recycling and Sustainability
Sustainability issues remain at the forefront of the UK tire industry, not just in the manufacture of green tires but also in tackling the problem of tire disposal and recycling. Old tires are environmentally problematic when disposed of incorrectly since they can serve as breeding grounds for diseases and landfill waste. Tire recycling drives and rules have become prominent over the past few years, with the government and industry players striving to identify sustainable options. Tire makers are also researching new technologies like recycled rubber products and green manufacturing techniques to minimize the environmental impact. Consumers themselves are becoming more aware of the sustainability policies of tire companies and make their buying decisions accordingly.
Supply Chain Disruptions and Resilience
Segmental Insights
Vehicle Type Insights
In the United Kingdom, the tire market is segmented based on vehicle type, including passenger cars, commercial vehicles, and two-wheelers. Among these segments, the passenger cars segment has maintained its dominance in the market due to the high number of personal vehicles owned by individuals. The demand for tires in this segment is driven by factors such as regular maintenance, tire replacements, and upgrades.
However, the commercial vehicles segment is expected to witness significant growth in the coming years. This growth can be attributed to the increasing demand for logistics and transportation services, fueled by e-commerce expansion and the need for efficient delivery systems. As more businesses rely on commercial vehicles for their operations, the demand for reliable and durable tires is expected to rise.
Tire Construction Type Insights
In the United Kingdom tire market, two primary construction types dominateradial and bias. Radial tires, known for their layered construction that allows for better heat dissipation and improved traction, hold a significant share due to their longer lifespan and fuel efficiency. The radial construction, with its flexible sidewalls and wider contact patch, provides enhanced stability and handling on various road surfaces.
On the other hand, bias tires, although less prevalent, are favored in heavy-duty applications for their robustness, durability, and load-bearing capacity. The cross-ply construction of bias tires, with multiple layers of crisscrossed cords, enables them to withstand heavy loads and rough terrains.
The ongoing evolution in tire technology, driven by advancements in materials and manufacturing processes, continues to shape the dynamics of the tire construction market in the UK. The rising demand for high-performance vehicles and the need for specialized tires for different applications further contribute to the diversification of tire options found at to consumers.
Regional Insights
The tire market in the United Kingdom has experienced remarkable growth over the past few years, driven by several factors. The surge in demand can primarily be attributed to an increase in vehicle ownership, which has been spurred on by higher living standards and improved road infrastructure. As more people are able to afford cars and enjoy better transportation networks, the need for tires has naturally increased.
Moreover, the proliferation of online retail platforms has played a significant role in shaping the tire market landscape in the UK. With the convenience of purchasing tires online, consumers now have access to a wider variety of brands and types to choose from. This has not only expanded the options found at to consumers but has also fueled market growth.
However, like any industry, the tire market in the UK is not without its challenges. Fluctuating raw material prices pose a constant concern for tire manufacturers and suppliers, as it directly affects their production costs. Additionally, stringent environmental regulations have placed increased pressure on the industry to develop more sustainable and eco-friendly tire solutions.
Recent Developments
- Sumitomo Rubber Industries has agreed a £215million deal to buy Micheldever Tyre Services (MTS), the UK’s second largestcar tyre distributor.
- Wastefront AS (a Norwegian firm ) is going to buildtire recycling plant in UK.
Key Market Players
- BridgestoneCorporation
- ContinentalAG
- GoodyearTire & Rubber Company
- SumitomoRubber Industries Ltd
- MichelinGroup
- Pirelli& C. S.p.A.
- YokohamaRubber Company Limited
- KumhoTire Co. Inc.
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