North America 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), and By Regional, Competition, Forecast & Opportunities 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 CustomizationNorth America 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), and By Regional, Competition, Forecast & Opportunities 2028
| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 61.80 Billion |
| CAGR (2023-2028) | 5.72% |
| Fastest Growing Segment | Radial |
| Largest Market | United States |
Download Sample Ask for Discount Request Customization
Market Overview
North America Tire Market has valued at USD 61.80 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 5.72%.
The North America tire market is a dynamic and significant segment of the global automotive industry, encompassing a vast and diverse range of consumer preferences, vehicle types, and market trends. Comprising the United States and Canada as its primary contributors, the North American tire market is influenced by economic conditions, regulatory standards, technological advancements, and consumer behaviors. In this region, the tire market caters to a wide variety of vehicles, including passenger cars, light trucks, SUVs, commercial trucks, and specialty vehicles. The United States stands as one of the largest automotive markets globally, contributing to substantial demand for tires across different segments.
The predominance of long road travel, daily commutes, and mixed weather patterns in North America highlights the need for quality and dependable tires that promote safety, performance, and fuel efficiency. Strict regulations and safety standards greatly influence the North American tire market. Regulatory agencies, like the United States' National Highway Traffic Safety Administration (NHTSA) and Transport Canada, impose stringent rules to guarantee tire safety, performance, and marking. These laws affect consumer behavior and compel producers to make tires that comply with or surpass the standards, which creates a market emphasis on quality and safety. The consumption patterns in North America are influenced by a quest for performance, durability, and convenience. Climatic conditions prevailing in the continent, from frigid winters to sweltering summers, tend to drive demands for all-season and winter tires. In addition, the increase in the sale of SUVs and light trucks indicates consumers' desires for the flexibility, capacity, and taller driving positions such vehicles provide. This trend creates the demand for tires that are capable of meeting the unique demands of such vehicle types.
Key Market Drivers
Diverse Vehicle Types and Usage Patterns
The North American market encompasses a wide variety of vehicle types, including passenger cars, SUVs, light trucks, commercial vehicles, and specialty vehicles. Each of these vehicle categories has unique tire requirements based on factors such as load capacity, terrain, and driving conditions. The prevalence of these diverse vehicle types drives demand for a broad spectrum of tires tailored to specific usage patterns.
Stringent Safety and Regulatory Standards
Regulatory bodies like the National Highway Traffic Safety Administration (NHTSA) in the United States and Transport Canada set strict safety and quality standards for tires. These regulations ensure that tires meet specific performance criteria, contributing to road safety. The enforcement of these standards shapes consumer choices and influences tire manufacturers to produce products that align with these regulatory requirements.
Consumer Preference for Performance
North American consumers often prioritize vehicle performance, including handling, traction, and comfort. This preference drives demand for high-performance tires that enhance driving experiences. Consumers seek tires designed to offer responsive handling, improved grip, and optimized traction, especially in vehicles like sports cars and performance-oriented SUVs.
Seasonal Variations and Tire Types
The diverse climates in North America, ranging from harsh winters to hot summers, drive the demand for different tire types. All-season tires, winter tires, and summer tires cater to varying weather conditions, ensuring safety and performance throughout the year. consumer preference between these tire types during different seasons contributes to market dynamics.
Popularity of SUVs and Light Trucks
The rising popularity of SUVs and light trucks in North America influences the tire market. These vehicles offer versatility, cargo space, and a higher driving position, making them preferred choices for many consumers. The demand for tires suitable for SUVs and light trucks, which often require higher load-carrying capacities and all-terrain capabilities, contributes significantly to the market's growth.
Environmental Awareness and Fuel Efficiency
Increasing environmental consciousness prompts consumers to seek tires that contribute to fuel efficiency and reduced carbon emissions. The demand for tires with lower rolling resistance, which improves fuel economy, aligns with sustainability goals and cost savings over time. Manufacturers are developing eco-friendly tire technologies to meet this demand.
Download Sample Ask for Discount Request Customization
Key Market Challenges
Competitive Landscape
The North America tire market is highly competitive, with numerous manufacturers vying for market share. This competition can lead to price pressures and the need for tire companies to constantly innovate and differentiate their products. Manufacturers need to strike a balance between producing high-quality tires and maintaining competitive pricing to attract consumers in a crowded market.
Weather Variability
The diverse climate in North America presents challenges for tire manufacturers and consumers alike. Consumers often need different types of tires for different seasons, such as winter tires for cold climates and all-season tires for milder weather. This seasonality can create inventory management challenges for manufacturers and retailers, as they need to anticipate and meet consumer demand for specific tire types during different times of the year.
Regulatory Complexity
While regulatory standards ensure tire safety, the complexity of regulations across different regions and countries in North America can pose challenges for manufacturers. Different states and provinces may have varying regulations and labeling requirements, leading to a fragmented regulatory landscape. Navigating these regulations adds to compliance costs and administrative burdens for tire manufacturers.
Environmental Concerns and Sustainability
The growing emphasis on environmental sustainability and reduced carbon emissions presents a challenge for the tire industry. While consumers are increasingly interested in eco-friendly tire options that offer better fuel efficiency, developing and producing such tires without compromising on performance can be complex. Balancing environmental concerns with safety and performance standards requires continuous research and innovation.
Counterfeit and Substandard Tires
The presence of counterfeit and substandard tires in the market is a safety concern. These tires mimic reputable brands but lack the quality and safety features of genuine products. The challenge of identifying counterfeit tires and ensuring consumer safety prompts consumers to rely on trusted sources and reputable retailers.
Consumer Education
Many consumers lack comprehensive knowledge about tire maintenance, safety, and selection criteria. Educating consumers about proper tire care, tread wear, inflation, and safety features is crucial to ensure the longevity and performance of tires. Improving consumer education can contribute to safer driving conditions and more informed purchasing decisions.
Key Market Trends
All-Season and All-Weather Tire Demand
The trend towards all-season and all-weather tires is gaining traction in North America. Consumers seek versatile tire options that can perform well in various weather conditions, eliminating the need for seasonal tire changes. These tires offer a balance between performance, traction, and comfort across different seasons, catering to convenience and the varying climate in the region.
SUV and Light Truck Dominance
The popularity of SUVs and light trucks continues to shape the tire market in North America. Consumers gravitate towards these vehicles due to their versatility, space, and higher driving positions. As a result, the demand for tires designed for SUVs and light trucks remains strong, focusing on capabilities like all-terrain performance, load carrying, and durability.
Electric and Hybrid Vehicle Adoption
The rise of electric and hybrid vehicles is influencing the tire market. These vehicles have specific tire requirements related to reduced rolling resistance, increased range, and quieter performance. Tire manufacturers are developing eco-friendly and low-rolling-resistance tires to meet the unique needs of electric and hybrid vehicles, contributing to improved efficiency and sustainability.
E-commerce and Online Tire Purchasing
E-commerce is reshaping how consumers purchase tires in North America. Online platforms offer convenience, price comparison, and access to a wide range of tire options. Consumers can research and purchase tires from the comfort of their homes, revolutionizing the distribution channel and enabling manufacturers and retailers to provide a seamless online shopping experience.
Smart Tire Technology Integration
Technological advancements are integrating smart tire technology into the market. Smart tires feature sensors that monitor tire pressure, temperature, and tread wear in real-time. This data contributes to improved safety, efficiency, and performance. Consumers receive alerts for potential issues, enhancing tire maintenance and overall driving experiences.
Sustainability and Eco-Friendly Initiatives
Increasing environmental awareness prompts a demand for eco-friendly and sustainable tire solutions. Consumers seek tires that contribute to reduced fuel consumption and emissions. Manufacturers are responding by developing tire technologies that prioritize low rolling resistance, longer tread life, and eco-friendly materials, aligning with consumers' environmental concerns.
Segmental Insights
Vehicle Type
The passenger car segment is the largest contributor to the tire industry in North America. This is largely because of the widespread ownership of passenger cars in the region. Second, the frequent requirement for replacement due to wear and tear, combined with the necessity for high-performance tires for different climates and terrain conditions, further supports the tire industry's growth within this segment. Over the last couple of years, the majority of passenger car tire sales have been focused on the mid-market/value segment, or MCV. This segment is dominated by economy or good value tires with a competitive price point. These tires are seen to provide a lot of value for money and tend to be focused on providing robust performance in aspects like wet.
Tire Type Insights
In North America, bias ply tires previously held the largest market share, but the trend now is overwhelmingly towards radial tires. Radial tires have a bigger market share for a number of logical reasons. To start with, radial tires are more fuel-efficient compared to bias ply tires, something that complements the growing emphasis on environmental conservation. Second, they offer improved heat dissipation, resulting in longer tire life even when subjected to aggressive driving conditions. Third, radial tires offer improved ride comfort and handling, features that are in great demand on the part of consumers. Thus, these attributes are responsible for the dominance of radial tires in the North American market. Radial tires also possess advantages over other tires when it comes to safety. Radial tires are puncture and sidewall damage resistant compared to tubeless or bias ply tires and are thus better suited for motorists who make regular use of rough roads or off-road driving.
Regional Insights
Download Sample Ask for Discount Request Customization
In North America, the United States has the biggest market for tires. It owes this predominantly to its very large and buoyant automotive business, which in addition to a high demand in terms of a high number of tires for brand new cars demands replacement tires given the high vehicular ownership percentage in the region. Furthermore, the U.S. tire market is also strengthened by the dominance of well-established tire companies such as Goodyear and Bridgestone, which have entrenched themselves strongly and have contributed towards the overall predominance and leadership of the U.S. in the tire industry. The dominance of the United States is evident in different aspects such as market size, technological advancements, and industry knowledge, placing the United States at the forefront in the tire industry globally.
Recent Developments
- In 2021, Sailun Tires has announced theirexpansion in North America market by forming Sailun Tire Americas (STA).
- In 2022, Michelin has introduced newagricultural tire with higher load capacity, and better quality of rubber.
Key Market Players
- Michelin North America Inc.
- The Goodyear Tire & Rubber Company
- Bridgestone Americas Inc.
- Cooper Tire & Rubber Company
- Continental Tire The Americas LLC
- Pirelli Tire North America LLC
- Kumho Tire North America Inc.
- Yokohama Tire Corporation
- Toyo Tire North America Corp.
- Hankook Tire America Corp.
|
By Vehicle Type |
By Tire Construction Type |
By Demand Category |
By Country |
|
|
|
|
Related Reports
FAQ'S
For a single, multi and corporate client license, the report will be available in PDF format. Sample report would be given you in excel format. For more questions please contact:
Within 24 to 48 hrs.
You can contact Sales team (sales@marketinsightsresearch.com) and they will direct you on email
You can order a report by selecting payment methods, which is bank wire or online payment through any Debit/Credit card, Razor pay or PayPal.
Discounts are available.
Hard Copy