Israel 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 350 Million |
| CAGR (2023-2028) | 6.77% |
| Fastest Growing Segment | Passenger Cars |
| Largest Market | Tehran |
Download Sample Ask for Discount Request Customization
Market Overview
Israel Tire Market stood at USD 350 Million in 2022 and is expected to register strong growth in the forecast period at a CAGR of 6.77%.
The Israel Tire Market is a fast-growing industry, characterized by its dynamic growth and expanding market penetration. This is due to a number of factors, including an increase in automotive sales and the growing number of vehicle fleets in the country. Consequently, there has been a tremendous increase in both replacement tire demand and original equipment manufacturer (OEM) tires.
One of the major contributors to this growth is the booming transport and logistics sector in Israel. With more freight transportation, there has been a greater demand for heavy-duty tires that can handle the stresses of moving goods. This has opened up a profitable market for heavy-duty tire manufacturers.
In addition, the Israel Tire Market has also witnessed an increase in the demand for premium performance tires. This is driven by the demand for luxury and sports vehicles in the country. Sophisticated customers want tires that not only deliver enhanced performance but also improve the handling of their cars.
Although the market offers promising prospects, it does not come without challenges. Among the major challenges that tire makers face is being required to follow strict environmental policies. As concerns about sustainability gain prominence, tire makers are also under pressure to produce more environmentally friendly and sustainable products.
Further, the market is also challenged by competition from retread tires, a cheap alternative to new tires. The use of retread tires is a competitor to the market, as customers are looking for a cheaper alternative without sacrificing quality.
Key Market Drivers
Increasing Vehicle Ownership and Sales
One of the primary drivers of the Israel tire market is the steady increase in vehicle ownership and sales. As the country's economy continues to grow, more consumers have the financial means to purchase and maintain vehicles. This trend is further fueled by urbanization, improved infrastructure, and changing lifestyles. With more vehicles on the road, there is a consistent demand for tires, ranging from passenger car tires to those for commercial vehicles. The growth in vehicle ownership and sales directly correlates with the tire market's expansion, making it a fundamental driver.
Government Regulations and Safety Standards
Government regulations and safety standards play a pivotal role in shaping the Israel tire market. Authorities impose strict regulations to ensure the safety of vehicles on the road. These regulations cover aspects such as tread depth, tire labeling, and load-bearing capacity. Compliance with these standards is not only essential for road safety but also influences consumer confidence and purchasing decisions. Israel's regulatory framework also emphasizes the importance of environmental sustainability, encouraging the use of low-rolling-resistance and fuel-efficient tires. Manufacturers must adhere to these standards and innovate to meet both safety and environmental requirements, making regulation a significant market driver.
Download Sample Ask for Discount Request Customization
Consumer Preferences for Quality and Performance
Consumer preferences for high-quality and performance-oriented tires are driving the Israel tire market. Israeli consumers are becoming increasingly discerning when it comes to the tires they choose for their vehicles. They seek tires that offer excellent handling, traction, and durability, enhancing the overall driving experience. This trend is particularly evident in the demand for premium and technologically advanced tires. Manufacturers are responding by developing innovative tire technologies, such as run-flat tires and intelligent tire monitoring systems, to meet these consumer expectations. The desire for better-performing tires is a significant driver of market growth.
Technological Advancements and Innovation
Technological advancements and tire innovation are crucial drivers in the Israel tire market. Tire manufacturers are continually investing in research and development to create tires that deliver improved safety, performance, and longevity. Advancements encompass various aspects, including tire design, rubber compounds, and manufacturing processes. Run-flat tires, self-sealing tires, and intelligent tire pressure monitoring systems are examples of innovations that have gained prominence. Moreover, the integration of digital technologies, such as sensors and connectivity, is enabling the development of smart tires that provide real-time data on tire condition and performance. These technological advancements not only enhance safety but also drive growth by meeting consumer demands for cutting-edge products.
Environmental Sustainability and Eco-Friendly Tires
Environmental sustainability is an emerging driver in the Israel tire market. Concerns about environmental impact and carbon emissions have prompted consumers to seek eco-friendly tire options. Low-rolling-resistance tires, which enhance fuel efficiency and reduce CO2 emissions, have gained popularity. Additionally, consumers are showing interest in tires made from sustainable materials or those designed for recycling at the end of their lifespan. Manufacturers are actively addressing these concerns by incorporating sustainable practices into their production processes and offering eco-friendly tire choices. As environmental awareness continues to grow, sustainability considerations are expected to play an increasingly significant role in market dynamics.
Changing Mobility Trends
Key Market Challenges
Economic Cycles and Consumer Trends
The Israeli tire market is very responsive to economic cycles, and these have a direct impact on consumer trends. In times of economic recessions, consumers tend to delay or avoid buying new tires and instead try to keep their current tires longer. This has been specifically true during the COVID-19 pandemic, which resulted in less mobility and supply chain disruptions. Consequently, manufacturers and distributors of tires in Israel have been required to accommodate changing demand and come up with strategies for attracting consumers in a scenario where economic stability is questionable. This difficulty highlights the need for pricing policies, promotional efforts, and the capacity to provide affordable and long-lasting tire alternatives.
Environmental Sustainability and Compliance with Regulations
Environmental awareness has taken center stage over the last few years, and the tire market is under pressure to reduce its environmental impact. In Israel, as in most other nations, end-of-life tire disposal is a major problem. End-of-life tires can have negative impacts on the environment if not disposed of in an environmentally friendly manner. Therefore, Israeli authorities have initiated regulations and initiatives to encourage tire recycling and environmentally friendly disposal. Tire manufacturers and sellers are required to comply with these regulations, invest in green production processes, and inform consumers about the need for responsible tire disposal. Balancing profitability for the business with environmental sustainability is a recurrent challenge in the Israeli tire industry.
Import Competition and Pricing Pressures
The Israeli tire industry is highly exposed to import competition. Foreign tire manufacturers, typically being cost leaders, are well represented in the market and cause price pressures against domestic firms. This rivalry has compelled domestic tire makers to emphasize product differentiation, quality, and customer care to protect their market share. Moreover, exchange rate variations can impact import costs, making domestic products less competitive. Tire dealers must also counter these issues and come up with pricing strategies that address consumers' price responsiveness while being profitable and maintaining product quality.
Technological Advancements and Consumer Expectations
Technological advancements in tires have had a profound influence on the Israeli market. Customers today demand tires not just for durability and safety but also for superior features like better fuel efficiency, lower noise levels, and better traction. This shift in customer expectations calls for ongoing innovation and research and development activities by tire companies. Coping with these technological changes while maintaining production costs can be a daunting task. In addition, informing consumers of the advantages of these new technologies and persuading them to spend money on high-quality tires can be a challenge in a market where price sensitivity is common.
Seasonal Fluctuation and Inventory Management
Israel has distinct seasons, with hot, dry summers and cooler, wetter winters. This seasonality presents special challenges for tire retailers who have to stock and manage inventories that accommodate varying weather conditions. Careful management of inventory levels is essential in order to achieve consumers' demand and reduce storage expenses. Stockpiling may result in losses, while stockouts may cause missed sales opportunities. Moreover, market demand for seasonal tires is prone to be extremely volatile, which complicates and renders inventory management a very difficult issue for companies operating in the Israeli tire market.
Consumer Education and Awareness
Even though they are a technologically advanced society, there remains a requirement for enhanced consumer awareness and education within the Israeli tire industry. Numerous consumers might not be entirely aware of the need for proper maintenance of tires, such as frequent inspections, rotation of tires, and correct inflation. This would cause premature wear of tires and less safety on the road. Tire retailers and manufacturers must invest in educational campaigns and initiatives to inform consumers about tire care practices, safety considerations, and the benefits of investing in high-quality tires. Overcoming this challenge requires collaboration between industry stakeholders and government agencies to promote road safety and responsible tire usage.
Key Market Trends
Growing Demand for Eco-Friendly Tires
One significant trend in the Israel tire market is the growing demand for eco-friendly or green tires. This trend mirrors the global shift towards sustainability and environmental consciousness. Eco-friendly tires are designed to reduce rolling resistance, thus improving fuel efficiency and lowering carbon emissions. In a country like Israel, where environmental concerns are prevalent, consumers are increasingly inclined to choose tires that align with their green values. As a result, tire manufacturers are investing in the development of eco-friendly tire technologies, such as low rolling resistance compounds and innovative tread designs, to meet this demand. Regulatory support for green initiatives and government incentives for environmentally friendly products further drive the adoption of eco-friendly tires in the Israeli market.
Increased Focus on Winter and All-Season Tires
Another noticeable trend is the heightened emphasis on winter and all-season tires. Israel experiences distinct seasons, with wet and cold winters in some regions, making winter tires a necessity for safe driving. Consequently, consumers are becoming more aware of the importance of using season-specific tires to ensure road safety. In response to this trend, tire retailers are expanding their offerings of winter and all-season tires, and manufacturers are developing products tailored to the unique climate conditions in Israel. As consumers prioritize safety and performance, the market for these types of tires is expected to continue growing.
Online Tire Retailing
The Israel tire market is also witnessing a surge in online tire retailing. E-commerce has gained significant traction in recent years, and the tire industry is no exception. Consumers are increasingly turning to online platforms to research, compare, and purchase tires. This trend offers convenience and a wide range of options to customers, enabling them to make informed decisions from the comfort of their homes. Online retailers often provide competitive pricing, home delivery, and easy returns, which are appealing to tech-savvy consumers. To remain competitive, brick-and-mortar tire retailers are adopting an omnichannel approach, incorporating online sales and leveraging their physical presence for services like tire fitting and maintenance.
Tire Customization and Personalization
Personalization and customization are emerging trends in the Israel tire market. Consumers are looking for tires that not only meet their performance and safety requirements but also align with their personal style and preferences. This trend has led to increased demand for tires with customizable features, including unique tread patterns, sidewall designs, and color options. Some tire manufacturers are offering customization services that allow customers to design their own tire aesthetics, further enhancing the consumer experience. This trend reflects the desire for individuality and self-expression even in traditionally functional products like tires.
Advanced Tire Technology and Smart Tires
Advancements in tire technology are transforming the Israeli market. Smart tires, equipped with sensors and connectivity features, are gaining traction among consumers. These tires provide real-time data on tire pressure, temperature, and tread wear, enhancing safety and performance. Additionally, smart tires can communicate with the vehicle's onboard systems, enabling predictive maintenance and tire health monitoring. This technology aligns with the increasing emphasis on road safety and vehicle efficiency. As vehicles become more connected, the demand for smart tires is expected to rise, presenting opportunities for tire manufacturers to innovate and meet this growing market trend.
Regulatory Initiatives for Tire Safety and Labeling
Government regulations play a pivotal role in shaping the Israel tire market. In recent years, there has been a focus on enhancing tire safety and consumer awareness through labeling requirements. The Israeli government has implemented regulations that mandate the labeling of tires with information about fuel efficiency, wet grip, and noise emissions. This labeling system helps consumers make informed decisions and encourages the adoption of fuel-efficient and safe tires. Furthermore, there are strict standards for tire imports and sales, ensuring that only compliant and safe tires enter the market. Compliance with these regulations is crucial for both domestic and foreign tire manufacturers and distributors.
Segmental Insights
Vehicle Type Insights
In Israel, the tire market is segmented by various vehicle types including passenger cars, light commercial vehicles, heavy trucks, and two-wheelers. Each segment provides unique insights. Passenger cars, for instance, dominate the market due to their high volume and frequent tire replacements. Light commercial vehicles and heavy trucks, on the other hand, demand durable tires able to withstand heavy loads. Lastly, the two-wheeler segment is seeing consistent growth, fueled by the increasing popularity of motorcycles for both commuting and leisure.
Tire Construction Type Insights
In the Israel tire market, the radial construction type dominates the industry, being highly valued for its exceptional durability, fuel efficiency, and superior performance on the road. These tires are engineered with multiple layers of fabric, with cords that run perpendicularly to the tread, enhancing vehicle control and minimizing tire wear. On the other hand, bias tires, which have layers arranged diagonally across the tire, are relatively less common due to their higher rolling resistance and shorter tread life. However, they still find utility in heavy-duty vehicles, thanks to their remarkable robustness and resistance to damage. This makes them a preferred choice for applications that demand exceptional strength and reliability.
Regional Insights
Download Sample Ask for Discount Request Customization
The tire market in Israel has experienced remarkable growth in recent years. This can be attributed to multiple factors, including the country's expanding vehicle population, fueled by an increasing number of cars on the roads, and the rising purchasing power of consumers. As Israel continues to develop its infrastructure and road networks, the demand for high-quality tires is on the rise.
Moreover, a noticeable trend in the Israeli market is the growing preference for high-performance and energy-efficient tires. This reflects a growing awareness among consumers regarding vehicle safety and environmental consciousness. With the advancement of technology and the increasing focus on sustainable practices, manufacturers have an opportunity to introduce innovative and environmentally friendly tire solutions that cater to the specific needs of the Israeli market. By doing so, they can not only meet the demands of the market but also contribute to the overall growth of the tire industry in Israel.
Additionally, the tire market in Israel is not only driven by the increasing demand for quality products but also by the changing preferences of consumers. There is a shift towards tires that offer superior traction and handling in various weather conditions, ensuring a safer driving experience. Furthermore, the growing popularity of electric vehicles in Israel presents a unique opportunity for tire manufacturers to develop specialized tires that optimize the performance and energy efficiency of these vehicles.
In summary, the tire market in Israel is experiencing significant growth, driven by factors such as the expanding vehicle population, consumer purchasing power, and the increasing focus on high-performance and sustainable tire solutions. By understanding and adapting to these market dynamics, manufacturers can position themselves for long-term success and contribute to the overall development of the tire industry in Israel.
- In 2022, Avioparts boosts its presencein Israel with new aircraft tyre supply agreements.
- In 2022, Marubeni Corporation(hereinafter, “Marubeni”) has acquired shares of Galileo Wheel Ltd.(hereinafter, “Galileo”), an Israeli company developing unique structuredairless and pneumatic tires.
Key Market Players
- Bridgestone Corporation
- Continental AG
- Goodyear Tire & RubberCompany
- Sumitomo Rubber IndustriesLtd
- Michelin Group
- Pirelli & C. S.p.A.
- Yokohama Rubber CompanyLimited
- Kumho Tire Co. Inc.
|
By Vehicle Type |
By Tire Construction |
By Demand Category |
By Region |
|
|
|
|
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