In the present scenario, vehicles have a lifespan ranging between 11.1 and 12 years; the life span rose from 10.5 years in 2015 to 12 years in 2018. This has happened due to technological advancements, increasing government regulations, and growing competition between automakers. These factors have resulted in the improvement of the vehicle’s reliability and longevity over the years. This, in turn, has also led to people buying more small crossover vehicles and keeping their old vehicles longer than before, all across the world, including Europe. In addition to all this, the mileage of vehicles has increased significantly, due to which the chances of wear and tear of the tires have also risen. All these factors are driving the demand for tires in Europe.
In 2018, the European automotive tire market generated revenue of $20,037.8 million and is expected to witness a CAGR of 4.5% in the coming years. The tires for several types of vehicles are categorized into two types on the basis of design: radial and bias. The configuration of radial tires comprises overlapping steel belts under the tread and perpendicular polyester plies, which offer high integrity, ensure longer life, and facilitate smoother rides. Bias tires consist of internally crisscrossed nylon cord plies at a 30-to-45-degree angle to the tread center line, providing the tire with a rugged and tough build, in addition to increasing the sidewall puncture resistance. The demand for radial tires was more during 2014–2018 and is projected to increase significantly in the near future as well.
Due to the changing consumer preference in the European region, the need for advanced tires is increasing. The major qualities required in a tire presently are low rolling resistance for improved fuel efficiency, low wear and tear for enhanced tire durability, and better grip for increased safety quotient. In order to cater to these requirements, the automotive tire industry is witnessing the development and innovation of advanced products. For example, the speed and reliability of the tires have enhanced with the development of ultra-high-performance tires.
Private labeling in the European automotive tire market offers various growth opportunities to tire manufactures. Private labeling primarily means production of tires by one company, followed by their sales under the brand of another company. Some of the tire manufacturers are involved in private labeling to meet the market demand for their products and optimize their bottom-line profits, with selling tires at high margins at high volumes. Few OEMs also maximize their production capacity by adding private labeling to their operations, which is carried out under the supervision of experts with extensive experience in manufacturing similar products. It helps them to focus on brand management, while stressing little about issues pertaining to manufacturing operations.
The field of tire manufacturing has been witnessing several advancements, such as the development of new elastomers and polymers, for overcoming the shortage and fluctuation of the prices of natural rubber. Some of the other advancements include the usage of improved grades of silica, nanotechnology, carbon black and nanocellulose, reinforced filler technology, and dual fillers.
The European automotive tire market was consolidated with four major players, namely Compagnie Générale des Établissements Michelin, Bridgestone Europe NV/SA, The Goodyear Tire & Rubber Company, and Continental AG, together accounted for over 70% of the market share in 2018. Compagnie Générale des Établissements Michelin is the largest player in the market, due to the existence of an extensive dealer network across all European countries as well as the presence of a loyal customer base in France. The other major players operating in the market are Cooper Tire & Rubber Company, Pirelli & C. S.p.A., Yokohama Tire Corporation, Hankook Tire Company Limited, Nokian Renkaat Oyj, Apollo Tyres Limited, and Sumitomo Rubber Industries Limited.
In 2018, the European automotive tire market generated revenue of $20,037.8 million and is expected to witness a CAGR of 4.5% in the coming years. The tires for several types of vehicles are categorized into two types on the basis of design: radial and bias. The configuration of radial tires comprises overlapping steel belts under the tread and perpendicular polyester plies, which offer high integrity, ensure longer life, and facilitate smoother rides. Bias tires consist of internally crisscrossed nylon cord plies at a 30-to-45-degree angle to the tread center line, providing the tire with a rugged and tough build, in addition to increasing the sidewall puncture resistance. The demand for radial tires was more during 2014–2018 and is projected to increase significantly in the near future as well.
Due to the changing consumer preference in the European region, the need for advanced tires is increasing. The major qualities required in a tire presently are low rolling resistance for improved fuel efficiency, low wear and tear for enhanced tire durability, and better grip for increased safety quotient. In order to cater to these requirements, the automotive tire industry is witnessing the development and innovation of advanced products. For example, the speed and reliability of the tires have enhanced with the development of ultra-high-performance tires.
What are the factors impacting the growth of this market?
High tire replacement rate is a major driver observed in the European automotive tire market
Private labeling of tires offers ample opportunities in the European automotive tire market
Private labeling in the European automotive tire market offers various growth opportunities to tire manufactures. Private labeling primarily means production of tires by one company, followed by their sales under the brand of another company. Some of the tire manufacturers are involved in private labeling to meet the market demand for their products and optimize their bottom-line profits, with selling tires at high margins at high volumes. Few OEMs also maximize their production capacity by adding private labeling to their operations, which is carried out under the supervision of experts with extensive experience in manufacturing similar products. It helps them to focus on brand management, while stressing little about issues pertaining to manufacturing operations.
The field of tire manufacturing has been witnessing several advancements, such as the development of new elastomers and polymers, for overcoming the shortage and fluctuation of the prices of natural rubber. Some of the other advancements include the usage of improved grades of silica, nanotechnology, carbon black and nanocellulose, reinforced filler technology, and dual fillers.
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The European automotive tire market was consolidated with four major players, namely Compagnie Générale des Établissements Michelin, Bridgestone Europe NV/SA, The Goodyear Tire & Rubber Company, and Continental AG, together accounted for over 70% of the market share in 2018. Compagnie Générale des Établissements Michelin is the largest player in the market, due to the existence of an extensive dealer network across all European countries as well as the presence of a loyal customer base in France. The other major players operating in the market are Cooper Tire & Rubber Company, Pirelli & C. S.p.A., Yokohama Tire Corporation, Hankook Tire Company Limited, Nokian Renkaat Oyj, Apollo Tyres Limited, and Sumitomo Rubber Industries Limited.
