The U.S. automotive tire market revenue reached $57.9 billion in 2018 and it is predicted to rise to $75.4 billion by 2024, owing to the booming automotive industry and surging requirement for tire replacement, because of the growing average lifespan of automobiles, in the country. According to the estimates of P&S Intelligence, a market research company based in India, the market will demonstrate a CAGR of 5.4% from 2019 to 2024.
The U.S. is home to several leading automobile and automotive component manufacturing companies across the world. Out of the country’s total gross domestic product (GDP), around 3.0% was contributed by the automobile industry in 2018. Moreover, with the fall in tariff, emergence of technologically advanced automobiles, such as electric and autonomous vehicles, changing preferences of consumers, and growing compliance in manufacturing processes, the industry is set to prosper even more in the coming years. This will subsequently push up the demand for automotive tires in the country.
Furthermore, the soaring manufacturing of light commercial vehicles is predicted to create lucrative growth opportunities for the players operating in the U.S. automotive tire market in the near future. Additionally, the enactment of strict regulations, growing lifespan of automobiles, and mushrooming requirement for green tires are propelling the automotive tire industry in the country. The availability of a skilled workforce, introduction of an open investment policy, provision of incentives by state and local governments for encouraging vehicle adoption, and existence of a well-developed infrastructure are also fueling the advancement of the market.
Depending on vehicle, the market is divided into passenger vehicle, medium and heavy commercial vehicle, light commercial vehicle, and two-wheeler categories. Out of these, the passenger vehicle category contributed the highest revenue to the U.S. automotive tire market in the years gone by. This was because of the high demand for pickup trucks in the country during the last few years, which massively boosted the sales of the tires used in these vehicles.
Hence, the demand for automotive tires will soar in the U.S. in the coming years, mainly because of the growing tire replacement rate and increasing deployment of electric vehicles in the country.
