In 2018, the European automotive tire market generated a revenue of $20,037.8 million and is predicted to advance at a 4.5% CAGR during the forecast period (2019–2024). This is because of the growth of the automotive industry and high tire replacement rate. A tire is made by utilizing rubber, fabric, chemicals, and metal and is designed to cushion road shock, provide traction, and carry load under varying conditions. Tires are used in all kinds of vehicles including light commercial vehicles, two-wheelers, medium & heavy commercial vehicles, and passenger cars.
In 2018, the European automotive tire market generated a revenue of $20,037.8 million and is predicted to advance at a 4.5% CAGR during the forecast period (2019–2024). This is because of the growth of the automotive industry and high tire replacement rate. A tire is made by utilizing rubber, fabric, chemicals, and metal and is designed to cushion road shock, provide traction, and carry load under varying conditions. Tires are used in all kinds of vehicles including light commercial vehicles, two-wheelers, medium & heavy commercial vehicles, and passenger cars.
Another factor leading to the growth of the European tire market is the high tire replacement rate. Attributed to several technological advancements, the average lifespan of vehicles has increased considerably. This improved reliability and longevity of vehicles has been made possible due to the rising competition amongst automakers. This has led to an increase in the replacement rate of tires. Furthermore, because of the rising mileage provided by vehicles, the chances of wear and tear of the tires have grown, thereby resulting in the increased need for replacement of tires.
Thus, the market is witnessing growth due to the expanding automotive industry in the European region and the high rate of tire replacement.
European automotive tire market was consolidated in nature
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.
