US tyre market to grow at CAGR of 5% in 2016-21: TechSci Research
The US Tyre market is expected to grow at a CAGR of over 5%, in volume terms, in the period of 2016-2021 on account of expanding sales of automobiles, growing purchasing power of people and expanding vehicle fleet size, says TechSci Research’s report, United States Tire Market Forecast and Opportunities, 2021.
The prominent driver for expanding the tyre market of the United States is a rising automobile fleet, as can be witnessed from the fact that it rose from 311.71 million units in 2011 to 321.41 million units in 2015. With an increasing volume share of over 80 percent, in volume terms in 2015, the replacement tyre segment dominated the tire industry of the United States. However, the OEM tire segment is forecast to witness marginal change during the forecast period.
In 2015, the country’s southeast region comprising Alabama, Florida, Louisiana, Virginia, etc., accounted for the largest share in the tyre market, followed by the midwest, west, northeast and southwest regions of the United States. The government of the US has also initiated strategic infrastructural projects and developments, resulting in growth in demand for vehicles as well as tires in the country.
Some prominent tire manufacturing companies which have a strong presence in the country include Bridgestone, Continental, Michelin and Goodyear. Other players include Cooper, Yokohama, Hankook, Nexen, Pirelli, etc.
“With diverse ongoing and planned construction projects, the United States is anticipated to witness infrastructure transformation that will lead to developmental activities being undertaken in energy, transport, water, communication, health and housing sectors across the country, which is estimated to boost construction activities in the country, thereby driving the automotive sector in the coming years. Moreover, the widespread presence of a well-established network of dealers and distributors is expected to push tire sales in the domestic market during the forecast period. On account of this, the country’s tire market is expected to witness a healthy growth in the medium to long term,” said Karan Chechi, research director with TechSci Research, a research based global management consulting firm.
“United States Tire MarketForecast and Opportunities, 2021” has analyzed the potential of United States tyre market, and provides statistics and information on market structure, imports and trends. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyzes emerging trends along with essential drivers and key challenges faced by the industry.