The high-performance tires market is valued at USD 31 Billion in 2020 and is expected to reach USD 43 Billion by 2026 and is anticipated to record a CAGR of over 6.5%, during the forecast period, 2021-2026.
The COVID-19 pandemic has had a significant effect on the automotive tires market directly in the short term as the production and sales of new vehicles witnessed a decline in 2020. Moreover, people stayed mostly indoors owing to the restrictions imposed by authorities which further led to a decrease the revenues due to low maintenance and tire replacements.
The sales of high-performance tires have increased significantly over the years, owing to a rise in the different types of automotive racing competitions, which acts as a major driver for the high-performance and ultra-high-performance tires market.
The growing popularity of various types of automotive racing around the world has helped boost the growth of the market to a significant extent. Competitive automotive racing was initially focused on popular car racing series, such as Formula One, NASCAR, and motorbike races, which attracted many sponsorships and promotional activities. However, over the years, racing competitions have witnessed an increase in the number of different types of races, with vehicles having varying engine sizes, such as SUVs, dirt bikes, monster trucks, solar cars, sprint cars, and touring cars.
Key Market Trends
Growing Demand for Replacement/Aftermarket Tires
The replacement of high-performance tires presents a huge opportunity for tire manufacturers worldwide. Vendors are investing in marketing to increase their visibility as brands, especially to tap the lucrative aftermarket of the high-performance and ultra-high-performance tire segments. They are also investing in making their products visible on their websites and enhancing their portfolios of high-performance tires that are available for online sales.
The demand for high-performance tires in the aftermarket is mainly attributed to the faster wear and tear of softer rubber tires that are required to perform at extremely high speeds.
In a typical racing championship (for which they have the maximum penetration), a team usually uses between 9-14 sets of tires, depending upon the length of the track, surface type, like asphalt and concrete, and types of track, such as short track, speedway, superspeedway, or road course. Therefore, the demand for high-performance tires in the aftermarket is higher to a considerable extent than in the OEM segment.
Brand loyalty is exhibited by OEMs and vehicle teams, which replace tires on their cars with the same brand as originally installed. As a result, tire manufacturers have strived significantly to enter contracts with OEMs and vehicle team owners. These contracts are important and attractive to tire manufacturing companies, as they save on the distribution expenses and advertising costs.
In light of all these factors, the market for high-performance replacement tires is expected to grow over the forecast period.
The European Market is Growing at a Faster Pace
Countries in Western Europe, such as the United Kingdom, Germany, and France, play a major role in contributing to the high-performance tires market. Manufacturers in Western Europe, such as Ferrari, Daimler, BMW, Volkswagen Group, and Renault, frequently participate in automotive racing events organized across Europe to test and promote their products. This has increased the demand for racing tires by OEMs. The region is also a host to many auto races, primarily in countries, such as France, Italy, Spain, and the United Kingdom. A rise in the auto races market is expected to increase the demand for racing tires.
The increase in production standards of tire manufacturing, sustainable innovation, and excellent technical know-how based in the country are expected to continue strengthening the position of Germany to emerge as a leading high-performance tire manufacturing location, in the supply side dynamics, during the forecast period.
The high-performance tires market is characterized by the presence of numerous international and a few regional players, resulting in a highly competitive market environment. Some of the leading players in the market are Continental AG, Bridgestone Corporation, Pirelli & C. SpA, MRF, Michelin, and others
Market leaders operate with many subsidiaries that cater to specific products in different countries. Yokohama and Pirelli, in particular, are trying to increase their market penetration by setting up production bases and manufacturing new tires as per the modified F1 rules, in order to have comprehensive supply chains. Bridgestone and Michelin have invested huge amounts in Canada to expand their product portfolios in the automotive tire segment.
The demand for high-performance, highly efficient, and safe-handling tires from the end market is expected to make the market more competitive and effectively dynamic during the forecast period.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
1.2 Scope of the Study
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1.1 Racing Slick
5.1.2 Tread Tires
5.1.3 Other Tire Types
5.2 Sales Channel Type
5.3 Vehicle Type
5.3.1 Racing Cars
5.3.2 Off-the Road Vehicles
5.3.3 Other Vehicle Types
5.4.1 North America
126.96.36.199 United States
188.8.131.52 Rest of North America
184.108.40.206 Rest of Asia-Pacific
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
5.4.4 Rest of the World
22.214.171.124 South Africa
126.96.36.199 Other Countries
6.2 Company Profiles
6.2.1 Bridgestone Corporation
6.2.2 Continental AG
6.2.3 Goodyear Tire & Rubber Company
6.2.4 Hankook Tire & Technology Co. Ltd
6.2.5 Kumho Tire Co. Inc.
6.2.7 MRF Limited
6.2.8 Pirelli & C. SpA
6.2.9 Sumitomo Rubber Industries Ltd
6.2.10 Yokohama Rubber Co. Ltd
A selection of companies mentioned in this report includes:
- Bridgestone Corporation
- Continental AG
- Goodyear Tire & Rubber Company
- Hankook Tire & Technology Co. Ltd
- Kumho Tire Co. Inc.
- MRF Limited
- Pirelli & C. SpA
- Sumitomo Rubber Industries Ltd
- Yokohama Rubber Co. Ltd