The U.S. automotive tire market is witnessing growth due to the prospering automotive industry and high demand for tire replacement due to the improving average age of vehicles. From $57.9 billion in 2018, the market is expected to garner $75.4 billion by 2024, registering a 5.4% CAGR during the forecast period (2019–2024). A circular component that goes around the wheel and contains compressed air, which helps in transferring the load of the vehicle from the axle to the ground, is referred to as a tire.
Low-rolling-resistance tires that are more fuel-efficient than conventional tires are trending in the U.S. automotive tire market. Additionally, they also provide enhanced durability and have a better grip for increased safety. Technological advancements have not only led to improvements in vehicles, thereby leading to their high demand, but they have also influenced the tires, which are now being made for improved functionality. For instance, innovation by market players in this field have led to the development of ultra-high-performance tires that are highly reliable and perform well at high speeds and on rough terrains.
The increasing average life of vehicles is a major factor driving the U.S. automotive tire market. Presently in the country, vehicles have an average life of 13–17 years. This can be attributed to the technical advancements and fierce competition in the market, which is why automobile manufacturers have to provide top-quality products in all aspects. As vehicles are supposed to last for a long time, the demand for tire replacement is increasing. Another contributing factor in the high tire demand is the increasing driving range of vehicles, which leads to increased wear and tear of tires.
The segments of the U.S. automotive tire market are end use, vehicle, type, and design. The bifurcations of the design segment are bias and radial. In 2018, the larger market sales volume share was held by radial tires, and during the forecast period, the market is expected to continue to be dominated by them. This can be attributed to the advantages of radial tires such as their sturdy construction and better durability than bias tires. Further, they offer a smoother ride experience, therefore are in high demand.
Based on type, the categories of the U.S. automotive tire market are all-season, winter, and summer tires. Throughout the historical period (2014–2018), in terms of volume, the all-season tire category led the market, and it is predicted to register the highest sales during the forecast period as well. The high sales of such tires can be attributed to their year-round demand owing to their ability to perform well in different weather conditions.
The growing focus on electric vehicles is opening up new avenues for tire manufacturers in the country. These vehicles have lower performance in terms of range, compared to conventional vehicles. Original equipment manufacturers are working toward improving the range and performance of these vehicles by researching in various domains, one of them being tire design. Tire manufacturers are coming with lightweight products that offer increased low-rolling resistance and endurance and emit less carbon. For instance, the Michelin Energy E-V tires were manufactured by Michelin in 2018, exclusively for electric vehicles.
Therefore, the market for automotive tires in the U.S. is slated to experience significant growth in the forecast period due to the rising popularity of e-vehicles as well as longevity of vehicles.