Winter Tire Market : Global Industry Analysis And Forecast (2022-2029)

Winter Tire Market accounted for USD 22.44 billion in 2021 and is expected to reach USD 35.66 billion by 2029 at a CAGR of 5.96 % during the forecast period.
Winter Tire Market Overview:
Winter tires also known as snow tires are high-quality tires with specific tread designs created for traction on snow and ice. These tires can be used in temperatures as low as 7 degrees Celsius. Different countries and regions around the world have different regulations for winter tires and their use. The market is also being driven by an increase in demand for tires with higher rim diameters as a result of the increased sales of SUVs and other high-ground-clearance vehicles. Increased emphasis on automotive safety, particularly during winter and snow conditions, higher sales of vehicles in cold locations, and increased fitments per vehicle are some of the major factors driving demand for winter tires. Companies in the winter tire market are focusing on additional chances in the automobile winter tire sector by providing end-users with new and creative products such as retractable stud tires.

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The report provides a quantitative analysis of the current Winter Tire market drivers, restraints, trends, estimations, and opportunities of the market to identify the prevailing opportunities in the Winter Tire market during the forecast period. PORTER's five forces analysis shows the ability of buyers and suppliers to make profit-oriented strategic decisions and build their supplier-buyer network. In-depth analysis as well as the market size and segmentation assist in determining the current Winter Tire market potential. Some factors that are supposed to affect the business positively or negatively have been analyzed in this report which will give a clear futuristic view of the industry to the decision-makers.

The report presents a comprehensive analysis of the global Winter Tire market to the stakeholders who want to invest in this market. The report includes past and current scenarios of the Winter Tire market with the forecasted market size. The report covers all the aspects of the market with a thorough study of key players that include market leaders, followers, and new entrants.The report contains strategic profiling of top key players in the market, a wide-ranging analysis of their core competencies, and their strategies like new product launches, growths, agreements, joint ventures, partnerships, and acquisitions that apply to the businesses. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the internal or local market make the report investor’s guide. They are continuously strategizing on mergers & acquisitions for the expansion of their market share and growth opportunities during the forecast period.

Research Methodology:

In-depth analysis of the market insights, facts, historical data, and industry-validated market statistics have made this report comprehensive and authentic research. Market estimates are based on an appropriate set of assumptions and methodologies. The bottom-up approach has been used to collect the data and analyze the market to figure out the market size by volume and value by mentioned segments. Major Key Players in the Winter Tire market are identified through secondary research and their market revenues are determined through a study of the top manufacturers' annual and financial reports, interviews with company key persons, and industry professionals such as experienced front-line staff, CEOs, and marketing executives. By understanding the scope of the market our analyst has segmented the market based on Tire Type, Sales Channel, Vehicle type, and region. The growth amongst these segments will help to analyze the industries and provide the users with a valuable market overview and market insights to make strategic decisions for identifying core market applications.
Winter Tire Market Dynamics:
A Rising number of automobiles for both personal and commercial uses

The key factor driving the growth of the Winter Tires market is the rising growth in the automobile industry and its usage all over the world particularly in countries with cold climates. The market for Winter Tires increases in conjunction with vehicle production with an increase in the number of cars for both personal and commercial usage and is expected to grow in the future years. Vehicles have become more of a commodity than a luxury item as customers' disposable incomes have increased resulting in increased demand for vehicles which has directly influenced the growth of the Winter Tires market. Almost all countries with cold climates are mandating the usage of winter tires, amid safety concerns and fuel efficiency. Furthermore, many companies offer a discount on insurance premiums for vehicles equipped with winter tires therefore people prefer winter tires over conventional tires. Rapid innovation in winter tire offerings by global tire manufacturers is also fueling the sale of more expensive products and producing more revenue in the global winter tire market.

Greater Stability and Performance Driving Demand for 18"-21" Rim Size Winter Tires

The 18"-21" rim size tire is expected to be worth USD 7.63 billion by the end of 2022 owing to the high demand among SUV owners. 18"-21" is a typical rim size for winter tires in SUVs and other high-clearance vehicles. SUV sales are steadily increasing particularly in Europe and North America due to increased disposable income, economic growth, and psychological reasons such as viewing SUV ownership as a symbol of power and status. SUVs account for 43% of new passenger car sales in these countries. This has resulted in increased demand for 18"-21" winter tires boosting the winter tire market. Buyers of passenger vehicles such as automobiles are increasingly expecting higher stability and better handling qualities in snowy conditions. Tires play an important part in the stability and control of any vehicle. Tires with larger rims increase the vehicle's cornering stability and handling. As a result, the desire for increased vehicle stability is expected to drive the winter tire market in the near future.



Winter Tires' Safety Features Will Drive Market Growth

The major advantage of winter tires is that they are expressly built for low temperatures and harsh weather and provide great grip than conventional all-season tires. They offer improved grip on ice and snow because these tires are flexible. They are utilized for a certain period of time each year and can survive for several years if properly maintained. The added safety provided by snow and ice tires which reduces the chances of accidents is expected to drive market growth throughout the forecast period. The major reason for this is that they are designed to give greater braking, adhesion, and cornering performance than all-season tires as well as react faster in emergency circumstances.

Climatic Conditions and Government Regulations

Winters in Scandinavia, Russia, and Canada as well as the northern region of the United States are high. It is difficult to drive a car without winter tires throughout the winter due to the substantial snow cover. As a result, fitting winter tires to automobiles throughout the winter becomes essential. This increases the need for winter tires during the forecast period. Government rules in some European nations as well as several states in the United States and Canada require the installation of winter tires on automobiles between October and March each year. The inclination for larger rim size winter tires is determining future trends in the winter tire market. Winters in many regions of North America and Europe are expected to be colder as a result of climate change. This is expected to boost the demand for winter tires in these regions.

Market Restraint:

These tires are only appropriate for usage during the winter season, and they need to be replaced throughout the other seasons, hampering the market growth. Tire manufacturers require comprehensive testing facilities to examine their products since vehicle winter tires must adhere to regulatory criteria. To test tire performance, it can be a little difficult to duplicate the identical winter circumstances. This could limit market growth during the forecast period. But in order to assist manufacturers with the testing facilities, cutting-edge winter tire testing facilities have started to appear close to manufacturing centres. This has helped the market grow during the forecast period. A few reasons that are hampering the growth of the winter tire market are their poor adoption in areas with warm climates and their expensive price.
Winter Tire Market Segment Analysis:
By Tire Type, Studded tires are popular because they include metal studs set into the treads, which give more grip. These tires can withstand the most severe ice-driving conditions. Studded tires help break through packed snow and ice-covered roads to give a better grip. As a result, the studded winter tires segment is expected to grow at a 3.9% CAGR during the forecast period. The Studless segment held around 43% of the total market share in 2021. This is mostly due to an increase in demand for Studless tires throughout the world. Studded tires are banned in a number of European and North American nations. Furthermore, a surge in the sale of luxury and premium automobiles is expected to ensure the Studless segment's dominance is expected to provide profitable prospects for manufacturers in the winter tire market.

Based on Sales Channel, The OEM segment is expected to grow at the highest CAGR during the forecast period. OEM tires are flexible and can flex and absorb impacts. The tread and sidewall of an OEM tire operate separately. OEM tires transmit more of the machine's power to the ground, which reduces fuel consumption and boosts output.

By Vehicle Type, the Passenger vehicles segment is expected to grow at a 4.9% CAGR over the forecast period because these tires assist to reduce crashes, injuries, and fatalities. Snow tires give the highest traction for passenger vehicles in cold temperatures, making them essential for human safety while driving in these conditions.
Winter Tire Market Regional Insights
In Europe, Winter Tire Market is expected to emerge as the most opportunistic market during the forecast period owing to the Winter tire legislation and rising consumer spending power. Furthermore, rising safety concerns and consumer knowledge of the benefits of using winter tires are expected to drive up demand for winter tires in Europe over the next five years.

The North American Winter Tire market is expected to grow at the highest rate and be the most profitable market during the forecast period. The North American winter tire market accounts for 32% of the global market and is expected to grow at a 4.5% CAGR during the forecast period. North American market growth is attributable to the region's long prevalence of cold temperatures, which leads to increased demand for vehicle winter tires. Furthermore, in North America, winter tires are certified using a specific test process to ensure that they fulfill winter grip performance criteria. This enables winter tire manufacturers to develop premium tires that fulfill the required specifications, resulting in substantial revenue generation.
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Global Winter Tire Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
USD 22.44 Bn.


Forecast Period 2022 to 2029 CAGR:
5.96 %
Market Size in 2029:
USD 35.66 Bn.


 Segments Covered:
by Tire Type
• Studded
• Studless


by Sales Channel
• OEM
• After Market


by Vehicle type
• Passenger Cars
• Light Motor Vehicles
• Heavy Motor Vehicles



Winter Tire Market, by Region
• North America
• Europe
• Asia Pacific
• The Middle East and Africa
• South America
Leading Manufacturers in the Winter Tire Market are:
• Bridgestone Corporation (Japan)
• Sumitomo Rubber Industries, Ltd. (Japan)
• Toyo Tire & Rubber Co., Ltd. (Japan)
• Apollo Tyres Limited (India)
• Jk Tyres (India)
• MRF Ltd (India)
• Zhongce Rubber Group Co., Ltd. (China)
• Linglong Tire (China)
• CST Tires (China)
• Triangle Group (China)
• Nexen Tire Corporation (South Korea)
• Hankook Tire (South Korea)
• Kumho Tire (South Korea)
• Giti Tire (Singapore)
• Nankang Rubber Tire (Taiwan)
• Maxxis Tires (Taiwan)
• Continental AG (Germany)
• Pirelli & C.S.p.A. (Italy)
• CEAT (Italy)
• MICHELIN (France)
• Nokian Tyres plc (US)
• Yokohama Tire Corporation (US)
• The Goodyear Tire & Rubber Company (US)
• Cooper Tire & Rubber Company (US)
• Sailun Tires (Canada)

FAQs:

1. Which is the potential market for Winter Tire in terms of the region?
Ans. In the Europe region, the Winter tire legislation and rising consumer spending power are expected to drive the market.

2. What is expected to drive the growth of the Winter Tire market in the forecast period?
Ans. A growing number of automobiles for both personal and commercial use is a major factor driving market growth during the forecast period.

3. What is the projected market size & growth rate of the Winter Tire Market?
Ans. The Global Winter Tire Market accounted for USD 22.44 billion in 2021 and is expected to reach USD 35.66 billion by 2029 at a CAGR of 5.96 % during the forecast period.

4. What segments are covered in the Winter Tire Market report?
Ans. The segments covered are Tire Type, Sales Channel, Vehicle type, and region.