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2021-01-29
400
United States
The United States tire replacement market has noticed stable growth in the last couple of years. The increase of replacement tires prices have increased in 2019 averaged from 2% to 7% varying by tire brand. The moderate prices increase primarily due to more stable commodity pricing which exerted less pressure on tire OEM margins as their production costs remained relatively flat. The prices will continue to increase due to the raw material challenges and shortages. USD 20 billion dollars is spent on replacing the tires every year in the US. The 220 million passenger cars and light trucks in United States consume about 130 billion gallons of motor fuels annually. Production of passenger tires rose from 126.10 million units, light truck tires to 26.40 million units, and medium truck tires to 14.80 million units. The combined total of 167.80 million units was the highest in 2011.
| Year-2017 | Value in USD Billion |
|---|---|
| Passenger | $25.40 Billion |
| Truck | $6.80 Billion |
| Light Truck | $5.20 Billion |
| OTR | $1.70 Billion |
| Farm | $535 Billion |
| Year | Males | Females |
|---|---|---|
| 2015 | 62 | 39 |
| 2016 | 61 | 40 |
| 2017 | 61 | 40 |
| 2018 | 60 | 40 |
| 2019 | 60 | 41 |
We conducted interviews with the United States Tire Replacement Market Manufacturers, OEMs, Aftermarket Players, Brands, Component Manufacturers, End User Industries, Distributors, Traders, Suppliers, Product Managers, Consultants, Decision Makers, VPs, Executives, Sales Managers, Regional Sales Head, C-level Executives, etc.
The report includes U.S. Tire Replacement Manufacturers, Aftermarket Players & Distributors Outlook (Market Competition & Global Presence), Business Strategy & Financial Analysis of Major Players. Further, the study also covers the Industry Insights (Future Trends & Forecast Data), Trade Data (Exports and Imports) and Distribution Model Analysis, Competitive Analysis, Opportunity Analysis.
The study provides an in-depth analysis of current and future trends to elucidate the imminent investment pockets in the market.
Demand for high-performance tires in United States continues to increase especially on the replacement side; it represents 38.20 percent of aftermarkets shipment. Growth on the original equipment averaged 40 percent in the past 5 years which accounted for half of the Original Equipment Sales. Shipments of after-sales tires rose 10.20 percent to 78.70 million units, while those to OE customers were up to 4 percent to 25 million units. The biggest challenge is the accumulation of scrap tires which becomes the breeding ground for millions of insects because of health hazards for humans. So proper disposal of these scrap tires is very essential and from time to time they have to be disposed of. The scrap tires can also cause fumes if they are near some oil reserves. The process of replacement is too expensive and complex which is the biggest challenge and restraints for many companies and countries.
South Carolina’s remains no 1 in tire recycling with the estimated daily tire production growing to 103,000 units as expansions by Bridgestone, Continental Tire and Michelin started having an effect on them. Two more plants are operating with those of Trelleborg Wheel Systems and Giti Tire Group will expand in the coming years.
The acquisition is Camso by Michelin strengthened its leadership position by in the specialties areas business by creating a world record. This strategic partnership is carried out by shared values and a strong tradition of innovation and R&D which will make the company the world leader in off road mobility. Camso is a designer, manufacturer and distributor of off road mobility solutions since 1982 with an annual turnover of $1 billion. It is a leading player on several segments, including rubber tracks for farm equipment’s and snowmobiles and material handling equipment market. Camso is one of the top three players on the construction market both on tires and tracks for small construction equipment. Its technological leadership on tracks and tracks systems has created a competitive industrial network around the world also. The acquisition has created will expand its product portfolio and join together to work.
Good Year remained the No 1 supplier of Original Equipment consumer tires, estimated close to 28 percent of the 1.77 million cars, SUV’s and light trucks built in the USA in 2013 with its Good Year and Dunlop brands. Michelin remains no 2. and then comes BF Good rich brands. Continental and General Brands remain a later part of the list.
Import brands claimed more than a quarter of the U.S. passenger and light truck replacement markets, while the domestic makers' and associate brands represented more than 60 percent of each category, according to Tire Business' analysis of RMA and Commerce Department data. U.S. shipments of winter/traction tires grew slightly to a 3.6-percent market share, up from 3.5 percent in 2013. By contrast, winter tires represent 35 percent of aftermarket car tire shipments in Canada. Ironically, unit shipments are roughly 7 million in each country. The roster of OE suppliers will grow to an even dozen this year when Sumitomo Rubber USA L.L.C. starts supplying its Falken brand to a few select vehicles. Bridgestone also is considered a leader on the retail of the ledger, reporting an estimated $4.5 billion in sales through its Bridgestone Retail unit, slightly ahead of mega-retailer Discount Tire/America's Tire. Discount Tire operated 910 stores are year-end 2015, compared with the 2,313 stores under Bridgestone's control. On the sales side, Bridgestone Americas solidified its claim to the top spot in United States with estimated tire-related sales of $10.5 billion, measurably ahead of Michelin United States Inc.'s $9.5 billion and Goodyear's $7 billion.
| Distribution Channel | 2008 | 2007 |
|---|---|---|
| Independent Tire Dealers | 60.00% | 59.50% |
| Mass Merchandisers | 14.50% | 15.00% |
| Warehouse Clubs | 9.00% | 9.00% |
| Tire Company-owned Stores | 7.00% | 7.50% |
| Auto Dealerships | 5.50% | 4.50% |
| Service Stations | 2.50% | 3.00% |
| Miscellaneous Outlets | 1.50% | 1.50% |
Bridgestone Retail Operations LLC runs 2,047 retail stores under the following names: Firestone Complete Auto Care (1,481), Tires Plus (422), Expert Tire (98) and Wheel Works (46). It also operates 143 GCR commercial tire centers. Firestone Complete Auto Care outlets sell the Bridgestone, Firestone, Primewell, and Lemans brands. Expert Tire also sells the Fusion brand. Goodyear’s 671 stores include Goodyear Gemini outlets, Just Tires and Allied Discount Tires. Its Just Tires format has 122 stores strategically located in the following metropolitan areas: Chicago (31), Philadelphia (11), Los Angeles (51), Baltimore/Washington, D.C. (12), and Raleigh/Durham (17). They sell Goodyear, Dunlop, Republic, Pirelli, Firestone, Bridgestone, Continental, BFGoodrich, Michelin, Cooper and Kumho tires. TCI Tire Centers, owned by Michelin United States, operates 126 commercial service outlets across the U.S. Its Small Tire Marketing Division distributes Michelin, BFGoodrich, Uniroyal, Yokohama, Han kook and Trivalent brand passenger and light truck tires through 34 distribution centers. Mass merchandisers lost ground to some of the other distribution channels in 2008. Wal-Mart Stores Inc. has close to 3,200 outlets selling tires, although most of those sales are concentrated in its approximately 2,435-store Tire & Lube Service Centers nationwide. Wal-Mart offers Goodyear, Michelin, BFGoodrich, Uniroyal, and Douglas tires. Sears Holdings Corp. owns 859 Sears Auto Centers. They sell the following brands, in order of SKUs offered: Goodyear, Michelin, Dunlop, BFGoodrich, Han kook, Continental, Falken, Firestone, Bridgestone, Uniroyal, Sumitomo, Kumho, Winter Handler and General. Sears also offers two co-branded products: the Michelin Weather-wise and Bridgestone Weather force. Pep Boys-Manny, Moe & Jack is the largest tire-selling auto parts chain with 539 stores (down from 561 last year). The company favors its private brand offerings of Cornell, Futura and Definity, but also offers Hankook, Cooper, and Goodyear.
Many tire manufacturers were able to take advantage of the exchange rate versus the U.S. dollar in 2008, and two companies, Continental and Bridgestone, benefited from major acquisitions. (Although it didn’t affect its tire sales, Continental’s purchase of Siemens VDO Automotive AG for 11.4 billion euros greatly increased its overall revenue in 2008.) Year to year, Korean and United Statesn companies gained revenue thanks to the exchange rate. Japanese companies lost revenue. At year’s end, Bridgestone Corp. was the world leader with an estimated $24.8 billion in new tire sales (see Chart 12). Groupe Michelin came in second with $22.5 billion in global tires sales. However, Michelin was the most profitable tire manufacturer based on its net income-to-net sales ratio. Goodyear finished third with an estimated $19.2 billion in tire sales. In addition to the Big Three, Continental, Sumitomo and Cooper had positive income-to-sales ratios. (Two companies that can’t be compared to the others, especially this year, are Yokohama Rubber Co. and Toyo Tire & Rubber Co. Ltd., because their fiscal years end March 31. Their sales figures, however, are included in Chart 12 as well.) Bridgestone Americas was the U.S. and Canadian leader in new tires. At $9 billion, it outdistanced Goodyear ($7.9 billion) and Michelin United States ($7.2 billion). It should be noted, however, that companies with company-owned stores have the advantage of counting retail pricing on tires sold through their outlets. Goodyear has 671, while Bridgestone has 2,047. In addition, retreading revenue is included in the sales figures for Bridgestone, Goodyear, and Michelin.
The report analyses and includes a complete detailed chapter of 50-70 pages about the short-term & long terms impact of COVID-19 outbreak on each segment of the "United States Tire Replacement Market" along with government measures to support the sector. It also showcases the current market landscape during COVID, the impact of the virus on leading companies, the expected demand schedule and supply chain in the industry, and other various major factors. This will help you identify those companies that may benefit from this pandemic as well as those that will lose out.
The report covers the present ground scenario and the future growth prospects of the automotive aftermarket for 2019-2035 along with the market players’ analysis. We calculated the market size and revenue share on the basis of revenue generated from major players in all major countries. United States Tire Replacement Market is forecasted on the basis of revenue analysis, product benchmarking and strategic developments of key market players.
United States Tire Replacement Market Outlook 2019-2035, has been prepared based on in-depth market analysis from industry experts. The report covers the competitive landscape and current position of major players in the tire replacement aftermarket industry space. The report also includes porter’s five force model, SWOT analysis, company profiling, business strategies of market players and their business models. “ United States Tire Replacement Industry Report” also recognizes value chain analysis to understand the cost differentiation, pricing models to provide a competitive advantage to the existing and new entry players.
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