North America and Europe High-Performance Tires Market Statistics 2030 -
The North America and Europe high performance tires market was valued at $43.53 billion in 2020, and is projected to reach $77.61 billion by 2030, registering a CAGR of 5.6% from 2021 to 2030.
High-performance tires are deigned to provide better traction and handling response and better cornering abilities, particularly in wet and dry conditions. The unique tread patterns, construction features, and rubber compounds of high-performance tires help to provide enhanced precision, responsiveness, and traction to the vehicle. However, apart from the enhanced vehicle performance, high-performance tires are expensive than the standards tires, creates more noise, and are susceptible to wear, faster than regular tires.
Factors such as rise in demand for safety and comfort, growing popularity of racing and adventure events, coupled with increase in demand for better efficiency of vehicle are expected to reinforce the demand for high-performance tires in the near future. However, high up-front cost and volatile raw material prices are some of the factors that are expected to hinder the high-performance tires market growth. Moreover, advancement in technology, rise in adoption of electric vehicles, and increase in demand for high-performance vehicle are anticipated to provide remunerative opportunities for market expansion.
The high-performance tires market is segmented on the basis of vehicle type, sales channel, tire type, and region. By vehicle type, the high-performance tires market is divided into racing cars, off road vehicles, and passenger and commercial vehicle. By sales channel, the market is classified into OEM and aftermarket. On the basis of tire type, the market classified as racing slick, tread tires and other tire types. By region, the market is analyzed across North America and Europe.
The key players analyzed in the North America and Europe high-performance tires market include, Bridgestone Corporation, Continental AG, Nokian Tyre Plc, Hankook Tire & Technology Co., Ltd., Michelin, Pirelli & C. S.p.A., Sumitomo Rubber Industries, Ltd., The Goodyear Tire & Rubber Company, The Yokohama Rubber Co., Ltd., and Toyo Tire Corporation.
Increase in demand for high-performance vehicles
Demand for high-performance vehicles is growing significantly and foreseen to witness considerable growth in the coming years as a result of urbanization and increase in industrial activities.
Due to the rise in demand for high-performance vehicles in North America and European countries, manufacturers are increasingly establishing manufacturing plants and expanding their presence. Besides, the rise in demand for luxury high-performance cars support the high-performance tires. Luxury high-performance cars are preferred by end users as these provide advanced technologies, better protection, and increased comfort in comparison to their non-luxury counterparts. They are prepared with safety features and advanced technologies. Sales of high-performance luxury cars primarily depend on the perception of quality associated with a vehicle brand. Thus, vehicle makers are adding advanced technologies to luxury high-performance car models to create a unique driving experience. Such initiatives by vehicle makers are expected to drive high-performance tires market growth during the forecast period.
Furthermore, the growing demand for passenger vehicles in developing countries has considerably increased automobile production in the area. Customers in developing countries, such as India, Brazil, and others, have shown considerable growth in their adoption of sedans, SUVs, and heavy commercial vehicles, resulting in increase in demand for automotive tires. Vehicle production in emerging nations is anticipated to increase considerably in the future, providing opportunities for the high-performance tires market to witness growth.
By Vehicle Type
Passenger and Commercial Vehicle is projected as the most lucrative segments
Increase in demand for safety and comfort
The demand for comfort in driving experiences, such as handling, sitting structure, and aerodynamics has increased significantly in recent years. This has led to a rise in the need for better high-performance tires, which provide better stability for vehicles. Automobile manufacturers are also introducing new comfort features, such as stability and reduced impact of bumps or speed breakers in their vehicles, which propel the demand for automotive tires. For instance, in March 2022, Hankook Tire launched its high-performance all-season Ventus s1 AS tire. These tires perform very well in all weather conditions, such as wet, dry, and snow-covered roads. Also, it increases driving performance and provides safety.
By Sales Channel
OEM is projected as the most lucrative segments
High-performance tires also help to maintain vertical loads placed on tires by providing resistance to vehicle bounce, roll, and control. They also help reduce brake dive along with acceleration squat to achieve a balanced ride. For instance, in August 2021, Bridgestone added two more high-performance tires, Bridgestone Potenza Sport and Bridgestone Potenza RE980AS+ to its portfolio. Bridgestone Potenza Sport tires offer excellent grip and handling at high speeds and in all weather conditions, while Bridgestone Potenza RE980AS+ provides more comfort for drivers. Hence, rise in demand for comfort and safety is increasing the demand for high-performance tires across the globe.
By Tire Type
Racing Slick is projected as the most lucrative segments
Covid-19 Impact Analysis
COVID-19 has presented the world with an unprecedented economic, humanitarian, and healthcare challenge. Lockdown measures have helped to contain the spread of coronavirus, but exacted an immense economic toll. On the business side, the automotive sector is one of the hardest hit sectors. Following the pattern witnessed in countries where COVID-19 spread earlier, COVID-19 is predicted to have a severe influence on the high-performance tires industry's competitiveness, economic growth by disrupting global supply networks. Automotive high-performance tires manufacturing players are facing issues, such as mandated plant closures by the government, complete halt of production activities. Furthermore, the COVID-19 pandemic further affected the manufacturing of critical raw materials used in the manufacture of high-performance tires, such as steel and rubber, limiting global supply of these tires However, With the relaxation of lockdown measures and the consequent opening of markets across the world, the demand for high performance tire is anticipated to grow considerably in the near future.
Europe would exhibit the highest CAGR of 5.9% during 2021-2030.
Key Benefits For Stakeholders
- This study presents analytical depiction of the North America and Europe high-performance tires market analysis along with the current trends and future estimations to depict imminent investment pockets.
- The overall high-performance tires market opportunity is determined by understanding profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities of the North America and Europe high-performance tires market with a detailed impact analysis.
- The current market is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
North America and Europe High-Performance Tires Market Report Highlights
By Vehicle Type
By Sales Channel
By Tire Type
By KEY PLAYERS
The high-performance tires market is expected to witness significant growth globally, owing to rise in demand for safety and comfort features and increasing production of vehicles in developing countries. The market growth is supplemented by numerous developments carried out by top high-performance tire manufacturers, such as Bridgestone, Group Michelin, Goodyear Tire & Rubber Co, Continental A.G., Sumitomo Rubber Industries, Pirelli & C. S.p.A, Yokohama Rubber Co. Ltd., and others which has led to the growth of the market. Moreover, rise in demand for high-performance and fuel-efficient vehicles propel the growth of the market.
For instance, in December 2021, Yokohama, a tire manufacturer unveiled its high-performance tire, ADVAN sport V107. These high-performance tires deliver excellent ride comfort and handling at faster speeds and with a strong grip on roads. Moreover, in January 2022, Michelin, one of the leading companies in the tire industry, launched its Pilot sport 5 and Primacy 4+ high-performance tires. Pilot sport 5 offers a better driving experience with extra miles while Primacy 4+ provides excellent safety. Such product launches and developments supplement the growth of the market.
Major players adopted different strategies such as product launch and development, partnership, acquisition, collaboration, and business expansion to gain a fair share of the market. Among these, the supply contract is a leading strategy used by prominent players, such as Toyo Tire, Hankook Tire, and others. For instance, in December 2021, Bridgestone completed the acquisition of OTR Tire Management Solutions Downer EDI Limited. Similarly, in March 2019, Continental AG established its greenfield tire plant in Rayong, Thailand. Thus, these strategies are expected to support the market growth during the forecast years.