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With more demand of Electric vehicles, tyre market is to grow with a CAGR of 6% in North America: Bonafide Research
Jul, 23
2021

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With more demand of Electric vehicles, tyre market is to grow with a CAGR of 6% in North America: Bonafide Research

 

210659982-North-America-Tyre-Market-Outlook-2026

North America is one of the most matured regional markets in the global tyre landscape. Being home to one of the biggest economies in the world- the USA, the region’s tyre market is driven by its highly developed automotive sector. The region is one of the biggest importers of tyres from the rest of the world. With a well-penetrated vehicle market in the region, the tyre market’s performance is fairly stable in the region. Bonafide Research in their latest research reports titled- North America Tyre Market Outlook, 2026 has conducted in-depth research on the region’s tyre market to assess trends. The market has been evaluated by segmenting it based on vehicle types, designs, and end-use.

North America has a well penetrated automotive market which keeps its allied tyre market stable. Also, the region is home to some of the major tyre companies in the world such as Goodyear tyres and Cooper tyres. USA, Canada, and Mexico’s trade alliances also facilitate the trade of automotive components in the region including tyres. During the period of 2015 to 2020, the tyre market in terms of volume grew at a CAGR of 1.44% to expanding from 582.06 Million units to 625.04 Million units after factoring in a 5.84% fall in the tyre market in 2020 due to the outbreak of Covid-19 pandemic.

North America is a major hub for automotive manufacturing. The US, for a long time, was not only the biggest trendsetter of the automotive industry in the North American region, but the manufacturing process of the automotive sector in the USA was also the benchmark for the industry in other regions. Although many of the global players have shifted their production and manufacturing facilities to the Asia-Pacific region to reduce costs, the US and Mexico continue to be major hubs for automotive production and assembly. Historically the staggering performance of the automotive sector in North America has also resulted in higher demand for allied products such as tyres.

The sales of the tyre market globally have been majorly driven by the offline channels of sales. The sales and distribution of tyres require a human touch and dealers have been the major participant in sales. However, a business model in which customers buy tyres online as per their requirement and later approach a nearby dealer to fit the tyre, has started in the region similar to Europe and Asia-Pacific. From 2015 to 2020, the tyre market in North America grew at a CAGR of 27.03%. It has been further forecasted that the tyre market sales through online channels will be growing at a CAGR of 15.25%.

During the period of 2015 to 2020, the OEM demand for tyres grew at a CAGR of 3.25%. Replacement tyres grew at a similar rate of 3.36% during the historical period to grow to USD 48.85 Billion by 2020. It has been forecasted that the OEM tyres will be generating sales by growing at a CAGR of 6.22% from 2021 to 2026. Replacement tyres will be generating sales of roughly USD 70 Billion annually by 2026 by growing at a CAGR of 5.89%.

It can be said that given a well-developed automotive and tyre market in the region, North America is more of a trendsetter in the tyre market globally. Driven primarily by the USA, it can be expected that the country will be one of the first markets to be seeing electric- vehicle tyres. As electric vehicles start getting higher penetration rates, the region will continue to be a strategic market both for the automotive industry as well as the tyre industry.