Over the next five years, Europe’s tyre market is expected to be propelled by the anticipated increase in the tyre production capacity, expanding automobile fleet and growing vehicle sales, according to a TechSci Research report, “Europe Tire Market Forecast and Opportunities, 2021”. The tyre market of Europe is forecasted to cross the US$49 billion mark by 2021.
Other market growth drivers include crude oil price stabilisation, growing motorisation rate and implementation of favourable government policies.
The region also continues to be the epicentre of all major global advancements when it comes to tyre technology, having more than 90 tyre manufacturing facilities, 16 research & development (R&D)centres and 12 leading tyre manufacturers.
During 2008 to 2012, member countries of the European Union (EU) suffered under the impact of the European debt crisis. The region faced weak economic scenario and financial conditions as a result of the crisis.
By 2013, the aftereffects of the debt crisis were still apparent and have consequently impacted the growth of Europe’s automotive sector. Thus, Europe’s automobile production grew at a CAGR of only 0.16%, in volume terms, during 2011 to 2015.
However, the automotive and tyre industries of the region are expected to revive over the next five years owing to the several bailout packages offered by the EU and the International Monetary Fund (IMF) that resulted in the recovery of the economy of the countries that were affected.
The passenger car segment is projected to dominate Europe’s tyre market during the forecast period due to increasing passenger car sales, expanding passenger car fleet and growing purchasing power of the consumers.
In addition, replacement tyre demand in the region is anticipated to grow at a higher pace compared to the original equipment manufacturer (OEM) tyre demand over the course of the next five years.
Some of the leading players operating in Europe’s tyre market include Michelin, Goodyear, Continental, Bridgestone and Pirelli.