US Tire Market Report: Prices, Companies, Supply Chain and Logistics 2022

The US tire market is one of the most important in the world. It's worth billions of dollars and there are many companies vying for a piece of the pie. It is forecast to grow at a CAGR of 3.3% from 2022 to 2025, according to a new report by IndexBox. In this blog post, we'll take a look at prices, companies, challenges and opportunities in the US tire market.

The Leading Tire Companies in the US

The US tire market is highly competitive, with a large number of companies vying for market share. The leading tire companies in the US include Michelin, Bridgestone, Continental, Goodyear, and Pirelli. These companies have a long history in the US market and are well-established brands.

Michelin is the leading tire company in the US, with a market share of around 20%. The company has a strong presence in the passenger car and light truck segments and offers a wide range of tire products.

Bridgestone is the second-largest tire company in the US, with a market share of around 15%. The company has a strong presence in the passenger car, SUV, and light truck segments.

Continental is the third-largest tire company in the US, with a market share of around 10%. The company has a strong presence in the passenger car and SUV segments.

Goodyear is the fourth-largest tire company in the US, with a market share of around 8%. The company has a strong presence in the passenger car segment.

Pirelli is the fifth-largest tire company in the US, with a market share of around 5%. The company has a strong presence in the passenger car and SUV segments.

Market Challenges and Opportunities

The US tire market is currently facing a number of challenges, including declining sales, increased competition from imports, and rising raw material costs. However, there are also opportunities for growth in the market, such as the increasing demand for tires with special features and the growing popularity of tire subscription programs.

To stay competitive in the US tire market, companies need to be aware of these challenges and opportunities and adjust their strategies accordingly.

Declining sales

One of the biggest challenges facing the US tire market is declining sales. In recent years, tire sales have been declining in both the passenger car and commercial vehicle segments.

This decline is due to a number of factors, including the increasing use of ride-sharing services, the growing popularity of electric vehicles, and the aging of the US population. As a result of these trends, it is expected that tire sales will continue to decline in the future.

Increased competition from imports

Another challenge facing the US tire market is increased competition from imports. In recent years, there has been a significant increase in the number of tires imported into the United States.

This increase is due to a combination of factors, including the rising cost of raw materials in the United States and the continued expansion of Chinese tire manufacturers. As a result of this increased competition, it is expected that prices for tires will continue to decline in the future.

Rising raw material costs

A third challenge facing the US tire market is rising raw material costs. In recent years, there has been a significant increase in the cost of rubber and other raw materials used to manufacture tires. This increase is due to a number of factors, including the declining value of the US dollar and the growing demand for tires in emerging markets.

Growing demand for tires with special features

Despite these challenges, there are also opportunities for growth in the US tire market. One of the most significant opportunities is the growing demand for tires with special features.

In recent years, there has been an increasing demand for tires that offer improved fuel economy, longer tread life, and other special features. As a result of this trend, it is expected that sales of specialty tires will grow at a faster rate than sales of traditional tires in the future.

Tire subscription programs

Another opportunity for growth in the US tire market is the growing popularity of tire subscription programs. Tire subscription programs allow drivers to pay a monthly fee in exchange for access to a selection of different tires. These programs are becoming increasingly popular with drivers who want to reduce their costs and simplify their tire-buying experience. As the popularity of these programs grows, it is expected that more tire manufacturers will offer subscription programs in the future.

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Consumer Trends and Insights

The US tire market is constantly evolving, and keeping up with the latest trends is essential for companies looking to stay ahead of the competition. In this blog section, we'll take a closer look at some of the most important consumer trends and insights that are shaping the market today.

One of the most important trends to keep an eye on is the increasing preference for premium tires. A recent study found that 43% of US consumers are willing to pay more for a tire that offers superior quality and performance. This trend is being driven by a number of factors, including the growing popularity of luxury vehicles and the increasing demands of modern driving conditions.

Another key trend to watch is the growing demand for all-season tires. As the name suggests, all-season tires are designed to provide optimal performance in all weather conditions. This makes them an ideal choice for consumers who want to be prepared for anything that Mother Nature might throw their way.

Finally, it's also worth keeping an eye on the growing popularity of tire recycling programs. These programs allow consumers to trade in their old tires for new ones, which helps to reduce waste and environmental impact. Many major tire manufacturers now offer recycling programs, so this is something that is definitely worthconsidering when making your next purchase.

Tire Recycling Programs

There are many programs available to recycle old tires. The most common way to recycle tires is through a process called tire-derived fuel, or TDF. TDF involves grinding up old tires and using them as fuel in power plants. This process helps to reduce the environmental impact of old tires while also providing a renewable source of energy.

Another way to recycle tires is through retreading. Retreading involves stripping the tread off of an old tire and replacing it with new tread. This process can extend the life of a tire by several thousand miles, and it helps to reduce the number of waste tires in landfills.

There are also many programs that collect used tires and recycle them into new products. These products range from playground equipment to rubber mulch for landscaping. By recycling old tires, we can help to reduce waste and create new products that can be used in our homes and communities.

Tire Manufacturing and Environmental Issues

Tire manufacturing is a complex and energy-intensive process. It involves a number of steps, including vulcanization, which uses high temperatures and chemicals to strengthen the rubber. This process can release harmful emissions into the air, including carbon dioxide (CO2), nitrogen oxides (NOx), sulfur dioxide (SO2), and particulate matter (PM).

In addition to environmental concerns, tire manufacturing also raises other issues, such as worker safety. The high temperatures and chemicals used in the vulcanization process can pose a risk to workers if they are not properly protected. There have been cases of workers suffering from chemical burns, respiratory problems, and other health issues as a result of exposure to these substances.

Environmental concerns are a major issue in the US tire market. Some companies have been working to reduce their environmental impact by investing in cleaner production technologies, such as those that capture and recycle emissions. However, there is still room for improvement in this area, and more needs to be done to reduce the environmental impact of tire manufacturing.

Tire Supply Chain and Logistics

Rubber is a major component of tires, and the price of rubber fluctuates based on global supply and demand conditions. This can make it difficult for tire companies to predict their costs and pricing, and can squeeze margins if prices rise unexpectedly.

To combat this, many tire companies are focused on improving their supply chain management and procurement processes. By working closely with suppliers, they can better forecast costs and manage inventory levels. In addition, many companies are investing in new technologies that can help them track trends in the market and optimize their operations.

The US tire market is also facing some challenges due to the current political environment. The Trump administration has imposed tariffs on imported tires, which has raised costs for US companies. In addition, the trade war with China has led to higher prices for Chinese-made tires. As a result, many tire companies are looking for ways to source tires from other countries.

Conclusion

The tire market in the United States is highly competitive, with a large number of companies vying for market share. Prices have been under pressure in recent years, and the industry is facing challenges from changing consumer preferences and new technologies. However, there are also opportunities for growth, particularly in the premium segment of the market. With careful planning and execution, companies can succeed in this tough marketplace.

Source: IndexBox Market Intelligence Platform