Winter Tire Market - Snapshot

Winter tires are made from advanced rubber compounds possessing unique tread patterns in order to increase traction while driving on snow and ice. The rubber tread of all-season tires or summer tires becomes stiff in cold conditions and fails to provide the required traction. Usage of advanced rubber compounds and resins in manufacturing of winter tires enables to regain the necessary traction and hence, are widely accepted in countries that experience cold climates.

Rising awareness among consumers regarding safety is expected to drive the global winter tire market to exceed US$ 28 Bn by 2026. Winter tires have 30% to 40% shorter stopping distance as compared to a vehicle equipped with all-season tires. Growing concern for safety is fueling the demand for winter tires. Rising vehicle sales in Nordic countries is also boosting the demand for winter tires. Countries in Central Europe such as Austria and Croatia have made the incorporation of winter tires mandatory. Government authorities in countries such the Czech Republic and Romania issue winter tire regulation, every year, depending on the severity of winter. Stringent government regulations in Europe pertaining to the usage of winter tires is a major driver of the winter tire market. Winter tires need to be installed after the temperature falls below 7 degrees even during non-snow conditions, as the rubber treads of summer or all-season tires stiffen. Countries that experience cold winters but little or no snow are expected to witness a demand of winter tires in the near future in order to improve safety of the vehicle. In countries, such as Canada, the insurance provider offers discount on premium on installation of winter tires, as they minimize the risk of a collision. Such lucrative offers are expected to boost the sales of winter tires, which in turn is anticipated to propel the winter tire market.

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Winter tires is a niche market and is restricted to cold regions, thus acting as a restraining factor for the expansion of the market.

The global winter tire market can be segmented based on rim size, tire type, vehicle type, and region. Based on rim size, the 18-inch to 21-inch segment is anticipated to witness significant expansion in the near future. Rising sales of SUVs and cross-overs and trends of higher rim size are boosting the demand for winter tires in the 18-inch to 21-inch segment. Demand for large wheels due to their high esthetic appearance is fueling the demand for bigger rim-size tires. Tires with larger rim size provide better stability and cornering performance as they have shorter tire sidewalls.

Based on tire type, the non-studded tire segment is anticipated to expand at a prominent growth rate during the forecast period. Studded tires are banned in several states in the U.S. and in most the countries in Central Europe such as Luxembourg, Croatia, and the Czech Republic, as they damage roads and also generate dust. Advancements in technology have led to the development of non-studded tires that perform equally well and hence, are most widely utilized. Yokohama Tire Corporation uses resin coated and carbon flake microbubbles to gain traction on snow. Bridgestone Americas Tire Operations, LLC employs an advanced rubber compound made of multiple cell with microscope pores to gain traction. Tire companies are focusing on research and development of compounds and resins in order to improve the performance of rubber in cold conditions.

In terms of vehicle type, the winter tire market can be classified into passenger vehicle, light commercial vehicle, and heavy commercial vehicle. The passenger vehicle segment holds a prominent share of the winter tire market and is estimated to dominate the market during the forecast period.

Based on region, the winter tire market can be segmented into North America, Europe, Russia, and Asia Pacific. Europe is a significant market for winter tires followed by Russia and North America. Stringent government norms and harsh winters in Europe have led to a high demand for winter tires in the region.

Key players operating in the global winter tire market include Bridgestone Corporation, Nokian Tyres plc, Continental AG, Nexen Tire Corporation, Sumitomo Rubber Industries, Ltd., The Goodyear Tire & Rubber Company, Pirelli & C.S.p.A., Hangzhou Zhongce Rubber Co., Ltd., The Yokohoma Rubber Co., Ltd., MICHELIN, Hankook Tire, Toyo Tire & Rubber Co., Ltd., Kumho Tire Co., Inc., Cheng Shin Rubber Ind. Ltd., Giti Tire, and Cooper Tire & Rubber Company.

Winter Tire Market - Overview

The winter tire market has been forecasted for the period from 2018 to 2026 based on revenue (US$ Mn) and volume (million units). This report provides forecast and analysis of the winter tire market at regional and global levels. The study highlights the drivers and restraints influencing the market. The report also highlights the opportunities in the winter tire market and underlines the technological roadmap for understanding the market.

The report contains value chain analysis, which provides a comprehensive view of the global Winter Tire market. The Porter’s Five Forces analysis of the winter tire market has also been included that helps understand the competitive scenario of the market. The study encompasses market attractiveness analysis, wherein end-users are benchmarked based on their market size, growth rate, and attractiveness.

The study provides a decisive view of the global winter tire market by segmenting it in terms of tire type, rim size, vehicle type, and region. These segments have been analyzed based on present and future trends. Regional segmentation comprises current scenario along with forecast of the winter tire market. The forecast provided is based on the compilation of current trends as well as the expected scenario in future due to change in technological, geographical, political, regulatory, and economic factors such as the rapid expansion of the electric vehicles market. Demand for fuel-efficient vehicles among consumers and government emission regulations have been considered while sizing the market.

The study includes profiles of major companies operating in the global winter tire market. The major share of the market is held by a few key players and the rest is fragmented among medium scale manufacturers. Major players operating in the winter tire market include Bridgestone Corporation, Nokian Tyres plc, Continental AG, Nexen Tire Corporation, Sumitomo Rubber Industries, Ltd., The Goodyear Tire & Rubber Company, Pirelli & C.S.p.A., Hangzhou Zhongce Rubber Co., Ltd., The Yokohoma Rubber Co., Ltd., MICHELIN, Hankook Tire, Toyo Tire & Rubber Co., Ltd., Kumho Tire Co., Inc., Cheng Shin Rubber Ind. Ltd., Giti Tire, and Cooper Tire & Rubber Company. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments. The winter tire market is primarily driven by stringent regulations for safety in cold regions, as winter tires possess better grip as compared to conventional tires in cold climates and prevent the vehicle from skidding.

The report provides the estimated market size of the winter Tire market for 2017 and forecast for the next nine years. The global market size has been provided in terms of revenue (US$ Mn) and volume (million units). Market figures have been estimated based on rim size, tire type, sales channel, vehicle type, and regions. Size and forecast for each major segment have been provided in terms of global and regional/country markets.

In-depth interviews and discussions were conducted with a number of key industry participants and opinion from leaders to compile the research report. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. Key players’ product literature, annual reports, press releases, and relevant documents were reviewed for competitive analysis and market understanding. Secondary research also includes a search of recent trade, technical writing, Internet sources, and statistical data from government websites, trade associations, and agencies. This has proven to be highly reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.

Secondary research sources that are typically referred to include, but are not limited to company websites, annual reports, financial reports, broker reports, investor presentations, and SEC filings, internal and external proprietary databases, and relevant patent and regulatory databases, national government documents, statistical databases, market reports, news articles, press releases, and webcasts specific to companies operating in the market, American Automobile Association, European Automobile Manufacturers Association, Automotive Research Association of India, Factiva, etc.

Primary research involves e-mail interactions and telephonic interviews for each market, category, segment, and sub-segment across regions. Primary interviews are conducted on an ongoing basis with industry participants and commentators in order to validate the data and analysis. Primary interviews provide firsthand information on market size, market trends, growth trends, competitive landscape, and outlook, etc. These help validate and strengthen secondary research findings. These also help develop the analysis team’s expertise and market understanding.

The global winter tire market has been segmented as follows:

Global Winter Tire Market, by Tire Type

  • Studded
  • Non-studded

 Global Winter Tire Market, by Rim Size

  • 12’’-17’’
  • 18’’-21’’
  • >22’’

Global Winter Tire Market, by Vehicle Type

  • Passenger Vehicle
  • Light Commercial Vehicle
  • Heavy Commercial Vehicle

Global Winter Tire Market, by Region/Country/Sub-region

  • North America
    • U.S.
    • Canada
  • Europe
    • Nordic
    • Central Europe
    • Rest of Europe
  • Russia
  • Asia Pacific
    • China
    • Japan
    • South Korea
.