Canada Tire Market is projected to be worth USD 10.07 billion by 2033 and is anticipated to surge at a CAGR of 5.57%.
The outside wheel rim is covered by the circular car tire made of rubber. Creating tractive force between the vehicle and the road surface and safeguarding the wheel rim are the two primary purposes of tires. Due to its rubber structure, it also offers a flexible cushion, reducing vibration and stress from moving cars. The components of rubber tires are fabric, carbon black, synthetic rubber, jointless cap pile, and tread.
Canada Tire Market Driving Factors and Challenges
Drivers:
Boosting Automobile Manufacturing in Developing Areas: It is anticipated that the country's emerging regions would see a sharp increase in automobile demand in the coming years due to urbanization and heightened industrial activity. The growing demand for autos is prompting manufacturers to expand their presence in these countries and build production facilities at a rapid pace. Due to reasons like expanding consumer spending, growing GDP, and supportive government regulations, the production of automobiles has expanded in developing nations. It is anticipated that future car manufacturing in developing nations would increase dramatically, presenting a chance for the auto tire sector.
Development of Technology
Due to notable technological advancements, automation is becoming the preferred method of increasing productivity and profitability for the majority of manufacturing firms. Some of the technological innovations in the Canadian tire industry that are expected to propel growth in the automotive tire market include the introduction of rimless tires, green tires, and the use of lightweight elastomers and metals, like alloys and carbon fiber, or composites, like manganese bronze and nickel aluminum bronze, in the tire production process. Furthermore, a wide selection of cutting-edge tire types are being developed by top tire manufacturers using software, other technological advancements, and nanotechnology. Ride-sharing and ride-hailing services are becoming more and more common, helping with both cargo and service transportation as well as urban mobility.
Challenges: The tire and automobile industries heavily rely on raw materials like rubber and crude oil, therefore growth in the Canadian tire market is anticipated to be restricted in the coming years. One important element that may prevent market growth in the upcoming years is price volatility. As a result, the country is producing fewer tires, widening the gap between supply and demand. Each of these factors restricts the growth of the industry.
Impact of COVID-19 on Canada Tire Market
The Covid-19 epidemic had a slowing effect on Canada's tire market and automotive sector in 2020. The import of passenger cars and commercial vehicles presented unknown difficulties and obstacles because sales and the shipping of tires both experienced sharp declines. Due to their decreased capacity to produce as a result of falling car sales, a lack of raw materials, volatile pricing, travel restrictions, and manufacturing and delivery delays, among other factors, the major market players suffered significant revenue losses during the crisis.
Canada Tire Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players are; Pirelli Tire Inc., Kumho Tire Canada, Hankook Tire Canada Corporation, Continental AG, Goodyear Canada Inc., and Bridgestone Canada.
Canada Tire Market Segmentation:
By Vehicle Type: Based on the Vehicle Type, Canada Tire Market is segmented as; Passenger Car, Light Commercial Vehicle, Medium And Heavy Commercial Vehicles, Off The Road, Two Wheelers.
By Demand Category: Based on the Demand Category, Canada Tire Market is segmented as; OEM, Replacement.
By Type of Tires: Based on the Type of Tires, Canada Tire Market is segmented as; Radial, Bias.
By Sales Channel: Based on the Sales Channel, Canada Tire Market is segmented as; Dealer/Exclusive Outlets, Online, Others.
By Tube Type: Based on the Tube Type, Canada Tire Market is segmented as; Tube, Tubeless.
By Region: This research also includes data for Eastern, Western, Southern, Northern.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.