Peru Tire Market Size Set to Grow at Steady CAGR of 2.78% Touching USD 1.58 Billion by 2029

Published | 23 November 2023

  Peru tire market is flourishing because of the growing automotive fleet and expanding mining sector across the country.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the Peru tire market size at USD 1.34 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the Peru tire market size to grow at a significant CAGR of 2.78% reaching a value of USD 1.58 billion by 2029. Major growth drivers for the Peru tire market include an increasing rates of vehicle ownership. This expansion can be attributed to several factors, including the rising middle class with greater disposable incomes, urbanization, and government initiatives to enhance infrastructure and transportation systems. The growing number of vehicles on the road has elevated the demand for tires, especially in the passenger car segment. Also, commercial vehicle tires are in high demand to meet the needs of the transportation and logistics sectors. China is a major tire supplier to Peru, offering diverse options at competitive prices, although local tire manufacturing is also on the rise. This blend of global and local players provides consumers with a wide array of choices. Notably, top-tier companies like Bridgestone, Michelin, and Goodyear have established themselves as trusted brands, continuously investing in research and development to introduce innovative tire technologies that meet evolving consumer needs. However, high import duties and economic instability are anticipated to restrain the overall market growth during the period in analysis.

Peru Tire Market – Overview

Peru tire market refers to the commercial environment and industry related to the production, import, distribution, and sale of tires in the country of Peru. It encompasses a wide range of tire types, including those for passenger cars, commercial vehicles, and other applications. This market is influenced by various factors, including the growth of the automotive industry, rising rates of vehicle ownership, economic conditions, consumer preferences, government policies, and the presence of both domestic and international tire manufacturers and suppliers. The market involves the supply and demand dynamics of tires, competitive landscape, pricing, quality standards, and technological advancements in tire manufacturing to meet the needs of consumers in Peru.

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Impact of COVID-19 on Peru Tire Market

COVID-19 pandemic adversely affected the Peru tire market. Initially, the market faced challenges such as disrupted supply chains, reduced consumer spending, and a decline in automotive sales, leading to decreased demand for tires. However, the pandemic also highlighted the importance of efficient transportation and logistics, encouraging increased investments in infrastructure projects. As economic recovery began, the market witnessed a resurgence in demand, especially for replacement tires, as people preferred personal vehicles over public transportation. Overall, the Peru tire market adapted to the changing circumstances, showing resilience and an ability to capitalize on emerging opportunities in the wake of the pandemic.  

Impact of Prolonging Israel-Hamas War on Peru Tire Market

The raging war between Israel and Hamas, a Palestine-based militant and nationalist organization, sends shockwaves across various industries, particularly oil & gas, transcending geographic boundaries and affecting businesses globally. The conflict between Israel-Hamas has been a longstanding, deeply entrenched geopolitical issue. On October 07, 2023, Hamas, in a surprise and heavy attack, struck Israel with thousands of rockets and infiltrations killing more than 1,100 people. In response, the prime minister of Israel declared war against Hamas and anticipated that the war would be ‘long and difficult.’ The United States has sent its warships and aid to Israel and stated that its citizens were killed in the war. At the end of October 2023, it was estimated that more than 10,000 people had been killed in the war.

Also, the war in Middle East will affect industries across verticals and regions. Oil & gas is one of the adversely affected industries by the war. The Middle East, including Israel, is a vital hub for oil production and transportation. Any disturbance in the Middle East region instantly raises concerns about oil supply disruptions, leading to increased oil prices worldwide. For example, The World Bank anticipates that the crude oil prices would spike to a range of USD 140–157 a barrel in the long term, if the war continues to escalate and spreads to other regions. This spike in oil and energy costs will have a domino effect on multiple industries. As fossil fuel is one of the main raw materials for the production of tires, companies and end users in the Peru tire market face the brunt of rising fuel prices. Volatile and higher fuel prices could increase the cost of tires, resulting in the declined demand for tires affecting their sales and market growth.

Peru Tire Market – By Type of Tires

Based on type of tires, the Peru tire market is bifurcated into Radial and Bias segments. The radial segment holds a higher share in the Peru tire market by type of tires. The growing preference for radial tires in the Peruvian market is driven by their enhanced durability, improved heat dissipation, and enhanced tread life when compared to bias tires. Radial tire design offers better fuel efficiency, making it the favored option among consumers. On the other hand, bias tires segment is expected to witness the fastest growth rate during the forecast period, continuing to hold a specialized market, particularly in heavy-duty vehicles and off-road settings where their robustness and resistance to damage are highly valued. This shift in tire construction preferences reflects an increased awareness among Peruvian consumers regarding tire performance and efficiency.

Competitive Landscape

Major players operating in the Peru tire market include Bridgestone Corporation, Michelin, Goodyear Tire & Rubber Company, Pirelli, Continental AG, Yokohama Tire Corporation, Toyo Tire Corporation, Sumitomo Rubber Industries, Hankook Tire Co. Ltd., and Maxxis International. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Don’t miss the business opportunity in the Peru Tire Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Peru Tire Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Peru Tire Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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