Report Overview

Canada Tire Market is flourishing owing to expanding Canadian automotive industry, higher average vehicle life, increased miles traveled each year, and increased concern for maintenance as well as safety along with the technological developments leading to extended tire life.

Canada Tire Market - Industry Trends & Forecast Report 2028

Canada Tire Market was worth USD 5.42 billion in 2021 and is further projected to reach USD 7.68 billion by the year 2028, exhibiting a CAGR of 5.3% during the forecast period (2022-2028). The rapid expansion of the market is predominantly due to the nation's automotive fleet has been expanding quickly over the past few years. Also, it is projected that tire demand would increase from the replacement sector. Moreover, the Canada Tire Market is the second-largest market in North America, even though local tire production has historically been larger in Canada than the overall quantity of vehicle & component imports. Sales of passenger, commercial, and electric vehicles are rising across the nation, among other types of vehicles, which is helping the tire sector as a whole.

Tire - Overview

The rubber-based, circular automotive tire is used to externally cover the rim of the wheel. The tire's primary job is to provide tractive force between the vehicle and the road surface while also protecting the wheel rim. Because it is made of rubber, it also offers a flexible cushion, decreasing the impact of vibrations and absorbing vehicle shock. The components of a rubber tire are tread, jointless cap heaps, beads, and other materials including synthetic rubber, carbon black, and fabric. Due to the rise in demand for vehicle production to meet the spike in demand for automobiles across all segments, the need for tires is increasing exponentially.

Canada Tire Market Forecast and Trends

Growth Drivers

Increasing Vehicle Production in Developing Regions

Automobile demand in the country's developing regions is predicted to climb dramatically in the future years as a result of urbanization and increased industrial activity. Manufacturers are rapidly constructing production units and extending their presence in these nations due to the rising demand for automobiles. Automobile production has increased in developing nations as a result of factors such as favorable government policies, rising GDP, and expanding consumer expenditure. Future vehicle production in emerging countries is predicted to rise significantly, creating an opportunity for the automobile tire industry.

Rising Transportation drives Canada Tire Market

In many emerging industries across the country, such as e-commerce, the food industry, and others, emerging companies and market leaders have increased demand for delivery and transportation solutions, which has, in turn, increased the production of commercial vehicles like trucks, tractors, and trailers. The production of heavy-duty vehicles is increasing, which greatly increases the demand for automobile tires. Furthermore, the region's automobile production has expanded significantly as a result of the growing demand for passenger cars. Customers in developing regions have adopted sedans, SUVs, and large commercial vehicles at a rapid rate, increasing the need for automobile tires in the area. All these factors boost the growth of the Canada Tire Market during the forecast period (2022-2028).

Modernization of Technology

Because of significant technology breakthroughs, most manufacturing organizations are turning to automation to boost productivity and profitability. The automotive tire market is expected to grow as a result of technological advancements in the Canadian tire industry, such as the introduction of rimless tires, green tires, and the use of lightweight elastomers and metals, such as alloys and carbon fiber, or composites, such as manganese bronze and nickel aluminum bronze, in the production of tires. Furthermore, leading tire producers are using nanotechnology and other advances or software to develop a wide range of innovative tire kinds. Ride-sharing and ride-hailing services are growing in popularity, assisting with urban mobility as well as cargo and service transportation. The creation of smart tires that rely on IoT connectivity is where tire makers are focusing their efforts to improve safety, increase fuel efficiency, reduce maintenance costs and labor, and extend tire life. It is anticipated that all of these factors would create a wealth of fresh chances for market expansion.

Growing Popularity of Winter Tires in Canada

Although Canadian winters are typically cold and snowy, the use of winter tires increased during the worst months because they improve traction on snowy and icy surfaces. To improve safety and lower the frequency of accidents on the nation's roads, the Canadian government is encouraging the use of these tires. Moreover, winter tires feature superior cornering grip, braking & traction and deliver more vehicle control since they are made to perform at cold temperatures. Winter tires are so quickly gaining popularity across Canada. Additionally, increasing consumer awareness of the advantages of winter tires, including their ability to easily cut through snow, improved durability & road safety, and higher traction, among others, is another important factor anticipated to propel the market through 2028.

Restraints

Volatile Raw Material Prices

Considering how strongly the automobile and tire industries rely on raw materials like rubber and crude oil, the Canada Tire Market's growth is anticipated to be constrained in the years to come. Another significant factor that could impede market expansion in the next years is price volatility, which is reducing the nation's tire production and, in turn, widening the demand-supply gaps. All these factors restrain the growth of the market.

Impact of COVID-19 on Canada Tire Market

The Covid-19 outbreak slowed down both the Canadian tire market and the automobile sector in 2020. Since sales of both passenger and commercial vehicles, as well as the transportation of items like tires, decreased dramatically, difficulties and problems related to their import were unknown. Due to reduced manufacturing capacity brought on by declining car sales, a lack of raw materials, fluctuating pricing, travel prohibitions, and delays in production and deliveries, among other factors, the major market players experienced significant income losses throughout the crisis. Even though EV sales were also impacted, Canada saw a small increase in EV registrations, which suggested a brief increase in tire demand. However, the government was forced to ease the limitations and permit the restart of business operations because of the diminishing number of Covid-19 cases. It, therefore, created chances for the dominant market participants to resume and boost their production capacities and meet the rising demand for tires across Canada. Additionally, manufacturers have resumed their export and import enterprises and are now recuperating from losses on the financial front.

Canada Tire Market - By Vehicle Type

Based on the vehicle type, the Canada Tire Market is segmented into Passenger cars, Light Commercial vehicles, Medium and Heavy Commercial Vehicles, Off the Road (OTR), Two Wheelers. Among these, Passenger Car accounts for the largest share in the Canada Tire Market. This is because passenger automobile sales and production are increasing continuously in Canada. Another factor that will help passenger cars continue their dominance is due to the increased demand for fuel-efficient vehicles. All these factors propel the growth of the Canada Tire Market during a forecast period (2022-2028).

Canada Tire Market – By Demand Category

Based on the demand category, the Canada Tire Market is segmented into OEM and Replacement. The OEM (Original Equipment Manufacturer) segment now has the biggest market share and is likely to continue to do so during the forecast period (2022-2028). OEMs are currently investing in research and development to provide lightweight and eco-friendly tires that meet government standards. Furthermore, OEM tires are always of the highest quality and are also suitable for all-purpose use. It's designed to be quiet, effective on the road, and long-lasting, and it performs admirably outside of the showroom. This influences the OEM segment to dominate the market share in the upcoming years.

Canada Tire Market - By Sales Channel

Based on sales channels, the Canada Tire Pad Market is segmented into Dealer/Exclusive Outlets, Online, and Others. Among these, the online segment holds the largest market share. This is due to the trend of growing sales through e-commerce platforms like Amazon, eBay, and others that serve as sales channels to fuel the expansion of the Canada Tire Market. Furthermore, tire manufacturers are creating their web portals to sell tires online. All these factors propel the growth of the Canada Tire Market during a forecast period (2022-2028).

Canada Tire Market - By Tube Type

Based on tube type, the Canada Tire Pad Market is segmented into Tube and Tubeless. Among these, the tubeless segment holds the largest market share. A tubeless tire needs less maintenance, is less likely to puncture, and causes less trouble even if one does occur because the car won't stop right away. It also provides greater fuel savings. Also, tubeless road bike tires provide better puncture prevention, are lighter, and have lower rolling resistance, all of which contribute to a more comfortable and controlled ride.

Competitive Landscape

The leading market players in the Canada Tire Market are Goodyear Canada Inc, Bridgestone Canada, Hankook Tire Canada Corporation, Continental AG, Pirelli Tire Inc, Kumho Tire Canada, and other prominent players.

The Canada Tire Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.

Recent Development

• In November 2021, leading players Bridgestone & Micheline projected a joint perspective on increasing the utilization of recovered carbon black in tire manufacturing while reducing the reliance of the tire industry on petrochemicals.

Scope of the Report

By Vehicle Type

• Passenger Car
• Light Commercial Vehicle
• Medium And Heavy Commercial Vehicles
• Off The Road (OTR)
• Two Wheelers

By Demand Category

• OEM
• Replacement

By Type of Tires

• Radial
• Bias

By Sales Channel

• Dealer/Exclusive Outlets
• Online
• Others

By Tube Type

• Tube
• Tubeless