Report Overview

Increasing consumers' disposable income levels, enabling them to purchase expensive vehicles, improvement of road infrastructure, and expanding Denmark's tourism business could boost the growth of Denmark Tire Market during the forecast period between 2023 and 2029.

Denmark Tire Market - Industry Trends & Forecast Report, 2029

Denmark tire market size was estimated at USD 542.59 million in 2022. During the forecast period between 2023 and 2029, Denmark tire market size is expected to grow at a CAGR of 4.89% reaching a value of USD 752.18 million by 2029. The market expansion is primarily attributed to the rising demand for tires owing to increased logistics and transportation activities to deliver packages on time. Also, various benefits provided by tires, such as improved stopping power, overall safety, and better handling, are contributing to the market's growth. Aside from that, the widespread availability of tires via offline and online distribution channels is bolstering market growth. Key players are introducing airless or non-pneumatic tires that can carry heavy loads while maintaining a smooth ride with minimal turf tear, boosting market growth.

Denmark Tire Market- Overview

The term "tire" describes a rim-shaped, round, air-filled component of a vehicle. It is produced using a variety of synthetic and natural materials, including steel, rubber, wire, cotton, glass, silica, and wire reinforced with carbon black. It has a bead, bead filler, belts, body ply, inner liner, sidewall, and tread and is widely accessible in tubed and tubeless tires. It helps to deal with forces that are acting on the vehicle while it is moving, supports the load of the vehicle, and provides shock-absorbent cushions. It helps to improve a vehicle's performance, mileage, and passenger safety. Also, it offers grip, enhances vehicle handling on steep roads, and makes stopping easier.

Growth Drivers

Increasing Focus on Safety and Fuel Efficiency

In response to rising safety concerns, the government has implemented stringent tire performance restrictions, such as fuel savings and braking distance reductions related to wet grip. There is therefore a lot of opportunity for tire manufacturing companies to create tires that can meet criteria. Increased technological advancements have led to suppliers creating incredibly efficient tires that raise the overall fuel efficiency of autos. Tire manufacturers utilize self-inflating and low rolling resistance (LRR) technologies to improve safety and boost fuel economy. Pneumatic tires are becoming more and more popular for improving fuel efficiency. These tires are primarily concerned with safety and fuel efficiency, and in the next years, strong demand is expected for these tires.

Restraints

High Volatility in Raw Material Prices

Automotive tires are made using synthetic and natural rubber, sulfur, carbon black, and other substances. These raw elements must be present in significant amounts for the manufacture of tires for vehicles. Yet, the costs of these raw materials frequently change as a result of numerous variables. The accessibility of materials like natural rubbers is one of these elements. Also, the government forbids overly chopping down rubber trees throughout the region. Variations in the price of raw materials impede the expansion of the Denmark tire market.

Impact of COVID-19 on Denmark Tire Market

Unexpected COVID-19 outbreak hampered Denmark's tire market growth. The government's nationwide quarantine imposed to halt the virus's spread hampered the availability and production of raw materials required to make tires. Also, because of the epidemic, many people were forced to work from home and stay at home, reducing the demand for individual movement. The country's economic turmoil also affected consumer purchasing power. These factors combined to cause a significant drop in Denmark demand for automobile tires, affecting the overall expansion of the market.

Denmark Tire Market

Segmental Coverage

Denmark Tire Market - By Tire Type

On basis of tire type, Denmark tire market is divided into Radial Tires and Bias Tires segments. The radial tires segment made up a majority of the market because they offer the rider greater comfort by absorbing shocks, impacts, and bumps. Also, the higher fuel efficiency of radial tires has a significant impact on consumer demand. Also, because radial tires are heat, wear, and cut resistant, there is an increase in demand for them.

Denmark Tire Market - By Rim Size

On basis of the rim size, Denmark tire market is divided into Below 15 inches, 15–20 inches, and Above 20 inches segments. The under 15 inches segment holds the highest market share. It is also expected to grow at a significant CAGR during the period in analysis. The tire is offered in a variety of sizes on the Denmark tire market. There are numerous tire sizes available for different vehicle types and layouts. Tire demand has surged as a result of rising fuel prices, growing concerns about pollution and climate change, and a shift in consumer preference toward electric vehicles.

Denmark Tire Market – By End Use

On basis of the end use, Denmark tire market is divided into On-road tires, Off-road Tires, Agricultural Tires, and other segments (including Industrial Tires and Aviation Tires). The market for off-road tires is expanding as mechanization spreads to sectors including construction, mining, and agriculture. These tires are suitable for severe weather conditions and uneven roads because they contain thick threads that provide traction on a range of surfaces, such as loose gravel, mud, and dirt. Besides penetrating sand and dirt surfaces, their deeper and wider grooves heighten rolling turbulence and stability.

Competitive Landscape

Major players in Denmark tire market include Bridgestone Europe NV/SA, Continental AG, Michelin Group, Goodyear Dunlop Tires Europe B.V., Pirelli & C. S.p.A., Hankook Tire Co. Ltd., Nokian Tires plc, Cooper Tire & Rubber Company, Yokohama Rubber Co. Ltd., Toyo Tire Corporation, Kumho Tire Co. Ltd., and Apollo Tires Ltd. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In 2021 - Goodyear introduced a new ElectricDrive all-season tire along with two new sizes of the ultra-high-performance (UHP) ElectricDrive GT tire. The product primarily targets crossover utility vehicles & commuter touring sedans, fundamentally equipped with a load index exhibiting higher potential in enduring the heavier weight associated with EVs. Also, the tire demonstrates excellent handling capabilities in different weather scenarios owing to its asymmetric tread pattern. In 2022, the brand announced its plans to further expand its product portfolio with the initial release of the Goodyear ElectricDrive GT, available in size 255/45R19 104W XL.

Scope of the Report

By Tire Type

• Radial Tires

• Bias Tires

By Rim Size

• Below 15 inches

• 15–20 inches

• Above 20 inches

By Application

• On-road Tires

• Off-road Tires

• Agricultural Tires

• Others (including Industrial Tires and Aviation Tires)