Report Overview

Increasing production and sales of vehicles, intensifying competition in the tire industry, adoption of technology advancements, and the growing popularity of electric vehicles are expected to boost the growth of Hungary Tire Market during the forecast period between 2023 and 2029.

Hungary Tire Market - Trends & Forecast Report, 2029

Hungary tire market size was estimated at USD 625.48 million in 2022. During the forecast period between 2023 and 2029, Hungary tire market size is expected to grow at a significant CAGR of 5.09% reaching a value of USD 881.86 million by 2029. Major factors driving the growth of the Hungary tire market include the country's growing auto industry and rising production of both medium and heavy commercial vehicles, as well as passenger automobiles, there is an increased demand for tires in Hungary from both the OEM and replacement segments. In the coming years, it is also projected that increased disposable income among the populace, improved economic conditions, and quick infrastructure development will support market expansion in Hungary.

Hungary Tire Market - Overview

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.

Growth Drivers

Rising Disposable Income Driving Automobile Sales

In the coming years, it is projected that increased disposable income among the populace, improved economic conditions, and quick infrastructure development will support the tire market expansion in Hungary. The demand for commercial vehicles and associated tires has increased in Hungary as a result of various commercial initiatives and advancements that the government has launched. Also, shifting consumer preferences and the development of electric vehicles (EVs) are expected to accelerate the expansion of the Hungry tire market in the coming years.

Restraints

Fluctuations in Raw Material Prices

Price volatility of raw materials, growing input costs spurred on by a shortage of natural rubber, and rising oil prices are all factors limiting the Hungarian tire sector. As practically all raw materials are made from crude, crude oil affects their prices. The primary raw materials used in the production of tires are synthetic and natural rubber, which account for the majority of the cost. Crude oil prices have recently considerably climbed across the nation. Therefore, it is projected that the cost of synthetic rubber and other raw materials required to make tires would rise.

Impact of COVID-19 on Hungary Tire Market

Covid-19 pandemic, which also affected Hungary tire market, hampered the growth of various industries. To prevent the spread of the pandemic, the government imposed severe mobility restrictions, lockdowns, and cross-border trade restrictions, presenting the market with previously unheard-of challenges. Because imports are the primary source of tires in Hungary, trade restrictions have a significant impact on tire availability throughout the country.

Hungary Tire Market

Segmental Coverage

Hungary Tire Market - By Vehicle Type

On basis of the vehicle type, Hungary tire market is divided into Passenger Car, Two-Wheeler, Medium & Heavy Commercial Vehicle, Light Commercial Vehicle, Off-The-Road Vehicle (OTR), and Three-Wheeler segments. The Hungary tire market has been dominated by passenger cars, and this trend is expected to last for the foreseeable future. The growing fleet of passenger automobiles is mostly attributable to the rising demand for private vehicle ownership. To meet the rising consumer demand for passenger automobiles, automakers are expanding their production and import capacities. Tire manufacturing, distribution, accessibility, and cost are all benefiting from increased demand across Hungary. Also, as a result of the nation's substantial share of the population being cost-conscious, used passenger car sales are gaining pace nationwide and pushing the tire industry.

Hungary Tire Market - By Tire Type

On basis of tire type, Hungary tire market is split into Radial and Bias segments. In terms of income, a sizeable share of the Hungarian tire market was made up of the radial section, which also includes the tubeless tire market segment. Due to their low rolling resistance and slow rate of deflation, tubeless tires are typically found on bicycles. As tube tires use more fuel than tubeless tires, the demand for tubeless tires is anticipated to rise throughout Hungary.

Hungary Tire Market – By Demand Category

On basis of the demand category, Hungary tire market is bifurcated into OEM and Replacement segments. The replacement demand for tires in Hungary is expected to grow at a faster CAGR during the forecast period. It primarily reflects the country's over-reliance on tire imports as a result of a lack of automobile and tire manufacturing facilities, demonstrating the lack of OEMs (Original Equipment Manufacturers). However, benefits such as the ease of finding a wide variety of tires for all vehicle types at various price points are likely to encourage the replacement market's growth. Furthermore, increasing consumer awareness of the importance of proper tire replacement and maintenance is expected to drive replacement demand throughout the forecast period.

Competitive Landscape

Major players in the Hungary tire market are Bridgestone, Michelin, Goodyear, Continental, Pirelli, Continental, Dunlop, Yokohama, BF Goodrich, Cooper Tire, and Firestone. 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 Vehicle Type

• • Passenger Car

  • Two-Wheeler

  • Medium & Heavy Commercial Vehicle

  • Light Commercial Vehicle

  • Off-The-Road Vehicle (OTR)

  • Three-Wheeler

By Tire Type

• • Radial

  • Bias

By Demand Category

• OEM

• Replacement