Report Overview

Japan Tire Market- Industry Trends & Forecast Report 2027

Japan tire market was worth USD 10.12 billion in 2020 and is further projected to reach USD 13.61 billion by the year 2027, growing at the CAGR of 3.2% in the forecast period. The growth of the tire market in Japan can be attributed to the flourishing automobile production and the presence of leading OEMs in this country. Furthermore, automobile manufacturers in Japan also invest extensively in expanding production capacity to meet the growing local demand and boost exports, thereby driving the growth of the Japan tire market.

Source: BlueWeave Consulting

Japan Tire Market- Overview

A tire is a rubberized component of a vehicle that protects the rim of the wheel externally. The tire's primary purpose is to protect the wheel’s rim and provide tractive force between vehicle and road surface. Since tires are made of rubber, they also provide a flexible cushion that reduces vibrations and absorbs shock from vehicles. A rubber tire is composed of tread, jointless cap piles, beads, and other materials, such as synthetic rubber, carbon black, and fabric. Japan's tire market is growing due to the launch of new and advanced tires and the exceptional financial performance of the leading tire manufacturers in the country.

Japan Tire Market Forecast and Trends

Growth Drivers

Expanding Automobile Manufacturing Operations

Japan is a world leader in vehicle manufacturing. It is home to leading global automobile brands, such as Toyota, Honda, Daihatsu, Nissan, Suzuki, and Mitsubishi. According to a report, approximately 9.68 million motor vehicles were produced in Japan in 2019. The country is also a leading automotive exporter and can be found on the highways of all major markets. Because tire companies in Japan are investing heavily in expanding their production capacity, the overall market will grow due to the ever-growing tire demand.

The Growing Demand and Penetration of Smart Tires

With the increasing demand for electric and smart tires, tire manufacturers in Japan are innovating their products and adding advanced technologies into tires for transforming them into ‘smart tires’. Smart tires are equipped with sensors that are capable of tracking crucial information from their surroundings, such as road temperature, tire pressure, and vehicle acceleration. The information or data gathered by the sensors is transferred into a device, mainly smartphones, and is further used for predictive maintenance, and preventing accidents in case of wear and tear in tires. Such innovations are anticipated to present growth opportunities to the Japan tire market during the forecast period.

Restraints

Monopoly of Multinational Tire Brands

The Japan tire market is mainly dominated by four companies i.e. Bridgestone Corporation, Sumitomo Rubber Industries, Toyo Tire & Rubber Company, and Yokohama Rubber Company.  The Japan tire market is therefore oligopolistic. Prices are controlled by major players, which directly impacts end users. Furthermore, the market is also not very welcoming towards new entrants, which limits the number of new offerings and choices for consumers. This may be a major limitation for the Japan tire market.

Impact of COVID-19 on Japan Tire Market

The unprecedented COVID-19 outbreak significantly halted the economic growth in Japan and brought recession upon the country. As the government had to impose strict lockdown to control the virus spread, the manufacturing and production of non-essential goods, including automobiles and tires, were immediately restricted impacting the growth of the tire market as well. The demand for tires in Japan incessantly fell as the automobile manufacturing operations were obstructed. Furthermore, the automobile demand from end-users also dropped significantly due to declining disposable income and limited mobility during the COVID-19 period.

Japan Tire Market - By Design

Based on the designs, the Japan tire market is segmented into radial and bias. The radial tire segment holds the largest share in the Japanese tire market. Original equipment manufacturers and replacement companies choose radial tires for their greater efficiency in providing comfort at higher speeds. Additionally, radial tires reduce fuel consumption due to their low rolling resistance and require less maintenance due to their single steel body, which results in cost savings for vehicle owners and longer tire life for the vehicle.

Japan Tire Market - By Vehicle Type

Based on vehicle types, the Japan tire market is categorized into passenger cars, light commercial vehicles, medium and heavy commercial vehicles, two-wheelers, three-wheelers, and off-the-road (OTR). Among these, the passenger cars vehicle segment accounts for the largest market share. According to a report, there are approximately 61.92 million passenger cars in Japan. The growing demand for passenger cars is fueling the growth of this vehicle segment, further influencing the growth of the tire market. On the other hand, the medium and heavy commercial vehicles also cover a substantial share in the market because of the expanding export activities.

Japan Tire Market - By End-User

Based on end-users, the Japan tire market is segmented into OEM (original equipment manufacturer) and replacements. The OEM segment holds the largest market share because of the high concentration of automobile manufacturers in Japan. The expanding manufacturing operations of leading Japanese manufacturers such as Honda, Isuzu, Mazda, Mitsubishi, Nissan, Suzuki, etc., drives the growth of this segment. The replacement segment also covers a substantial share in the market because of the increasing number of private vehicles and growing cab services due to the increasing disposable income of the target demographic.

Competitive Landscape

The leading market players of the Japan tire market are Bridgestone Corporation, Sumitomo Rubber Industries, Toyo Tire & Rubber Company, Yokohama Rubber Company, IRC Tire, Shinko Tire, Falken Tire, Kyoto Japan Tire Group, Mitsubishi Corporation, Kowa Tsusho Co., Ltd., and other prominent players.

The market is dominated by global giants such as Bridgestone, Sumitomo Rubber, Yokohama, etc., to take a major share in the market. The market players focus on offering a wide range of products for all types of vehicles to diversify their end-users. They also invest extensively in R&D activities, launching new products as well as expanding their production capacities to stay ahead in the market. Furthermore, the adoption of competitive strategies, such as partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.

Recent Development

• In April 2021, Bridgestone announced its plans to invest ¥ 10.2 billion (USD 94.2 million) to install state-of-the-art equipment within facilities at its flagship production plant for tires for mining and construction vehicles in Shimonoseki, Japan.

Scope of the Report

By Design

• Radial
• Bias

By Vehicle Type

• Passenger Cars
• Light Commercial Vehicles
• Medium and Heavy Commercial Vehicles
• Two Wheelers
• Three Wheelers
• Off-The-Road (OTR)

By End-User

• OEM
• Replacements

By Distribution Channel

• Online Distributors
• Offline Distributors

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Expanding Automobile Manufacturing Operations
         2. Growing Demand and Penetration of Smart Tires
      2. Market Restraints
         1. Monopoly of Multinational Tire Brands
      3. Market Challenges
         1. Negative Impact of the COVID-19 Pandemic
      4. Market Opportunity
         1. Increasing Demand for Private Vehicles
         2. High Concentration of Global Tire Manufacturers in The Country
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. Japan Tire Market Overview
   1. Market Size & Forecast by Value, 2017-2027
   2. Market Size and Forecast, By Segment
      1. By Design
         1. Radial
         2. Bias
      2. By Vehicle Type
         1. Passenger Cars
         2. Light Commercial Vehicles
         3. Medium and Heavy Commercial Vehicles
         4. Two Wheelers
         5. Three Wheelers
         6. Off-The-Road (OTR)
      3. By End-User
         1. OEM
         2. Replacements
      4. By Distribution Channel
         1. Online Distributors
         2. Offline Distributors
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis (2020)
   3. Competitive Benchmarking by Operating Parameters
7. Impact of COVID-19 on Japan Tire Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Bridgestone Corporation
   2. Sumitomo Rubber Industries
   3. Toyo Tire & Rubber Company
   4. Yokohama Rubber Company
   5. IRC Tire
   6. Shinko Tire
   7. Falken Tire
   8. Kyoto Japan Tire Group
   9. Mitsubishi Corporation
   10. Kowa Tsusho Co., Ltd.
   11. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: Japan Tire Market Segmentation

Figure 2: Japan Tire Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: Japan Tire Market Size, By Value (USD Billion), 2017-2027

Figure 5: Japan Tire Market Share (%), By Design, By Value, 2017-2027

Figure 6: Japan Tire Market Share (%), By Vehicle Type, By Value, 2017-2027

Figure 7: Japan Tire Market Share (%), By End-User, By Value, 2017-2027

Figure 8: Japan Tire Market Share (%), By Distribution Channel, By Value, 2017-2027

List of Tables

Table 1: Japan Tire Market Size, By Design, By Value, (USD Billion), 2017-2027

Table 2: Japan Tire Market Size, By Vehicle Type, By Value, (USD Billion), 2017-2027

Table 3: Japan Tire Market Size, By End-User, By Value, (USD Billion), 2017-2027

Table 4: Japan Tire Market Size, By Distribution Channel, By Value (USD Billion), 2017-2027

Table 5: Bridgestone Corporation Financial Analysis

Table 6: Bridgestone Corporation Business Overview

Table 7: Sumitomo Rubber Industries Financial Analysis

Table 8: Sumitomo Rubber Industries Business Overview

Table 9: Toyo Tire & Rubber Company Financial Analysis

Table 10: Toyo Tire & Rubber Company Business Overview

Table 11: Yokohama Rubber Company Financial Analysis

Table 12: Yokohama Rubber Company Business Overview

Table 13: IRC Tire Financial Analysis

Table 14: IRC Tire Business Overview

Table 15: Shinko Tire Financial Analysis

Table 16: Shinko Tire Business Overview

Table 17: Falken Tire Financial Analysis

Table 18: Falken Tire Business Overview

Table 19: Kyoto Japan Tire Group Financial Analysis

Table 20: Kyoto Japan Tire Group Business Overview

Table 21: Mitsubishi Corporation Financial Analysis

Table 22: Mitsubishi Corporation Business Overview

Table 23: Kowa Tsusho Co., Ltd. Financial Analysis

Table 24: Kowa Tsusho Co., Ltd. Business Overview