Report Overview

Spurring demand for tires in the replacement market, growing disposable income among people, expanding nationwide infrastructure, and foreign direct investments for infrastructure projects could boost the growth of Latvia Tire Market during the forecast period between 2023 and 2029.

Latvia Tire Market - Trends & Forecast Report, 2029

Latvia tire market size was estimated at USD 69.02 million in 2022. During the forecast period between 2023 and 2029, Latvia tire market size is expected to grow at a significant CAGR of 6.59% reaching a value of USD 106.75 million by 2029. Major factors driving the growth of the Latvia tire market include the country's rising vehicle sales volume and its swift fleet size expansion. Due to a lack of domestic tire production, Latvia imports tires from several countries to satisfy its demand for tires. The country's tire market is also expected to expand rapidly due to rising per capita income and increasing international investments.

Latvia Tire Market - Overview

Tire is used in passenger cars, two-wheelers, three-wheelers, off-the-road (OTR), and light, medium, and heavy commercial vehicles. This is because it is widely available and has a low rolling resistance. 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

Focus on Safety and Fuel Efficiency

In response to rising safety concerns, Latvia has implemented stringent tire performance restrictions, including 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 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, strong demand is expected for these tires in the coming years.

Restraints

High Volatility in Raw Material Prices

Latvia tire market growth is anticipated to be limited by fluctuating raw material prices, higher input costs caused by a scarcity of natural rubber, and oil prices. Almost all raw materials are crude derivatives, making them price sensitive to crude oil. Raw materials used in tire production account for the majority of the cost, with synthetic and natural rubber serving as the primary raw materials. Crude oil prices have recently risen sharply across the nation. As a result, the cost of synthetic rubber and other crude derivatives used in tire manufacturing is expected to rise in the coming years.

Impact of COVID-19 on Latvia Tire Market

COVID-19 pandemic adversely affected the tire industry across the countries. Several manufacturing facilities briefly stopped operating and social isolation and lockout led to a downscaling of production, which momentarily halted overall output. Due to a manpower shortage and a disruption in the supply of raw materials, operational capacity was also reduced. Also, the closure of warehouses and construction projects brought on by the slowdown in the economy and supply-side problems reduced the demand for tires from several end-user industries, including construction, industrial, agriculture, and mining. Also, the pandemic endangered logistics and transportation operations, and limitations on on-road travel had an immediate influence on tire supply, which restrained the market's expansion.

Latvia Tire Market

Segmental Coverage

Latvia Tire Market - By Vehicle Type

On basis of the vehicle type, Latvia 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. Due to Latvia's growing passenger car fleet size and increasing imports, the passenger car segment is expected to dominate the country's tire market during the forecast period. By 2025, the sector is expected to have more than 89% of the market. It is ascribed to the rapidly expanding national fleet of automobiles, which is being fueled by the rising trend in individual ownership of passenger cars. This factor is likely to boost tire demand and aid in the growth of the passenger car tire market.

Latvia Tire Market - By Tire Type

On basis of tire type, Latvia tire market is divided into Radial and Bias segments. In terms of income, a sizeable share of the Latvian tire market was made up of the radial section, which also includes the tubeless tire market segment. Tubeless tires are generally found on bikes because of their low rolling resistance and modest rate of deflation. Because tube tires consume more fuel than tubeless tires do, the need for tubeless tires is expected to rise throughout Latvia.

Latvia Tire Market – By Demand Category

On basis of demand category, Latvia tire market is split into OEM and Replacement segments. As there are no tire manufacturing facilities in Latvia, it is expected that demand for replacement tires will increase quickly and take the largest share of the market through 2029. Another clear indicator of the rising demand for replacement tires across the nation is the simple accessibility of numerous brands with a range of price points. Rising consumer awareness of the advantages and significance of timely tire repairs and replacements is spurring replacement tire sales and boosting the market's overall growth.

Competitive Landscape

Major players in Latvia 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