Report Overview

Economic growth, vehicle sales, consumer preferences for all-season and winter tires due to varying weather conditions, government regulations promoting fuel efficiency and safety, and increasing environmental awareness driving demand for eco-friendly tire options contribute to the growth of the Netherlands Tire Market during the forecast period between 2023 and 2029.

The Netherlands Tire Market - Industry Trends & Forecast Report, 2029

The Netherlands tire market size was estimated at USD 2,628.25 million in 2022. During the forecast period between 2023 and 2029, the size of Netherlands tire market is projected to grow at a CAGR of 8.49% reaching a value of USD 4,286.25 million by 2029. The Netherlands tire market is influenced by several driving factors. Firstly, the country's high vehicle ownership rate and a strong emphasis on road safety ensure consistent demand for tires. Environmental consciousness is also a significant driver, with a growing preference for eco-friendly and fuel-efficient tires. Also, the Dutch government's strict regulations on winter tires further boost market growth during the colder months. Further, innovations in tire technology, such as run-flat and self-sealing tires, play a role in shaping consumer preferences. Lastly, the Netherlands' strategic location as a transportation hub in Europe contributes to a steady demand for commercial vehicle tires.

The Netherlands Tire Market - Overview

Tires are essential components of vehicles, serving as the point of contact between the vehicle and the road. Typically made of rubber, they provide traction, cushioning, and support, enabling safe and efficient transportation. Tires come in various sizes and types to suit different vehicles and purposes, from passenger cars to trucks and bicycles. They consist of a tread pattern for grip, sidewalls for structural support, and an inner layer filled with compressed air or other materials. Regular maintenance, such as proper inflation and tread inspection, is crucial for safety and optimal performance.

Growth Drivers

Sustainable Mobility Initiatives

The Netherlands tire market is experiencing a significant growth driver in the form of sustainable mobility initiatives. With an increasing focus on environmental sustainability and reduced carbon emissions, the demand for eco-friendly tires is on the rise. Government regulations promoting green transportation, coupled with consumer preferences for fuel-efficient and low-rolling-resistance tires, are propelling the market forward. Also, the growing popularity of electric vehicles (EVs) and hybrid cars is driving demand for specialized tires, further boosting the market's expansion. As the Netherlands embraces a greener future, the tire market is poised to benefit from the shift towards eco-conscious mobility solutions.

Restraints

Regulatory Hurdles May Impede Market Growth

One significant restraint facing the Netherlands tire market is the stringent environmental regulations governing tire disposal and recycling. The Dutch government has imposed strict laws to reduce tire waste and promote sustainable tire disposal practices, including a mandatory recycling fee. This poses a challenge for tire manufacturers and distributors as compliance with these regulations increases operational costs. Also, the need for eco-friendly tire designs and materials adds to research and development expenses. These regulatory hurdles not only affect profitability but also demand innovative solutions for environmentally friendly tire production, making it a substantial restraint in this market.

Impact of COVID-19 on the Netherlands Tire Market

The COVID-19 pandemic significantly impacted the Netherlands tire market. Lockdowns and travel restrictions led to reduced vehicle usage, resulting in a decreased demand for tires. Manufacturing and supply chain disruptions also affected tire availability, leading to delays and increased prices. Moreover, economic uncertainty prompted consumers to postpone tire replacement, affecting aftermarket sales. However, as restrictions eased and the economy recovered, there was a gradual resurgence in the market as vehicle usage rebounded, but the industry faced challenges in managing supply chain disruptions and meeting fluctuating demand. The pandemic underscored the market's vulnerability to global crises and emphasized the need for resilience in the market.

The Netherlands Tire Market

Segmental Coverage

The Netherlands Tire Market - By Vehicle Type

By vehicle type, Netherlands tire market is divided into Passenger Cars, Light Commercial Vehicles (LCVs), Medium & Heavy Commercial Vehicles (M&HCVs), Off The Road (OTR) Vehicles, Two-wheelers, and Three-wheelers segments. The passenger cars segment dominates the market, which reflects the country's high demand for tires in the automotive sector. Following closely is the LCVs segment, indicative of the growing commercial transport industry. Also, the M&HCVs segment represents a significant share of Netherlands's logistics and transportation needs. The OTR vehicles segment caters to specialized vehicles, while two-wheelers and three-wheelers segments are essential for personal and commercial mobility. These segments collectively highlight the diverse and expanding tire market in the Netherlands, shaped by its evolving transportation landscape.

The Netherlands Tire Market - By Origin

Based on origin, the Netherlands tire market is divided into Local Manufacturing, and Imports segments. This segmentation highlights the key factors influencing the market's dynamics. Local manufacturing signifies the production of tires within the Netherlands, while the imports segment encompasses tires brought in from other countries. This division underscores the market's reliance on both domestic production capabilities and international trade relationships, ultimately shaping its supply chain, pricing, and overall competitiveness. Understanding the balance between these segments is crucial for stakeholders in the Dutch tire market to make informed decisions and adapt to changing market conditions effectively.

The Netherlands Tire Market - By Type of Tire

Based on type of tire, the Netherlands tire market is divided into Radial and Bias segments. Radial tires are noted for their exceptional performance due to their distinctive architecture, which features layers flowing radially from the center, giving greater stability and fuel efficiency. The diagonal layer construction of bias tires, on the other hand, offers strength and load-bearing capacity, making them ideal for heavy-duty applications. Consumers must understand the differences between these segments because they have an impact on tire performance, compatibility for different vehicle types, and choice in the Netherlands' diverse automotive market. Consumers can choose wisely when buying tires by being aware of these segments.

The Netherlands Tire Market – By Sales Channel

On basis of the sales channel, the Netherlands tire market is divided into Dealer/Exclusive Outlets and Online segments. The dealer/exclusive outlets section encompasses a sizable network of tire dealerships and authorized merchants around the nation, representing the classic brick-and-mortar retail landscape. Consumers looking for immediate accessibility, individualized attention, and in-person help continue to frequently choose this sector. In contrast, the Online category has been expanding consistently, which reflects the rising acceptance of e-commerce. With options for delivery and affordable prices, it gives customers the ease of researching and buying tires online.

The Netherlands Tire Market – By Demand Category

Based on demand category, the Netherlands tire market is divided into OEM and Replacement segments. The two primary channels for tire distribution and use in the nation are represented by these segments. The OEM segment entails the direct delivery of tires to automakers for first installation on brand-new automobiles. The aftermarket, in contrast, is where people and corporations buy tires to replace ones that have worn out or been damaged on current vehicles. This segmentation is essential for tire retailers and manufacturers to properly focus their goods and marketing initiatives within the Dutch market, meeting the needs of both the automobile industry and consumer demand for replacement tires.

Competitive Landscape

Netherlands tire market is fiercely competitive, with Apollo, Vredestein, Bridgestone Europe N.V./SA, Cooper Tire & Rubber, Goodyear Dunlop Tires Europe BV, Deldo Autobanden, Falken Tyre Europe, Michilin, BRISA Bridgestone Sabanci Tire Manufacturing and Trading, Sumitomo Rubber Industries, Toyo Tire & Rubber. 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 August 2022 - Bridgestone and AWS Announce Strategic Relationship Focused on Platform Development and Launching New Customer Solutions.

Scope of the Report

By Type of Vehicle

• • Passenger Cars

  • Light Commercial Vehicles (LCVs)

  • Medium and Heavy Commercial Vehicles (M&HCVs)

  • Off the Road (OTR) Vehicles

  • Two Wheelers

  • Three Wheelers

By Type of Tire

• • Radial

  • Bias

By Origin

• • Local Manufacturing

  • Imports

By Sales Channel

• • Dealer/Distributor

  • Online

  • Others

By Demand Category

• • OEM

  • Replacement