Report Overview

Peru Tire Market - Industry Trends & Forecast Report, 2029

The Peru tire market size was estimated at USD 1.34 billion in 2022. During the forecast period between 2023 and 2029, the size of Peru tire market is projected to grow at a CAGR of 2.78% reaching a value of USD 1.58 billion by 2029. Major growth drivers for the Peru tire market include an increasing rates of vehicle ownership within the country. This growth is attributable to multiple factors, including a rising middle class with growing disposable incomes, the increasing process of urbanization, which leads to greater mobility needs, and government initiatives aimed at improving infrastructure and transportation systems. As a consequence of the rising number of vehicles on the road, the demand for tires in Peru, especially in the passenger car tire segment, is also growing. The need for reliable and high-quality tires is on the rise, as they become even more crucial. Additionally, commercial vehicle tires are also experiencing increasing demand, particularly to meet the requirements of the transportation and logistics sectors. When it comes to tire imports, China is emerging as the leading supplier to Peru, offering a wide range of tire options at competitive prices. However, there is also increasing local manufacturing of tires, with several Peruvian companies contributing to the market. This combination of global and local players creates a diverse market landscape, providing consumers with a growing variety of choices. Despite healthy competition in the Peruvian tire market, top-tier companies like Bridgestone, Michelin, and Goodyear have a rising presence. These companies have established themselves as trusted brands, known for their quality and reliability. They are continually increasing their investments in research and development to introduce innovative tire technologies that cater to the rising and evolving needs of consumers.

Peru Tire Market – Overview

Peru Tire Market refers to the commercial environment and industry related to the production, import, distribution, and sale of tires in the country of Peru. It encompasses a wide range of tire types, including those for passenger cars, commercial vehicles, and other applications. This market is influenced by various factors, including the growth of the automotive industry, rising rates of vehicle ownership, economic conditions, consumer preferences, government policies, and the presence of both domestic and international tire manufacturers and suppliers. The market involves the supply and demand dynamics of tires, competitive landscape, pricing, quality standards, and technological advancements in tire manufacturing to meet the needs of consumers in Peru.

Peru Tire Market

Growth Drivers

Increasing Demand for Tire from Growing Automotive Fleet

The growing automotive fleet in Peru is a significant and dynamic phenomenon, driven by the nation's consistent economic growth and increasing disposable incomes. As more Peruvians are able to afford vehicles, the roads have seen a surge in the number of cars and motorcycles. This expansion is further fueled by the ongoing process of urbanization, with city dwellers relying increasingly on personal vehicles for their daily transportation needs. The growth of the automotive fleet is not only transforming the landscape of the country but also creating a substantial demand for tires, impacting various aspects of the automotive industry and the overall economy. As the automotive fleet continues to expand, it presents both opportunities and challenges for the transportation sector, infrastructure development, and the tire market in Peru.

Restraints

Economic Instability

One of the primary issues facing the Peru tire market is its vulnerability to volatile economy, which significantly impact consumer behavior within the automotive sector. When the economy experiences downturns, consumers tend to delay or forego buying new tires, preferring to prolong the use of their existing ones. This pattern not only affects tire manufacturers and sellers but also has broader implications for the automotive industry. To address this challenge, businesses must develop strategies to adjust to fluctuating demand and consumer choices during economically uncertain times. Key strategies include pricing adjustments, marketing initiatives, and the provision of cost-effective and long-lasting tire options, all of which are crucial for success under these challenging economic circumstances.

Impact of COVID-19 on Peru Tire Market

COVID-19 pandemic adversely affected the Peru tire market. Initially, the market faced challenges such as disrupted supply chains, reduced consumer spending, and a decline in automotive sales, leading to decreased demand for tires. However, the pandemic also highlighted the importance of efficient transportation and logistics, encouraging increased investments in infrastructure projects. As economic recovery began, the market witnessed a resurgence in demand, especially for replacement tires, as people preferred personal vehicles over public transportation. Overall, the Peru Tire Market adapted to the changing circumstances, showing resilience and an ability to capitalize on emerging opportunities in the wake of the pandemic.

Impact of Prolonging Israel-Hamas War on Peru Tire Market

The raging war between Israel and Hamas, a Palestine-based militant and nationalist organization, sends shockwaves across various industries, particularly oil & gas, transcending geographic boundaries and affecting businesses globally. The conflict between Israel-Hamas has been a longstanding, deeply entrenched geopolitical issue. On October 07, 2023, Hamas, in a surprise and heavy attack, struck Israel with thousands of rockets and infiltrations killing more than 1,100 people. In response, the prime minister of Israel declared war against Hamas and anticipated that the war would be ‘long and difficult.’ The United States has sent its warships and aid to Israel and stated that its citizens were killed in the war. As of October 31, 2023, more than 10,000 people were killed in the intensifying war.

Also, the war in Middle East will affect industries across verticals and regions. Oil & gas is one of the adversely affected industries by the war. The Middle East, including Israel, is a vital hub for oil production and transportation. Any disturbance in the Middle East region instantly raises concerns about oil supply disruptions, leading to increased oil prices worldwide. For example, The World Bank anticipates that the crude oil prices would spike to a range of USD 140–157 a barrel in the long term, if the war continues to escalate and spreads to other regions. This spike in oil and energy costs will have a domino effect on multiple industries. As fossil fuel is one of the main raw materials for the production of tires, companies and end users in the Peru tire market face the brunt of rising fuel prices. Volatile and higher fuel prices could increase the cost of tires, resulting in the declined demand for tires affecting their sales and market growth.

Peru Tire Market

Segmental Coverage

Peru Tire Market – By Vehicle Type

By vehicle type, the Peru Tire Market is divided into Passenger Cars, Light Commercial Vehicles (LCVs), Medium & Heavy Commercial Vehicles (M&HCVs), Two-Wheeler, Three-Wheeler, and Off-The-Road (OTR) Vehicles segments. The passenger cars segment holds the highest share in the Peru Tire Market by vehicle type. Passenger cars, the primary mode of transport, continue to dominate tire demand due to increased private vehicle ownership driven by changing lifestyles and urbanization. Meanwhile, the OTR segment is expected to witness the fastest growth rate during the forecast period. The OTR vehicles are designed to endure rugged terrains and challenging working conditions, particularly vital for the mining and construction sectors. These unique vehicle categories impose specific demands and challenges on the Peruvian tire market. Manufacturers and suppliers must comprehend these requirements to ensure the availability of high-quality tires that meet the performance and durability expectations of various vehicle segments, thus catering effectively to the diverse needs of the automotive industry.

Peru Tire Market – By Demand Category

Based on demand category, the Peru tire market is bifurcated into OEM and Replacement segments. The replacement segment holds a higher share in the Peru Tire Market by demand category. This is primarily because of the increasing number of privately owned vehicles, leading to higher demand for tire replacements due to wear and tear. Notably, there is a growing awareness among consumers about the importance of vehicle performance and safety, driving the demand for new tires to enhance handling and efficiency. Also, the robust logistics and transportation industries in Peru also contribute to the increased need for tire replacements in the commercial vehicle sector, making the replacement category dominant in the Peruvian tire market.

Peru Tire Market – By Type of Tires

Based on type of tires, the Peru tire market is bifurcated into Radial and Bias segments. The radial segment is expected to hold a higher share in the Peru tire market by type of tires. The growing preference for radial tires in the Peruvian market is driven by their enhanced durability, improved heat dissipation, and enhanced tread life when compared to bias tires. Radial tire design offers better fuel efficiency, making it the favored option among consumers. On the other hand, bias tires segment is expected to witness the fastest growth rate during the forecast period, continuing to hold a specialized market, particularly in heavy-duty vehicles and off-road settings where their robustness and resistance to damage are highly valued. This shift in tire construction preferences reflects an increased awareness among Peruvian consumers regarding tire performance and efficiency.

Peru Tire Market – By Sales Channel

Based on sales channel, the Peru tire market is bifurcated into Dealer/Exclusive Outlets and Online segments.

Peru Tire Market – By Tube Type

Based on tube type, the Peru tire market is bifurcated into Tube and Tubeless segments.

Competitive Landscape

Major players operating in the Peru tire market include Bridgestone Corporation, Michelin, Goodyear Tire & Rubber Company, Pirelli, Continental AG, Yokohama Tire Corporation, Toyo Tire Corporation, Sumitomo Rubber Industries, Hankook Tire Co. Ltd., and Maxxis International. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In August 2023 - The Latin American Society for Rubber Technology (SLTC) organized the III Latin American Tire Recycling Conference in Lima, Peru. The event aimed to foster sustainable rubber recycling practices, promote technological innovations, and provide opportunities for networking and knowledge exchange in the rubber industry.

Scope of the Report

By Vehicle Type

• Passenger Cars

• Light Commercial Vehicles (LCVs)

• Medium & Heavy Commercial Vehicles (M&HCVs)

• Off The Road (OTR) Vehicles

• Three-Wheelers

• Two-Wheelers

By Demand Category

• OEM

• Replacement

By Type of Tires

• Radial

• Bias

By Sales Channel

• Dealer/Exclusive Outlets

• Online

By Tube Type

• Tube

• Tubeless

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Peru Tire Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Drivers
         1. Growing automotive fleet
         2. Expanding mining sector
      2. Restraints
         1. High import duties
         2. Economic instability
      3. Opportunities
         1. Growing demand for premium tires
         2. Growing online tire sales
      4. Challenges
         1. Competition from foreign tire manufacturers
         2. Fluctuating raw material prices
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Peru Tire Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Vehicle Type
         1. Passenger Car
         2. Light Commercial Vehicles (LCVs)
         3. Medium & Heavy Commercial Vehicles (M&HCVs)
         4. Off The Road (OTR) Vehicles
         5. Two Wheelers
      2. By Demand Category
         1. OEM
         2. Replacement
      3. By Type of Tires
         1. Radial
         2. Bias
      4. By Sales Channel
         1. Dealer/Exclusive Outlets
         2. Online
         3. Others
      5. By Tube Type
         1. Tube
         2. Tubeless
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Peru Tire Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid–19 on Peru Tire Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Bridgestone Corporation
   2. Michelin
   3. Goodyear Tire & Rubber Company
   4. Pirelli
   5. Continental AG
   6. Yokohama Tire Corporation
   7. Toyo Tire Corporation
   8. Sumitomo Rubber Industries
   9. Hankook Tire Co. Ltd
   10. Maxxis International
   11. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3.  Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.  Breakdown of Primary Research Respondents, By Region
   5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       Peru Tire Segmentation                     

Figure 2       Peru Tire Market Value Chain Analysis                   

Figure 3       Company Market Share Analysis, 2022                  

Figure 4       Peru Tire Market Size, By Value (USD Billion), 2019–2029                   

Figure 5       Peru Tire Market Share, By Vehicle Type, By Value, 2019–2029                    

Figure 6       Peru Tire Market Share, By Demand Category, By Value, 2019–2029                                                

Figure 7       Peru Tire Market Share, By Type of Tires, By Value, 2019–2029

Figure 8       Peru Tire Market Share, By Sales Channel, By Value, 2019–2029

Figure 9       Peru Tire Market Share, By Tube Type, By Value, 2019–2029

List of Tables

Table 1        Peru Tire Market Size, By Value (USD Billion), 2019–2029

Table 2        Peru Tire Market Share, By Vehicle Type, By Value, 2019–2029                    

Table 3        Peru Tire Market Share, By Demand Category, By Value, 2019–2029                                                  

Table 4        Peru Tire Market Share, By Type of Tires, By Value, 2019–2029

Table 5        Peru Tire Market Share, By Sales Channel, By Value, 2019–2029

Table 6        Peru Tire Market Share, By Tube Type, By Value, 2019–2029

Table 7        Bridgestone Corporation Company Overview

Table 8        Bridgestone Corporation Financial Overview

Table 9        Michelin Company Overview

Table 10      Michelin Financial Overview

Table 11      Goodyear Tire & Rubber Company Overview

Table 12      Goodyear Tire & Rubber Company Financial Overview

Table 13      Pirelli Company Overview

Table 14      Pirelli Financial Overview

Table 15      Continental AG Company Overview

Table 16      Continental AG Financial Overview

Table 17      Yokohama Tire Corporation Company Overview

Table 18      Yokohama Tire Corporation Financial Overview

Table 19      Toyo Tire Corporation Company Overview

Table 20      Toyo Tire Corporation Financial Overview

Table 21      Sumitomo Rubber Industries Company Overview

Table 22      Sumitomo Rubber Industries Financial Overview

Table 23      Hankook Tire Co. Ltd Company Overview

Table 24      Hankook Tire Co. Ltd Financial Overview

Table 25      Maxxis International Company Overview

Table 26      Maxxis International Financial Overview

Table 27      Other Prominent Players Company Overview

Table 28      Other Prominent Players Financial Overview