Report Overview

Philippines Tire Market – Industry Trends & Forecast Report, 2029

Philippines tire market size is projected to grow at a CAGR of 3.25% during the forecast period between 2023 and 2029. Major factor driving the growth of Philippines tire market is a growing demand for radial tires due to their superior performance, fuel efficiency, and extended tread life. Also, there has been an increased emphasis on eco-friendly tires, driven by environmental concerns and government regulations. Further, the market has seen a rise in the popularity of all-terrain and SUV tires, reflecting the country's expanding automotive sector and the preference for vehicles suitable for various road conditions. The online retail sector has gained momentum, enabling consumers to conveniently purchase tires online. Manufacturers have been focusing on enhancing tire durability and safety features to cater to the evolving needs of Filipino consumers.

Philippines Tire Market - Overview

Tires are essential components of vehicles, serving as the only point of contact between the vehicle and the road surface. They are round, rubber structures designed to provide grip, traction, and stability. Tires are composed of various layers, including the tread, which comes into direct contact with the road, and the sidewall, which provides structural support. The tread pattern plays a crucial role in channeling water, improving traction, and reducing road noise. Tires are engineered to meet specific performance requirements, such as handling, fuel efficiency, and durability. Regular maintenance, including proper inflation and tread depth monitoring, is essential for optimal tire performance and safety.

Growth Drivers

Rapid Urbanization Fuels Growth of Philippines Tire Market

In a country experiencing rapid urbanization, the Philippines tire market is poised for significant growth. As cities expand and infrastructure developments gain momentum, the demand for vehicles, both personal and commercial, is soaring. This surge in automotive sales, coupled with an increasing number of road networks and transportation projects, is driving the need for quality tires. Also, the government's focus on improving public transportation systems and encouraging private vehicle ownership further fuels market growth. With an expanding middle class and rising disposable incomes, consumers are seeking better performance and safety features in their vehicles, leading to heightened demand for premium tires. This confluence of factors presents a promising future for the Philippines tire market.

Restraints

Inadequate Development of Infrastructure

In the Philippines, the tire market faces a significant restraint in the form of inadequate infrastructure development. Despite the country's growing automotive industry, the lack of well-maintained roads and transportation networks negatively impacts the demand for tires. The absence of proper infrastructure hinders efficient distribution and increases the cost of tire delivery, leading to inflated prices for consumers. Also, the substandard road conditions result in higher wear and tear of tires, necessitating frequent replacements. This scenario discourages potential investments and limits the overall growth potential of the Philippines tire market, posing a formidable challenge to industry players and economic development in the country.

Impact of COVID-19 on Philippines Tire Market

The COVID-19 pandemic adversely affected the Philippines tire market. With the implementation of strict lockdown measures and travel restrictions, the demand for tires declined. Reduced mobility and limited economic activities have led to a decrease in vehicle usage, affecting the replacement and sales of tires. Further, disruptions in the global supply chain caused delays in tire imports, resulting in limited availability and increased prices. The tire manufacturing industry also faced challenges due to workforce shortages and operational restrictions. As the country gradually recovers and restrictions ease, the tire market is expected to gradually rebound, albeit with ongoing uncertainties and changes in consumer behavior.

Philippines Tire Market

Segmental Coverage

Philippines Tire Market – By Product

On the basis of product, Philippines tire market is split into Radial and Bias segments. Among these segments, the radial segment holds a significant share of the market. Radial tires are constructed with radial ply cords that run perpendicular to the tire's circumference, offering improved traction, fuel efficiency, and a smoother ride. These tires are known for their durability, stability, and better handling capabilities, making them highly sought after by consumers in the Philippines. The bias segment, on the other hand, uses diagonal ply cords, and while it still has its place in the market, it typically holds a small share compared to the Radial segment.

Philippines Tire Market – By Vehicle Type

Based on vehicle type, Philippines tire market is divided into Passenger Cars, Light Commercial Vehicles (LCVs), Heavy Commercial Vehicles (HCVs), and Two Wheelers segments. The passenger cars segment is the largest vehicle type in the Philipines tire market. These divisions in the vehicle type reflect the diverse range of vehicles present in the country and highlight the demand for tires across various transportation categories. Passenger cars, as the largest vehicle type segment, demonstrate the prominence of private vehicles in the Philippines, emphasizing the need for tires tailored to their specific requirements. The tire market's division into these segments enables manufacturers and suppliers to cater to the unique needs of each vehicle category, ensuring optimal performance and safety on the road.

Philippines Tire Market – By Demand Category

On the basis of demand category, Philippines tire market is divided into OEM and Replacement segments. The replacement segment is a larger demand category segment. The replacement segment refers to tires that are purchased by consumers as replacements for their existing worn-out or damaged tires. This segment caters to a wide range of customers, including individual vehicle owners, commercial fleet operators, and automobile repair shops. The demand for replacement tires is consistently high, due to regular wear and tear, punctures, and the need for upgrades. Therefore, the replacement segment holds a significant share of the Philippines tire market.

Philippines Tire Market – By Sales Channel

Based on sales channel, Philippines tire market is split into Online and Offline segments. With the rapid growth of e-commerce and digital platforms, the online segment has experienced significant expansion in recent years. Online tire retailers offer convenience, wider product selection, and competitive pricing, attracting a substantial consumer base. On the other hand, the offline segment comprises traditional brick-and-mortar stores, including specialized tire shops, auto parts retailers, and authorized dealerships. While offline channels continue to dominate the market, the online segment's growth potential is undeniable, as more consumers embrace the convenience of purchasing tires from the comfort of their homes, triggering a shift in consumer behavior and shaping the future of the tire industry in the Philippines.

Competitive Landscape

Major players in the Philippines tire market include Philippine Allied Enterprises Corporation, Goodyear Philippines, Inc, Yokohama Tire Sales Philippines Inc., Tiara Commercial & Industrial Corp., Armstrong Enterprises Company, Inc, Sailun Co. Ltd, CST Tires/AP Blue Whale, Inc., Nexen Distribution Philippines Inc., Michelin Philippines Pty Ltd, and Westlake Tires. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Scope of the Report

By Product

• Radial

• Bias

By Vehicle Type

• • Passenger Cars

  • Light Commercial Vehicles (LCVs)

  • Heavy Commercial Vehicles (HCVs)

  • Two Wheelers

By Demand Category

• • OEM

  • Replacement

By Sales Channel

• • Online

  • Offline

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3.  Philippines Tire Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increase in Automotive Production & Sales
         2. Growing demand for tires in emerging markets due to economic development and urbanization
         3. Advancements in tire technology, leading to improved safety, performance, and durability
      2. Restraints
         1. Unstable Prices of Raw Materials
      3. Opportunities
         1. Increasing adoption of electric vehicles, creating a new segment for specialized tires.
      4. Challenges
         1. Adapting to changing consumer preferences and evolving regulatory requirements
   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
   6. Price Point Analysis: Global Automotive Memory, 2019-2022
4.  Philippines Tire Market Overview
   1. Market Size & Forecast by Value, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Product
         1. Radial
         2. Bias
      2. By Vehicle Type
         1. Passenger Cars
         2. Light Commercial Vehicles (LCVs)
         3. Heavy Commercial Vehicles (HCVs)
         4. Two Wheelers
      3. By Demand Category
         1. OEM
         2. Replacement
      4. By Sales Channel
         1. Online
         2. Offline
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Philippines Tire Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on Philippines Tire Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook and SWOT Analysis)
   1. Philippine Allied Enterprises Corporation
   2. Goodyear Philippines, Inc
   3. Yokohama Tire Sales Philippines Inc.
   4. Tiara Commercial & Industrial Corp.
   5. Armstrong Enterprises Company, Inc
   6. Sailun Co., Ltd
   7. CST Tires/AP Blue Whale, Inc.
   8. Nexen Distribution Philippines Inc.
   9. Michelin Philippines Pty Ltd.
   10. Westlake Tires
   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. Assumption & Limitation

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

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

Lists of Figures

Figure 1     Philippines Tire Market Segmentation

Figure 2     Philippines Tire Market Value Chain Analysis

Figure 3     Company Market Share Analysis, 2022

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

Figure 5     Philippines Tire Market Share, By Product, By Value, 2019–2029

Figure 6     Philippines Tire Market Share, By Vehicle Type, By Value, 2019–2029

Figure 7     Philippines Tire Market Share, By Demand Category, By Value, 2019–2029

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

List of Tables

Table 1    Philippines Tire Market Size, By Product, By Value, 2019–2029

Table 2    Philippines Tire Market Size, By Vehicle Type, By Value, 2019–2029

Table 3    Philippines Tire Market Size, By Demand Category, By Value, 2019–2029

Table 4    Philippines Tire Market Size, By Sales Channel, By Value, 2019–2029

Table 5    Philippine Allied Enterprises Corporation Company Overview

Table 6    Philippine Allied Enterprises Corporation Financial Overview

Table 7    Goodyear Philippines, Inc Company Overview

Table 8    Goodyear Philippines, Inc Financial Overview

Table 9    Yokohama Tire Sales Philippines Inc. Company Overview

Table 10  Yokohama Tire Sales Philippines Inc. Financial Overview

Table 11  Tiara Commercial & Industrial Corp. Company Overview

Table 12  Tiara Commercial & Industrial Corp. Financial Overview

Table 13  Armstrong Enterprises Company, Inc Company Overview

Table 14  Armstrong Enterprises Company, Inc Financial Overview

Table 15  Sailun Co., Ltd Company Overview

Table 16  Sailun Co., Ltd Financial Overview

Table 17  CST Tires/AP Blue Whale, Inc. Company Overview

Table 18  CST Tires/AP Blue Whale, Inc. Financial Overview

Table 19  Nexen Distribution Philippines Inc. Company Overview

Table 20  Nexen Distribution Philippines Inc. Financial Overview

Table 21  Michelin Philippines Pty Ltd. Company Overview

Table 22  Michelin Philippines Pty Ltd. Financial Overview

Table 23  Westlake Tires Company Overview

Table 24  Westlake Tires Financial Overview