Report Overview

United Kingdom Tire Market- Industry Trends & Forecast Report 2028

The United Kingdom tire market was worth USD 2.8 billion in 2021 and is further projected to reach USD 4.2 billion by the year 2028, growing at a CAGR of 6.4% during the forecast period (2022-2028). The tire market in the United Kingdom is flourishing at a high rate owing to the rising disposable income of people, along with the increasing demand for passenger cars and fleets for private and commercial uses. Furthermore, increasing penetration of electric vehicles and demand for smart tires are anticipated to present lucrative growth opportunities to the United Kingdom tire market during the forecast period.

Tires – A Brief Overview

A tire is a rubberized component of a vehicle that protects the rim of the wheel externally. Tires are designed to protect the wheel rim and provide tractive force between the road surface and the vehicle. Because a tire is made of rubber, it also provides a flexible cushion to the wheels that reduces vibrations and helps endure road shocks. Tires are generally made up of tread, jointless cap piles, beads, and other materials, such as synthetic rubber, carbon black, and fabric.

United Kingdom Tire Market Forecast and Trends

Growth Drivers

Growing Vehicle Production in the United Kingdom

In terms of production, the automotive industry in the United Kingdom is one of the most prominent industries in the world. Over 30 manufacturers produce over 70 different kinds of vehicles in the UK, says the Society of Motor Manufacturers and Traders. It is estimated that the automotive industry in the United Kingdom contributes 15.3 billion Euros to the economy. Additionally, the industry is planning to increase production capacity to meet the growing market demand. In light of these factors, the demand for tires is expected to surge in the forecast period.

Increasing Penetration of Electric and Hybrid Vehicles

The increasing demand for electric and hybrid vehicles is anticipated to present lucrative growth opportunities to the United Kingdom tire market. The EV and hybrid vehicle manufacturers in the UK are demanding technologically advanced tires, such as smart tires. Sensors on these smart tires provide data such as tire pressure, traction, vehicle acceleration, etc., which are then used to ensure and advance the safety of the vehicle and the rider. As tire technologies advance rapidly, the demand for tires is expected to surge during the forecast period.

Restraints

High Volatility in Raw Materials of Tire Production

The automotive tires are mainly produced from natural rubber, synthetic rubber, carbon black, and oil. The price of raw materials, such as natural and synthetic rubber, is highly volatile and affects the production cost of tires, and eventually the tire price. Several factors, including crude oil prices, supply, weather, currency exchange, policy changes, etc., directly affect the price of the raw materials and expose the tire price to high volatility. This is acting as a major restraining factor for the growth of the United Kingdom tire market.

Impact of COVID-19 on the United Kingdom Tire Market

The sudden COVID-19 pandemic outbreak negatively impacted the growth of the United Kingdom tire market. The surging COVID-19 infection rate in the United Kingdom prompted the government authorities to impose a strict lockdown. As a result of the lockdown, automotive and tire manufacturing operations ceased, causing a large decline in tire sales, which caused the market to suffer a significant loss. Also, imports of Chinese and Japanese manufactured tires were temporarily halted, which slowed the growth of the United Kingdom tire market during COVID-19.

United Kingdom Tire Market - By Design

Based on designs, the United Kingdom tire market is segmented into radial and bias. The radial tire design segment accounts for the largest market share and is projected to maintain its dominance during the forecast period as well. Radial tires provide higher efficiency to vehicles, along with maximum comfort at higher vehicle speed. Additionally, radial tires are extremely efficient in reducing fuel consumption due to their low rolling resistance, and they require less maintenance due to their single steel body, which makes them economical for vehicle owners over time.

United Kingdom Tire Market - By Vehicle Type

Based on vehicle types, the United Kingdom tire market is segmented into passenger cars, light commercial vehicles, medium, and heavy commercial vehicles, two-wheelers, three-wheelers, and off-the-road (OTR). The passenger cars segment holds a dominant market share due to increasing private vehicle ownership. Vehicle registrations in the UK have increased at a rapid pace, with new registrations experiencing a growth of 1,486% in April 2021, almost 16 times higher than in 2020, according to official records.

United Kingdom Tire Market - By Distribution Channel

Based on the distribution channels, the United Kingdom tire market is segmented into online distributors and offline distributors. The offline distributors segment accounted for the largest market share in 2021. The purchase of tires from offline channels, including retail and specialty stores, is very strong, which acts as a major driving factor for the market growth. Several OEMs also establish partnerships with tire manufacturers as trusted suppliers, which also boosts the market growth. However, the online distributor segment is projected to witness the highest growth rate during the forecast period.

United Kingdom Tire Market-Competitive Landscape

The players in the United Kingdom tire market are Bridgestone Tyres, Continental Tyres, Dunlop Tyres, Goodyear Tyres, Michelin Tyres, Pirelli Tyres, Avon Tyres, Firestone Tyres, Hankook Tyres, Yokohama Tyres, and other prominent players.

The United Kingdom tire market is highly concentrated and dominated by certain premium tire manufacturers, including Michelin, Pirelli, Bridgestone, etc. The company offers a wide range of tires for different types of vehicles to expand its consumer base. They are also significantly focusing on improving their distribution channels by establishing specialty stores and launching websites to boost their online sales. Furthermore, the adoption of competitive strategies, such as partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.

Recent Developments

• In September 2021, Goodyear Europe B.V., the European subsidiary of the Goodyear Tire & Rubber Company, announced Goodyear Europe BV has commenced a private offering of senior notes due 2028 of an aggregate principal amount of €300 million.

Scope of the Report:

By Design

• 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