What Effects Government Policies are Having on U.S. Automotive Tire Market?

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 What helps a vehicle move smoothly on the road? It is not the engine, the shock absorbers, or the tightly welded/bolted metal frame; it is actually the humble tire! With continuous driving, the tire experiences significant wear and tear, just like any other component of an automobile. Another reason for the high demand for these components is the rising average age of vehicles. With automobiles being used for longer periods than before, the tire replacement rate is also going up. For instance, in the U.S., an automobile was driven for around 10.2 years on an average in 2010, but by 2018, the average age of vehicles had risen to 11.5 years.



The key reasons behind this has been the fierce competition in the auto sector, which is impelling vehicle manufacturers to offer better and more-durable automobiles to customers. In addition, several stringent government regulations have also been implemented in this regard in the country. Owing to all these factors, the U.S. automotive tire market is projected to grow from $57.9 billion in 2018, at a 5.4% CAGR during 2019–2024, to $75.4 billion by 2024. To further dominate the competition, tire producers are bringing about technological advancements in these products.

Three kinds of tires are available in the U.S. — all season, winter, and summer — among which all-season variants account for the highest integration rate. This is because automobiles are driven by people throughout the year, and with all-season tires, the hassles of replacing them with every change of the season are eliminated. This not only saves time and money for automobile owners, but also offers them more convenience and one less reason the vehicle could be out of operation.

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Further, among passenger vehicles, two-wheelers, medium and heavy commercial vehicles, and light commercial vehicles, the demand for personal-vehicle tires is the highest in the U.S. automotive tire market, presently. This is because of the quickly rising sales of SUVs and pick-up trucks among the populace. For all types of automobiles, tires are available with original equipment manufacturers (OEM) as well as aftermarket entities, such as spare part suppliers, repair shops, and garages. Among these, aftermarket entities have seen brisk business due to the high requirement for replacement tires. On an average, a tire needs replacement after every 30,000–50,000 miles (50,000–80,000 km) of driving.

Therefore, as a result of the increasing uptake of automobiles, the demand for tires will rise too in the U.S.

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