INTROUDCTION

Sport Utility Vehicles or SUVs as they are widely called have risen in popularity in past 10 years and have outgrown all other vehicle body types in past 5 years. They now account for 35% of new vehicles sold globally, a sharp increase from 21% in 2014.

 

The reason why they are such an important segment for tire manufacturers is they inherently use bigger, stronger tires due to heavy kerb weight and versatile applications (towing, off-roading, adventure sports) they are subjected to.

 

MARKET DYNAMICS

The dynamics of OE and replacement SUV tire market segment are completely different. Where the former requires close collaboration with the car manufacturers, the latter requires solid distribution and sales network. The replacement demand has grown at a slower rate than OE demand but is characterized by significantly higher volumes and average gross margin for tire manufacturers.

 

In US and China, none of the best-selling SUVs had 16-inch tires, whereas in Europe 3 out of top 10 had them.

 

POPULAR TIRE SPEC AND WHEEL SIZE IN TOP 10 SUV MARKETS

Sl no COUNTRY TIRE SPEC WHEEL SIZE(Inches)
1 US 235/60 R18 18/19
2 China 225/65 R17 17
3 Germany 225/55 R17 17
4 UK 235/50 R18 18
5 India 205/65 R16 16
6 Japan 225/50 R18 18
7 France 205/55 R17 17
8 Russia 215/65 R16 16
9 ASEAN Countries 265/60 R18 18
10 Latin America 225/60 R18 18

 

The high profile (60/65 aspect ratio) tires are popular in US and emerging countries whereas low profile (45-55 aspect ratio) tires are more common in Europe and Japan.

 

MARKET SEGMENTATION

 

https://mobilityforesights.com/wp-content/uploads/2019/06/Market-Segmentation-Global-SUV-Tire-market by tire size, type, OE and replacement, geography

 

MARKET SIZE AND FORECAST

China and US are world`s biggest markets for SUVs, accounting for ~17-18 Million units sold per annum. Together they make up for ~57-60% of global OE SUV tire market.

 

In China (world`s biggest SUV market), as of June 2019, there are 523 SUV models on sale from 50+ manufacturers. The low-cost, value for money SUVs priced between $14,000-$20,000 like Haval H6, Baojun 560, Trumpchi GS4 are extremely popular in China.

 

 

In Europe, SUVs accounted for 5.4 Million-unit sales in 2018 or 36% of total passenger car sales- at par with global average. Small SUVs are the fastest growing segment right now, accounting for almost 39% of SUV sales in Europe. These SUVs are fitted with 16- and 17-inch tires and will generate a sizeable demand of 215/65 and 225/65 section tires in coming years in replacement market.

 

 

The Japanese trio of Toyota, Nissan and Honda cumulatively account for 21% of total SUVs sold globally in 2018.

 

 

In the premium segment, BMW is the market leader with 0.8 million SUVs sold globally in 2018 or ~40% of total car sales. BMW SUVs` tires range from 17 inch to 19 inch for most vehicles with 225/55 and 235/55 being the most common combinations. Also, BMW has the highest share of run flat tire sales which are priced ~70-80% higher than a comparable size tubeless tire in the replacement market.

 

 

Globally, in the premium segment, sales of Crossover SUVs with V-speed-rated tires and above have increased by 160% since 2014 and they represent a significant new opportunity in SUV tire market.

 

COMPETITIVE LANDSCAPE

Globally, there are 25+ SUV tire manufacturers and we have profiled the top 15. Bridgestone, Michelin, Good year, Hankook and Continental are among top preferred choices in the OE SUV tire market.

 

The tire manufacturers are working on introducing even lower rolling resistance and airless tires to improve fuel economy and safety worldwide. Nokian tires has reduced rolling resistance of its tires by 8% in past 6 years.

 

COMPANIES PROFILED
  1. Yokohama Rubber Company
  2. The Michelin Group
  3. Bridgestone Corporation
  4. MRF (Madras Rubber Factory Limited)
  5. Hankook Tire & Technology Group
  6. Goodyear Tire & Rubber Company
  7. Apollo Tyres Ltd
  8. CEAT Tyres
  9. Pirelli & C. S.p.A
  10. Continental AG
  11. Cooper Tire and Rubber Company
  12. Maxxis(Cheng Shin Rubber)
  13. BF GoodRich
  14. Falken tires (Sumitomo Rubber Industries Ltd)
  15. Firestone Tire & Rubber Company

 

 

THIS REPORT WILL ANSWER THE FOLLOWING QUESTIONS
  1. Which tyre specs (Ex- 225/65 R16) generate highest demand in both OE and replacement segment in top 10 countries?
  2. Which SUV tire segment will have highest growth rate in next 5 years and why?
  3. Will light truck tire market outgrow SUV tire market in US?
  4. What`s happening in the rubber raw material supply chain?
  5. Penetration of TPMS(Tire pressure Monitoring System) in top 10 countries?
  6. Average B-2-B tire price in all segments
  7. Future trend of OE SUV tires and SUV tire manufacturing capacity in US, Europe, China and India
  8. Impact of Electric vehicle( EV) market growth on SUV tire market
  9. Key pain points of tire distributors in major countries
  10. Future growth of online tire retail sales in China, US, Europe and India
  11. Upcoming SUV platforms in major countries and most likely tire combinations
  12. OE- Supplier alignment in new SUV tire market
  13. What are the new patented tread designs and how do suppliers aim to improve wet braking and more consistent traction performance?
  14. SUV tire warranty trends in top 10 markets
  15. Market share of leading players in different segments

 

 

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1 Market Segmentation 3
2 Executive Summary 5-6
3 Introduction 7-10
4 Insights from Industry stakeholders 11
5 Key criteria for SUV tire adoption by OEMs 12-13
6 Raw material supply chain and SUV tire manufacturing in US, Europe and China 14-15
7 All about global online tire retail sales and pain point of tire distributors 16-17
8 New product development and innovation 18-19
9 Global automotive tire trends 20-21
10 Impact of growth in EV market on SUV tire market 22-23
11 Market Size ,Dynamics and Forecast By tire size 29-38
12 Market Size ,Dynamics and Forecast By tire section 29-38
13 Market Size ,Dynamics and Forecast By tire type 39-48
14 Market Size ,Dynamics and Forecast By Geography 49-65
15 Market Size ,Dynamics and Forecast By End-use (OE & Replacement) 66-78
16 Competitive Landscape 79-82
17 OEM-supplier relationship in SUV tire market 27-28
18 Company Profiles 80-95
19 Unmet needs and Market Opportunity for suppliers 96-97
20 Conclusion 98-99
21 5 Key predictions 100
22 Appendix 101
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