Automotive Tire Market to Hit $75.4 Billion by 2024
September 30, 2019—The U.S. tire market is expected to garner $75.4 billion by 2024, from $57.9 billion in 2018, registering a 5.4 percent CAGR during the forecast period (2019-2024).
The U.S. automotive tire market is witnessing growth due to the prospering automotive industry and high demand for tire replacement due to the improving average age of vehicles. A circular component that goes around the wheel and contains compressed air, which helps in transferring the load of the vehicle from the axle to the ground, is referred to as a tire.
Low-rolling-resistance tires that are more fuel-efficient than conventional tires are trending in the U.S. automotive tire market. Additionally, they also provide enhanced durability and have a better grip for increased safety. Technological advancements have not only led to improvements in vehicles, thereby leading to their high demand, but they have also influenced the tires, which are now being made for improved functionality. For instance, innovation by market players in this field has led to the development of ultra-high-performance tires that are highly reliable and perform well at high speeds and on rough terrains.
The increasing average life of vehicles is a major factor driving the U.S. automotive tire market. Presently in the country, vehicles have an average life of 13-17 years. This can be attributed to the technical advancements and fierce competition in the market, which is why automobile manufacturers have to provide top-quality products in all aspects. As vehicles are supposed to last for a long time, the demand for tire replacement is increasing. Another contributing factor in the high tire demand is the increasing driving range of vehicles, which leads to increased wear and tear of tires.