COVID-19 Impact
The COVID-19 pandemic situation has led to unprecedented economic circumstances in the European region. The automobile industry is profoundly affected by the limited supply of vehicle parts, temporary shutting down of manufacturing plants, drop in the demand and sales of vehicles, and other reasons. The majority of the OEMs in Europe has stopped manufacturing the products. Other major tire companies in Europe have stopped their export-import business with other countries because of drop-down in sales and imposition of strict regulations imposed by the government on the closure of international transportation.
According to the European Automobile Manufacturers Association, shutting down manufacturing and production facilities in Europe is expected to affect approximately 14 million jobs in this pandemic. For instance, Continental AG in Europe is experiencing material changes and disruption in the supply chain demand due to increasing COVID-19 cases around Europe. Additionally, more than 40% of the production capacity is shut down in the region.
Rising focus on the development and roll-out of electric vehicles coupled with significant automobile production and sales in European countries is expected to positively influence the demand for tires, thereby augmenting the regional market growth. Moreover, growing demand from the aerospace & defense sector and the presence of several automobile manufacturers across the region's economies are further expected to drive the tire market's regional business growth.
Increased urbanization & congestion, favorable government initiatives, and growing concerns over sustainability have resulted in a surge in the adoption of e-bikes as a form of personalized electro-mobility in Europe, increasing in demand for technologically advanced tires. According to the European Tire and Rubber Manufacturers' Association report, in 2019, the tire market's overall performance was moderate. The truck tires and motorcycle tires in the replacement market have witnessed moderate growth, whereas agricultural tires' sales are expected to decline.
Replacement consumer tires segment including SUV, passenger cars, light commercial vehicle accounted for sales of 218,743 thousand units, replacement truck tires accounted for 12,583 thousand units, and replacement moto and scooter tires accounted for 9,233 thousand units. However, the demand in 2020 is likely to remain affected by the COVID-19 outbreak.
Europe EV Outlook – A pull for European tire industry
Automobile makers are driving their focus on the development and roll-out plan for electric vehicles, which is expected to create ample growth opportunities for the tire market. For instance, BMW AG announced to have 15-25% of the BMW Group sales from electric vehicles by 2025 and 13 (out of 25 electrified models) new EV models by 2023. Daimler AG expects to have 0.1 million electric vehicle sales in 2020, 10 new electric vehicle models by 2022, and 25% of group sales from electric vehicles in 2025. Also, the group announced that 50% of its sales would be PHEV and BEV by 2030.
The European tire industry will benefit from massive demand from the electric vehicle industry due to the growing production and sales of electric vehicles. In Europe, Norway, Germany, UK, and France observed remarkable electric vehicle sales in 2018. In 2016, new electric car sales (BEV and PHEV) in Norway were 44.9 thousand, which increased to 72.7 thousand in 2018. Moreover, Germany, France, and the UK also generated electric car sales in both BEV and PHEV segments. Furthermore, in 2019, according to the International Energy Agency (IEA) report, Europe is the 2nd largest market for electric car registration accounting for nearly 24% of the worldwide fleet.
Major Tire Manufacturers in Europe
Some of the key players operating in the Europe tire market include Michelin S.C.A., Continental AG, Pirelli & C. S.P.A., Nokian Tyres P.L.C., Trelleborg AB, Bridgestone Corporation, The Goodyear Tire & Rubber Company, Cooper Tire & Rubber Co., and many others. For instance, in December 2019, MICHELIN company launched a premium quality tire line for the aerospace and defense industry called “UPTIS,” which eliminates any risk of punctures. These innovations account for the increasing adoption of tires in Commercial Airlines and military Aircraft segments.
Country Analysis
Major countries that contribute significantly to the regional market growth include the UK, Germany, France, Italy, and Spain. Tire Industry in the UK plays a vital role in the nation’s economy. The industry consists of tire manufacturers, tire re-tread, distribution, and recycling/re-use. However, the UK tire industry is heavily dependent on the imports of tires from countries like China. According to a report published by Unite the Union, the major manufacturers of new tires in the country are fully integrated into a Europe full supply chain. Approximately 15 million tires are produced in the UK annually; however, nearly 48 million tires are sold in the UK market per year.
Europe Tire Production Outlook
According to the Unite the Union, there are nearly 86 tire factories in Europe (including non-EU and Turkey). These factories produce almost 4.9 million tons of tire, equating to approximately 330 million tires annually. However, some of the production sites of tire manufacturing, such as Michelin Ballymena, are expected to shut over the next few years.
NOTE: THE POINTERS MENTIONED WILL BE ANALYSED ACROSS ALL THE ABOVE-MENTIONED COMPANIES
NOTE: THE POINTERS MENTIONED WILL BE ANALYSED ACROSS ALL THE ABOVE-MENTIONED COMPANIES
NOTE: THE POINTERS MENTIONED WILL BE ANALYSED ACROSS ALL THE ABOVE-MENTIONED COUNTRIES
NOTE: THE POINTERS MENTIONED WILL BE ANALYSED ACROSS ALL THE ABOVE-MENTIONED COMPANIES
BELARUS TIRE MARKET, 2019-2028F
MARKET SEGMENTATION
HUNGARY TIRE MARKET, 2019-2028F
MARKET SEGMENTATION
POLAND TIRE MARKET, 2019-2028F
MARKET SEGMENTATION
ROMANIA TIRE MARKET, 2019-2028F
MARKET SEGMENTATION
RUSSIA TIRE MARKET, 2019-2028F
MARKET SEGMENTATION
REST OF EAST EUROPE TIRE MARKET, 2019-2028F
MARKET SEGMENTATION
UNITED KINGDOM TIRE MARKET, 2019-2028F
MARKET SEGMENTATION
GERMANY TIRE MARKET, 2019-2028F
MARKET SEGMENTATION
FRANCE TIRE MARKET, 2019-2028F
MARKET SEGMENTATION
ITALY TIRE MARKET, 2019-2028F
MARKET SEGMENTATION
SPAIN TIRE MARKET, 2019-2028F
MARKET SEGMENTATION
BELGIUM TIRE MARKET, 2019-2028F
MARKET SEGMENTATION
NETHERLANDS TIRE MARKET, 2019-2028F
MARKET SEGMENTATION
AUSTRIA TIRE MARKET, 2019-2028F
MARKET SEGMENTATION
REST OF WEST EUROPE TIRE MARKET, 2019-2028F
MARKET SEGMENTATION
Disclaimer | Privacy Policy | Terms & Conditions |
Copyright © 2022 Research Nester. All Rights Reserved
