|Last Quarterly Update:||1/9/2017|
|SIC Codes:||5014, 5531|
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Companies in this industry operate physical retail establishments that sell new and used tires; some also provide automotive repair services. Major companies include Discount Tire, TBC Corporation, Munro Muffler Brake, Les Schwab Tire Centers and retail units of manufacturers Bridgestone and Goodyear (all based in the US), as well as Beaurepaires (Australia) and Kwik-Fit (UK).
Global demand for tires is projected to rise 4.1% per year through 2019, to 3 billion units, according to Freedonia Group. In dollar terms, the market is expected to reach $258 billion by 2019. Demand is expected to be strongest in the Asia/Pacific region, where the use of motor vehicles is increasing. China, which accounted for nearly a quarter of world demand in 2014, is the world's largest consumer (and producer) of tires, followed by the North American and Western European markets. Tire demand in the Africa/Middle East and Latin/Central America regions is expected to grow by 5.6% and 5.3% per year, respectively, through 2019.
The US tire dealer industry includes about 20,500 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $38 billion.
Demand for replacement tires is tied to vehicle use, which in turn depends on economic activity. The profitability of individual companies depends on marketing, since the product is largely a commodity. Large companies benefit from economies of scale in purchasing and advertising. Small firms can compete ...
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