Latin America and Caribbean Automotive Tire Market 2021-2027:
The Latin America and Caribbean automotive tire market were valued at $3,517.5 million in 2019, and is projected to reach $4,538.7 million by 2027, registering a CAGR of 3.3% from 2020 to 2027.
Automotive tire is the circular vehicle component made of rubber used to cover the wheel’s rim externally. The major function of the tire is to protect the wheel rim and offer tractive force between the road surface and the vehicle. Since it is manufactured from rubber, it also provides a flexible cushion, thereby reducing the impact of the vibrations and absorbs the shock of the vehicle. Rubber tire consists of tread, jointless cap piles, beads, and other materials, which include synthetic rubber, carbon black, and fabric.
COVID Impact Analysis: With the advent in COVID-19 pandemic across the globe, the Latin America and Caribbean automotive tire market has been affected as the automotive tire manufacturing units have been shut down due to the imposed lockdown in major countries across the Latin America and Caribbean. Similar to the decline of traffic volumes across the country, there has also been a decrease in demand for the aftermarket tires and tire products. The downturn in aftermarket business is due to the decrease in consumers purchasing from local tire retailers.
Factors such as increase in automotive production & sales across different vehicles segment, rise in competition among tire manufacturers and introduction of advanced technology in the manufacturing process are driving the market growth. However, volatile prices of raw materials and development in the market of retreading tires hinder the market growth. Furthermore, advancement in technology and fuel efficiency and safety concerns is expected to offer lucrative opportunities for the market growth.
The Latin America and Caribbean automotive tire market is segmented into season type, vehicle type, rim size, distribution channel, and Latin America and Caribbean countries. By season type, it is divided into summer, winter and all-season tires. By vehicle type, it is divided into passenger car, commercial vehicle, and electric vehicle. By rim size, the market is categorized into less than 15 inch, 15 to 20 inch, and more than 20 inch. By distribution channel, it is bifurcated into OEM and aftermarket. By Latin America and Caribbean countries, the market is analyzed across Brazil, Mexico, Argentina, Haiti, Cuba, Dominican Republic, Bahamas, Guatemala, Panama and rest of Latin America and Caribbean countries.
By Season Type
Summer is projected as the most lucrative segments
The key players profiled in the Latin America and Caribbean automotive tire market report are Bridgestone Corporation, Continental corporation, MICHELIN, Pirelli Tyre C. S.p.A. (China National Chemical Corporation), The Goodyear Tire & Rubber Company, Toyo Tire Corporation, Sumitomo Rubber Industries Ltd., The Yokohama Rubber Co., Ltd., Hankook Tire & Technology Co., Ltd. and Nokian Tyres plc.
Increase in automotive production & sales across different vehicles segment
Recently, the automobile industry has been experiencing rapid growth owing to speedy industrialization, which has led to an increase in the sale of commercial vehicles such as trucks, tractors, and trailers. In addition, rise in disposable income of people and improvements in standard of living are the factors that increase the sale of luxurious passenger cars and premium segment bikes. Furthermore, electric vehicle sales are expected to increase during the forecast period. Also, decrease in prices of electric vehicle parts such as battery, transmission, and alternators propel the sale of electric vehicles. Thus, increase in the demand for vehicles across all segments among consumers leads to a rise in the production of automobiles and tires associated with it. Moreover, consolidation of the automotive sector that results in mergers and acquisitions among international and domestic vehicles manufacturers boost the growth of the automotive sector influencing the automotive tire market. Therefore, growth of the automobile sector is expected to increase the overall demand for tires.
By Rim Size
Less than 15 inches is projected as the most lucrative segments
Rise in competition among tire manufacturers
Leading automotive manufacturers continue to invest in the developing countries due to low costs of labor that further decrease the production costs, which will help meet the increase in demand for vehicles. The tire industry has witnessed phenomenal growth in the last decade; also, the automotive sector is experiencing exponential growth due to a rise in the demand for automobiles and use of collaborative & consolidation manufacturing in tire business. This in turn boosts the growth of the automotive tires business. For instance, The Hankook Tire has launched “Dynapro AT2” for on & off-road SUVs. These tires have post optimal performance in all road conditions as it is characterized by quietness and a comfortable ride on-road and a powerful drive on the off-road. Moreover, the leading tire manufacturing company-Bridgestone Corporation also launched BATTLECROSS E50 motorcycle tires for enduro competitions. These tires are launched in one front tire size and two rear tire sizes in the U.S. and Canada. Thus, such new strategies by tire manufacturing companies for the expansion of their business across the globe are witnessing strong competition to capture a larger market share. Also, this factor is responsible for swift changes in the tire market that makes it more dynamic. Therefore, there is a rise in competition among tire manufacturers, which fosters the growth of the market.
Volatile prices of raw materials
Raw materials to manufacture tires include petroleum reinforcing materials such as nylon and polyester. Also, rubber (natural and synthetic) is the basic element required to manufacture tires, which witnesses high fluctuations in cost. The materials used to manufacture rubber tires are tread, jointless cap plies, steel-cord for belt plies, textile cord ply, Bead reinforcement, apex, and core. Also, it consists of synthetic rubber, natural rubber, steel wire, and carbon black along with the petrochemical reinforcing materials such as polyester, fabric, nylon, steel, and rayon. The pricing of these raw materials plays a vital role in deciding the overall price of the tire. Prices of these metals fluctuate occasionally due to global economic ups and downs in the market, as these are traded on a community exchange basis. Inflation and increase in the demand for these raw materials have fueled their prices in the recent past. In addition, players that operate in the automotive tire market require a large amount of raw materials to overcome the demand for tires from the automotive industry. Uncertainty in the pricing of these raw materials prove to be a major restraint for the growth of the rubber tire market.
By Vehicle Type
Aftermarket is projected as the most lucrative segments
Advancement in technology
Due to the rapid enhancement of technology, most of the manufacturing companies are adopting automation to increase the productivity and profitability. As a result of technological advancements in the tire industry, introduction of rimless tires, green tires, and the use of light weight elastomers and metals such as carbon fiber and alloy or composites such as nickel aluminum bronze and manganese bronze to manufacture tires is expected to propel the growth of the Latin America and Caribbean automotive tire market. In addition, leading tire OEMs are using nanotechnology and other technology or software to manufacture different type of tires.
For instance, Bridgestone Tires, one of the leading tires and rubber companies, utilizes Contact Area Information Sensing (CAIS) that senses the road conditions by collecting and analyzing the tire contact area. All these factors are expected to unfold various opportunities for the growth of the market.
By Channel
Aftermarket is projected as the most lucrative segments
Key Benefits For Stakeholders
- This study presents analytical depiction of the Latin America and Caribbean automotive tire market analysis along with current trends and future estimations to depict imminent investment pockets.
- The overall Latin America and Caribbean automotive tire market opportunity is determined by understanding profitable trends to gain a stronger foothold.
- The report presents information related to the key drivers, restraints, and opportunities of the
- Latin America and Caribbean automotive tire market with a detailed impact analysis.
- The current Latin America and Caribbean automotive tire market is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
KEY MARKET SEGMENTS
By Season Type
- Summer
- Winter
- All Season
By Rim Size
- Less than 15 inches
- 15 to 20 inches
- more than 20 inches
By Vehicle Type
- Passenger Vehicle
- Commercial Vehicle
- Electric Vehicle
By Channel
- OEM
- Aftermarket
By Region
- Latin America and Caribbean
- Brazil
- Mexico
- Argentina
- Haiti
- Cuba
- Dominican Republic
- Bahamas
- Guatemala
- Panama
- Rest of Latin America and Caribbean
KEY PLAYERS
- Bridgestone Corporation
- Continental corporation
- MICHELIN
- Pirelli Tyre C. S.p.A. (China National Chemical Corporation)
- The Goodyear Tire & Rubber Company
- Toyo Tire Corporation
- Sumitomo Rubber Industries Ltd.
- The Yokohama Rubber Co., Ltd.
- Hankook Tire & Technology Co., Ltd.
- Nokian Tyres plc
Latin America and Caribbean Automotive Tire Market Report Highlights
| Aspects | Details |
 By SEASON TYPE |
|
 By RIM SIZE |
|
 By VEHICLE TYPE |
|
 By DISTRIBUTION CHANNEL |
|
 By COUNTRY |
|
 Key Market Players | MICHELIN, SUMITOMO RUBBER INDUSTRIES LTD., BRIDGESTONE GROUP, HANKOOK TIRE & TECHNOLOGY CO., LTD., NOKIAN YRES PLC., THE YOKOHAMA RUBBER CO., LTD, THE GOODYEAR TIRE & RUBBER COMPANY, CONTINENTAL AG, TOYO TIRE CORPORATION, PIRELLI & C. S.P.A |
Analyst Review
According to the insights of CXOs of leading companies, the Latin America and Caribbean tire market is projected to witness moderate growth rate, increase in automotive production & sales across different vehicles segment. Companies in this industry are adopting various innovative techniques to provide customers with advanced and innovative feature offerings.
Automotive tire is the circular vehicle component made of rubber used to cover the wheel’s rim externally. The major function of the tire is to protect the wheel rim and offer tractive force between the road surface and the vehicle. An automotive tire is manufactured using various materials, including natural and synthetic rubber, carbon black, polyester, rayon, steel, silica and vulcanization accelerator.
The Latin America and Caribbean tire market is driven by rise in competition among tire manufacturers and introduction of advanced technology in the manufacturing process. In addition, advancement in technology and fuel efficiency and safety concerns fuel the market growth. However, volatile prices of raw materials and development in the market of retreading tires hinder the market growth.
Among the analyzed countries, Brazil is the highest revenue contributor, followed by Mexico, Argentina, and Rest of Latin America and Caribbean. On the basis of forecast analysis, Bahamas is expected to lead during the forecast period, due to increase in demand along with the vehicle sale leads to create a significant growth in the Bahamas tire market.
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