Australian tire market forecast at $2.7 billion by 2026

Dublin, Ireland – ResearchandMarkets reports the Australian Tire Market was valued around USD2.04 billion in 2020 and is forecast to reach USD2.70 billion by 2026, growing at a CAGR of 4.19% by 2026 on account of growing fleet size of vehicles which in turn is driving the aftermarket tire sales in Australia. There is a visible rise in the demand for sports utility vehicles (SUVs) in Australia, thereby boosting the demand for SUV tires among the other passenger car segments in the country. As there is an increase in the number of people preferring personal modes of transportation for commuting, sales of passenger cars will keep on growing in the coming years, thereby urging the aftermarket demand for tires in Australia over the next five years. However, due to the imposed lockdown, following the COVID-19 outbreak, which resulted in economic instability in 2020, the sales of automobiles in the country dropped significantly. After the long and hugely negative effect of the COVID-19 lockdown, the tire market has again gained some pace in Australia. After a big drop in the production and sales in previous months, the production of vehicles has resumed, with sales also picking the pace, which is going to elevate demand for tires in the country.

The Australian Tire Market can be segmented based on vehicle type, tire construction type, sales channel, and region. On the basis of sales channel, offline sales of tires dominate the overall the Australian Tire Market with more than 4/5th of the total market share. On the basis of vehicle type, passenger car tires are leading the Australian Tire Market with more than half of the total market, followed by LCV, M&HCV, Two-Wheeler and OTR. In the forecast period also, it is expected that passenger car tires will acquire significant share than any other, but two-wheeler tires will increase at a higher CAGR in comparison to other vehicle types. On the basis of tire construction type, radial tires dominated the Australian Tire Market over bias tire with more than 75% share in 2020. This is mainly due to high demand for passenger cars and the escalating fleet of passenger cars, and it has been expected that it will dominate the market in upcoming years also.

Major players operating in the Australian Tire Market are Bridgestone Australia LTD, Goodyear & Dunlop Tires (Aust) Pty Ltd, Yokohama Tire Australia Pty Ltd, Michelin Australia Pty. Ltd, Kumho Tyre Australia Pty Ltd. Key players are developing advanced technologies and introducing new products to stay competitive in the market. Other competitive strategies include unification and accretion and new product developments. Players operating in the market are improving R&D potentiality while enhancing operational efficiency to register constructive growth