Germany Tyre Market Assessment, By Tyre [Winter Tyre, Summer Tyre, All Season Tyre], By Vehicle Type [Passenger Vehicles, Commercial Vehicle, Off the Road], By Tyre Type [Radial, Bias], By Rim Size [Upto 20 inches, Above 20 inches], By Demand Type [New Product, Replacements], By Distribution Channel [Original Equipment Manufacturers, Multi Brand Distributor, Single Brand Distributor, Online], By Region, Opportunities and Forecast, 2016-2030F

Germany tyre market is anticipated to grow at a CAGR of 6.97% between 2023 and 2030. The market was estimated to be worth USD 11.65 billion in 2022 and is expected to reach USD 20.36 billion by 2030. Germany's tyre market is promoted by automotive sector and transportation infrastructure. With a strong reputation for engineering prowess and a long history in the automotive industry, Germany's tyre market combines innovative technology, stringent safety regulations, and changing consumer preferences. The market stands out for its constant attention to performance, quality, and safety. Interestingly, German automakers are well known worldwide for building exceptionally well vehicles, which has increased demand for expensive and superior tyres. There is a vast range of tyre manufacturers in the market, from local businesses to international, serving different customer needs and preferences.

A noteworthy development in the German tyre market is the increasing popularity of specialty tyres designed for uses. It includes tyres designed to perform effectively in various weather situations, such as tyres for winter and summer, as well as tyres made specifically for sports cars, crossovers, and electric vehicles. The overall goals of improving driving experiences, fuel economy, and safety are in line with this trend, which has sparked advancements in tyre design and technology. The government's regulatory framework and growing environmental awareness significantly impact how the German tyre market is shaped. Manufacturers of tyres have been encouraged to provide more fuel-efficient and environment friendly tyre alternatives by strict laws controlling tyre labelling, traction, and noise emissions.

Sustainability and Eco-Friendly Solutions to Boost the Market

An emerging trend in the industry is the growing emphasis on environmental concerns and sustainability. Adopting sustainable practices across businesses is more important due to the growing concern about climate change and the need to minimize carbon emissions. It translates into a need for environmentally friendly tyre solutions that minimize their environmental impact in the tyre industry. To provide tyres with better fuel economy, less rolling resistance, and a reduced carbon impact, tyre manufacturers are spending money on research and development. These tyres use innovative rubber compositions, creative tread patterns, and revolutionary tyre building methods to improve performance and lower emissions, and energy usage. To reduce the environmental impact of tyres during their lifetime, there is an increase for tyre reuse well as waste management techniques.

For example, Global Rubber Industries Pvt. Ltd. (GRI) was established in the tyre industry, particularly for sustainable and environmentally friendly tyres. The recent field tests conducted in Germany over the past six months have produced remarkable results, showcasing the exceptional performance of GRI's Green XLR Earth ag tire. The tests serve as a resounding validation of GRI's unwavering commitment to sustainability and its mission to cater to the evolving needs of farmers worldwide. The Green XLR Earth ag tire is designed to perform in various surface terrains and harsh working conditions, offering a more sustainable and eco-friendly alternative to traditional tyres.

Seasonal Variation in the Tyre Market

Specialized seasonal tyres are in high demand in Germany due to the country's unique seasonal weather patterns. During winter months, winter tyres are essential due to their improved traction and grip on icy and snowy roads. In other seasons, summer tyres designed for warm and dry weather are recommended. A cycle of tyre replacement is created by seasonal demand, which supports the expansion of the market.

The growing popularity of specialty tyres, such as all-season tyres, reflect changing customer demands and the demand for adaptable tyre options best suited to Germany's particular weather conditions. For example, the premium all-season tyre MICHELIN CROSSCLIMATE 2 offers notable protection and efficiency in challenging weather circumstances. An excellent all-season tyre designed to provide safe driving in challenging weather circumstances. Excellent traction and braking performance on snow and in dry conditions, convincing performance in rain and in snow, up to the appropriate legal minimum tread depth, leads to effectively used fuel.

Growing Popularity of SUV’s and Off-Road vehicles

The Germany tyre market has witnessed a growing popularity of SUVs and off-road vehicles, driven by the increasing sales of these vehicles in the country. In 2021, nearly one million new off-road passenger and sport utility vehicles (SUVs) were registered in Germany, reflecting the rising demand for these vehicle types. As there is growth in the SUVs, consumer needs increase for tyres that can deliver optimal traction, durability, and handling on varied terrains. The shift has made tyre manufacturers produce specialized tyres catering to unique demand for SUVs and off the road vehicle. For instance, Bridgestone has custom-designed the Potenza Race tyre to match the dynamic capabilities of the Huracán STO perfectly, providing drivers with an exceptional tyre that responds effectively to a wide range of performance requirements. This Semi-Slick tire maximizes the capabilities of the supercar, delivering outstanding performance both on the road and the track.

Impact of COVID-19

COVID-19 significantly impacted the Germany tyre market, with the government's nationwide quarantine measures affecting tyre production and raw material availability. The pandemic led to a reduction in demand for individual activity, affecting consumer purchasing power. The fluctuations in raw material costs have presented a barrier to the growth of Germany tyre market. With the gradual ease of restriction, the market recovered. Consumers became more conscious of safety and performance, hence they are interested in technologically advanced and eco-friendly tyre options. The industry has embraced digitalization with increased online sales.

Germany Tyre Market: Report Scope

“Germany Tyre Market Assessment, Opportunities and Forecast, 2016-2030F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of Germany tyre market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, COVID-19 impact, opportunities, and forecast between 2023 and 2030F. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.

In this report, Germany tyre market has been segmented into the following categories:

1.       By Tyre

1.1.     Winter Tyre

1.2.     Summer Tyre

1.3.     All Season Tyre

2.       By Vehicle Type

2.1.     Passenger Vehicles

2.1.1.Two-wheeler

2.1.2.Three-Wheeler

2.1.3.Four-Wheeler

2.2.     Commercial Vehicle

2.2.1.LCV

2.2.2.Medium & Heavy CV 

2.3.     Off the Road

2.3.1.Agriculture

2.3.2.Mining & Construction

2.3.3.Others     

3.       By Tyre Type

3.1.     Radial

3.2.     Bias

4.       By Rim Size 

4.1.     Upto 20 inches

4.2.     Above 20 inches

5.       By Demand Type

5.1.     New Product (OEMs)

5.2.     Replacements

6.       By Distribution Channel

6.1.     Original Equipment Manufacturers (OEMs)

6.2.     Multi Brand Distributor

6.3.     Single Brand Distributor

6.4.     Online

7.       By Region

7.1.    Northern

7.2.     Western

7.3.     Central

7.4.     Eastern

7.5.     Southern

Key Players Landscape and Outlook

The market is dynamic, with significant players affecting the trajectory of the market. Well-known industry players like Michelin and Bridgestone use their extensive networks and technological innovations to control the market. In addition, companies like Continental and Toyo Tyre are rising to prominence due to their strategic expansion and innovative product lines. Innovative tyre technology, a focus on ecological practices, and rising focus on electric vehicles characterize the market outlook. Given the increased need for tyres that are both fuel-efficient and ecologically friendly, it is projected that the main businesses would conduct a great deal of research and development. It will guarantee a competitive atmosphere that can adapt to Germany's shifting consumer preferences and business trends.

For instance, in July 2023, TireTech created an AI-powered tyre examination system. Using 3D technology, the system scans individual tyres to collect information about the material composition and general state of the tyre. The tyre can be recycled for additional automotive usage or turned into granulate material, depending on the information obtained. 

For instance, new winter tyre legislation in Germany mandates using winter tyres in cold conditions. The definition of suitable tires has been tightened, requiring the 3PMSF symbol (3 Peak Mountain Snowflake) instead of M+S markings. A transitional arrangement allows the use of M+S marked tyres produced before December 31, 2017, until September 30, 2024. This legislation aims to enhance safety and traction in winter conditions, reflecting the country's commitment to road safety and the well-being of drivers.

For instance, in 2023, Trelleborg introduced the XP900, a new tyre designed for high-intensity material handling applications. This tyre is engineered to enhance efficiency and deliver exceptional performance in cornering, duty cycle length, average speed, and duration of use in high-intensity applications. The XP900 is tailored to provide stability and maneuverability for loading across a variety of conditions, making it an ideal choice for demanding material handling operations.

Key Players Operating in the Germany Tyre Market are:

·         Bridgestone Industrial GmbH.

·         Michelin Deutschland GmbH

·         Continental AG

·         Goodyear Dunlop Tires Germany GmbH

·         Pirelli C. S.p.A.

·         Toyo Tire Corporation

·         Yokohama Europe GmbH

·         Sumitomo Deutschland GmbH.

·         Hankook Tire & Technology Co., Ltd

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