Europe Specialty Tire Market Size, Share, Industry, Forecast and outlook (2023-2030)
Europe Specialty Tire Market is segmented By End User (Industry Vehicles (Dumpers, Skid Steers, Fork Lift Trucks, Small Wheel Loaders, Others), Utility Vehicles (Mowers, Municipal Service VehiclesCompact Tractors, Others)), By Sales Channel (OEM, Aftermarket), and By Region (Germany, U.K., France, Rest of Europe) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030
Market Overview
The "Europe Specialty Tire Market" is expected to grow at a high CAGR during the forecasting period (2023-2030).
The tires used on construction machinery, aircraft, other highly specialized equipment must operate under extreme conditions. It demands that the tires be manufactured with high-level technical expertise as they operate at heavy loads and uneven terrain. These are manufactured with minimum trade depth which offers better cooling for tires and greater stability while driving.
Natural rubber is a major component used for making specialty tires. Decreasing the commodity price of natural rubber will reduce the overall production costs associated with specialty tires. Specialty tires are those tires that are designed for particular weather situations as well as for specific automobiles. They may include OTR Tires or agriculture tires.
Market Dynamics
Growth in e-commerce sales channels, high demand in end-user industries, and increasing financial investments and funding are the crucial drivers for market growth. The Europe Specialty tire Market has witnessed a substantial rise in financial investments and funding in a bid to increase technological innovations and expand production facilities. Europe-based equity firms also invest in overseas companies in an attempt to increase market reach and grow revenue opportunities. For instance, in October 2018, Europe-based Bain Capital Private Equity invested in U.S.-based Dealer Tire, LLC, to accelerate growth and expansion.
The increased demand for tires in various end-user industries has propelled the market growth, with high sales volume recorded for tires used in industrial and construction vehicles. For instance, in June 2018, Camso introduced its Solideal On-Site Service operation to the UK market, which involves a pneumatic tire Puncture Protection Program to eliminate flat tires while providing maximum uptime to its customers.
Adoption of rigid environment laws and regulations and the high cost of switching and replacements are the restraints that hamper the growth of the market. The replacement and switching of tires in Europe involve heavy costs, with laws and regulations compelling customers to shift towards cheap alternatives in the face of high pricing ranges.
Market Segmentation
Based on end-user segment, the market is divided into industrial vehicles and utility vehicles. Industry vehicles are further divided into dumpers, skid steers, forklift trucks, small wheel loaders, and others. Utility vehicles are again categorized into mowers, municipal service vehicles, compact tractors, and others.
The Europe Industrial Vehicles specialty tires market was worth usd1093.5 million in 2018 and is forecasted to reach USD XX million by 2026, at a CAGR of XX% during the forecast period. In Industrial Vehicles, Small wheel loaders hold the highest market share with 34.78% owing to the growth of manufacturing industries and e-commerce businesses that are deploying forklift trucks, positively influencing the demand for forklift tires in turn. Small wheel loaders provide superior performance and wide versatility, and as such tires used in small wheel loaders offer higher mobility and a wide range of torque output in compact sizes.
The small wheel loader tires are used for various applications, including on soft dirt terrain prone to slippage, on concrete pavements, and grass turf for loading purposes. The development of technological innovation and increase in lift capacity in tight spaces are poised to offer opportunities for growth and expansion of business opportunities, with key market players recognizing such trends and launching new products to remain relevant in the market.
Based on sales channel, the global market for Europe specialty tires is broadly segmented as OEM & aftermarket. The Europe Sales Channel Vehicles specialty tires market was worth USD 1591.1 million in 2018 and is forecasted to reach USD million by 2029, at a high CAGR during the forecast period. . The aftermarket for specialty tires in Europe is leading by market share owing to the offerings of a wide variety of tire parts and accessories of varying qualities for a range of prices. The specialty tires are prone to extensive wear and tear after long use, and thus the replacement or aftermarket segment is driven by the higher replacement cycle of specialty tires and rising consumer interest in the aftermarket supplier’s scenario.
Geographical Analysis
Europe specialty tires market is segmented into countries like Germany, France, United Kingdom, Italy, Spain, Poland, scandivinia and rest of europe. The specialty tire market in Germany is leading market owing to increasing consumer interest and high production volume of utility vehicles in Europe region. The specialty tires in Germany are generally used in industrial vehicles such as forklift vehicles and small wheel loaders for material handling and transportation. The increasing consumer interest and high production volume of automotive vehicles are the significant factors positively influencing the specialty tires market in Germany, coupled with an increase in population mobility and rising vehicle ownership.
United Kingdom Specialty tire Market is expected to witness rapid growth during the forecast period owing to well-organized production facilities of automobiles and assorted accessories that have made the United Kingdom an ideal location for tire manufacturing facilities. In June 2018, ATS Euromaster opened a new dedicated hub center, expanding mobile tire maintenance support across Yorkshire and the North East, United Kingdom, involving repair facilities with tire.
Competitive Landscape
Some of the key vendors in the market are Global rubber industries Pvt ltd, emrald tires, TVs euro grip, trellerborg AB, STARCO, dunlop tires ltd, cheng shin rubber ind co ltd, carlisle tires & wheel company, CAMSO, and Balakrishna Industries.
Regional companies in Europe specialty tires market are engaging in the launch of the new product to increase the market share of the company.
In September 2018, John Deere’s introduced its new ZTrak 900 Series commercial zero-turn rotary mowers, using the new Michelin X Tweel Turf airless radial tire. The new Z994R model equipped with X Tweel Turf tires will be available in UK & Ireland.
In December 2018, Michelin Corporation completed the acquisition of Campo, which deals in rubber tracks for farm equipment and snowmobiles, and in solid and bias tires for material handling equipment.
The companies are focused on mergers & acquisitions of regional companies in an attempt to expand product portfolio and maintain competitiveness in the regional market scenario.
For instance, in November 2017, Trelleborg AB finalized the acquisition of Germany-based White Baumaschinenreifen GmbH, which specializes in the service, fitting, and repair of pneumatic and solid tires for vehicles in Germany.