Canada Tire Market to Grow at a CAGR of 5.3% during Forecast Period
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Canada Tire Market was worth USD 5.42 billion in the year 2021. The market is projected to grow at a CAGR of 5.3%, earning revenues of around USD 7.68 billion by the end of 2028.
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Canada Tire Market was worth USD 5.42 billion in the year 2021. The market is projected to grow at a CAGR of 5.3%, earning revenues of around USD 7.68 billion by the end of 2028. The Canada Tire Market is rising on account of expanding Canadian automotive industry. Also, the market for tires is predicted to grow as vehicle sales rise as well as improved. Moreover, the Canadian tire market is reliant on tire imports from a variety of countries. Additionally, as the country's automotive fleet has grown at a rapid pace in recent years, demand for tires is expected to expand from the replacement sector. Furthermore, Canada Tire Market is one of the most emerging markets that grow continuously owing to the fast integration of new technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), cloud computing, and others. However, factors including fluctuating raw material prices and rising demand for tire remolding are anticipated to restrain the market's expansion.
Consistent Standards Related to Vehicle Safety
The Canadian government is encouraging tire manufacturers to make tires with the highest level of safety while advising vehicle owners to change tires on time and conduct routine inspections of their condition to ensure vehicle & passenger safety at all times. These factors are likely to motivate the top competitors in the Canada Tire Market to launch new goods, expand their current product line, and provide customers with safer tires. As a result, the Canada Tire Market is predicted to develop at a significant rate during the forecast period (2022-2028).
Growing Government Initiatives Aiming for Carbon Neutrality
Because the automotive industry contributes significantly to carbon emissions, the Canadian government is focusing on achieving carbon neutrality and thus creating growth prospects for the top players in the tire market to manufacture emission-free tires. Furthermore, the government is investing heavily in improving infrastructure and building a green economy in the next years, which will enhance construction activity and give attractive chances for the tire sector. This results in offering lucrative opportunities for the Canada Tire Market during the forecast period (2022-2028).
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Challenge: Changing Prices for Raw Materials
The Canada Tire Market's growth is predicted to be restricted in the years to come given how heavily the tire and automotive sectors rely on raw resources like rubber and crude oil. Price volatility, which is diminishing the nation's tire output and, in turn, widening the demand-supply gaps, is another key element that could obstruct market expansion in the upcoming years. The market's expansion is constrained by all of these issues.
Canada Tire Market - By Type of Tires
Based on the type of tires, the Canada Tire Pad Market is segmented into Radial and Bias. Among these, the radial segment holds the largest market share. The main factor fuelling the need for radial tires is the surge in industrial projects that are resulting in the rising sales of heavy vehicles. Radial tires are the best option for these vehicles because they require a strong grip, low rolling resistance, little vibration, and better stability on various surfaces. Moreover, radial tires have several benefits, including improved performance, safer rides, lower fuel consumption, and less rolling resistance. As a result, it is projected that their need for heavy-duty vehicles will rise dramatically. Additionally, the quickly expanding transportation and logistics industry will encourage the use of radial tires to improve transportation convenience. Additionally, since the Canadian government promotes the use of public transportation to lessen traffic jams and carbon emissions, commercial vehicle production and sales are rapidly rising, which is favorably impacting the need for radial tires in the nation.
Impact of COVID-19 on Canada Tire Market
In 2020, the Covid-19 outbreak harmed both the automotive industry and the Canadian tire market. The challenges and issues associated with their import were unknown because sales of both passenger and commercial vehicles, as well as the delivery of goods like tires, substantially declined. The key market players endured huge income losses throughout the crisis as a result of reduced manufacturing capacity brought on by declining auto sales, a lack of raw materials, fluctuating prices, travel restrictions, and delays in production and deliveries, among other issues. Canada observed a slight increase in EV registrations even though EV sales were also negatively impacted, which may have signaled a temporary rise in tire demand.
The leading market players in the Canada Tire Market are Goodyear Canada Inc, Bridgestone Canada, Hankook Tire Canada Corporation, Continental AG, Pirelli Tire Inc, Kumho Tire Canada, and other prominent players. The Canada Tire Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.
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