South Korea Tire Market Size Set to Expand at Steady CAGR of 5.3% to Reach USD 5.6 Billion by 2029
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated South Korea tire market size at USD 3.94 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects South Korea tire market size to grow at a significant CAGR of 5.31% reaching a value of USD 5.62 billion by 2029.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated South Korea tire market size at USD 3.94 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects South Korea tire market size to grow at a significant CAGR of 5.31% reaching a value of USD 5.62 billion by 2029. The significant industrial growth and the country's thriving automobile industry are major factors driving the growth of the South Korea tire market. Because of South Korea's high rate of automobile production, the size of the vehicle fleet is growing. Also, the country is the world's fifth-largest producer of passenger automobiles, and exports have long been the auto industry's top priority. Tire prices have decreased due to competition among tire manufacturers, which is expected to support market growth during the forecast period. Increasing electric vehicle usage, rising car exports, and supportive government policies are a few other major drivers of growth in the South Korea tire market. However, the dependence on imports of raw materials could limit the South Korea tire markets’ expansion.
South Korea Tire Market – Overview
To ensure a safe and pleasurable ride, tires, one of a car's most noticeable parts, need to be checked and maintained regularly. Ensuring a steady connection between the car and the road, they are crucial in preserving proper grip and traction and ensuring a safe driving experience. Therefore, the top tire producers are working hard to produce and distribute durable tires across South Korea, which is likely to help the nation's tire sector grow during the forecast period.
Impact of COVID-19 on South Korea Tire Market
Covid-19 severely impacted the majority of South Korean businesses, including the tire industry, which was particularly hard hit. When the government enacted stringent movement restrictions, lockdowns, and travel bans to stop the spread of this terrible virus, the tire industry encountered several first-ever difficulties with the design, manufacturing, and distribution of tires across the country. Together with other problems, the sector faced a shortage of workers and raw materials, was unable to import or export cars and tires, was seeing a decline in customer demand, and had to close many manufacturing facilities. Because it was unclear how long these limits would last, the general public showed a paradigm change in their spending patterns by restricting themselves to necessities.
South Korea Tire Market - By Rim Size
On basis of rim size, South Korea tire market is divided into Below 15 inches, 15–20 inches, and Above 20 inches segments. The less than 15 inches segment dominates the market share. There would likely be a large amount of growth during the forecast period. The tire comes in a variety of sizes and is sold on the South Korean tire market. There are many different tire sizes available for different vehicle types and layouts. The demand for tires has increased due to rising fuel prices, growing concerns about pollution and climate change, and a shift in consumer preference toward electric vehicles.
South Korea tire market is fiercely competitive. Major companies in the market include Hankook Tire, Kumho Tire, Nexen Tire, GT Radial, NEXEN Tire Corporation, KUMHO TIRE Co., Inc., Nexen Tire America Inc., Hankook Tire & Technology Co., Ltd., Kumho Tire U.S.A., Inc., and GITI Tire. These companies use various strategies, including increasing investments in their R&D activities, mergers, and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in the South Korea tire market.
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