The snow tire market is projected to grow at a CAGR of 4.46% during the forecast period to reach US$27.724 billion by 2026, from US$20.427 billion in 2019. The Snow tires are also known as winter tires. These are designed for use on snow and ice and have a tread design with larger gaps than those on conventional tires which increases friction on snow and ice. Snow tires come in two types, studded tires and stud-less tires. The studded tires possess metal or ceramic studs that protrude from the tire to advance traction on hard-packed snow or ice and tires can be used in temperatures lower than 7 degrees Celsius. The snow tires can also be operated on many surfaces, including muddy areas, wet pavements, dry pavements, and more.
The growth in the automobile industry, particularly in countries with cold climates is one of the major factors for the enhanced growth of the snow tire market. In addition to this, the governments of colder countries mandate the use of snow tires for certain months of the year, which acts as an important driver for the increase in the production of these tires. Besides, many businesses offer discounts on insurance premiums for vehicles that are equipped with snow tires is also expected to propel the global snow tires market. The growing innovation in this market is also fuelling the demand and supply for these tires. For example, Nokian Tyres have recently introduced a new product called, the Nokian Hakkapeliitta 10 EV which is an innovative blend of excellent winter grip with driving comfort and eco-friendliness. The snow tire market is restricted to countries with colder climates and hence this acts as a restraining factor for the growth of this market. Amongst the fundamental trends that influence the snow tire market, winter severity is the most apparent and can have a huge result on the demand for the product. Despite governing support, demand is still highly affected by climate patterns, causing difficulties for manufacturers, distributors, and raw material suppliers to plan and this results in periodical shortages or excess supply. The global snow tire market is segmented into type, vehicle type, and geography.
Based on geography, the snow tire market is segmented into North America, South America, Europe, the Middle East and African, and the Asia Pacific.
Many countries like Poland, Norway, Iceland, Finland, Sweden, the UK, and Russia have harsh winters in Europe which makes driving very challenging for people. And due to this, the governments of these countries have given several incentives and also have mandated some regulations and policies for the use of snow tires which makes the region a profitable market for snow tires worldwide. For instance, in Finland, winter tires are compulsory from 1st December to the end of February which further acts as a major factor that propels the growth of the snow tire market in the country. Likewise, several other countries such as Luxembourg, Bosnia, Croatia, Austria, Czechia, Germany, Montenegro, Slovakia, Slovenia, Sweden, Estonia, and Norway have similar rules that mandate drivers to use snow tires during winters. Such regulations in the world are contributing to the growth of the global snow tires market. Cold countries such as Iceland and Ireland have been observing higher growth in the sales of automobiles. The average temperature in these countries is normally very low during the year. Hence, snow tires are highly favored in these countries for most seasons. In 2020, the use of snow tires has been mandated in Russia by law. There is no crossing snow tire legislation in North America but more and more regions that are constantly affected by ice and snow in the winters are beginning to put up laws. For instance, winter tire usage stands at 69 percent, up from 65 percent last year in the cities in Canada outside Quebec, where the usage of snow tires is mandated by law. In the USA it is greatly suggested to drive with snow tires when driving towards the country's northern parts. Hence, in the coming years, the market is expected to grow more in this region as the climatic conditions and regulations by the government are changing. In Japan, all prefectures except Okinawa require vehicles to be fitted with winter tires. This boosts the growth of the market of snow tires in japan. In 2020, GRI launched off-the-road tires for the Japanese snow tire market, the product provides a strong grip and high traction in deep snow, and also has firm stability in rough use under the toughest of conditions.
Due to the pandemic, most industries were completely shut down for a notable portion of 2020 and although demand is increasing in 2021, there are supply chain disruptions that have caused raw material issues for manufacturers and hence have hampered the production process.
According to the data from the US Tire Manufacturers Association, there was a 25.5% total decline in passenger tire production with full stoppages in March, April, and May in the US. But slowly, the global snow tire market is approaching its pre-COVID levels and a strong growth rate is supposed over the forecast period propelled by the recovery of the economy in most of the nations. Frequent stoppage of public transport operations with the extremely contagious nature of the virus impelled the demand for passenger cars and this further led to the derived demand for Snow Tires.
|Market size value in 2019||US$20.427 billion|
|Market size value in 2026||US$27.724 billion|
|Growth Rate||CAGR of 4.46% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Vehicle Type, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Bridgestone, Michelin, Continental, Nokian Tyres, Goodyear, Nexen tire, Cheng Shin, Pirelli, Toyo Tire, Yokohama|
|Customization scope||Free report customization with purchase|
Key Market Segments
Frequently Asked Questions (FAQs)
Q1. What will be the snow tire market size by 2026?
A1. The snow tire market is projected to reach a market size of US$27.724 billion by 2026.
Q2. What are the growth prospects for the snow tire market?
A2. The global snow tire market is projected to grow at a CAGR of 4.46% over the forecast period.
Q3. What factors are anticipated to drive the snow tire market?
A3. The growth in the automobile industry, particularly in countries with cold climates is one of the major factors for the enhanced growth of the snow tire market.
Q4. What is the size of the global snow tire market?
A4. Snow Tire Market was valued at US$20.427 billion in 2019.
Q5. How is the global snow tire market segmented?
A5. The snow tire market has been segmented by type, vehicle type, and geography.
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