BURNABY, Canada—Germany's tire market is set to have a compound annual growth rate of more than 7 percent until 2020, according to a study from TechSci Research.
“Rise in automobile production and sales coupled with growth in research and development investments (will) drive the tire market in Germany over the next five years,” said the report released by the Burnaby-based firm.
“With presence of premium tire players like Continental, Michelin, Pirelli, Goodyear (and) Bridgestone, Germany is one of the most competitive tire markets in the world,” the report noted.
The study cited factors such as new purchasing patterns, an expanding consumer base, increasing urbanization and introduction of electric and hybrid vehicles as key to increasing growth in Germany's tire market.
According to the report, the German automotive industry accounts for more than 30 percent of total passenger cars manufactured across the globe. Consequently, it said, tire sales in Germany are anticipated to grow with a consistent rate during the forecast period.
“Apart from quenching huge domestic demand, Germany also caters to the demand of various international automobile markets across the globe. Three-fourths of cars produced in Germany are exported to the outside world, thereby boosting the OEM tire market in the country,” the study added.
The report went on to say that the passenger car segment was dominated by small- and medium-car tires, and that it was anticipated to remain the major shareholder in Germany tire market during the forecast period.
Moreover, the report predicted that the adoption of eco-friendly tires was expected to increase in Germany over the next five years.