|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD
0.83 Billion
|
|
CAGR
(2023-2028)
|
4.81%
|
|
Fastest
Growing Segment
|
Radial
|
|
Largest
Market
|
South-Island
|
Market Overview
New Zealand Tire Market has
valued at USD 0.83 Billion in 2022 and is anticipated to project robust growth
in the forecast period with a CAGR of 4.81% through 2028. The tire market in
New Zealand plays a crucial role in the automotive and transportation sectors
of the country. As an island nation with a diverse landscape and a high rate of
vehicle ownership, the demand for tires is significant. This overview provides
insight into the key aspects of the New Zealand tire market, including factors
driving demand, market trends, competition, and regulatory considerations. The
New Zealand tire market is heavily influenced by the country's geographical
characteristics and climate diversity. From urban commuting to rugged off-road
adventures, the range of driving conditions necessitates a variety of tire
types, including all-season, winter, and specialized off-road tires. The market
caters to a wide range of vehicles, including passenger cars, SUVs, trucks, and
agricultural machinery. The country's robust automotive sector, coupled with a
high vehicle ownership rate, drives the demand for tires. New Zealand's economy
relies on agriculture and tourism, contributing to the use of commercial
vehicles and rental fleets, which further boosts the tire market. Additionally,
the prevalence of outdoor activities such as camping, and sports also spurs the
demand for specialty tires. Consumer safety and environmental concerns are
shaping the tire market. Regulations on tire labeling, rolling resistance, and
noise emissions are becoming increasingly important. Consumers are becoming more
conscious of the environmental impact of their choices, leading to a demand for
eco-friendly and fuel-efficient tires that align with New Zealand's commitment
to sustainability. The tire market in New Zealand experiences competition from
both domestic and international tire manufacturers. Global tire brands have a
significant presence, offering a wide range of tire options to cater to
different customer preferences and budgets. Local tire retailers and
distributors also play a crucial role in the market, ensuring accessibility and
availability of tires across the country. The tire retail landscape is evolving
with the digital age. Online tire sales and e-commerce platforms have gained
traction, providing customers with convenient options to compare prices, read
reviews, and purchase tires online. This trend underscores the increasing
importance of digital presence and customer engagement for tire retailers.
Key Market Drivers
Geographical
Diversity and Driving Conditions
New Zealand's unique geography,
which includes urban areas, rugged terrains, and varied climates, necessitates
a diverse range of tires. Consumers require different tire types to navigate
varying road surfaces, weather conditions, and terrains, from urban streets to
off-road tracks. This geographical diversity drives the demand for specialized
tires suited for all-season, winter, and off-road driving.
High
Vehicle Ownership Rate
New Zealand has a
relatively high vehicle ownership rate compared to its population, resulting in
a steady demand for tires. As the number of vehicles on the road increases, so
does the need for replacement tires due to wear and tear. Both individual
consumers and commercial fleet owners contribute to the consistent demand for
tires across various vehicle segments.
Emphasis
on Road Safety and Regulations
New Zealand places a
strong emphasis on road safety. The country has regulations in place that
mandate regular vehicle inspections and safety checks, including tire condition
and tread depth. These regulations drive the need for high-quality tires that
meet safety standards, ensuring that vehicles are equipped with tires capable
of providing adequate grip and traction.
Environmental
Awareness and Sustainability
Environmental
consciousness is influencing consumer choices, even in the tire market.
Consumers are increasingly seeking eco-friendly and fuel-efficient tire options
that align with sustainability efforts. Tires with lower rolling resistance
contribute to improved fuel efficiency and reduced carbon emissions, making
them appealing to environmentally conscious consumers.
Technological
Advancements
Technological innovation
is driving the development of tires with enhanced performance, safety features,
and durability. Advanced tire technologies, such as run-flat tires,
self-sealing tires, and smart tire sensors, are gaining traction in the New
Zealand market. These technologies offer convenience, safety benefits, and
peace of mind for consumers.
Diverse
Vehicle Mix
The New Zealand tire
market caters to a diverse mix of vehicles, including passenger cars, SUVs,
trucks, vans, and agricultural machinery. Each vehicle type has specific tire
requirements based on factors such as load capacity, traction needs, and
intended usage. The range of vehicle types contributes to the demand for a wide
variety of tire sizes and specifications.
Tourism
and Outdoor Activities
New Zealand's reputation
as a tourist destination and its outdoor-oriented lifestyle contribute to the
demand for tires. The country's natural beauty and adventure activities drive
tourism and recreational vehicle usage, leading to a need for specialty tires
that can handle off-road terrain and provide reliability during outdoor
adventures.
Digitalization
and Online Retail
The rise of e-commerce and
online retail has transformed the tire market. Consumers now have the option to
research, compare, and purchase tires online. Online platforms provide
convenience, price transparency, and access to a wide range of tire options,
reshaping how consumers engage with tire retailers.
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Key Market Challenges
Diverse
Driving Conditions
New Zealand's diverse
geography and weather conditions pose a significant challenge for the tire
market. From urban city streets to remote rural areas and mountainous terrains,
the country experiences varying road conditions. Tires need to perform
effectively across a range of surfaces, including wet roads, icy paths, and
gravel tracks. Meeting these diverse requirements and ensuring optimal tire
performance under different conditions is a challenge for manufacturers and
retailers.
Road
Safety and Consumer Awareness
Despite stringent safety
regulations, ensuring that consumers are aware of the importance of tire
maintenance and replacements remains a challenge. Many drivers may overlook
tire tread depth, inflation levels, and general tire condition. This lack of
awareness can compromise road safety and vehicle performance. Raising awareness
about regular tire inspections and replacements is crucial for reducing
accidents caused by worn-out or improperly maintained tires.
Environmental
Impact
The tire market faces
pressure to address the environmental impact of tire disposal and production.
Proper tire disposal, recycling, and minimizing waste are essential to reduce
the environmental footprint. Ensuring that tires are disposed of responsibly
and recycling initiatives are implemented effectively is a challenge
that requires collaboration among tire manufacturers, retailers, and regulatory
bodies.
Sustainability
and Fuel Efficiency
As consumer demand for
sustainable options increases, there is a challenge to develop tires that
balance performance with environmental considerations. Consumers expect tires
to contribute to fuel efficiency by reducing rolling resistance. Designing
tires that deliver superior traction and performance while also minimizing fuel
consumption presents a technical challenge for manufacturers.
Regulatory
Compliance
The tire market is subject
to regulatory requirements related to safety, labeling, and emissions.
Compliance with these regulations requires manufacturers and retailers to
ensure that the tires they offer meet the specified standards. Staying updated
with evolving regulations and adapting product offerings accordingly is
essential to avoid penalties and maintain consumer trust.
Market
Competition and Price Sensitivity
The tire market in New
Zealand is competitive, with both domestic and international brands vying for
consumer attention. Price sensitivity can be a challenge, as consumers often
seek cost-effective options without compromising on quality and performance.
Balancing competitive pricing with the quality and safety of tires is a
constant challenge for retailers and manufacturers.
Digital
Disruption and Online Retail
The rise of online tire
sales introduces challenges related to customer experience, quality assurance,
and distribution. Consumers purchasing tires online might face challenges in
accurately selecting the right tire size and type for their vehicle. Ensuring a
seamless online shopping experience, providing accurate product information,
and addressing potential fitment issues are key challenges in the digital
landscape.
Key Market Trends
Sustainability
and Eco-Friendly Tires
The trend of sustainability is gaining prominence in
the New Zealand tire market. Consumers are increasingly seeking eco-friendly
tire options that reduce their carbon footprint and contribute to fuel
efficiency. Tire manufacturers are developing tires with lower rolling
resistance and innovative materials to meet these demands. The adoption of
sustainable practices aligns with New Zealand's commitment to environmental
conservation.
Technology
Integration
Technological advancements are shaping the tire
market through features like tire pressure monitoring systems (TPMS) and smart
sensors. These technologies provide real-time data on tire pressure and
temperature, enhancing safety and performance. As consumers become more
tech-savvy, the integration of such features is becoming a significant trend
that enhances both convenience and safety.
Preference
for SUVs and Crossovers
The growing preference for SUVs and crossovers is
impacting the tire market. These vehicles offer versatility, higher ground
clearance, and enhanced traction, making them well-suited for New Zealand's
diverse driving conditions. As consumers opt for SUVs and crossovers, the
demand for tires that provide optimal performance across varied terrains is on
the rise.
Online
Tire Retail
The trend of online retail is transforming the way
consumers purchase tires. Online platforms offer convenience, price
transparency, and the ability to compare different tire options. This trend is
influencing tire retailers to establish a strong digital presence, offer
accurate fitment information, and provide seamless online shopping experiences
to meet changing consumer behaviour.
Safety
Awareness and Education
Increased awareness about road safety and tire
maintenance is becoming a trend in the New Zealand tire market. Consumers are
becoming more conscious of the importance of maintaining proper tire tread
depth, inflation, and condition for optimal vehicle performance and safety.
Tire retailers and manufacturers are actively participating in safety campaigns
and educational initiatives to promote safe driving practices.
Alignment
with Regulatory Standards
The New Zealand tire market is aligning with global
and regional regulatory standards related to tire labeling, safety, and
environmental impact. Regulatory compliance is driving the development of tires
that meet safety and environmental requirements. Consumers are more likely to
choose tires that display relevant labeling and comply with standards,
contributing to a safer and more sustainable driving experience.
Focus
on Fitment and Vehicle-Specific Tires
Consumers are becoming more conscious of choosing
tires that are specifically designed for their vehicles. Fitment and
vehicle-specific tires ensure optimal performance, handling, and safety. The
trend of selecting tires tailored to individual vehicle types and usage
patterns is growing, as consumers recognize the importance of making informed
tire choices.
Segmental Insights
Vehicle Type Insights
In New Zealand, passenger vehicles, particularly cars,
play a significant role in the tire market. There are several factors that
contribute to this dominance. Firstly, passenger vehicles account for the
largest proportion of all vehicle types on New Zealand roads. The annual
registration of new passenger cars, combined with the existing fleet, creates a
strong demand for tire replacements and repairs. Secondly, the country's
diverse topography, encompassing both urban and rural terrains with varying
driving conditions, accelerates tire wear and ensures a consistent demand in
the tire market.
Tire Type Insights
In New Zealand, radial tires are more dominant than
bias tires. This dominance can be attributed to several reasons. Firstly,
radial tires provide better fuel efficiency due to their construction that
reduces rolling resistance. Secondly, they offer superior handling and
traction, which is crucial for the diverse and often challenging road
conditions in New Zealand. Lastly, radial tires have a longer lifespan compared
to bias tires, making them a cost-effective choice for consumers.
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Regional Insights
The South Island of New
Zealand boasts the largest tire market out of the two islands, and there are
several key factors that contribute to this dominance. One of the primary
reasons is the South Island's vast rural and agricultural areas, which rely
heavily on heavy machinery and vehicles that require a significant number of
tires. These tire-intensive operations are essential for the smooth functioning
of the agricultural sector, contributing to the high demand for tires in this
region. Moreover, the unique terrain and climate conditions of the South Island
play a crucial role in driving the tire market. The diverse landscapes, ranging
from mountains to coastlines, present various challenges that necessitate
specialized tire types for optimal safety and efficiency. Whether it's
navigating steep mountain roads or traversing wet and slippery coastal areas,
having the right tires is paramount to ensure smooth and reliable
transportation.
Recent Developments
- In 2022, National
Tyre & Wheel Limited (NTAW) which a tyre wholesaler headquartered in
Australia has acquired Carters Tyres Service Limited, C.O. Tire &
Retreading Co. Limited, and Tyre Distributors New Zealand Limited.
- In 2022, New
Zealand government has launched nationwide scheme “Tyrewise” for recycling
of end-to-life tires in the country.
Key Market Players
·
Goodyear Dunlop Tyres
(NZ) Limited
·
Bridgestone Corporation
·
Pirelli & C. S.p.A.
·
Kumho Tire Co., Inc.
·
Hankook Tire Co., Ltd
·
TOYO TIRE & RUBBER
CO., LTD
·
The Yokohama Rubber Co.,
Ltd
·
Balkrishna Industries
Limited
·
Continental AG
|
By
Vehicle Type
|
By
Demand Category
|
By
Tire Type
|
By
Region
|
- Passenger
Car
- Light
Commercial Vehicle (LCV)
- Medium
& Heavy Commercial Vehicles (M&HCV)
- Off-the-Road
Vehicles (OTR)
- Two-Wheelers
- Three-Wheelers
|
|
|
|
Report
Scope:
In this report, the New
Zealand Tire Market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
- New Zealand Tire Market, By Vehicle Type:
o Passenger
Car
o Light
Commercial Vehicle (LCV)
o Medium
& Heavy Commercial Vehicles (M&HCV)
o Off-the-Road
Vehicles (OTR)
o Two-Wheelers
o
Three-Wheelers
- New Zealand Tire Market, By Demand Category:
o OEM
o Replacement
- New Zealand Tire Market, By Tire Type:
o
Radial
o
Bias
- New Zealand Tire Market, By Region:
o South Island
o North
Island
Competitive
Landscape
Company
Profiles: Detailed analysis of the major companies present in
the New Zealand Tire Market.
Available
Customizations:
New Zealand Tire market
report with the given market data, Tech Sci Research offers customizations
according to a company's specific needs. The following customization options
are available for the report:
Company
Information
- Detailed
analysis and profiling of additional market players (up to five).
New Zealand Tire Market is an upcoming report to be
released soon. If you wish an early delivery of this report or want to confirm
the date of release, please contact us at [email protected]