Report Description

Forecast Period

2018-2028

Market Size (2023)

USD 1.2 Billion

CAGR (2023-2028)

2.1%

Fastest Growing Segment

Radial

Largest Market

Central

 

Market Overview

Singapore Tire Market has valued at INR 2284.44 Crore in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 9.81% through 2028. The Singapore tire market is a vibrant and dynamic segment within the automotive industry. It encompasses a wide range of tire brands and manufacturers, serving diverse vehicle types, including passenger cars, commercial vehicles, and motorcycles. Passenger car tires dominate the market due to the high ownership rate of private vehicles in the country, but commercial vehicles and motorcycle tires also hold significant shares. The tropical climate influences consumer preferences, leading to demand for all-season tires for versatility and specialized wet weather tires for enhanced traction during the rainy season. As a bustling city with a growing population of luxury and high-performance vehicle owners, there is also an increasing demand for high-performance tires that offer superior grip, handling, and braking capabilities.

Safety features such as run-flat tires and tire pressure monitoring systems (TPMS) are valued by safety-conscious consumers. The Singaporean government enforces strict regulations on tire safety standards to ensure consumer protection. In line with global trends, the market is witnessing a rising interest in sustainability, with tire manufacturers and retailers adopting eco-friendly practices and exploring tire recycling initiatives. Technological advancements in tire design and materials are also prevalent, catering to consumers seeking improved fuel efficiency, longer tread life, and enhanced driving experiences. The Singapore tire market continues to evolve, with a focus on safety, performance, sustainability, and technological innovation to meet the demands of a dynamic and environmentally conscious urban landscape.

Key Market Drivers

Government Regulations

Government policies and regulations can significantly influence the tire market. In Singapore, there are strict regulations concerning tire safety standards, including requirements for minimum tire tread depth and other safety specifications. These regulations aim to ensure that vehicles on the road maintain optimal safety levels. Furthermore, the government might introduce regulations to encourage the use of eco-friendly tires that have lower rolling resistance and reduce carbon emissions, thus promoting sustainability and environmental consciousness.

Seasonal Variations

Singapore experiences a tropical climate with wet and dry seasons. During the wet season, which typically occurs between November and January, heavy rainfall and increased chances of flooding occur. As a result, there may be higher demand for tires suitable for wet weather conditions, such as all-season tires with improved grip or specialized wet weather tires. Conversely, during the dry season, tires that prioritize fuel efficiency and longevity might be in higher demand.

Tire Technology and Innovation

Advancements in tire technology play a crucial role in driving tire sales. Consumers are often drawn to tires with innovative features that improve performance, safety, and fuel efficiency. For example, run-flat tires are designed to allow a vehicle to continue driving safely for a limited distance even after a puncture, reducing the need for immediate tire replacement. Eco-friendly tires with low rolling resistance can help improve a vehicle's fuel efficiency, reducing both fuel consumption and emissions. Consumers seeking longer-lasting tires might opt for tires with advanced tread compounds that offer extended tread life.

Competitions and Events

Singapore's involvement in motorsports events and competitions can drive tire sales, especially in the performance and high-performance tire segments. Hosting or participating in events such as Formula 1 races or other motorsports competitions can create a heightened interest in performance-oriented tires. Motorsport enthusiasts and drivers may seek high-quality tires with superior grip and handling characteristics to enhance their driving experience on and off the track.

Tire Import and Export

Singapore's role as a regional trade hub enables the import and export of tires. Trade agreements and fluctuations in international tire prices can influence the local market. If import tariffs are reduced or eliminated, it may lead to increased tire imports, affecting the dynamics of domestic tire suppliers and manufacturers. Similarly, changes in the global tire market can impact tire exports from Singapore to other countries.

Consumer Awareness and Education

Consumer awareness about tire safety, maintenance, and the benefits of using high-quality tires can significantly impact tire demand. When consumers are educated about the importance of regular tire maintenance, including proper inflation and alignment, they are more likely to replace their tires, when necessary, rather than postponing replacement until necessary. Furthermore, awareness of the benefits of premium tires, such as improved performance, safety, and longevity, can lead to increased demand for higher-priced tires in the market.



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Key Market Challenges

Import Dependency

Singapore relies heavily on tire imports due to limited local tire manufacturing capabilities. Changes in international trade policies, geopolitical tensions, and currency fluctuations can impact import costs and supply chain stability, affecting the availability and pricing of tires in the market.

Tire Recycling and Waste Management

Proper tire disposal and recycling are essential for environmental sustainability. Used tires can create environmental hazards if not disposed of correctly. Tire manufacturers and retailers may face challenges in managing tire waste and adhering to regulations related to tire recycling and disposal.

Increasing Raw Material Costs

The tire manufacturing process heavily depends on natural rubber and other raw materials. Fluctuations in the prices of these materials can impact production costs for tire manufacturers. If the costs rise significantly, manufacturers might pass the burden onto consumers in the form of higher tire prices.

Shift Towards Public Transportation and Shared Mobility

Singapore has a well-developed public transportation system and supports various shared mobility options. As the government promotes sustainable and efficient transportation, some individuals might opt for public transit or shared mobility services instead of owning personal vehicles. This shift can impact tire sales and reduce overall demand.

Key Market Trends

Growing Demand for High-Performance and Eco-Friendly Tires

Singapore is known for its high-income population and strong affinity for luxury and high-performance vehicles. As a result, there could be an increasing demand for high-performance tires among consumers who own premium cars, sports cars, and luxury sedans. High-performance tires are engineered to provide superior traction, handling, and braking capabilities, enhancing the driving experience for performance-oriented drivers.

Additionally, Singapore places a significant emphasis on environmental sustainability and green initiatives. This could drive a parallel trend of increased demand for eco-friendly tires. Eco-friendly tires are designed with materials and tread patterns that reduce rolling resistance, leading to improved fuel efficiency and lower carbon emissions. Environmentally conscious consumers may opt for these tires to minimize their ecological footprint while enjoying a smooth and efficient driving experience.

Electric Vehicle Tire Segment Growth

The global shift towards electric vehicles has not bypassed Singapore. As the government and consumers prioritize sustainable mobility solutions, the adoption of electric vehicles is expected to increase. Electric vehicles have specific tire requirements due to their weight distribution and the need for energy-efficient tires to maximize their range. Therefore, the tire market in Singapore may see a surge in demand for tires designed specifically for electric vehicles.

Electric vehicle tires often have higher load-carrying capacities to support the additional weight of batteries. They are also engineered with lower rolling resistance to improve energy efficiency and extend the vehicle's driving range. Tire manufacturers might invest in developing specialized EV tires to cater to the growing market of electric vehicle owners.

Tire Recycling and Sustainability Initiatives

Singapore places a strong emphasis on sustainability and environmental conservation. In the tire industry, there is a growing awareness of the need to reduce waste and minimize the environmental impact of tires. Tire manufacturers and retailers may explore initiatives to promote tire recycling and the use of recycled materials in tire production.

Recycling initiatives could involve partnerships with recycling facilities to ensure proper disposal and recycling of used tires. Some tire manufacturers have already started using recycled materials in tire production to reduce their carbon footprint and support a circular economy. Eco-friendly marketing strategies might also gain prominence, appealing to environmentally conscious consumers who value sustainable products.

Segmental Insights

Vehicle Type Insights

The passenger car tire segment dominates the Singaporean tire market, driven by the high ownership rate of private vehicles. Consumers in this segment prioritize safety, comfort, and performance. There is a growing demand for high-quality tires that offer better grip, handling, and fuel efficiency, especially among luxury and high-performance car owners. Additionally, all-season tires are popular due to the country's tropical climate, providing convenience without the need for seasonal tire changes.

Tire Construction Type Insights

Radial tires have gained significant popularity in the Singaporean tire market over the years. Radial tire technology involves layers of cords that run perpendicular to the tire's direction of travel, providing better stability, improved traction, and reduced rolling resistance. These tires offer a smoother and more comfortable ride, making them a preferred choice for passenger cars and high-performance vehicles. The increasing adoption of radial tires is also influenced by their better fuel efficiency, which aligns with consumer demands for eco-friendly and cost-effective solutions.

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Regional Insights

The CBD and urban areas of Singapore exhibit a significant concentration of vehicles, owing to their stature as key business hubs and residential centers. These regions witness a substantial presence of passenger cars, luxury vehicles, and commercial fleets, thereby fueling the demand for a diverse range of tires tailored to different vehicle types and purposes. Notably, private passenger cars dominate the automotive landscape in urban areas. Given their relatively frequent replacement requirement compared to commercial vehicle tires, the demand for passenger car tires remains consistently high. In urban areas, consumers often exhibit diverse preferences when it comes to tire choices. While some prioritize performance and safety, opting for high-quality tires that offer enhanced grip, handling, and fuel efficiency, others may seek all-season tires that can accommodate the tropical climate of the city without necessitating seasonal tire changes.

Recent Developments

  • In 2023, Michelin has partnered with DHL to test airless tires on Singapore roads. Around 50 DHL vans used Michelin UPTIS airless tires for their last miles deliveries in Singapore.
  • Pirelli has officially unveiled the tire allocation for the upcoming 2022 F1 Singapore Grand Prix and the Japanese Grand Prix. As anticipated, Pirelli has opted for the hardest tire configurations for the F1 Japanese Grand Prix at Suzuka. Interestingly, for the Singapore race, Pirelli has chosen the softest tire configuration for the weekend. This decision raises some curiosity, considering the nature of a street circuit like Singapore. Notably, Pirelli made a similar choice for the Monaco Grand Prix as well.

Key Market Players

          ·         Bridgestone Asia Pacific Pte Ltd

          ·         Continental Automotive Singapore Pte Ltd

          ·         Goodyear Singapore Pte Ltd

          ·         JK Tyre & Industries Limited

          ·         Kumho Tire Singapore Pte Ltd

          ·         Hankook Tire Singapore Pte Ltd

          ·         Pirelli Asia Pte Ltd

          ·         Yokohama Tire (Singapore) Pte Ltd

          ·         Michelin Asia-Pacific Pte Ltd.

          ·         Toyo Tire Asia Co Ltd


 By Vehicle

By Demand Category

By Tire Construction

By Tube

By Region

       Passenger Cars

       Light Commercial Vehicles

       Medium & Heavy Commercial Vehicles

       Two-Wheelers

       Off Road Vehicles (OTR)

       OEM

       Aftermarket

       Radial

       Bias

       Tube

       Tubeless

       North-East

       Central

       West

       East

       North

 

Report Scope:

In this report, the Singapore Tire Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • Singapore Tire Market, By Vehicle Type:

o   Passenger Cars

o   Light Commercial Vehicles

o   Medium & Heavy Commercial Vehicles

o   Two-Wheelers

o   Off Road Vehicles (OTR)

  • Singapore Tire Market, By Demand Category:

o   OEM

o   Aftermarket

  • Singapore Tire Market, By Tire Construction Type:

o   Radial

o   Bias

  • Singapore Tire Market, By Tube Type:

o   Tube

o   Tubeless

  • Singapore Tire Market, By Region:

o   North-East

o   Central

o   West

o   East

o   North

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Singapore Tire Market.

Available Customizations:

Singapore 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).
Singapore 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]   

Table of content

1.    Introduction