Australia Tyre Market Overview, 2029

The Australian tyre market has undergone significant evolution since its inception in the late 19th century, reflecting broader trends in automotive technology and consumer preferences. The first rubber tyres were imported in the 1890s alongside the advent of the automobile, setting the stage for local production. By the 1920s, Australian manufacturers began to emerge, notably with companies like Dunlop and Goodyear establishing operations. The post-World War II boom in car ownership saw a surge in tyre demand, driven by an expanding economy and an increasing number of vehicles on the roads. Historically, the market has been shaped by various factors, including advancements in technology, shifts in consumer behavior, and regulatory changes. The introduction of radial tyres in the 1970s revolutionized the industry, offering better performance and longevity compared to traditional cross-ply tyres. This innovation led to a marked increase in the replacement tyre segment, which remains a significant portion of the market today. In recent years, the rise of environmental consciousness has spurred interest in sustainable practices within the tyre industry, including the development of eco-friendly tyres and recycling initiatives. The current Australian tyre market is characterized by a diverse range of products, including passenger car tyres, light truck tyres, and heavy-duty commercial tyres. The demand for tyres is closely linked to the overall health of the automotive sector, with fluctuations in vehicle sales directly impacting tyre sales. Furthermore, the growing popularity of SUVs and light trucks has influenced tyre design and marketing strategies, as consumers increasingly seek tyres that provide enhanced performance on varied terrains.

According to the research report, "Australia Tyre Market Outlook, 2029," published by Bonafide Research, the Australia Tyre market is anticipated to add to more than USD 1500 Million by 2024–29. The Australian tyre market has experienced notable growth in recent years, driven by several key factors including rising vehicle ownership, increased demand for high-performance tyres, and a growing focus on sustainability. As the automotive landscape evolves, the market is shifting toward premium products, with consumers seeking tyres that offer better performance, safety, and fuel efficiency. This trend has been particularly pronounced with the increasing popularity of SUVs and light trucks, which have specific tyre requirements that manufacturers are keen to address. Key players in the Australian tyre market include both global and local brands. Major multinational companies such as Michelin, Bridgestone, Continental, and Goodyear dominate the landscape, offering a wide range of products tailored to various segments. These companies invest heavily in research and development to introduce innovative technologies, such as advanced tread designs and eco-friendly materials. Local manufacturers like Dunlop and Falken also play a significant role, catering to niche markets and providing tailored solutions that meet Australian conditions. The rise of electric vehicles (EVs) is one of the most significant developments, prompting manufacturers to create tyres specifically designed for the unique requirements of EVs, such as lower rolling resistance and noise reduction. Additionally, the push towards sustainability is reshaping product offerings, with increased emphasis on recycling, sustainable sourcing of materials, and eco-friendly manufacturing processes. Companies are exploring alternative materials, such as bio-based rubbers, to meet consumer demands for greener products.

Passenger Car Tyres dominate the market, driven by the high number of registered vehicles. As consumer preferences shift toward safety and performance, manufacturers are investing in advanced technologies to enhance grip, durability, and fuel efficiency. The demand for premium and high-performance tyres has risen, particularly among urban drivers seeking improved handling and comfort. Commercial Light Weight Tyres cater to light commercial vehicles, including vans and small trucks. This segment has seen growth due to the rise of e-commerce and the corresponding demand for last-mile delivery solutions. These tyres focus on balancing load capacity with fuel efficiency, appealing to businesses looking to reduce operational costs. Commercial Heavy Tyres serve larger trucks and transport vehicles. With Australia's expansive freight industry, this segment is critical for logistics and long-haul transportation. Demand is increasing for tyres that offer superior durability and lower cost-per-kilometre, prompting developments in robust materials and tread designs that can withstand harsh conditions. Two-Wheeler Tyres are also gaining traction, influenced by the growing popularity of motorcycles and scooters, particularly in urban areas where they offer a convenient and efficient mode of transport. Manufacturers are innovating in this space, focusing on enhancing grip and stability for better safety and performance. Three-Wheeler and Other Tyres include those for utility vehicles and specialty applications. While this segment is smaller, it supports niche markets like agriculture and local delivery services. The development of all-terrain and off-road tyres is notable here, catering to specific needs in rural and rugged environments.

Radial tyres have become the dominant design in the Australian market, particularly for passenger vehicles and light trucks. Characterized by their construction, where the cord plies run radially from the center of the tyre, they offer several advantages over bias ply tyres. The key benefits include better fuel efficiency, improved handling, and increased tread life. The flexibility of the sidewalls in radial tyres enhances ride comfort, while the stiffer tread design provides better grip and stability. In response to growing consumer demands for performance and sustainability, manufacturers in Australia have introduced several innovative initiatives within the radial tyre segment. For example, advancements in material technology have led to the development of eco-friendly compounds that reduce rolling resistance and improve fuel economy. Some companies are also investing in smart tyre technologies, integrating sensors that monitor tyre pressure, temperature, and tread wear in real-time. This data allows drivers to maintain optimal tyre conditions, enhancing safety and extending the lifespan of the tyres. Bias ply tyres, on the other hand, feature a construction where the plies are laid at a diagonal angle, which historically provided certain advantages such as enhanced toughness and puncture resistance. While their popularity has waned in the face of radial tyre advancements, bias ply tyres still have niche applications, particularly in off-road and agricultural vehicles, where their robustness is highly valued. In Australia, the demand for bias ply tyres remains steady in specialized sectors like agriculture and construction, where durability and load-bearing capacity are paramount. Innovations in this category have focused on enhancing performance in rugged terrains. For instance, manufacturers have developed bias ply tyres with improved tread designs that offer better traction in muddy or uneven conditions.

OEM tyres are supplied directly to vehicle manufacturers and are fitted to new cars, trucks, and other vehicles during production. These tyres are designed to meet specific performance and safety standards set by the manufacturers, ensuring compatibility with the vehicle's design. The distribution channel for OEM tyres typically involves partnerships between tyre manufacturers and automakers, with contracts in place that facilitate bulk supplies to assembly plants. This segment is characterized by relatively stable demand, as it directly correlates with new vehicle sales. In contrast, the replacement tyre segment caters to consumers looking to replace worn or damaged tyres on their existing vehicles. This segment is significant in Australia, as it encompasses a wide variety of tyre types, including passenger car tyres, light truck tyres, and more specialized options like 4x4 and performance tyres. Distribution channels for replacement tyres are more diverse, involving a mix of retail outlets, independent tyre shops, online platforms, and automotive service centers. Many consumers prefer to purchase replacement tyres through established retailers where they can receive expert advice and installation services. Online sales are also gaining traction, with numerous e-commerce platforms offering competitive pricing and convenience for consumers.

COVID-19 Impact
The Covid-19 pandemic affected almost every industry vertical across the globe and the tire market in the region of North America was no exception. The enforcement of lockdowns along with the travel restrictions across countries significantly affect the tire market. The situation of lockdowns caused production in the automobile industry to stop which affected the demand from the OEM sector. On the other hand the market was also observing decline from the replacement sector during the pandemic as the requirement for new tires declined.

Key Players
Apollo Tires, Bridgestone, CEAT Tires, Continental, Giti, Goodyears Tires, Hankook, JK tires, Kenda Kumho, Maxxis International, Michelin, MRF, Nexen Tire Corp, Nokian Tires, Pirelli, Sailun Group Co., Ltd, Sumitomo Rubber Industries, Titan International , Toyo Tire Corporation, Triangle Tire Co, Zhongce Rubber Group Co, Yokohama, Doublestar Tire, Linglong, Nankang

Considered in the report
• Geography: Australia
• Base Year: 2023
• Historical year: 2018
• Forecasted Year: 2029

Aspects covered in the report
• Market Size by Value (2018-2029F)
• Market Size by Volume (2018-2029F)
• Market Share by Vehicle Type
• Market Share by End Use
• Market Share by Design
• Market Share by Sales Channel
• Market Share by Country

The approach of the report:
We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

Intended Audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Automotive and Transport industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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