Fast car: Federal mandates on fuel efficiency will increase demand for tire replacements

The Tire Dealers Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.


Industry Threats & Opportunities

  • Operators are experiencing competition from e-commerce and big-box retailers
  • Major tire dealers acquired struggling operations to increase their market share
  • The most important implication for industry revenue is the total vehicle miles driven per year
  • Industry Analysis & Industry Trends

    The Tire Dealer industry is expected to grow in the five years to 2016, as an improving economy enables more consumers to purchase premium replacement tires. Rising per capita disposable income has led to an increase in vehicle miles as more families can afford cars and commuters are choosing to use their vehicles over public transportation. As the number of vehicle miles expands, demand for tires and maintenance services increases as well, benefiting the industry. In the coming years, federal mandates on fuel efficiency will increase demand for niche tires such as low-rolling resistance tires, which require replacement more often and come along with larger price tags.

    Industry Report - Starting a New Business Chapter

    The industry has low barriers to entry, with no licensing requirements or government regulations. Tire supplies can be easily secured from tire wholesalers, of which there is no shortage. While entry into the industry is ostensibly easy, most regions have long-established tire dealerships. Any new entrant must be able to establish a loyal customer base and provide superior service at competitive prices. Lasting dealerships often serve the same communities for years. Those business relationships tend to

    extend further than just good prices; customers expect a certain level of service and attention.

    External competitors, especially new

    car dealerships and mass merchandisers, have an early advantage with customers. The

    Additional Insights for the Tire Dealers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Tire Dealers Industry are

  • Economies of scale
  • Effective inventory management
  • Developing a strong customer base
  • IBISWorld analysts also discuss how external factors such as Total vehicle miles and Per capita disposable income in the Tire Dealers industry impact industry performance..

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    Industry Products

    What is the Tire Dealers Industry?

    The Tire Dealers industry retails tires and tire tubes for passenger cars, sport-utility vehicles and commercial trucks. Businesses that offer maintenance services in addition to tire sales are included in this industry; however, mail order and online tire sellers are excluded.

    Industry Products
    Automotive services
    Passenger car and light-truck tires
    Medium- and heavy-duty truck tires
    Farm tires
    Off-road tires
    Industry Activities
    Automotive tire sales and installation
    Automotive repair and maintenance services
    Medium and heavy truck tire sales

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Total vehicle miles
  • Per capita disposable income
  • Consumer Confidence Index
  • Demand from car and automobile manufacturing
  • Average age of vehicle fleet

  • Current Performance
  • External influences dictate growth
  • Rising demand leading to rising competition
  • Commercial revival
  • Chart: Revenue Growth

  • Industry Outlook
  • Return to growth
  • Changes ahead
  • Modest profit growth
  • Table: Tire Dealers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tire Dealers Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Mining
  • Long-Distance Freight Trucking
  • Scheduled and Charter Bus Services
  • Consumers

  • Key Selling Industries
  • Tire Wholesaling

  • Products & Services
  • Automotive services
  • Passenger car and light-truck tires
  • Medium- and heavy-duty truck tires
  • Off-road tires
  • Farm tires
  • Chart: Tire Dealers Industry Products and Services Segmentation

  • Demand Determinants
  • Seasonality

  • Major Markets
  • Consumers in the highest income bracket
  • Consumers in the middle income bracket
  • Consumers in the lowest income bracket
  • Businesses and government bodies
  • Trucking companies
  • Construction and mining companies
  • Farmers
  • Chart: Major Market Segmentation for the Tire Dealers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Tire Dealers

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tire Dealers Industry

  • Industry Globalization
    Major Companies
    Discount Tire Co. Sumitomo Corporation
  • Table: Discount Tire Co. - financial performance
  • Table: Sumitomo Corporation - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Tire Dealers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Tire Dealers Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • US Replacement Tire Shipments (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Big-Box Stores
  • A retailer that offers a variety of products, including tires, at a discount to the consumer
  • Retread
  • A used tire that has been remanufactured using specialized equipment to increase the life of the tire up to 10 times.
  • Rolling Resistance
  • Drag created by friction between the tire and the road surface; low-rolling resistance tires reduce not only fuel consumption but also tire durability.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Tire Dealers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Tire Dealers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Tire Dealers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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