Burning rubber: Federal mandates on fuel efficiency will increase demand for tire replacements

The Tire Dealer industry is expected to grow over the five years to 2017, 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 personal vehicles over public transportation. As the number of vehicle miles expands, demand for tires and maintenance services increases as well, benefiting the industry. Additionally, individuals are more likely to purchase premium tires, such as low-rolling resistant tires, aiding revenue growth. The Tire Dealers industry is expected to continue growing in the next five years, as increasing tire sales lift revenue and encourage more dealers to join the industry...read more.

Industry Statistics & Market Size
Revenue
$39bn
Annual Growth 12-17
1.0%
Forecast Growth 17-22
Profit
Employment
194,466
Businesses
35,530
What Our Customers Say

Industry Threats & Opportunities

  • Robust demand for fuel-efficient tires helps keep industry profit afloat
  • 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 Report - Industry SWOT Analysis Chapter

    The industry is in the mature stage of its life cycle. Its industry value added (IVA), which measures the industry’s contribution to the overall economy, is forecast to grow at an annualized rate of 0.4% over the 10 years to 2022. By comparison, GDP is projected to increase at an annualized rate of 2.0% over the same period, indicating that the industry is growing slower than the economy as a whole. Technological change among some external competitors has increased pressure on tire dealers over the past decade. Internet-based tire sellers, which are not included in this industry, offer tires at lower prices than most tire dealerships. How...purchase to read more.

    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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    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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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

  • 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 middle income bracket
  • Consumers in the highest 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
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation
  • Chart: Cost Structure Benchmarking – Sector vs Tire Dealers

  • Basis of Competition
  • Internal
  • External

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

  • Industry Globalization
    Discount Tire DirectSumitomo Corporation
  • Table: Discount Tire Direct - financial performance
  • Table: Sumitomo Corporation - financial performance

  • 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
    Table: Industry Data for the Tire Dealers Industry
    Includes:
  • 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
    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’s Industry Market Report on Tire Dealers is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    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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