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

The Tire Dealers industry is expected to grow over five years to 2018, as an expanding 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 personal vehicles over public transportation. As the number of vehicle miles expands, demand for tires and maintenance services increases as well, benefiting the industry. Overall the Tire Dealers industry is expected to continue growing over the next five years...purchase to read more.

Industry Statistics & Market Size
Revenue
$41bn
Annual Growth 13-18
1.5%
Forecast Growth 18-23
Profit
Employment
201,384
Businesses
35,540

Industry Threats & Opportunities

  • To combat mounting price pressure from external competition, major tire dealers are acquiring smaller companies
  • Major tire dealers acquired struggling operations to increase their market share
  • Industry trends are expected to positively affect revenue growth
  • Industry Report - Industry Locations Chapter

    The Tire Dealers industry is highly dispersed, with a significant presence in every region of the United States. Different tire dealerships tend to dominate in specific regions, with many dealerships doing business in a region upward of 50 years. For example, privately held Les Schwab Tire Centers have sold tires in Oregon, California and Washington since the 1950s; today, Les Schwab tire dealers are the most widespread in the West region. California alone accounts for 11.2% of establishments in the industry, with the West accounting for 16.0%.Overall, tire dealers tend to locate their businesses in areas with a high vehicle population. These areas tend to commute via car, rather than public transportation. The New England region has 4.6% o...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 Average age of vehicle fleet in the Tire Dealers industry impact industry performance..

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    What's in this report

    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 tires
  • Medium- and heavy-duty truck tires
  • Light-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
  • Average age of vehicle fleet
  • Per capita disposable income
  • Price of new cars
  • Consumer Confidence Index
  • World price of rubber

  • Current Performance
  • External influences dictate growth
  • 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
  • Passenger tires
  • Medium- and heavy-duty truck tires
  • Automotive services
  • Light-truck tires
  • Off-road tires
  • Farm tires
  • Chart: Tire Dealers Industry Products and Services Segmentation

  • Demand Determinants
  • Seasonality

  • Major Markets
  • Consumers in the middle 40% income bracket
  • Consumers in the highest 20% income bracket
  • Consumers in the lowest 40% income bracket
  • Commercial clients, including construction and mining companies
  • Retailers, wholesalers and repair shops for resale
  • Government bodies and miscellaneous buyers
  • 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
    InternalExternal
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tire Dealers Industry

  • Industry Globalization
    Discount Tire Direct, Sumitomo 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • US Replacement Tire Shipments (2009-2023)

  • 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.
  • What Our Customers Say

    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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