Tire Dealers in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: November 2023
NAICS 44132Revenue
$45.7bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
203k
Businesses
26,278
Wages
$X.Xbn
Tire Dealers in the US industry analysis
Tire Dealers industry retail tires and tire tubes for passenger cars, sport utility vehicles and commercial trucks. The industry has encountered mixed conditions over the past five years. Rising consumer spending at the beginning of the period through 2019, prior to COVID-19, led to increasing vehicle miles, as more families favored personal vehicles over public transportation. Demand for tires and maintenance services strengthened, benefiting the industry. Positive economic conditions also allowed more consumers to purchase premium replacement tires, aiding revenue expansion. However, lower commodity prices and heightened price competition constrained industry revenue growth during the current period. Weak demand during the pandemic due to delaying nonessential purchases and reducing vehicle miles for consumers and commercial operations, alike, further pressured industry performance during the period. Still, industry revenue is expected to rise, inching up at an estimated CAGR of 1.1% to reach $45.7 billion through the end of 2023, including an expected 1.2% boost in 2023 alone.
Trends and Insights
- COVID-19 dealt a substantial blow to tire dealers. Decreased travel resulted in drastically lowered demand for new tires.
- Sales of passenger car tires to individuals continues to be tire dealers' main income source. Demand from these customers fell in 2020 due to the pandemic, though it has since returned.
- Tire dealers tend to locate in areas with a high vehicle population. People in these areas tend to commute via car, rather than take public transportation.
- Consolidation is necessary to bolster profitability for large companies as the industry is highly price competitive. More than one-third of all stores are single establishments.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.1 % over the past five years, to reach an estimated $45.7bn in 2023.
Trends and Insights
The industry is reliant on consumer trends
- As disposable income and consumer spending trended higher through 2019, individuals increasingly replaced existing tires. Higher consumer confidence meant individuals were more likely to purchase premium tires, which typically yield higher profit and revenue for tire dealers.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Growth is on the horizon
- The rising popularity of fuel-efficient tires, especially in the larger vehicle segments, is expected to support industry revenue. Growth in fuel-efficient tires will likely increase the potential for more frequent replacement, as they often carry a shorter mileage lifespan than regular tires.
Biggest companies in the Tire Dealers in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
The Reinalt-Thomas Corporation | 5,887.0 | 338.2 | 5.7 | |
Sumitomo Corp | 2,861.1 | 161.2 | 5.6 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Automotive services, Passenger car tires and Medium- and heavy-duty truck tires. Automotive services is the largest segment of the Tire Dealers in the US.
Trends and Insights
Passenger car tires are the most popular product
- Passenger tires, denoted as P-metric within the industry, are the main tires purchased by consumers. Tire performance combined with consumer purchasing power greatly influences customers' purchasing decisions.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- New Car Dealers in the US
- Warehouse Clubs & Supercenters in the US
Complementors
- Auto Mechanics in the US
- Oil Change Services in the US
International industries
- Tire Dealers in Canada
- Tyre Retailing in Australia
- Tyre Retailing in New Zealand
- Motor Vehicle Parts Retailers in the UK
- Motor Vehicle Parts Retailers in Ireland
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Automotive tire sales and installationAutomotive repair and maintenance servicesMedium and heavy truck tire salesFarm vehicle and off-road tire salesCompanies
The Reinalt-Thomas CorporationSumitomo CorpPurchase this report to view all 2 major companies in this industry.
Related Terms
ROLLING RESISTANCEBIG-BOX STORESRETREADIndustry Code
NAICS 44132 - Tire Dealers in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
COVID-19 dealt a substantial blow to tire dealers. Decreased travel resulted in drastically lowered demand for new tires.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Sales of passenger car tires to individuals continues to be tire dealers' main income source. Demand from these customers fell in 2020 due to the pandemic, though it has sinc...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Tire dealers tend to locate in areas with a high vehicle population. People in these areas tend to commute via car, rather than take public transportation.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Consolidation is necessary to bolster profitability for large companies as the industry is highly price competitive. More than one-third of all stores are single establishmen...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The largest tire dealers are well-established brand names. Reinalt-Thomas, better known as Discount Tire Company, is the industry's largest company and has operated in the co...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of The Reinalt-Thomas Corporation's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Sumitomo Corp's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for The Reinalt-Thomas Corporation, and factors influencing its performance in the industry
- Description and key data for Sumitomo Corp, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Tire dealers aren't subject to significant regulation outside of labor laws. However, most states require specific disposal methods for motor oil and coolant, which can conta...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Purchases have always been the single-largest expense for tire dealers. Rubber and crude oil price volatility has resulted in heightened purchase prices.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Tire Dealers in the US industry in United States in 2024?
The market size of the Tire Dealers in the US industry in United States is $45.7bn in 2024.
How many businesses are there in the Tire Dealers in the US industry in 2023?
There are 26,278 businesses in the Tire Dealers in the US industry in United States, which has grown at a CAGR of 0.7 % between 2018 and 2023.
Has the Tire Dealers in the US industry in United States grown or declined over the past 5 years?
The market size of the Tire Dealers in the US industry in United States has been growing at a CAGR of 1.1 % between 2018 and 2023.
What is the forecast growth of the Tire Dealers in the US industry in United States over the next 5 years?
Over the next five years, the Tire Dealers in the US industry in United States is expected to grow.
What are the biggest companies in the Tire Dealers in the US market in United States?
The biggest companies operating in the Tire Dealers market in United States are The Reinalt-Thomas Corporation and Sumitomo Corp
What does the Tire Dealers in the US in United States include?
Automotive tire sales and installation and Automotive repair and maintenance services are part of the Tire Dealers in the US industry.
Which companies have the highest market share in the Tire Dealers in the US in United States?
The company holding the most market share in United States is The Reinalt-Thomas Corporation.
How competitive is the Tire Dealers in the US industry in United States?
The level of competition is high and increasing in the Tire Dealers in the US industry in United States.
