The United States tire market has been forecast to grow in value terms at a compound annual growth rate (CAGR) of 6.3% through to 2017, with the industry predicted to be worth an estimated US$20 billion.
Over the last three years, prices within the tire industry have increased at an average of 70%. For example, a tired that cost $100 at the beginning of 2009 is likely to be worth $170 today. From 2005 to 2012 the same tire costs approximately 87% more.
The primary factors currently influencing tire prices are rubber supply, oil prices, tariffs, emerging markets, supply and demand, and the proliferation of tire sizes.
On a global scale, in excess of 1 billion tires are created annually, in over 400 tire factories, with the three top tire makers commanding a 60% total marketplace share.
The US tire industry currently consists of approximately 100 companies with combined annual revenue of about $15 billion. The industry is highly concentrated and the top four companies generate more than 75% of revenue.
These top four players within the US tire industry are Bridgestone Corporation, Cooper Tire & Rubber Company, Michelin, and Goodyear Tire & Rubber Company. By 2017 it has been anticipated that Goodyear will continue to be the leading tire manufacturer in the market.
The company projects that, after years of cost cutting, it will generate a record operating profit in 2013 of $1.6 billion, with about $450 million coming from its core North America business.
Founded in 1898, Goodyear manufactures tires for automobiles, commercial trucks, light trucks, SUVs, race cars, airplanes, farm equipment and heavy earth-mover machinery.
For more information on the US tire market, see the latest research: US Tire Market Report
Follow us on Twitter @CandMResearch
Companiesandmarkets.com issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.