Tire Manufacturing Industry Profile

Companies in this industry manufacture tires and inner tubes for a variety of vehicles. Major companies include Cooper and Goodyear (US), Michelin (France), Bridgestone Corporation and Sumitomo Rubber Industries (Japan), Continental AG (Germany), Pirelli (Italy), and Hankook (South Korea).

Global tire market is expected to be valued at about $340 billion by 2027, according to Bonafide Research. The five largest exported of new rubber tires include China, Thailand, Germany, Japan, and the US, according to the World's Top Exports. The industry is dominated by large players that typically have manufacturing operations in multiple markets around the world.

The US tire manufacturing industry consists of about 120 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $18 billion.

COMPETITIVE LANDSCAPE

Demand is driven by sales of new vehicles and the need for replacement tires. Because tires are largely a commodity, profitability depends on cost-efficient operations. Large companies can afford the research to develop tires from new, technologically advanced materials and can invest in improving production efficiency. Small companies can compete by producing tires or tire-related products for niche markets, such as bicycles or farm equipment. The US industry is highly concentrated: the top 20 companies generate over 95% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products are tires for passenger cars (about 60%), trucks and buses (about 20%), and farm equipment and industrial vehicles (more than 5%). Companies also make inner tubes and ...