MARKET DATA
DriveRightData is promoting its parc data as “the ultimate forecasting tool for the tyre professional”. According to the company, the strength of its system is that it matches “accurate and comprehensive reports on the number of vehicles in a territory…to DriveRightData’s unique tyre information”. Available in 77 countries and collated from national registration databases, the combination is only said to be supplied by DriveRightData.
Earlier research based on point of sales system-based sell-out data shows that mid-range all-season tyres are leading market growth, followed by premium tyres (see “Mid-range all-season tyres lead market growth” for more on this). At the same time 4×4 and SUV tyres specifically appear to be driving growth. Both facts point to the hypothesis that market growth is being driven by high-value products, which makes both all-season tyres in general and SUV/4×4 all-season tyres in particular attractive parts of the tyre business to engage in. But what evidence is there that this thesis is supported by sell-out pricing?
The latest data from market analysis specialists GfK suggests that the market is predominantly made up of regional usage 22.5-inch tyres – a trend that is increasing year-on-year. Here Tyres & Accessories takes a look at the latest market data from a number of sources in order to give an overview of current trends. This article focuses on data provided by GfK, but – owing to the fact that it is current hot topic – also analyses different estimates about how many tyres are made in China, something that is outside the scope of the data provided by GfK and therefore our conclusions on this point are something quite separate to GfK’s input.
Whether you call them off-the-road, OTR or earthmover tyres, these products are some of the most valuable tyres in the market. And with good reason. Not only are they the physically largest tyre product segment on the planet, these products are often also required to endure the greatest pressures in the most unforgiving circumstances.
The car tyre market is growing in size – at least in terms of rim diameter. According to the latest UK car tyre market sell-out data produced by market research specialists GfK, 39 per cent of market is now made up of 17-inch and larger rim diameter products. And what’s more the trend points to continued growth. The GfK Point of Sales Tracking data compares figures from January to December 2016 with those from January 2017 to December 2017 in order to produce the comparisons published here.
Research and Markets published its “Global Commercial Vehicle Tire Pressure Management System (TPMS) Market 2017-2021” report in December. In it the analysts forecast the global commercial vehicle tyre pressure management system (TPMS) market to grow at a CAGR of 10.38 per cent during the period 2017-2021.
The latest figures from the US Tire Manufacturers Association (USTMA) show tyre shipments will fall about 0.5 per cent to 316.8 million units. The drop is attributed to an anticipated decline in OE passenger tyre shipments to 3.4 million units. Replacement tyre shipments are expected to increase by 0.8 million units over the 2016 total.
For a long time people have referred to the European tyre market in general and the UK tyre market in particular as mature markets. This kind of maturity is generally taken to mean low growth markets that are already well developed. Here markets are significant in size and 1 to 2 per cent growth per annum is normal.
However, a number of recent market research reports give us the opportunity to reconsider this assumption on two grounds – firstly, with technology developing as it is, quantitative growth should be considered in a wider context; and secondly there is the qualitative question.
Smithers’ “The Future of Global Truck Tires to 2027” research reports that the value of this sector will reach $107.6 billion in 2017. With year-on-year growth forecast at 3.5 per cent across the next decade, this will reach $152.4 billion in 2027. After adjusting for price and raw material fluctuations, gains in tyre manufacturing productivity, and then consumer potential of greater value adding features; volume consumption of all truck tires will increase at a rate of 3.2 per cent per year from 2017–2027.
CAM’s Online Tyre Catalogue (OTC) is playing a key role in linking ‘sharer dealers’ to the platform the Tyre Intelligence Europe (TIE) initiative. According to the company, the pivotal role the system is playing when it comes to accessing details down to the article level for brands, sizes and location of sale is becoming increasingly apparent.
Amongst other things, DriveRightData is offering Parc data reports showing which tyres the vehicles in a postal zone will be consuming in the next year or two. According to the company, DriveRightData have been supplying this kind information to the wheel and tyre industry for well over 15 years now.
By definition, the top 20 ranking focuses its attention on the 20 largest retail chains in a given year. However, it would be wrong to assume that there aren’t equally important changes outside the top 20. Take the next five positions for example, there have also been significant changes in the fifth tier (positions 21 to 25 inclusive). And, with some 20,000 points of sale where tyres can be bought in total (including garages), all 25 positions only account for the top 10 per cent of the overall market. With that in mind, let’s take a look at those that just missed out on the attention of being in the top 20.
The UK economy grew 0.6 per cent in the October-to-December period. Taking the year as a whole, the economy grew 2 per cent, 10 per cent slower than the growth of 2.2 per cent achieved in 2015. Good news, I hear you say. But, as with many things in life, the details tell a more complicated story.
Many sources, such as the BBC, contend that this better-than-expected growth is because of increased consumer spending during the last quarter of the year. However, it is also worth pointing out that UK car production achieved a 17-year high in 2016, according to the latest figures published by SMMT. This comes at the same time that the motor manufacturer’s association reported new car registrations of just under 2.7 million for the year – itself another record. This being the case, it is worth taking a closet look at the figures and the messages give us in the inextricably linked tyre sector as well as the economy as a whole.
A new industry data service set to deliver fast and insightful tyre sales data views and reports for mainland UK and Northern Ireland dealers and subscribers, is being launched this month.
No review of 2016 would be complete without a look at some market data. During the course of researching this feature Tyres & Accessories asked market research specialists GfK to share some key insights into what has been happening in the UK tyre retail market during the last year or so. GfK’s data is contained in the infographic below and discussed here by us. Clearly 2016 hadn’t come to an end at that point, so the data reflects GfK’s Point of Sales Tracking information comparing November 2014 to October 2015 with November 2015 to October 2016.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.