1.1 Definition and scope of study

The tire (tire segment) is produced mainly from rubber and inflated with air or nitrogen. It mainly provides grip and shock absorption by surrounding the metal rim of a vehicle. Tires are characterized by a particular tread pattern (symmetrical, asymmetrical, directional) and a specific type of use (depending on the type of vehicle, suitable for snowy weather, racing vehicles, etc.).

A distinction must also be made between sales of tires directly fitted to a newly registered car ("original equipment") and so-called replacement sales of new or retreaded tyres. A distinction is also made between tires for saloon cars, SUVs and 4x4s, vans, trucks and other vehicles.

The global tire market was calculated at 3.2 billion units in 2019. It is expected to grow at a compound annual growth rate (CAGR) of 3.7% to reach a total of 4 billion units by 2025. This market is mainly driven by increased urbanization and higher disposable incomes. These two factors combined result in a higher demand for automotive vehicles (for transportation but also logistics and supply chains) and therefore tires.

In Italy, the market for tires is registered under the ATECO code 22.11.10 “Manufacture of tires”

The market of tires is directly dependent on the market of vehicles. The Italian vehicle fleet that relies on tires was calculated at 52 million vehicles at the start of 2020. On average, over 500,000 vehicles are added to the national fleet each year. There are 123 companies in Italy that manufacture tires. These employ 10.407 people. The most sold model of tires in Italy are Tomkets, followed by Bridgestone, Dunlop and Pirelli. A trend that is developing is the purchase of tires online.

The COVID-19 pandemic had a negative impact on this market. Due to the extended closures of automotive manufacturing plants, car and other vehicle dealerships, the demand for tire decreased. As a result of the lockdown, people stayed home and did not drive their cars, vans and motorcycles and therefore did not need to replace their tires at the same pace they normally did. It is estimated that in the period of January-September 2020, this market contracted by 14.4%.

1.2 Global Market Analysis

The global market for tires was valued at *** billion USD in ****, and it is expected to reach a value of *** billion USD by ****, growing at a CAGR of *.*% [***]. The following graph shows the increasing trend in the expected size of the market for the upcoming future.

Global Tires Market - Size World, ...

1.3 The Italian Market

According to Federpneus - National Association of Speciality Tire Dealers - the specialist tire business is experiencing a continuous growth in Italy. In ****, the sector generated a value of almost two billion euros, up *.*% compared to the value generated at the end of **** (***) over the previous year.

The graph below shows ...

1.4 Import and Export Analysis

Considering HS commodity code **** - new pneumatic tires, of rubber - the following graph shows the trend registered in international trade from and towards Italy.

Tires Market - Import and Export Analysis Italy, ****-****, in Billion USD. Source: ****

From the graph above, it is possible to infer a persistent trade deficit, ...

1.5 Covid-19 Impact

The Italian tire market had begun facing difficulties in the early ****, so, before the Coronavirus spread on global scale, recording a decrease in sales numbers due to a mild winter and low rainfall.

The situation got even worse when the pandemic impacted the country: citizens, forced to stay home, used their ...

2.1 Demand Overview

Considering the demand of tires in Italy, it is worth analysing the quantity of goods produced and sold in the country. The following graph shows the trend that such a demand has witnessed in the last ** years.

Demand of Tyres - Production Value Italy, ****-****, in Million Units. Source: ****

From the ...

2.2 Demand Drivers

Considering the market under analysis, it can be easily understood that one of the main drivers for the demand of tires is the number of vehicles circulating in Italy. The graph below shows the evolution of the number of vehicles in Italy.

Number of Vehicles Circulating Italy, ****-****, in Million Units. Suorce: ...

2.3 Geographical Distribution of Demand

Another interest point to consider is the distribution of circulating vehicles in the different Italian macro regions, which can help to understand how the demand is being driven from a geographical perspective.

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Macro Regions Number of Vehicles in Circulation Proportion (***) North-West **,***,*** **.**% North-East **,***,*** **.**% Center **,***,*** **.**% South **,***,*** **.**% Islands *,***,*** **.**% [***] From the data presented above, ...

3.1 Structure and Dynamics of the Market: Production

Analysing the structure of the Italian market for tires, it is worth making a distinction between the following sub-sectors:

Production of tires: ATECO **.**.** - Manufacture of tires and inner tubes; Reparation of tires: ATECO **.**.** - Repair and replacement of car tires.

Dealing with the production side, the following graph shows the ...

3.2 Structure and Dynamics of the Market: Reparation

Another relevant segment in the sector of tires is that of reparation and replacement. In order to assess the structure and dynamics of this component, we refer to ATECO **.**.**, which is only related to reparation and replacement of car tires. However, recalling the pie chart reported in section *.*, passenger cars represent ...

3.3 Value Chain - Production of Tires

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3.4 Distribution Channels

Dealing with the distribution channels for the Italian tire market, and given the data related to the structure of the market analysed in the sections before, it can be understood that tire shops and garages represent relevant actors for this sort of good. However, in the last years, the number of ...

4.1 Typology of the Offer

The different types of tires supplied in the Italian market can be summarized in the following categories.

Summer Tires

The main feature of this category of goods is represented by the speciality of the rubber used in the manufacturing process. Indeed, the sort of rubber used ensures excellent grip and handling ...

4.2 Pricing

According to ECOICOP ***** - Tires - the graph below shows the trend in the consumer price index for the market under consideration.

Tire Market - Consumer Price Index Italy, ****-****, in Base Index **** = ***. Source: ****

The graph above shows that the consumer price index for tires has been increased during the last ...

5.1 Regulatory Framework

There are many regulations available with regard to tires.

EU Regulation ****/***

First and foremost, new parameters for the classification of tires in relation to performance have been introduced by the European Union, through the EU Regulation ****/***, published in the European Official Journal. In particular, the label of each tire must be ...