The tire market in Italy

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%.