Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Six in 10 car owners don’t actively think about their tires
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- Figure 1: Attitudes toward tires, September 2017
- Less than half of tire buyers can tell when they need to replace their tires
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- Figure 2: Tire maintenance behavior, September 2017
- Four in 10 car owners don’t know the brand of tires on their cars right now
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- Figure 3: Current tire brand awareness, September 2017
- The opportunities
- Replacement tire revenue expected to grow
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- Figure 4: Total US retail sales and forecast of replacement tires, at current prices, 2012-2022
- Four of five vehicle owners agree it is worth it to have a professional change the tires
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- Figure 5: Attitudes toward tires, September 2017
- Tire shoppers are very receptive to price incentives
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- Figure 6: Attitudes toward tires, September 2017
- What it means
The Market – What You Need to Know
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- Replacement tire market forecasted for growth
- Gas prices remain low for US drivers
- Low unemployment and high consumer confidence spurs maintenance spending
- Americans are driving more than ever
- Average age of vehicles increasing
Market Size and Forecast
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- Replacement tire revenue expected to grow
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- Figure 7: Total US sales and fan chart forecast of replacement tires, at current prices, 2012-22
- Figure 8: Total US sales and forecast of replacement tires, at current prices, 2012-22
Market Breakdown
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- Passenger tire sales dwarf light truck tire sales
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- Figure 9: Replacement tire breakdown, by segment, 2016
- Independent retailers are the primary retail channel
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- Figure 10: Total US retail sales of replacement tires, by channel, 2016, 2014, 2012
Market Perspective
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- Light truck sales growth will spur light truck tires moving forward
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- Figure 11: Total US unit sales and forecast of new passenger cars and new light trucks, by segment, 2012-22
Market Factors
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- Gas prices remain low for US car owners
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- Figure 12: US gasoline and diesel retail prices, January 2007-September 2017
- Low unemployment and high confidence should spur maintenance spending
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- Figure 13: Consumer confidence and unemployment, 2000-September 2017
- Record number of vehicle miles traveled by Americans in 2016
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- Figure 14: Vehicle miles traveled, 2000-2016
- Tariffs reduce low cost imports from China
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- Figure 15: US consumer tire imports from China, 2004-2016
- Average age of vehicles on the road increasing
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- Figure 16: Average age of light vehicles in the US, 1995-2016
Key Players – What You Need to Know
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- Goodyear continues to lead in both passenger and light truck segments
- Smaller brands struggle to grow market share
- Tires on the cloud
Company and Brand Sales of Replacement Tires
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- Goodyear Tires retain top market share in both passenger and light truck tires
- Replacement tire segment extremely fragmented
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- Figure 17: Replacement passenger car tire sales market share, by brand, 2015 - 2016
- Figure 18: Replacement light truck tire sales market share, by brand, 2015 - 2016
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- Figure 19: Dunlop online display ad, January 2017
What’s Rolling?
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- Goodyear Tires retain top spot in both passenger and light truck tires
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- Figure 20: Goodyear online display ad, October 2017
- Figure 21: Goodyear online mobile display ad, August 2017
- Figure 22: Goodyear acquisition email, September 2017
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- Figure 23: Goodyear tire and store locator landing page, September 2017
What’s Flat?
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- Smaller brands not growing market share
What’s Around the Turn?
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- Smart-tires driving on the cloud
- Color-accented tires add style and flair for car owners
The Consumer – What You Need to Know
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- Four in 10 car owners don’t know the tire brand on their current cars
- Online tire purchases remain a small segment of total sales
- Cost is the top reason behind choosing a tire retailer
- Less than half of tire buyers can tell when they need to replace their tires
- Few car owners say they cheap out on tires
- Car owners see value in professional installation
Most Recent Tire Purchase
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- Majority of car owners have purchased tires within the past three years
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- Figure 24: Most recent tire purchase, September 2017
- Fathers most likely to have purchased tires
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- Figure 25: Most recent tire purchase, by gender and parental status, September 2017
Current Tire Brand Awareness
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- Nearly four in 10 car owners don’t know the tire brand on their cars
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- Figure 26: Current tire brand awareness, September 2017
- Men more likely than women to know their current tire brand
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- Figure 27: Current tire brand awareness, by gender, September 2017
Purchase Location
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- Car owners are buying tires from a wide variety of sources
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- Figure 28: Purchase location, September 2017
- Walmart continues its success among younger car owners
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- Figure 29: Purchase location, September 2017
Purchase Reasons
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- Cost tops reasons for choosing a specific tire retailer
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- Figure 30: Purchase reasons, September 2017
- Warehouse clubs, Walmart, and Discount Tire chosen for their pricing
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- Figure 31: Purchase reasons, by purchase location, September 2017
- Older shoppers value trust and familiarity
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- Figure 32: Purchase reasons, by age, September 2017
- Online reviews valued by younger shoppers
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- Figure 33: Purchase reasons, by generation, September 2017
Tire Maintenance Behavior
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- Less than half of tire shoppers can tell when to replace their tires
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- Figure 34: Tire maintenance behavior, September 2017
- Millennials and Gen-Xers utilizing online resources most
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- Figure 35: Tire maintenance behavior, by generation, September 2017
Attitudes toward Tires
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- Car owners see value in a professional installation
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- Figure 36: Attitudes toward tires, September 2017
- Perceived value of run-flat tires increased from 2016
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- Figure 37: Attitudes toward tires, August 2016 – September 207
- Women less likely to proactively think about their tires
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- Figure 38: Attitudes toward tires, by gender, September 2017
Cluster Analysis
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- Figure 39: Tire shopper segments, September 2017
- Trust Buyers
- Characteristics
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- Figure 40: Profile of Trust Buyers, September 2017
- Opportunities
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- Figure 41: Attitudes toward tires, by clusters, September 2017
- Deal Hunters
- Characteristics
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- Figure 42: Profile of Deal Hunters, September 2017
- Opportunities
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- Figure 43: Attitudes toward tires, by clusters, September 2017
- Budget Tire Shoppers
- Characteristics
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- Figure 44: Profile of Budget Tire Shoppers, September 2017
- Opportunities
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- Figure 45: Attitudes toward tires, by clusters, September 2017
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Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
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