Germany Tire Market

Germany Tire Market Size:

The Germany tire market size is projected to exhibit a growth rate (CAGR) of 3.80% during 2024-2032. The market is majorly driven by escalating sales of automobiles, a rapid inclination towards high-performance and sustainable tires, and the rising adoption of electric vehicles (EVs). Despite challenges posed by stringent environmental protocols and low-cost imports, the market offers opportunities in the development of eco-friendly tires, online sales and innovative advancements.

Germany Tire Market Analysis:

• Major Market Drivers: The market is primarily driven by expanding automotive sector, heightening consumer demand for fuel-efficient and superior-performance tires, and technological advancements in tire designing. The rapid inclination towards EVs is also substantially aiding in market growth, as manufacturers are currently designing specialized tires customized for EVs. In addition, strict environmental protocols and the spur for sustainable mobility solutions are boosting the demand for eco-friendly tires, further proliferating market expansion.
• Key Market Trends: Numerous key trends are steering the Germany tire market, including the amplifying preference for all-season tires, which provide cost savings and convenience to customers. The heightening adoption of digital technologies, such as smart tires and tire pressure monitoring systems (TPMS), are also evolving the market landscape. In addition, the notable shift towards eco-friendly and sustainable tire production is gaining traction, propelled by both consumer demand and regulatory pressures for greener products.
• Competitive Landscape: Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. 
• Challenges and Opportunities: The key challenges witnessed by the Germany tire market includes intensifying competition with low-cost imports and strict environmental regulations, demanding significant investments in sustainable production techniques. Nonetheless, various opportunities are observed in this evolving market such as increasing demand for tires compatible with EVs and the magnifying shift towards eco-friendly tire solutions. In addition, the expansion of e-commerce segment presents potential for growing market reach and improving customer engagement through online platforms, aiding manufacturers in capitalizing on consumer preferences and emerging trends.

Germany Tire Market Trends:

Increasing demand for Eco-friendly Tires

Germany tire market share is expanding due to a notable shift towards sustainable and eco-friendly tire options, driven by heightened awareness of sustainability, carbon emissions, and strict environmental regulations. Leading manufacturers are currently emphasizing on developing tires by leveraging renewable materials and offering reduced rolling resistance to improve fuel efficiency. Additionally, the demand for electric vehicles is further contributing to this trend, as specialized tires are requisite to support the unique performance attributes of EVs while lowering environmental impact. According to recent data, Germany is the world’s second-largest producer of electric cars. In 2023, 4.1 million cars were produced in Germany, of which 1.27 million has an electric engine, while 955,00 were fully electric.

Magnifying Popularity of All-Season Tires

The demand for all-season tires is rapidly increasing in Germany, majorly due to their cost-effectiveness and convenience. Consumers are increasingly opting for all-season tires as they eliminate the need for seasonal tire changes, especially in regions with moderate weather conditions. This trend is further bolstered by technological advancements in tire production, allowing manufacturers to develop all-season tires that offer credible performance across varying weather conditions. For instance, in April 2024, Dunlop unveiled its latest generation of all-season tires, the Dunlop All Season 2, available across Europe, including Germany, which required extensive R&D, including simulated and on-road tests. It offers 3D blading to improve stiffness and an optimized carcass shape to enhance handling and stability on dry and wet roads. Consequently, the market share for all-season tires is anticipated to expand further in the coming years.

Rapid Expansion of Online Tire Sales

The online tire retail sector in Germany is rapidly expanding, fueled by increasing consumer digitalization. More consumers are turning to online platforms for purchasing tires, attracted by the convenience of accessing a wide range of products, reading reviews, and comparing prices. In response, tire retailers and manufacturers are enhancing their online presence, providing direct-to-consumer sales and offering additional services such as mobile tire fitting and home delivery. This intensifying inclination towards e-commerce is transforming the traditional tire distribution network in Germany. According to the International Trade Administration, the online population in Germany is projected to grow up to 68.4 million in 2025. In addition, 69% of German shoppers revealed that they prefer online purchases due to the home delivery facility.

Germany Tire Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional and country levels for 2024-2032. Our report has categorized the market based on type, sales channel, application, distribution channel, construction, season, and material.

Breakup by Type:

• Passenger Car Tires
• Light Commercial Vehicle Tires
• Heavy Commercial Vehicle Tires
• Off-Road Tires
• Two-Wheeler Tires
• Others
   

The report has provided a detailed breakup and analysis of the market by type. This includes passenger car tires, light commercial vehicle tires, heavy commercial vehicle tires, off-road tires, two-wheeler tires, and others.

Passenger car tires segment is primarily driven by the increasing vehicle ownership rates and the country’s focus on performance and road safety. According to the European Commission, the highest number of registered passenger cars across Europe was observed in Germany with 49 million cars. These tires are designed for a wide range of vehicles, from luxury sedans to compact cars, presenting a balance of durability, fuel efficiency, and comfort. The market is also represented by stable demand for winter and all season tires, highlighting Germany’s varying weather conditions. Regulatory standards and technological advancements further influence tire performance and design in this segment.

Light commercial vehicle (LCV) tires are requisite for Germany’s thriving transportation and logistics sectors, which heavily rely on reliable and efficient vehicles. These tires are designed for durability, enduring heavy loads, frequent stop-and-go driving, and diverse road conditions. The market for LCV tires is further bolstered by the proliferating e-commerce sector, which heightens the demand for delivery vehicles. Manufacturers are currently emphasizing on developing tires that improve safety and fuel efficiency, addressing the stringent framework of German road regulations.

The heavy commercial vehicle (HCV) tires segment is exhibiting robust growth that is primarily driven by Germany’s significant cargo transport activities. These tires are designed to withstand the increasing demands of long-distance trucking, transporting heavy loads across numerous terrains. Furthermore, durability, fuel efficiency, and reliability are other crucial properties, as manufacturers seek to lower operational and downtime costs. The HCV tire segment is also benefitted by technological advancements in tire development, such as smart tires that monitor temperature and pressure to improve performance and safety.

Off-road tires segment in Germany cater to vehicles deployed in mining, agriculture, construction, and other sectors demanding improved durability and traction on rough terrains. Such tires are built to endure extreme conditions, including gravel, uneven, and mud surfaces, ensuring operation safety and efficiency. The requirement for off-road tires is closely associated with Germany’s infrastructure projects and industrial activities. Moreover, manufacturers are emphasizing on offering tires with strong construction and specialized tread patterns to address the particular demands of off-road applications.

Two-wheeler tires segment is supported by the rising popularity of scooters and motorcycles, for leisure activities as well as daily commuting. These tires are built for numerous performance needs, such as durability, grip, and stability, across varying road surfaces and weather conditions. With a focus on comfort and safety, companies in this segment provide a range of tire product lines, from touring to sporty tires, to address the diverse demands of German riders. The market also profits from the intensifying trend toward fuel-efficient and eco-friendly two-wheelers.

Breakup by Sales Channel:

• Original Equipment Manufacturer (OEM)
• Aftermarket
   

A detailed breakup and analysis of the market based on the sales channel have also been provided in the report. This includes original equipment manufacturer (OEM) and aftermarket.

Original equipment manufacturers (OEMs) are pivotal in the Germany tire market, supplying tires  directly to vehicle manufacturers for new cars. These tires are particularly designed to cater to the safety and performance standards of the automobiles they equip, guaranteeing optimal quality and compatibility. OEMs uphold strong partnerships with automakers to deliver tires that improve driving experience, bolster brand reputation, and elevate consumer satisfaction with vehicles produced in the country. This collaboration is creating a positive Germany tire market outlook.

The aftermarket segment in Germany tire market emphasizes on replacement tires directly sold to customers, unaffiliated to vehicle manufacturers. This segment addresses the diverse requirements of vehicle owners seeking tires upgrades, seasonal changes, or replacements. The aftermarket presents a diverse range of tire options, from premium brands to budget-friendly alternatives, permitting customers to choose based on price, particular driving conditions, and performance. The range and flexibility of this segment establish it as a pivotal component of the German tire market.

Breakup by Application:

• Replacement Tires
• Original Equipment (OE) Tires
   

The report has provided a detailed breakup and analysis of market by application. This includes replacement tires and original equipment tires.

Replacement tires refers to tires bought by customers to replace damaged or worn tires on their vehicles. This segment is primarily driven by factors including seasonal tire changes, vehicle maintenance, and the escalating longevity of vehicles on the road. Moreover, this segment experiences intense competition in Germany, with a broad range of brands presenting numerous options to address consumer preference for performance, fuel efficiency, and safety.

Original equipment (OE) tires are delivered by manufacturers as standard on new vehicles. The OE tires segment in Germany closely dependent on the automotive industry’s performance, with tire manufacturers partnering with vehicle producers to supply tires that meet particular demands for each model. OE tires are built to optimize the comfort, performance, and safety of new vehicles, and the demand for these tires is significantly bolstered by trends in new vehicle sales and production.

Breakup by Distribution Channel:

• Online
• Offline
   

The report has provided a detailed breakup and analysis of market by distribution channel. This includes online and offline.

Germany market forecast points that online segment is witnessing rapid expansion in the country mainly due to the convenience it offers to the customers. Online platforms offer a broad range of tire options, ease of comparing products and prices, which appeals to tech-savvy population. In addition, online retailers generally provide mobile tire-fitting and home delivery services, improving the overall customer experience. This segment is further propelled by the amplifying digitalization of the German market and consumer preference for hassle-free and quick purchases. According to recent data, 80% of the people in Germany make purchases online. Moreover, the country online sales amounted to € 79.7 billion in 2023.

The offline segment remains a critical distribution channel in the Germany tire market, particularly for customers who prefer immediate product availability and in-person consultations. Moreover, traditional brick-and-mortar stores, including automotive service centers and specialized tire retailers, provide client-specific advice and the opportunity for consumers to personally inspect products before purchase. In addition, such outlets often offer professional installation services, facilitating a inclusive customer experience.

Breakup by Construction:

• Radial
• Bias
   

The report has provided a detailed breakup and analysis of market by construction. This includes radial and bias.

Radial tires are developed by deploying radial ply casing cords that are arranged at 90 degrees to the travel direction. This built provides improved stability, prolonged tread life, and better fuel efficiency, making it an ideal choice for commercial trucks and passenger vehicles. The radial construction also offers excellent grip and enhanced handling, particularly at high speeds, contributing to its expansion in the German tire market, especially for heavy-duty and superior-performance applications. For instance, in June 2024, TVS Srichakra unveiled its new Steel Belted Agro Industrial Radial tires at an exhibition in Germany.

The bias segment includes tires that are developed using ply players that are crisscrossed at angles less than 90 degrees to the travel direction. This construction technique provides higher resistance and durability to punctures, making it more suitable for agricultural and off-road vehicles. These tires are less common than radial tires but are deemed significant for specific applications where damage resistance and resilient sidewall strength are requisite, maintaining a niche but crucial presence in the German tire market.

Breakup by Season:

• Summer Tires
• Winter Tires
• All Season Tires
   

The report has provided a detailed breakup and analysis of market by season. This includes summer tires, winter tires, and all season tires.

Summer tires attends to the warmer months, chiefly from April to October. Such tires are built for optimal performance in wet and dry conditions, offering excellent handling, braking, grip efficiency at temperatures above 7°C. Moreover, their specialized tread patterns and rubber compounds provide enhanced fuel efficiency and stability. Due to stringent regulations, most German drivers switch to summer tires during this period, bolstering constant demand in the market.

Winter tires are essential in Germany during the colder months, typically from November to March, when temperature reaches below 7°C. Such tires feature softer rubber compounds and deeper treads which can offer flexibility in low temperatures, providing enhanced traction on ice, slush, and snow. Furthermore, German law imposes the use of these tires during winter season, which substantially propels their demand. According to the industry reports, starting in October 2024, Germany has mandated the use of winter tires featuring the Alpine symbol. Additionally, this segment is represented by the increasing consumer awareness and adherence to safety protocols.

The all-season tires segment represents a propelling niche in the German tire market, appealing to customers seeking cost-effective and convenient tire solutions. These tires are developed to perform competently in summer as well as winter seasons, lowering the demand for seasonal tire changes. Such tires provide a balanced performance but may not match the specialized attributes of winter or summer tires in extreme conditions. Nonetheless, their escalating popularity underscores an inclination towards year-round tire solutions among certain divisions of the population in Germany.

Breakup by Material:

• Natural Rubber
• Synthetic Rubber
• Others
   

The report has provided a detailed breakup and analysis of market by material. This includes natural rubber, synthetic rubber, and others.

In the Germany tire market, the natural rubber segment plays a critical role, principally due to its excellent resilience, elasticity, and ability to endure elevated temperatures. Natural rubber is sourced from rubber trees and is esteemed for its excellent flexibility and grip, establishing it as an ideal material for designing heavy-duty and high-performance tires. Additionally, its biodegradability aligns with the heightening demand for sustainable tires, further boosting its importance in the tire manufacturing sector of Germany.

The synthetic rubber segment is significantly crucial in the German tire market, primarily due to its cost-effectiveness and versatility. Synthetic rubber is manufactured through chemical processes, provides consistent quality and can be designed to address specific performance demands. It is particularly leveraged for its wear resistance, durability, and ability to perform excellently under extreme conditions. Additionally, some of the major companies are focusing on sustainable practices to maintain the prevalence of synthetic rubber amid the growing trend of environmental awareness, further boosting the segment’s growth.  For instance, in December 2023, OMV signed an MoU with Synthos to develop sustainable butadiene for synthetic rubber, which will be leveraged in the production of high-performance tires. Under the MoU, the sustainable butadiene will be produced in the steam cracker at the Burghausen refinery in Germany.

Breakup by Region:

• Western Germany
• Southern Germany
• Eastern Germany
• Northern Germany
   

The report has also provided a comprehensive analysis of the Germany tire market by region, including Western Germany, Southern Germany, Eastern Germany, and Northern Germany.

The tire market in Western Germany is represented by a robust demand from the industrial and automotive sectors, chiefly driven by the region's superior manufacturing base. Cities like Düsseldorf and Cologne serve as prominent hubs for automotive trade and production, leading to a stable demand for both commercial and consumer tires. The market is also influenced by the increasing focus on sustainability, stimulating heightened demand for energy-efficient and eco-friendly tire options among consumers as well as businesses.

Southern Germany, hub of leading automotive manufacturers such as Audi and BMW, witnesses high demand for premium and high-performance tires. The region's robust economic position and consumer preference for performance and quality bolster the market. In addition, the presence of numerous tire suppliers and manufacturers in cities like Stuttgart and Munich contributes to an evolving market landscape, with an emphasis on innovation and advanced tire technologies to address the demands of both export and domestic and markets.

The tire market in Eastern Germany is witnessing gradual growth, aided by escalating infrastructure development and industrial activity. While the region's automotive sector is less influential in comparison to other parts of the country, the market profits from increasing demand for industrial and commercial tires, especially in transportation and logistics. In addition, government initiatives aimed at bolstering economic development in Eastern Germany are anticipated to further spur the demand for numerous tire segments, including construction and agricultural and tires.

Northern Germany's tire market is notably impacted by its robust logistics and maritime sectors, with key ports in Bremen and Hamburg boosting requirement for commercial vehicle and industrial tires. The region's emphasis on transportation and trade supports a constant demand for reliable and durable tires. In addition, the rising popularity of electric vehicles (EVs) in urban areas, such as Hamburg, is leading to escalated demand for specialized tires built to improve EV efficiency and performance, steering the market's future trajectory. For instance, in March 2023, Europe’s largest EV-sharing hub was opened at Hamburg airport which would be run by HVV, city’s public transit company.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. 
• The competitive landscape is represented by the presence of key global manufacturers, who are thriving to maintain their dominance in the marker through robust distribution networks and strategic partnerships to endorse their product lines. For instance, in June 2024, NEXEN TIRE announced a strategic partnership with the 5 most prominent football clubs of Bundesliga, a German football league, to boost its market presence and product visibility in Germany. As per the partnership, NEXEN TIRE’s branding will be displayed at every Bundesliga home match throughout the 2024-2025 season. Such companies are currently focusing on sustainability, performance and innovation to maintain a competitive edge. In addition, competition from Asia-based manufacturers is amplifying, driven by aggressive pricing tactics and cost-efficient production, further molding the German tire market dynamics.

Germany Tire Market News:

• In July 2024, Continental AG, a leading German automotive parts manufacturer, entered into a 10-year purchase agreement with Pyrum Innovations for high-quality carbon black derived from end-of-life tires. Continental intends to utilize this recovered material in the series production of its passenger car tires.
• In December 2023, Nokian Tires announced a collaboration with the German retreader RuLa-BRW. This partnership will utilize Nokian's 'Innovative Noktop retreading material' in RuLa-BRW's pre-cure retreading process, offering these retreaded tires to customers in the German market.

Germany Tire Market Report Scope:

Key Questions Answered in This Report:

• How has the Germany tire market performed so far, and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Germany tire market?
• What is the breakup of the Germany tire market on the basis of type?
• What is the breakup of the Germany tire market on the basis of sales channel?
• What is the breakup of the Germany tire market on the basis of application?
• What is the breakup of the Germany tire market on the basis of distribution channel?
• What is the breakup of the Germany tire market on the basis of construction?
• What is the breakup of the Germany tire market on the basis of season?
• What is the breakup of the Germany tire market on the basis of material?
• What are the various stages in the value chain of the Germany tire market?
• What are the key driving factors and challenges in the Germany tire market?
• What is the structure of the Germany tire market, and who are the key players?
• What is the degree of competition in the Germany tire market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Germany tire market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Germany tire market.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Germany tire industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.