Snow Tire Market - Forecasts from 2024 to 2029

The Snow tire market is evaluated at US$20.378 billion for the year 2022 and is projected to grow at a CAGR of 8.11% to reach a market size of US$35.167 billion by the year 2029.

The snow tires are also known as winter tires. These are designed for use on snow and ice and have a tread design with larger gaps than those on conventional tires which increases friction on snow and ice. Snow tires come in two types, studded tires and stud-less tires. The studded tires possess metal or ceramic studs that protrude from the tire to advance traction on hard-packed snow or ice and tires can be used in temperatures lower than 7 degrees Celsius. The snow tires can also be operated on many surfaces, including muddy areas, wet pavements, dry pavements, and more.

MARKET TRENDS:

The growth in the automobile industry, particularly in countries with cold climates is one of the major factors for the enhanced growth of the snow tire market. In addition to this, the governments of colder countries mandate the use of snow tires for certain months of the year, which acts as an important driver for the increase in the production of these tires. Besides, many businesses offer discounts on insurance premiums for vehicles that are equipped with snow tires is also expected to propel the global snow tires market. The growing innovation in this market is also fuelling the demand and supply for these tires.

The snow tire market is restricted to countries with colder climates and hence this acts as a restraining factor for the growth of this market. Amongst the fundamental trends that influence the snow tire market, winter severity is the most apparent and can have a huge result on the demand for the product. Despite governing support, demand is still highly affected by climate patterns, causing difficulties for manufacturers, distributors, and raw material suppliers to plan, and this results in periodical shortages or excess supply.

MARKET DRIVERS:

• Rising safety concerns are anticipated to drive the market's growth.

The snow tires market is expected to increase at a high rate due to growing safety concerns. Customers are placing a higher priority on road safety as they become more aware of the dangers of driving in icy, snowy, and cold weather. When it comes to handling, braking, and traction, snow tires perform better than all-season tires, especially during the winter. This increased emphasis on safety encourages customers to purchase snow tires to assure safer driving experiences, particularly for those who live in areas that are vulnerable to severe winters.

Further highlighting the significance of utilizing winter-specific tires are mandates from safety organizations, OEMs, and government agencies, which in turn drives demand in the industry. The safety qualities of snow tires are continually being improved by technological developments in tire design and material, which is helping to explain their rising appeal among customers who are worried about road safety in the winter.

• Technological advancements are predicted to impact the snow tire market growth.

Technological developments are going to have a big impact on the growth of the snow tire industry. To improve performance in winter driving conditions, manufacturers are continuing to innovate and are creating snow tires with cutting-edge materials, tread patterns, and manufacturing techniques. Customers' safety worries are allayed as a consequence of these developments, which provide tires with better traction, grip, and handling on snow- and ice-covered roads. The attraction of snow tires is further boosted by developments like improved siping patterns, specific rubber compositions, and 3D tread shapes, which improve braking and stability.

Furthermore, new developments in tire manufacturing technology allow for the creation of tires with improved fuel efficiency, durability, and tread life, offering a compelling value proposition to customers. Technological advancements in snow tire performance, longevity, and efficiency are anticipated to drive market expansion as they satisfy changing demands and expectations from customers looking for more dependable and safer winter driving experiences.

MARKET RESTRAINTS:

The seasonal need for snow tires, which causes variations in sales volume all year round, is one major obstacle. Furthermore, budget-conscious buyers could be discouraged by the greater initial cost of snow tires as opposed to all-season tires, particularly in areas with milder winters where the necessity for snow tires is less severe. Furthermore, consumers may find it more expensive and inconvenient to periodically swap from snow tires to all-season tires, which might lower adoption rates.

Additionally, the development of all-season tires offers alternatives to traditional snow tires, possibly restricting market growth. These innovations include enhanced traction and performance in winter situations. Furthermore, market demand may be impacted by legislative obstacles or enforcement of regulations about the usage of winter tires in particular areas. All of these difficulties combined make it difficult for the snow tire market to grow, necessitating creative thinking and great customer service from manufacturers and industry players.

North America is anticipated to be the major regional market.

Numerous factors influence the snow tire industry in North America. Customers seeking improved safety and traction during winter driving have a considerable demand for snow tires due to the region's climatic circumstances, which are marked by harsh winters and substantial snowfall in many locations. Additionally, by pressuring customers to purchase snow tires, regulatory requirements in some states and provinces, such as those mandating the usage of winter tires during particular times of the year or under particular weather circumstances, encourage market expansion.

Further supporting market demand is the endorsement and suggestion of OEMs for the use of winter tires, since buyers place a premium on safety and dependability when selecting a vehicle. Additionally, by encouraging customers to purchase winter-specific tire solutions, the growing knowledge of the advantages of snow tires combined with successful marketing initiatives by tire manufacturers and retailers further accelerates market development. Together, these factors support the snow tire market's expansion in North America.

Key Developments:

• In December 2023, Yokohama Tire launched the 907WTM which is a premium, high-traction drive tire that is intended for fleets and operators that need to keep vehicles moving in snowy and icy situations. The three-peak mountain snowflake emblem on the 907W, which takes the place of the SY767TM, indicates that it either meets or is above the industry's minimum performance standards for severe snow service. Three sizes were made available in the United States: 295/75R22.5, 11R22.5, and 11R24.5.
• In December 2023, to make it simpler to drive safely in the winter, Hyundai Motor Company and Kia Corporation revealed new tire technology that integrates with snow chains.

Segmentation:

By Type

• Studded
• Studless

By Vehicle Type

• Passenger Tires
• Light Motor Vehicles
• Heavy Motor Vehicles
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others