Canada Tire Market Report and Forecast 2024-2032

Canada Tire Market Size

The Canada tire market value was around USD 7.67 billion in 2023. The market is expected to grow at a CAGR of 6.23% between 2024 and 2032, reaching USD 13.37 billion by 2032.

Canada Tire Market Outlook

• The revenue from car manufacturing in 2022 reached USD 45,083,712, according to Statistics Canada.

• As per Statistics Canada, Canada saw a 0.3% increase in registered road vehicles in 2022, totalling 26.3 million.

• In Q3 2022, Canada purchased tires valued at nearly $1.3 billion, as per Statistics Canada's data.

Canada Tire Market Share

Light commercial vehicles, among other vehicle types, support the market growth by aiding town and uptown deliveries, shipping goods, and running as service vehicles

According to the Canda tire industry analysis, light commercial vehicles (LCVs) have become essential for urban deliveries, goods transportation, and service roles, especially with the rise of e-commerce. Their flexibility, productivity, metropolitan manoeuvrability, and protection are pivotal factors in tire selection. The rising demand for last-mile deliveries, notably with e-commerce growth, strengthens the need for LCVs.

Medium and heavy commercial vehicles (MHCVs) require tires with strong load abilities, stressing robustness, competence in long-haul journeys, safety, stability, and friction. These advantages are crucial for carrying heavy loads across distinct terrains over extended distances. Tire companies are launching different type of tires for different terrains and weathers.

Industry Outlook

Canada's motor vehicle production declined from 2,463,364 units in 2012 to 1,233,360 units in 2022, according to data from CEIC Data and the International Organization of Motor Vehicle Manufacturers. Production remained relatively stable between 2013 and 2017, with figures fluctuating around 2.3 million units. A noticeable drop occurred in 2018, with production decreasing to 2,025,794 units and further declining to 1,916,585 units in 2019.

The most significant decrease happened in 2020, with production plummeting to 1,376,127 units, likely impacted by the COVID-19 pandemic. In 2021, production fell further to 1,115,002 units, marking the lowest point in the period. However, there was a partial recovery in 2022, with production increasing to 1,233,360 units.

In 2023, production rebounded to 1,553,026 units, indicating a potential recovery trend in the motor vehicle manufacturing sector.

In 2024, Canada's automotive sales volume showed significant monthly variation, with peak sales occurring in March and May, each exceeding 160,000 units. January started relatively lower at approximately 100,000 units, followed by a notable increase in February to around 120,000 units. Sales maintained high levels in April, approaching 140,000 units, before peaking in May.

In Canada, new motor vehicle sales rose from 1,573,057 units in 2022 to 1,755,741 units in 2023, reflecting a notable recovery in the automotive market, according to industry reports. The sales value increased from approximately $81.4 billion in 2022 to $97.9 billion in 2023, indicating a strong market rebound.

Automobile Industry Statistics in Canada

Passenger car sales experienced a decline, dropping from 272,986 units in 2022 to 253,453 units in 2023. Correspondingly, the sales value slightly decreased from $11.4 billion to $11.4 billion, showing a slight contraction in this segment.

Conversely, truck sales surged significantly, rising from 1,300,071 units in 2022 to 1,502,288 units in 2023. The sales value for trucks also saw a substantial increase from $69.9 billion in 2022 to $86.5 billion in 2023, highlighting the growing preference for trucks and SUVs among Canadian consumers.

Recent Developments

In April 2024, Continental Tire Canada unveiled The UltimateContact tire line, featuring UltimateContact and UltimateContactWinter tire, to enhance the safety and performance of vehicles and cater to diverse customer needs.

In January 2024, Nokian Tyres introduced the Nokian Tyres Remedy WRG5, its latest all-weather tire. Scheduled for release in spring, it offered improvements like Aramid fibres in all sizes and a "Pothole Protection" guarantee, spanning over 70 sizes from 15 to 20 inches in Canada.

What Factors Drive the Canada Tire Market Growth?

• The presence of strong automotive industry in Canada supports the tire demand growth.

• Advanced manufacturing capabilities.

• High demand for winter and all-season tires.

• Established distribution networks and retail channels.

What Challenges Are Impacting the Canadian Tire Market?

• Dependence on imported raw materials.

• High production costs due to labor and energy prices.

• Environmental regulations increasing compliance costs.

• Limited domestic rubber production can negatively impact the Canada tire market revenue.

Increasing Demand for EVs and Technological Improvements in Material and Design are among the Key Canada Tire Industry Trends

• Growing demand for electric and hybrid vehicle tires is expected to support the Canada tire market dynamics and trends.

• Expansion of e-commerce and online sales channels.

• Technological advancements in tire materials and design will likely positively influence the     tire demand forecast.

• Growing consumer preference for eco-friendly and sustainable tires is expected to increase the tire market opportunities.

What Major Factors Are Influencing the Competitive Landscape of the Tire Industry?

• Volatile raw material prices impacting production costs.

• Intense competition from global tire manufacturers.

• Economic downturns affecting consumer spending.

• Stringent environmental regulations and standards.

What Barriers Do New Players Face in the Canada Tire Market?

• Significant capital investment and economies of scale are required for market entry.

• Established brands benefit from strong brand loyalty and extensive distribution networks. 

How Do Suppliers Influence the Canada Tire Market?

• The production of tires relies on key raw materials like rubber, which can be affected by price volatility and supply chain disruptions.

How Much Power Do Consumers Hold in the Canada Tire Market?

• Consumers have numerous choices and easy access to information, leading to strong price sensitivity and a demand for high-quality products.

Are There Alternatives Impacting the Demand for Tires in Canada?

• Direct substitutes for tires are limited, but advancements in alternative transportation methods (e.g., public transit, ride-sharing) could impact demand 

What Drives Competition Among Tire Manufacturers in Canada?

• The presence of numerous global and local players leads to competition on price, quality, and technology.

Key Demand Indicators in the Tire Market

• New and used vehicle sales directly impact tire demand.

• Consumer purchasing power and economic stability influence market demand.

• Demand peaks during winter and summer seasons for specialized tires.

• Regular tire wear and tear drive the need for replacement tires.

• Innovations in tire technology, such as run-flat and eco-friendly tires, attract consumer interest.

• Increased vehicle ownership and improved road infrastructure support the growth of the Canada tire market.

• Consumer preference for fuel-efficient and low-rolling-resistance tires.

• Demand for sustainable and compliant tire options grows with stricter regulations.

Price Competition in the Tire Market

• Leading brands and budget tire manufacturers use aggressive pricing to capture market share.

• Frequent discounts, bundled services, and special deals attract price-sensitive consumers.

• Fluctuations in raw material, labor, and energy costs impact pricing strategies.

• High consumer price sensitivity leads to strong competition among tire manufacturers.

• Intense competition due to the presence of numerous global and local players.

• Price variations based on seasonal demand, such as winter and summer tires can impact the demand of Canada tire market.

Canada Tire Industry Segmentation

Canada Tire Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Design

• Radial

• Bias

Market Breakup by Type

• Tube Tire

• Tubeless Tire

Market Breakup by Season

• Winter Tire

• Summer Tire

• All-Season Tire

Market Breakup by Vehicle Type

• Two-Wheeler and Three-Wheeler

• Passenger Vehicle

• Commercial Vehicle

• Others

Market Breakup by Sales Channel

• OEM

• Aftermarket

Market Breakup by Region

• British Columbia

• Alberta

• The Prairies

• Central Canada

• Atlantic Canada

Competitive Landscape

The Canada tire market key players are as follows:

• Bridgestone Corporation

• Continental AG,

• Hankook Tire & Technology Co., Ltd.

• Pirelli & C. S.p.A

• Yokohama Rubber Co., Ltd.

• Toyo Tire Corporation

• NEXEN TIRE Co., Ltd.

• The Goodyear Tire & Rubber Company

• Michelin Group

• Giti Tire

• Others

Key Highlights of the Report

Canada Tire Market Report Snapshots

Canada Tire Market Size

Canada Tire Market Share

Canada Tire Companies