DUBLIN, Ireland — The $15 billion U.S. replacement tire market has grown 34 percent since 1999, according to a new study from Research and Markets. Volume sales benefit from an automobile fleet that is larger and older than any in U.S. history. However, the real growth in the market increased in what consumers spend per tire, with average price per tire rising from $59 in 1999 to $76 in 2005.
According to Research and Markets, the increase in prices stems from a variety of drivers, such as an increasing number of car enthusiasts and an increasing number of 45-64 year olds (who are more likely to own sports and luxury cars), who spend more per tire than any other age group.
Looking forward through 2010, all of these factors can be expected to continue, the firm said. In particular, increases in the number of SUVs in the U.S. automobile fleet, and a wider availability of all-season high-performance tires should drive average price per tire higher.
According to Research and Markets, if the market is to see more rapid growth, suppliers and retailers must persuade consumers that a higher-performance tire is a safer tire. Given the availability of entry-level all-season performance tires, this message, if accepted by the public, could result in several years of 5-10 percent annual growth.
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