New York – The European tire market is expected to grow to $49 billion (€44 billion) by 2021, according to a report by market research firm TechSci Research.
Growth, said the report, will be driven by an anticipated stabilisation of crude oil price, rising vehicle sales, vehicle-fleet expansions and implementation of “favourable government policies”.
Europe is home to more than 90 tire manufacturing facilities, 16 research & development centres and 12 leading tire manufacturers.
According to the report, with Europe finally recovering from the 2008 financial crisis, the automotive and tire industries should revive over the next five years.
During the forecast period, the passenger car segment is benefit from increasing passenger car sales, expanding passenger car fleet and growing purchasing power of the consumers.
Replacement tire demand, added the report, is anticipated to grow at a higher pace in comparison to the OEM tire demand over the course of next five years.