New York – The US tire market is set to grow at a CAGR of 5% through 2021, driven by higher vehicle sales and expanding car fleet across the country, according a report by TechSci Research.
The prominent driver for growth in the US tire market is the rising car fleet, which rose from 311.71 million units in 2011 to321.41 million units in 2015.
With an increasing volume share of over 80% in 2015, replacement tire segment dominated the US tire industry. The OEM segment is forecast to witness marginal change during the forecast period.
In 2015, the country's southeast region including Alabama, Florida, Louisiana and Virginia, accounted for the largest share in the tire market, followed by the Midwest, West, Northeast and Southwest regions.
Some construction projects in energy, transport, water, and housing are expected to boost the automotive sector in the coming years, explained Karan Chechi, research director with TechSci Research.
Moreover, he added, the presence of “well-established network of dealers and distributors are expected to push tire sales in domestic market during forecast period.”