Tire Dealers in Canada Industry Market Research Report Now Available from IBISWorld

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The industry will post positive growth numbers as the economy recovers. For this reason, industry research firm IBISWorld has added a report on the Tire Dealers industry to its growing industry report collection.

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Economic woes and decreased spending has kept demand low over the past five years

Over the past five years, revenue for the Tire Dealers industry is expected trend higher. As economic conditions, such as disposable income and unemployment improved in 2011, consumers released pent-up demand for replacement tires. However, fewer replacement tires were needed as new vehicle sales increased, which slightly inhibited industry revenue growth. Nevertheless, industry revenue is expected to grow at an average annual rate of 3.1% to $4.2 billion, including an estimated 1.9% increase in 2015.

Going forward, potential threats exist that could hamper industry revenue growth. According to IBISWorld Industry Analyst Brandon Ruiz, “The industry faces high competition, primarily from car dealerships, but also from alternative modes of transportation.” Car dealerships typically have a competitive advantage over industry operators because vehicle warranties include tire replacement. Moreover, when consumers take alternate modes of transportation, demand from tire dealers diminishes. For example, when fuel prices increase, consumers generally avoid driving vehicles and instead opt to use more affordable alternatives, such as public transportation. With less car use, wear and tear will not be as prominent and demand for replacement tires will decline.

Over the five years to 2020, industry operators are expected to experience mixed results from improvements in the overall domestic economy. On one hand, as disposable income and unemployment continue to improve, consumers will release pent-up demand for tires, benefiting industry operators. On the other hand, improvements in the overall economy will likely increase new vehicle sales. “A rise in new vehicle sales will increase the total pool of vehicles that use tires; however, it will also likely inhibit growth in the short term because new vehicles come ready with factory-issued tires,” says Ruiz. Nevertheless, this trend is not expected to weigh down the industry. As a result, IBISWorld expects the Tire Dealers industry to grow over the five-year period.

For more information, visit IBISWorld’s Tire Dealers in Canada industry report page.

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IBISWorld industry Report Key Topics

This industry retails tires and tire tubes for passenger cars, sport-utility vehicles (SUVs) and commercial trucks. Businesses that offer maintenance services in addition to tire sales are included in this industry; however, car dealership tire services and online tire sellers are excluded.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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