The North America 2-Wheeler Tire Market is anticipated to register a CAGR of about 4.45% during the forecast period (2020 – 2025).
- 2-Wheeler Tire has always remained in demand, and with more extensive ownership of personal 2-Wheelers and growing technological advancements, the demand for these will only increase. A surplus amount of income is spent by North American nations when it comes to purchasing motorcycles. According to the Bureau of Transportation Statistics, over the past 12 years, motorcycle registrations in the U.S. have increased from 3,826,373 in 1997 to 6,678,958 in 2006, which indicates an overall increase of tires needs for motorbike segment.
- Another factor responsible for the growth in the adoption of cutting-edge manufacturing technology by OEMs that offer product differentiation through sustainability, durability, and affordability. For instance, demand for retreading of tires is increasing as it reduces the operating cost in the after-market, preventing tires from a complete replacement, and thereby, is a cost-effective option.
- But in the U.S., motorcycles sales have now remained stagnant for a long duration. Also, companies like Harley-Davidson Inc. have also seen a slip in its motorcycle sales in 2019 despite new models and expanded overseas operations. However, E-bike sales have been growing steadily over the years, but they still only represent a small portion of the overall bike market in the U.S. As a result, 2-wheeler Tire manufacturers are exploring opportunities in the E-bikes market as well.
Key Market Trends
E-bikes will Push the Growth of the 2-Wheeler Tire Market
Cities like New York, Los Angles have jam-packed roads. With the increasing number of vehicles, the existing infrastructure is unable to meet needs in every street and lanes. Traffic congestion inhibits the productivity of people with a lot of time lost waiting. As a result of many of the states situated in warmer regions in the United States are seeing an increased sale for 2-wheeler as they occupy lesser space resulting in minor traffic jams.
E-bike remains the fastest-growing segment for the 2-wheeler market. As a result, 2 – wheeler tire manufactures today are heavily investing in advanced tires which can both lightweight and safe to accommodate for the E-bikes in the near future
Wheels for E-bike come in many different sizes, ranging from 12 inches to massive 29 inches in diameter. E-bikes are majorly equipped with a 16", 20", or 26”-inch diameter wheel. For instance, the electric cruiser bike by Tower comes equipped with a 26-inch diameter wheel. 16-Inch Electric Bike Wheel is typically found on folding electric bikes, being lightweight, and meant to fold together so they can easily be transported. While 26-Inch Electric Bike Wheel is more commonly found on an electric bike. They are used as mountain bikes and also beach cruisers.
With such a wide range of options and growing government incentives towards E-vehicles, North American countries will see a greater demand for E-bikes wheels as well.
United States Holds the Largest Share for 2-Wheeler Tire Market
In the United States, motorcycles sales had been peaking until 2006. In 2006, over 1.1 million units were sold in the United States alone. However, in 2008's financial crisis, the market took a heavy blow, with which sales plummeted to less than half the previous fiscal year. Although, the stock markets for major 2-wheeler companies have today recovered, although they have stayed stagnant since 2012.
Also, since the United States is a motorbike dominant industry compared to scooters or mopeds, the aging demographic is a bad sign and has propped the growth. Recent figures also suggest, only a few youngsters will enter the Bikes segment. Declining, over 500cc motorcycles segment is also an indication suggesting the fall in sales for subsequent tire sold for these 2-wheelers.
Although, in developing countries such as the United States, several programs and projects have been initiated, such as Corporate Average Fuel Efficiency (CAFE) standards, by decreasing CO2 emissions.
As a result, the United States has also experienced impressive growth in ownership towards E-Bikes. Government subsidies are aiding the purchasing prices of E-Bikes with states such as California and Florid registering over 90% growth in 2019. In the United States alone, E-bike sales jumped by an incredible 91 percent from 2016 to 2017 and then another 72 percent from 2017 to 2018 to reach an impressive $143.4 million
Although the 2-wheeler Tires market will not reach the expectations for the motorbikes segment, however, E-bikes remain a possible profitable alternative to bike manufacturers.
The North America 2-Wheeler Tire Market is consolidated with existing market players such as Apollo Tyres Ltd, BFGoodrich, Cooper, Dunlop, Firestone, General, Goodyear, Michelin, and Yokohama, which hold the most significant shares. To have the edge over its competitors' companies are making joint-ventures, partnerships, launching new products with advanced technology.
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