Motor on: The rising number of motor vehicles on Australian roads has boosted demand

The Tyre Retailing industry has grown at a modest pace over the past five years, benefiting from the rising number of motor vehicles on Australian roads. Growth in vehicles sales has seen more vehicles enter their tyre replacement cycles, driving demand for industry retailers. While the number of vehicles on the road has increased, many consumers have reduced the amount they drive to minimise running costs. Fewer kilometres driven means tyres are taking longer to wear down, limiting demand growth for the industry. Overall, industry revenue is expected to rise at an annualised 2.4% over the five years through 2018-19, to $5.2 more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Industry retailers have been importing more low-cost tyres over the past five years
  • Rising demand for low-cost tyres made in China has limited profit margin growth
  • Imports from China are forecast to continue increasing over the next five years
  • Industry Report - Industry Analysis Chapter

    The Tyre Retailing industry has grown steadily over the past five years. The rising number of vehicles on Australian roads has provided a steady stream of demand for the industry over the period. In particular, growth in the average age of the vehicle fleet has progressed many tyre replacement cycles over the period. However, although retail fuel prices have decreased over the past five years, the total number of kilometres driven by industry customers have fallen. This is largely due to consumers looking to minimise the running costs of their vehicles in response to high fuel prices at the beginning of the period. The decline in the total number of kilometres driven has subsequently decreased the wear and tear on tyres and constrained industry growth...purchase to read more.

    Additional Insights for the Tyre Retailing Industry

    IBISWorld has determined the most important Key Success Factors for the Tyre Retailing are:

  • Having links with suppliers
  • Having a wide and expanding product range
  • Having a high profile in the market
  • IBISWorld analysts also discuss how external factors such as Number of motor vehicles and Average age of vehicle fleet in the Tyre Retailing industry impact industry performance..

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    What's in this report

    What is the Tyre Retailing Industry?

    Industry participants sell new and reconditioned tyres for passenger cars, utility vehicles, SUVs, vans, buses, trucks and motorcycles. Tyre retailers do not retread motor vehicle tyres, but often carry out minor repairs on tyres. The retailing process can also include fitting services such as wheel balances and alignments.

    Industry Products
  • Passenger vehicle tyres
  • Light commercial vehicle tyres
  • Truck and bus tyres
  • Motorcycle tyres
  • Other tyres
  • Wheels, batteries and other products
  • Tyre and mechanical services
  • Industry Activities
  • Motor vehicle tyres and tubes retailing
  • Motorcycle or scooter tyres and tubes retailing
  • Minor tyre and tube repairs
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of motor vehicles
  • Average age of vehicle fleet
  • Demand from fuel retailing
  • Trade-weighted index
  • World price of rubber

  • Current Performance
  • Industry participation
  • Demand trends
  • Falling prices
  • Commercial tyres
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry participation
  • Weak dollar
  • Fuel prices
  • External competition
  • Table: Tyre Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tyre Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Road Freight Transport
  • Interurban and Rural Bus Transport
  • Urban Bus and Tramway Transport
  • Taxi and Limousine Transport
  • Consumers

  • Key Selling Industries
  • Motor Vehicle New Parts Wholesaling
  • Retail Property Operators

  • Products & Services
  • Passenger vehicle tyres
  • Light commercial vehicle tyres
  • Truck and bus tyres
  • Tyre and mechanical services
  • Wheels, batteries and other products
  • Motorcycle tyres
  • Other tyres
  • Chart: Tyre Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Commercial customers
  • Fleet buyers
  • Chart: Major Market Segmentation for the Tyre Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other Costs
  • Chart: Cost Structure Benchmarking – Sector vs Tyre Retailing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tyre Retailing Industry

  • Industry Globalization
    Goodyear Australia Pty Limited, Bridgestone Australia Ltd, Tyrepower Ltd, Conti Trade Australia Pty Ltd,
  • Table: Goodyear Australia Pty Limited - financial performance
  • Table: Bridgestone Australia Ltd - financial performance
  • Table: Tyrepower Ltd - financial performance
  • Table: Conti Trade Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tyre Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Tyre Retailing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Four-Wheel Drive (4Wd)
  • Vehicles that have all four wheels powered by the engine. In standard cars, only two wheels are powered by the engine.
  • Retread
  • Also known as a 'recap,' or a 'remould,' a retread is a re-manufacturing process for tyres that replaces the tread on worn tyres.
  • Wheel Alignment
  • Adjusting the angle of wheels to reduce tyre wear and ensure a vehicle doesn't pull to one side when driving in a straight line.
  • Wheel Balance
  • Involves adding small weights to a wheel to even out the distribution of weight across a tyre, which ultimately prevents vibrations while driving and slows down the wear of other vehicle components.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Tyre Retailing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Tyre Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Tyre Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Tyre Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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