Spare tire: Tire dealers are set to benefit as the economy continues to improve

The Tire Dealers industry in Canada has experienced relatively stable growth over the past five years, largely due to improving economic conditions in the industry's key markets. For instance, rising levels of disposable income and consistent declines in the national unemployment rate have encouraged consumers to release pent-up demand for replacement tires. 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...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
2.1%
Forecast Growth 18-23
Profit
Employment
13,012
Businesses
1,320

Industry Threats & Opportunities

  • The industry has experienced relatively stable growth over the past five years due to improving economic conditions
  • Industry revenue has expanded over the past five years due to growth in the Canadian population and levels of disposable income
  • Commercial markets are anticipated to make up an increasingly large portion of revenue moving forward
  • Industry Report - Industry Products Chapter

    The Tire Dealers industry in Canada generates an estimated 54.6% of its total revenue from tire sales. The remaining 45.4% comes from automotive services and sales of automotive parts. The share of total revenue generated by each of these segments is remarkably consistent, with little change over the past five years. Tire sales are broken down by type of vehicle: passenger tires, light-truck tires, medium- and heavy-duty truck tires, farm tires and off-road tires.Passenger car and light-truck tiresTires for passenger cars and light trucks are the top-selling products for tire dealers, accounting for 44.7% of the industry's total revenue in 2018. Pas...purchase to read more.

    Additional Insights for the Tire Dealers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Tire Dealers Industry are

  • Economies of scale
  • Effective inventory management
  • Developing a strong customer base
  • IBISWorld analysts also discuss how external factors such as Total vehicle-kilometres and New vehicle sales in the Tire Dealers industry impact industry performance..

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    What's in this report

    What is the Tire Dealers Industry?

    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 Products
  • Passenger car and light-truck tires
  • Medium- and heavy-duty truck tires
  • Farm and off-road tires
  • Automotive services and parts
  • Industry Activities
  • Selling passenger car and light-truck tires
  • Selling medium- and heavy-duty truck tires
  • Selling farm and off-road tires
  • Performing tire services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total vehicle-kilometres
  • New vehicle sales
  • Per capita disposable income
  • World price of crude oil

  • Current Performance
  • Expansion despite competition
  • Fuel prices and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Positive revenue trends
  • Trading up
  • Organic expansion
  • Table: Tire Dealers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tire Dealers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting In Canada
  • Long-Distance Freight Trucking in Canada
  • Public Transportation in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Tire Wholesaling in Canada

  • Products & Services
  • Automotive services and parts
  • Passenger car and light-truck tires
  • Medium- and heavy-duty truck tires
  • Farm and off-road tires
  • Chart: Tire Dealers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Household consumers (men)
  • Household consumers (women)
  • Businesses for end use
  • Wholesalers and retailers for resale
  • Other
  • Government
  • Chart: Major Market Segmentation for the Tire Dealers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Tire Dealers

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tire Dealers Industry

  • Industry Globalization
    Canadian Tire Corporation Limited, Kal Tire, Fountain Tire,
  • Table: Canadian Tire Corporation Limited - financial performance
  • Table: Kal Tire - financial performance
  • Table: Fountain Tire - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tire Dealers 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 Tire Dealers Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Total vehicle-kilometres (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Car Dealership
  • A business that sells new or used cars at the retail level that may sell tires and provide tire-related services (operations are not included in the Tire Dealers industry).
  • Lt-Metric
  • Tires sized to be used on light truck vehicles capable of carrying heavy cargo or towing large trailers.
  • P-Metric
  • Tires sized based on load capacity, primarily used to carry passengers including cars, station wagons and sport utility vehicles.
  • Retreader
  • A firm that offers services to retread old or worn tires.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Tire Dealers 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 Tire Dealers:
    • 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 Tire Dealers 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 Tire Dealers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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