Market Data Book: 5 takeaways from Tire Business

The Feb. 27 edition of Tire Business features our annual Market Data Book (MDB) and is available for download. The MDB is a deep dive into the available data about the North American tire industry. Inside the issue, you'll find more than 40 data graphics, with more than 1,000 data points.

Download the Feb. 27 Market Data Book here.

Special Projects Editor Bruce Davis breaks down what it all means in an exclusive feature, where he describes the tire industry in 2022 as a tale of two tire markets.

Here are five key takeaways about the North American tire market in 2022 featured in the MDB:

Group Michelin was the No. 1 tire maker in worldwide sales in 2021, followed by Bridgestone Corp. and Goodyear. The same was true of tire sales in North America in 2022. Combined, Michelin North America, Bridgestone Americas and Goodyear accounted for 56.9% of market sales. The top three also have the most tire manufacturing facilities: Michelin (51 factories in 18 countries), Bridgestone (48 in 18 countries) and Goodyear (42 in 23 countries).

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Americans like to hit the road, and in 2022 U.S. drivers traveled an estimated 2.85 trillion miles. With new vehicle sales down 7.9% last year, more drivers are holding onto their vehicles longer (average vehicle age rose to 12.2 years), which is good news for tire service and aftermarket businesses.

On average, it cost 72 cents per mile to own a vehicle in 2022. That's up 7 cents in a year. The average vehicle repair cost also increased 8.7% to $356.50. The most expensive state is Connecticut, with an average repair cost of $418.37, followed by Colorado ($417.14) and California ($415.66). The cheapest states for repair are Maine ($349.25), Ohio ($353.76) and Michigan ($356.29). The highest average labor cost per repair was $151.67 in Mississippi.

The light truck market continues to dominate. U.S. motor vehicle population data show while passenger cars have declined over the last four years, light trucks have incresed. The three best- selling vehicles last year where the Ford F series (653,957 units sold), Chevrolet Silverado (513,354) and Ram (486,344). The most popular light truck tire size for OE is 275/70R18, while the top replacement size is 265/70R17.

Domestically, tires are produced in 15 states, and South Carolina has a rated capacity to build 122,025 units a day, making it the largest tire-production area in the U.S.

Oklahoma is second with a daily capacity of 88,000, followed by North Carolina (72,317) and Tennessee (57,000).

The U.S. Department of Transportation (DOT) issued 27 new plant identification codes in the past year for tire factories worldwide, including 11 in China, three in Sri Lanka and two in Cambodia. There are roughly 975 factories worldwide that are considered "active."

In terms of imports, Thailand is the greatest source for North America across all segments. While Thailand's 6.6 million light truck tire units shipped in 2022 was down from 2021 (-10.5%), Vietnam saw an increase of 26.5% to 5.1 million units last year.

Overall, imports grew year-over-year with passenger up 4.9%, light truck up 4.8%, and medium truck and bus tires increased by 37.9%.