Ultra-High Performance (UHP) Tire Market

2016-2020 Ultra-High Performance (UHP) Tire Market Outlook Compared to 2021-2031 Forecast

Sales of ultra-high performance tires increased at a  3.7% CAGR between 2016 and 2020, with countries such as  the U.S., India, Germany, Japan, and China accounting for a substantial portion of the global market.

Increasing demand for replacement of tires for maintenance is boosting growth of the ultra-high performance tire market. Besides this, growing sales of high performance cars for NASCAR, Formula One and other professional automotive races will continue pushing sales of ultra-high performance tires.

UHP tires effectively improve road grip and maintain vehicle control at high speed. Rising demand for luxury and sports utility vehicles (SUV) is expected to bode well for the global UHP tires market in the forthcoming years.

As a result, The ultra-high performance tire market is projected to grow at a 10.9% CAGR during the forecast period of 2021 to 2031.

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How will Surge in Automotive Racing Events Impact Sales of Ultra-High Performance Tires?

Demand for high-performance tires has increased remarkably in recent years owing to surge in various types of automotive racing competitions. Competitive automotive racing events such as NASCAR and Formula One launch various promotional activities and sponsorships to generate interest among the audience.

All vehicles used in these events are equipped with the ultra-high performance tires. This is expected to continue boosting sales of ultra-high performance tires over the forecast period.

What is the Impact of COVID-19 Crisis on Ultra High Performance (UHP) Tire Market?

The automotive industry suffered major blow during due to the COVID-19 pandemic. Sales of vehicles and aftermarket component plummeted due to suspension of automotive production and disruption in supply chains.

Several production facilities in many countries were entirely shut down because of the lockdown, which had a direct impact on sales of UHP tires. Stagnated sales of vehicles and halted production further dampened sales prospects of UHP tires.

As numerous production facilities have reopened, the industry is progressively rebounding from losses, resulting in positive sales prospects in the UHP market.  Increasing sales of tires via various E-commerce websites is also expected to boost demand for UHP tires in the forthcoming years.  

Country-wise Insights

What Is the Demand Outlook for UHP Tires in China?

As per FMI, China is projected to account for nearly one-third of the East Asia market share, creating an incremental opportunity of above US$ 1 Bn in 2031.

China is expected to remain one of the top producers of automotive tires across the globe.  UHP tire distributors in China are expanding their operations and distribution channels in countries such as Australia and India.  Also, many manufacturers form China export their tires to countries all over the world, which is expected to augment growth of the UHP tires market in China.  

Where is Demand for UHP Tires Rising in the U.S.?

The U.S. is projected to account for approximately 81.5% of the North America UHP tires market in 2021. Road journeys are becoming mainstream in warm-weather cities on the West Coast. As individuals become less willing to use public transportation, reliance on personal transportation is increasing, which in turn is spurring demand for UHP tires. 

Growth of the UHP tires market in the U.S. can also be attributed to increasing vehicle production driven by strong presence of key manufacturers. Apart from this, high demand for luxury cars is anticipated to continue pushing sales of UHP tires in the U.S. in the forthcoming years.

Why is Germany Considered a UHP Tires Market?

Germany is projected to account for 17.9% of the Europe UHP tires market share in 2031. When it comes to ultra-high performance tires, German consumers have high expectations. Shifting consumer preference towards high performance automotive components, along with rapid expansion of the automotive sector in Germany is expected to propel sales of UHP tires over the assessment period. 

Category-wise Insights

Why are Sales of All-Season Tires Increasing?

Sales of all-season tires are expected to grow at an impressive 11.6% CAGR over the forecast period of 2021 to 2031.

All-season tires are becoming increasingly popular as they are designed for wet and dry roads, suiting all types of weather conditions.

These tires are available in a wide range of sizes that match vehicle performance dynamics and meet drivers’ expectations. Owing to these factors, sales of all-season UHP tires are projected to increase over the forecast period.

Sales of UHP Tires for Sports Cars to Continue Gaining Traction

The sports cars segment is projected to create an absolute dollar opportunity of more than US$ 11,360.1 Mn during the period of 2021 to 2031.

Due to consistent improvements in the automotive sector and growing preference for personal mobility, sales of sports vehicles have increased, and the trend is expected to continue in the forthcoming years.

Sports cars are gaining popularity as they have larger engine size and light overall weight. Increasing sales of sports cars will continue providing tailwinds to UHP tire sales over the assessment period.

Which is the Most Preferred Sales Channel for UHP Tires?  

The replacement/aftermarket segment is projected to account for more than 76.1% of the total market share by 2031. Increasing replacement rates of tires due to excessive wear and tear is expected to boost sales of UHP tires through aftermarket.

In order to improve performance, ultra-high performance tires are recommended to be replaced every 60 to 120 Km ideally during automotive racing. Other factors such as quality of the tires and the substance they are made of might affect their lifespan.

Cars parked under extreme sunlight for longer duration experience wear and tear and erosion of tires. The sun and heat erode the rubber, leading the tires to wear off over time. If left ignored for too long, the material may tear leading to the serious damage to the rim of tires. This is expected to result in high demand for UHP tires over the forecast period.

Competitive Landscape

Leading players operating in the UHP tires market are investing in strategic collaborations, mergers, and acquisitions to expand their production facilities across the globe. Apart from this, players are focusing on research and development to launch high quality and durable UHP tires to gain a competitive edge. For instance:

• In Jun 2021, The Goodyear Tire & Rubber Company announced that it has completed its acquisition of Cooper Tire & Rubber Company, finalizing the merger agreement made public on February 22.  The combination unites two leading tire companies with complementary product portfolios, services, and capabilities to create a stronger U.S.-based leader in the global tire industry.

• In January 2020, Toyo Tire Corporation announced that it has signed a sponsorship agreement with Michael Whiddett (a.k.a. “Mad Mike”), a renowned New Zealand drifting racer, under which Toyo Tire will support this celebrated driver at drifting races and other events. It is looking forward to working with this new brand ambassador to enhance the global presence of the ‘TOYO TIRES’ brand, the hallmark of high-quality, high-performance tires. The company will continue to support him at drifting races in various ways, such as through the provision of its PROXES ultra-high-performance tires.

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Key Questions Answered in the Report

• What is the current UHP tires market value?

  The UHP tires market reached a valuation of US$ 10.4 Bn in 2021.

• At what rate did the XYZ market grow between 2016 and 2020?

  The UHP tires market experienced moderate growth, exhibiting a 3.7% CAGR between 2016 and 2020.

• What are the key trends driving UHP tires sales?

  Rising demand for high performance vehicles for automotive sports, along with introduction of new technologies to improve efficacy of tires are driving sales of UHP tires.

• What will be the demand outlook for North America UHP tires market?

  North America UHP tires market is projected to grow at an impressive 11.6% CAGR during the forecast period.

• What will be the UHP tires market share in Europe?

  The UHP tires market in Europe is anticipated to expand at a 11.2% CAGR between 2021 to 2031.

• What is the current market share of Japan and South Korea in the global UHP tires  market?

  Japan and South Korea are anticipated to hold 43.5% and 26.0% of the global UHP market share respectively.

Ultra-High Performance (UHP) Tires Markey by Category

By Tire Type:

• Summer
• Winter
• All-Season

By Vehicle Type:

• Sports Car
• SUV/MUV
• Light Trucks

By Sales Channel:

• OEM
• Replacement/Aftermarket

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East & Africa