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Fragmentation in tire manufacturing
Hello and thanks for asking about fragmentation in the worldwide tire manufacturing industry! The two most useful sources I found relating to this topic were Statista and IBISWorld, Inc. In short, there are only 133 global tire manufacturers, and the top four make up over 91% of the industry market share. An exact figure for small businesses was not made available, but data shows that they made up little of the overall industry and tend to operate in niche segments. Below is a deep dive of my findings.
METHODOLOGY
In order to best discover what the global tire manufacturing fragmentation is like, I first turned to the most recent available industry and government reports on the topic. With regards to OEM revenue, numbers are not yet available for 2017, so the majority of this information is from 2015 or 2016. I also drew information from two sources published in 2012, because they help reveal the ongoing industry trends, with additional support from 2015 sources. Specific figures for the market held by small, mom and pop type businesses was not available, even after searching a number of different market reports, articles, and more. The information about them that was available, though, has been provided.
FINDINGS
Concentration of the Market
As of December of 2016, there were 133 manufacturers that make up the global tire industry. As might be expected with such a small amount of companies, the market is highly concentrated. In fact, the top four manufacturing companies took up 91.3% of the annual revenue in 2012. Because the tire manufacturing market has only made a small increase from $19.4 billion in 2012 to $20 billion in 2016, it is unlikely that the top four companies' percent of the market share has decreased significantly. Unlike the tire retail industry, which favors independent dealerships, tire manufacturing is dominated by the large companies; as such, mom-and-pop shops do not significantly factor into industry numbers. However, for those that are in the industry, they tend to succeed by operating within niche tire markets.
The top four tire manufacturers are Bridgestone, Michelin, Goodyear, and Continental. This 2000 report on the tire manufacturing industry shows that these four companies have been dominating the market since 1996, with Bridgestone overtaking Continental for the #1 spot in 2015.
Top Manufacturers
There are two charts that rank the top 75 tire manufacturers based on tire revenue: one from 2012, and one from 2015. Below, I will be listing the top 12 global manufacturers, ranked in order of their 2015 revenues. These revenues include all tire-related product sales that these companies make; as such, the numbers are different from the market size of the tire manufacturing industry alone.
CONCLUSION
It is evident that the tire manufacturing industry is a concentrated one, with only 133 companies globally and just four that make over 90% of the annual revenue. As of 2016, the global tire manufacturing market size was $20 billion, and is continuing to grow.
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