Part
01
of one
Part
01
How fragmented is the tire distribution industry in the U.S.?
Hello! Thank you for allowing us to assist you with your question on the tire distribution industry. Based on 2016 data, independent tire dealers hold the majority of the market share (78%), and the top three companies account for 24.2% of the revenue. Please keep reading for the deep dive on the fragmentation of this industry.
METHODOLOGY
To address this question, I started by seeking the most recent industry reports available that covered distribution channels. Since these reports did not include the revenue for each company, I then researched this angle separately. The most comprehensive and specific revenue data available is from the Economic Census, which is only produced every five years. So this data is from 2012, while all other data is from 2016. However, I cross-checked with as many public sources that were available in order to provide you with a solid overview of the combined figures.
In some cases, consumer vs. commercial tires and retail vs. wholesale revenues are reported separately. I included all figures, and indicated the scope, where known.
TRENDS
- The tire dealer industry is heavily concentrated, with the top three companies generating 24.2% of annual revenue, or $9.2 billion. The third and fourth largest companies generate less than 2% each of total industry revenue.
- Independent tire dealers and auto dealerships have gained market share since 2012, while all others are on the decline.
- In the wholesale industry, the 50 largest companies generate 70% of annual revenue, or $24.5 billion.
FINDINGS
$ (in thousands) | #
CONCLUSION
Thank you again for your question about the tire distribution industry. As you can see above, the industry is quite concentrated, with the top few companies generating half the total revenue. Independent tire dealers hold an increasing majority of the market share. I hope the details I have provided for you meet your needs. If there is anything else we can do for you, please let us know!