III. Industry Analysis
Though the automotive industry is undergoing substantial changes, one thing that has not changed is the need for tires. Whether the world switches to electric vehicles or self-driving vehicles, tires will still be an essential component of these models. Therefore, tire shops will continue to be in great demand, no matter how the automotive industry transforms over the next few decades.
According to Allied Market Research, the tire market was valued at $139 billion last year and is expected to reach $219 billion over the next five years. Though the pandemic hurt the tire industry (as well as the auto industry in general), things are now improving substantially. The industry is expected to grow at a CAGR of 3.8%, showing that the economy has recovered. Other auto industries are also growing again as the demand for vehicles increases. Therefore, this is the perfect time to start and run a new tire shop.