Automotive Tire Market

Automotive Tire Market Outlook (2024 to 2034)

The global automotive tire market is projected to increase from a value of US$ 403.53 billion in 2024 to US$ 626.67 billion by the end of 2034. Worldwide sales of automobile tires have been projected to rise at 3.6% CAGR from 2024 to 2034.

Automotive tires are essentially the rubber-covered, circular components of vehicles that fit over the wheel rims. Their main functions include shielding the wheel rim and generating traction between the vehicle and the road surface. In addition, because they are made of rubber, tires act as flexible cushions, absorbing stress from the vehicle and reducing the impact of vibrations.

Rubber tires are made up of various materials such as cloth, carbon black, synthetic rubber, and jointless cap heaps in addition to tread. The demand for tires is rising exponentially because of the increased need for vehicle production to meet the growth in demand for automobiles in all market sectors, leading to the increasing automotive tire market size.

Demand for tires from OEMs is being fueled by the rise in vehicle sales in general, especially in developing countries. Need for tires rises in direct proportion to the number of cars made and sold worldwide. The OEM tire market may be impacted by changes in the trends of the automobile industry, such as the growing popularity of electric vehicles (EVs), autonomous vehicles, and connected cars. For example, to meet their particular performance needs, EVs frequently need tires with certain qualities, including low rolling resistance for increased range.

Expansion of the automotive tire OEM market is expected to be driven by the increasing production and sales of passenger and light commercial vehicles worldwide. There is a growing market for high-performance cars as more people buy cars. Global passenger car demand and rising vehicle manufacturing are expected to fuel market expansion, contributing to automotive tire market growth.

• The European Automobile Manufacturers Association (ACEA) released figures showing that over 68 million passenger automobiles were produced worldwide in 2022, up 7.9% from the previous year.

Report Attribute	Detail
Automotive Tire Market Size (2024E)	US$ 403.53 Billion
Forecasted Market Value (2034F)	US$ 626.67 Billion
Global Market Growth Rate (2024 to 2034)	3.6% CAGR
North America Market Share (2024E)	35.7%
East Asia Market Value (2024E)	US$ 151.21 Billion
Winter Tires Segment Value (2034F)	US$ 180.48 Billion
Passenger Cars Segment Value (2034F)	US$ 407.96 Billion
Key Companies Profiled	Continental AG; Yokohama Rubber Company Limited; Sumitomo Rubber Industries Ltd.; Madras Rubber Factory Limited; Apollo Tyres Ltd.; Sailun Tires Ltd.; Bridgestone Corp.; Michelin; Goodyear Tire And Rubber Company; Pirelli & C. S.P.A; Shandong Linglong Tyre; Nexen Tire America Inc.; Kumho Tire Co. Inc.; Nokian Renkaat Ojy; Cheng Shin Rubber Industries; Toyo Tire & Rubber Company; Trelleborg AB; Cooper Tire & Rubber Company; Hankook Tire; Titan Tire Corporation.

Which Opportunities are Automotive Tire Manufacturers Capitalizing On?

“Improvements in Road Infrastructure and Increased Vehicle Longevity”

Thanks to improvements in road infrastructure, driving conditions, technology, and other variables, the average life of a vehicle has grown in recent years. The average life of a vehicle and the number of kilometers traveled annually have increased, which has led to development potential for aftermarket tire makers. The US Department of Transportation's Federal Highway Administration estimates that a passenger automobile is driven 13,476 miles annually on average.

Each month, this equals more than 1,000 kilometers. The automotive tire industry has been affected by both the longer tire life and the increased mileage driven by vehicles. While the industry has been under pressure due to the decline in tire demand, research and development expenditures have increased, which has resulted in a greater emphasis on tire performance and sustainability.

“Growing Need for Eco-Friendly Tires Due to Strict Regulations”

Demand for eco-friendly tires is rising due to stringent regulations worldwide. Governments are implementing laws mandating tires to be cleaner and more fuel-efficient, aiming to improve air quality and reduce greenhouse gas emissions.

• For instance, the European government aims to slash CO2 emissions from vehicles by 37.5% by 2030, driving the push for more environmentally friendly tire technologies.

Car makers will have to employ more fuel-efficient tires to meet this aim. Additionally, by 2025, cars must achieve an average of 54.5 miles per gallon according to a fuel efficiency guideline imposed by the United States. Additionally, this standard would mandate the use of tires with higher fuel efficiency.

Tire rubber is made using bio-oil instead of oil derived from petroleum. This lessens the impact tire manufacturing has on the environment because bio-oil is a renewable resource. For example, orange oils–extractable from orange peels–help lower the petroleum content of tires. Tire manufacturers are decreasing the amount of environmentally hazardous elements they use while simultaneously decreasing friction and boosting fuel economy.

The automobile gets greener as a consequence of using less gasoline and emitting fewer CO2 emissions. Businesses such as Bridgestone have effectively produced synthetic rubber using plant-based components instead of petroleum-based ones. Other businesses are also experimenting with synthetic rubber created from biomass, which is waste from agriculture or plants.

What is Significantly Impeding Market Expansion?

“Raw Material Cost Issues and Dependency on Natural Rubber”

In the car tire business, the cost of the raw material is a major determinant of component pricing. Plasticizers, steel, cloth, carbon black, natural and synthetic rubber, and steel are the basic materials used in tire production. Tire costs are greatly impacted by the demand for, consumption of, and price variations of rubber, both synthetic and natural. Natural rubber is one of the most important raw materials. This dependency also impedes the expansion of the automotive tire market size.

• The Association of Natural Rubber Producing Countries estimates that there was a 700,000 metric ton deficit in the supply of natural rubber in 2017. On the other hand, in May 2022, the world's natural rubber supply increased by 991,000 tons. The price of natural rubber has varied significantly over the past 10 years, which has a significant influence on tire makers and the cost of automobile tires.

Country-wise Insights

Cars are mostly used around the world, on the other hand, automation is becoming common in the automotive industry, leading to a constant rise in demand for automotive tires in many countries including the United States, China, Canada, Japan, and South Korea, with the United States in North America holding a significant automotive tire market share.

Why are Sales of Automotive Tires High in the United States?

“Increased Automotive Production and Rising Demand for Green Tires”

Attribute	United States
Market Value (2024E)	US$ 109.72 Billion
Growth Rate (2024 to 2034)	5.1% CAGR
Projected Value (2034F)	US$ 180.88 Billion

The United States is projected to account for a major market share in the North American region by 2034. Growing sales of electric vehicles and changing consumer preferences in the country are key automotive tire market trends.

Development of autonomous vehicles, the rising popularity of pickup trucks, and high purchasing power are expected to be other significant trends that are expected to govern automotive tire sales. Increasing focus on sustainability is projected to drive demand for retreaded tires in the United States.

How is the Market for Auto Tires Faring in China?

“Heightened Demand for Airless and Non-Pneumatic Tires”

Attribute	China
Market Value (2024E)	US$ 66.99 Billion
Growth Rate (2024 to 2034)	4.3% CAGR
Projected Value (2034F)	US$ 101.76 Billion

Customers are increasingly focused on cost-effectiveness, durability, high performance, and stylish design when choosing tires. This growing preference for high-performance tires is pushing manufacturers to innovate with advanced technology and create superior products. These high-tech, efficient tires have the potential to greatly enhance passenger comfort during driving.

These tires offer a solid grip on roadways, work well in rainy conditions, and are impervious to punctures. They are often airless, non-pneumatic, and cannot be punctured. Compared to traditional tires, they have a reduced surface contact area, which improves the fuel efficiency of the car.

Category-wise Evaluation

All-season tires are extensively preferred by end users due to their reliable operation in harsh conditions.

Which Type of Tire Will Be Highly Sought After Going Ahead?

“Rising Demand for All-Season Tires Due to Reliable Performance in Diverse Weather Conditions”

Attribute	All-season Tires
Segment Value (2024E)	US$ 171.5 Billion
Growth Rate (2024 to 2034)	4.2% CAGR
Projected Value (2034F)	US$ 258.81 Billion

In the car industry, all-season tires are becoming increasingly popular with consumers. Many drivers like these tires because of their adaptability and year-round use. All-season tires are utilized more often than other types of car tires. They are a sensible choice for customers because of their capacity to deliver dependable performance in a range of weather circumstances, such as light snow and rain. Consequently, the market's need for all-season tires is expanding.

Why Do Passenger Cars Account for Significant Revenue Streams?

“Passenger Car Sales Surpass All Other Variants”

Attribute	Passenger Cars
Segment Value (2024E)	US$ 273.19 Billion
Growth Rate (2024 to 2034)	4.1% CAGR
Projected Value (2034F)	US$ 407.96 Billion

In recent years, passenger cars have become the primary end-use market for automobile tires. The rise in the number of passenger cars on the road has contributed significantly to the demand for these tires. Demand for automobile tires is growing as more individuals want to drive their cars due to more disposable money and better road infrastructure. New developments in tire technology have increased their performance, robustness, and safety, which has further increased their popularity in passenger cars.

Market Landscape

Key players in the automotive tire market are focusing on launching new and improved products such as tubeless tires and airless tires. Partnerships with car companies and expansion of manufacturing units are also being pursued by market players in several regions of the world.

• Bridgestone Corporation introduced the R192E, an electric bus tire made specifically for buses that run on electricity, in May 2023. Because electric buses have larger battery packs and more torque, they have specific performance requirements.
• South Korean tire producer Hankook Tire stated in August 2022 that it was expanding the manufacturing capacity of its Clarksville, Tennessee, location. By 2026, the business planned to have invested over US$ 1.6 billion, more than doubling the facility's capacity for local manufacture.

Fact.MR provides detailed information about the price points of key manufacturers of automotive tires positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Automotive Tire Market Research

• By Vehicle Type :

  • 2/3 Wheelers
  • Passenger Vehicles
  • Commercial Vehicles
    • LCVs
    • HCVs

• By Tire Structure :

  • Radial Tires
  • Tube Tires
  • Tubeless Tires
  • Bias Tires

• By Tire Type :

  • Winter Tires
  • Summer Tires
  • All-Season Tires

• By Distribution Channel :

  • OEMs
  • Aftermarket

• By Region :

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