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Automotive Tire Market

Automotive Tire Market

Automotive Tire Market, By Vehicle Type (2/3 Wheelers, Passenger Vehicles, Commercial Vehicles), By Tire Structure (Radial, Tube, Tubeless, Bias Tires), By Tire (Winter, Summer, All-season), By Distribution Channel, By Region - Global Market Insights 2022 to 2032

Automotive Tire Market
FACT12MR
  • Sep-2022
  • List of Tables : 80
  • List of Figures : 227
  • 170 Pages
  • Automotive

Automotive Tire Market Outlook (2022-2032)

As of 2022, the global automotive tire market enjoys a valuation of US$ 381.5 billion and is projected to reach US$ 593.5 billion by the end of 2032. Sales of automotive tires are anticipated to increase at a CAGR of 4.5% over the next ten years.

Radial tire demand is anticipated to be more than other types of tires owing to their characteristic properties such as high durability, low rolling resistance, and high heat dissipation. As a result, the radial tire segment is anticipated to account for a whopping 93% share by 2032-end.

Report Attributes

Details

Automotive Tire Market Size (2022)

US$ 381.5 Billion

Projected Year Value (2032F)

US$ 593.5 Billion

Global Market Growth Rate (2022-2032)

4.5% CAGR

Top 5 Companies’ Market Share (2022)

45%

North America Market Growth Rate (2022-2032)

3.5% CAGR

Passenger Vehicle Segment Growth Rate (2022-2032)

6.5% CAGR

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

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Sales Analysis of Automotive Tires (2017-2021) in Comparison to Market Growth Forecasts (2022-2032)

The automotive industry has witnessed some major changes over the past few years and this has largely impacted the automotive tire market in many positive as well as negative ways. The rising popularity of electric vehicles (EVs) and increasing automotive production across the world are anticipated to drive demand for automotive tires over the next ten years.

The growing demand for high-performance tires is projected to positively influence automotive tire market growth through 2032. Increasing automobile ownership in emerging economies owing to rising per capita disposable income.

Rising purchases of passenger vehicles and commercial vehicles across the world are also anticipated to favor automotive tire sales throughout the forecast period.

Synthetic rubber tires are gaining popularity owing to their longer life and lower tread loss as compared to tires made from natural rubber. A rising focus on sustainability and a more environment-conscious consumer base is also shaping automotive tire shipments noticeably and these factors are expected to drive smart tire market growth through 2032.

  • For instance, from August 2022, Continental Tire Japan plans to utilize the PROJECT TREE blockchain initiative to ensure the use of responsibly sourced natural rubber for their operations.

However, the shortage of raw materials for manufacturing automotive tires is anticipated to be a major restraint for the overall automotive tire demand over the years to come. From 2022 to 2032, the market for automotive tires is predicted to expand at a CAGR of 4.5%.

Automotive Tire Market forecast analysis by Fact.MR

Why are Governments Emphasizing the Use of Advanced Tires?

“Rising Incidence of Road Accidents Leading to Enforcement of Stringent Vehicle Safety Norms”

The incidence of road accidents across the world has increased substantially over the past years and this has led to the implementation of strict regulations for vehicle safety by various governments and regulatory authorities.

Installation of advanced tires in vehicles has been made mandatory by some governments and the use of smart technologies to monitor tires has also increased. All of the aforementioned factors are anticipated to favor automotive tire market growth and justify government emphasis on advanced tires.

An Adaptive Approach to Modern-day Research Needs

What Could Dent Automotive Tire Demand Growth?

“Shortage of Raw Materials for Tire Manufacturing Could Impede Market Progress”

  • According to Continental, a top tire brand, 70% of the world’s natural rubber is utilized in the tire manufacturing industry.

While the demand for rubber stays high, its production has not ramped up as expected and environmental concerns regarding the use of natural rubber have also resulted in a shortage. This is anticipated to be a key challenge for the automotive tire market growth over the next ten years.

How Will Innovation in the Tire Industry Be Pivotal to Market Evolution?

“Start-ups Can Unlock New Opportunities in Tires Market through Innovation”

The tire industry has not witnessed any revolutionary changes except for changes in tire materials and rubber formulations. This is changing with new companies creating innovative tires and propelling advanced tires market growth along the way.

  • The SMART Tire Company is looking to revolutionize the tire industry by leveraging NASA’s technology designed for space. The company’s ‘shape memory alloy radial technology’ (SMART) tire technology was originally developed by NASA for its space applications and is now being commercialized by the start-up.

Upcoming market players are also focusing on collaborations and partnerships to increase their business potential and drive revenue generation capacity.

  • In March 2022, UK-based Enso Tyres Ltd., an engineering startup, announced a partnership with IRIS, an Algerian tire producer, to manufacture tires designed by Enso for electric vehicles.

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Why Should Tire Manufacturers Focus on Investments in Asia Pacific?

“Presence of Top Tire Brands & Key Automotive Manufacturers in the Region”

The automotive tire market in the Asia Pacific region accounts for a dominant market share and is projected to maintain a similar stance over the next ten years as well. The presence of a robust automotive manufacturing industry, the presence of key automotive and tire manufacturers, and supportive government initiatives to boost the automotive industry are key factors that shape automotive tire demand in this region.

China, India, Japan, and South Korea are predicted to be the most lucrative countries in this region owing to the presence of key automotive brands and tire brands such as Bridgestone Corporation, Nissan, Hyundai, Toyo Tire Corporation, Sumitomo Tire, Kia, Yokohama Tire, etc.

A detailed and comprehensive regional analysis of all major and minor regions has been listed in this latest automotive tire market research report by analysts at Fact.MR, a market research and competitive intelligence provider.

Country-wise Insights

What Makes the United States an Attractive Market for Automotive Tire Brands?

“High Automotive Production & Rising Demand for Green Tires”

The United States automotive tire market is anticipated to account for a major market share in the North American region across the forecast period. Growing sales of electric vehicles and changing consumer preferences in the country are expected to sculpt automotive tire market potential.

The development of autonomous vehicles, rising popularity of pickup trucks, and high purchasing power are expected to be other significant trends that are expected to govern automotive tire sales through 2032. Increasing focus on sustainability is anticipated to drive demand for retreaded tires in the United States.

Which Country is Slated to Head Revenue Generation in South Asia?

“India Anticipated to Spearhead Revenue Generation Owing to Rising Automotive Manufacturing”

The automotive manufacturing industry in India is growing at a fast pace owing to low labor costs and supportive government initiatives and this is anticipated to drive demand for automotive tires in the country over the coming years. Rising per capita disposable income has also resulted in rising sales of passenger cars, which subsequently drives the passenger car tire market.

The increasing number of product launches in the country and the growing popularity of SUVs in the country are also anticipated to favor automotive tire shipments across the forecast period.

Category-wise Insights

Which Type of Vehicle is Spearheading Automotive Tire Demand?

“Passenger Vehicles to Account for Majority of Automotive Tire Sales”

The global automotive tire market based on type is segmented into 2/3 wheelers, passenger vehicles, and commercial vehicles.

Demand for automotive tires in passenger vehicles is projected to witness exponential growth over the next ten years and this growth can be ascribed to rising automobile ownership in emerging economies and growing sales of passenger vehicles. Increasing launches of new passenger cars across the world are also expected to drive automotive tire sales over the coming years.

High use of 2/3 wheelers in countries such as India and China is expected to favor two-wheeler tire market potential in these countries.

Competitive Landscape:

Manufacturers of auto tires are focusing on expanding their business scope by increasing manufacturing capacity to meet high demand from various regions.

  • In August 2022, Hankook Tire, a South Korean supplier of tires, announced the expansion of the manufacturing capacity of its facility in Clarksville, Tennessee, United States. The company was expected to invest around US$ 1.6 billion to increase the local manufacturing capacity of the facility by more than double by 2026.

Key Segments Covered in Automotive Tire Industry 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
    • Latin America
    • Europe
    • APAC
    • MEA

- FAQs -

The global automotive tire market is valued at US$ 381.5 billion in 2022.
The global market for automotive tires is forecasted to reach US$ 593.5 billion by 2032.
Demand for automotive tires is projected to reflect an increase of 4.5% CAGR over the next ten years.
Demand for automotive tires in North America is expected to be driven by the rising popularity of electric vehicles (EVs) and increasing sales of pickup trucks.
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., and Nokian Renkaat Ojy are prominent tire manufacturers.
Use of automotive tires in passenger vehicles is expected to increase at a CAGR of 6.5% through 2032.

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