Automotive Tires Industry on an Upward Trajectory, Projected to Grow from USD 138 Billion in 2023 to USD 192 Billion by 2031 - Market Research Intellect

Market Research Intellect is pleased to announce the release of its latest market intelligence report, "Automotive Tires Industry: Global Trends, Market Share, Growth, and Forecast." This comprehensive study provides industry leaders with valuable insights into market dynamics, technological advancements, competitive landscapes, and future growth opportunities.

LEWES, Del. , Feb. 20, 2025 /PRNewswire/ --  The Automotive Tires Market Size was valued at USD 138 Billion in 2023 and is expected to reach USD 192 Billion by 2031, growing at a 5% CAGR from 2024 to 2031. The positive momentum in market dynamics, coupled with the anticipated continued expansion, is indicative of robust growth rates expected throughout the forecasted period.

The growth of the automotive tires market is driven by multiple factors, including increasing vehicle production, rising consumer demand for fuel-efficient and durable tires, and advancements in tire technology. The expanding electric vehicle (EV) segment has further accelerated the demand for specialized tires with lower rolling resistance and enhanced performance.

Additionally, the shift toward sustainability has led to increased adoption of eco-friendly and smart tires, integrating sensors for real-time monitoring. Rising disposable incomes and growing urbanization, particularly in emerging economies, are also contributing to market expansion. Furthermore, stringent safety regulations and the increasing preference for all-season and high-performance tires continue to fuel industry growth.

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202 - Pages
126 – Tables
37 – Figures

Scope Of The Report

Automotive Tires Market Overview

Growing Market Size and Expansion

The automotive tires market is on a steady growth trajectory, projected to increase from USD 138 billion in 2023 to USD 192 billion by 2031, reflecting a 5% CAGR. This expansion is driven by rising vehicle production, increasing demand for replacement tires, and advancements in tire manufacturing technologies. The market benefits from strong demand across passenger cars, commercial vehicles, and two-wheelers, with emerging markets contributing significantly to overall growth. The growing preference for premium tires with enhanced performance, durability, and safety features is further fueling the industry's expansion. Additionally, the rise in vehicle ownership, particularly in developing regions, is boosting tire sales. Automakers and tire manufacturers are increasingly investing in research and development to introduce innovative solutions that cater to evolving consumer needs. The trend toward customization and specialty tires, including all-season, run-flat, and performance tires, is also shaping the future of the automotive tires market.

Rising Demand for Fuel-Efficient and Durable Tires

The increasing emphasis on fuel efficiency is a major driver for the automotive tires market. Consumers and fleet operators are looking for tires that enhance fuel economy by reducing rolling resistance. Manufacturers are investing in advanced rubber compounds, innovative tread designs, and lightweight materials to improve tire performance. Durability is another key factor, as consumers seek long-lasting tires that offer better mileage and lower maintenance costs. The commercial vehicle sector, in particular, is driving demand for high-mileage and retreadable tires that can withstand heavy usage. Additionally, regulatory initiatives promoting fuel efficiency and emission reduction are encouraging the adoption of eco-friendly tires. Governments across various regions are enforcing tire labeling regulations to educate consumers about fuel efficiency ratings, rolling resistance, and wet grip performance. As a result, tire manufacturers are focused on developing energy-efficient tires that contribute to lower carbon emissions while maintaining high performance and safety standards.

Growth of the Electric Vehicle (EV) Tire Segment

The expanding electric vehicle market is reshaping the automotive tires industry, creating new opportunities for specialized tire development. EVs require tires with unique characteristics, such as lower rolling resistance to maximize battery range, enhanced grip to handle instant torque, and reinforced sidewalls to support battery weight. Leading tire manufacturers are designing EV-specific tires that optimize performance, reduce road noise, and improve energy efficiency. The growing adoption of EVs worldwide, driven by government incentives and environmental concerns, is expected to boost demand for advanced tire solutions. Additionally, EV manufacturers are forming partnerships with tire companies to develop custom-designed tires tailored to specific vehicle models. The rising consumer preference for sustainable mobility further aligns with the development of eco-friendly EV tires made from recycled materials and bio-based compounds. With the continued growth of the EV market, the demand for technologically advanced tires will remain a key driver in the automotive tire industry.

Technological Advancements in Smart and Connected Tires

The automotive tires market is witnessing rapid advancements in smart tire technology, integrating sensors and digital connectivity to enhance vehicle safety and performance. Smart tires equipped with embedded sensors can monitor pressure, temperature, tread wear, and road conditions in real time. This data is transmitted to vehicle systems, allowing for predictive maintenance and improved fuel efficiency. The rise of connected and autonomous vehicles has accelerated the development of intelligent tire solutions that enhance driving safety and vehicle performance. Tire manufacturers are investing in artificial intelligence (AI) and Internet of Things (IoT) technology to develop self-adjusting tires that adapt to different driving conditions. Additionally, advancements in airless tire technology, featuring puncture-resistant designs and extended lifespan, are gaining traction in the market. These innovations are particularly beneficial for commercial fleets, improving operational efficiency and reducing downtime. As smart mobility continues to evolve, the demand for intelligent tires is expected to grow significantly.

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Sustainability and the Rise of Eco-Friendly Tires

Environmental concerns and stringent emission regulations are driving the adoption of sustainable and eco-friendly tires. Leading tire manufacturers are increasingly using renewable materials such as natural rubber, soybean oil, and recycled carbon black to reduce their environmental footprint. The demand for low rolling resistance tires, which contribute to lower fuel consumption and reduced CO₂ emissions, is gaining momentum. Additionally, advancements in tire recycling and retreading technologies are promoting circular economy practices within the industry. Governments worldwide are enforcing regulations that encourage sustainable tire production, leading to increased research and development investments in green tire technologies. The shift toward electric mobility is further accelerating the need for sustainable tire solutions that align with clean energy transportation. Consumers are becoming more conscious of their purchasing choices, opting for environmentally friendly products that offer both performance and sustainability. As a result, eco-friendly tire innovation is becoming a central focus in the automotive tires market.

Increasing Demand for All-Season and Specialty Tires

The demand for all-season and specialty tires is growing as consumers look for versatile tire options that provide year-round performance. All-season tires eliminate the need for seasonal tire changes, offering convenience and cost savings. These tires are designed to handle a range of weather conditions, including dry, wet, and light snow, making them a popular choice among consumers in regions with moderate climates. The market for winter tires is also expanding, driven by strict regulations in colder regions requiring snow-rated tires for improved road safety. Additionally, high-performance tires designed for sports cars, SUVs, and luxury vehicles are seeing increased demand. The rise of adventure and off-road driving trends has also fueled the market for all-terrain and mud-terrain tires. Tire manufacturers are continuously innovating to provide improved grip, handling, and durability in specialty tire segments, ensuring enhanced driving experiences for diverse consumer needs.

Impact of Global Supply Chain Disruptions

The automotive tires market has faced significant challenges due to global supply chain disruptions, affecting raw material availability, production timelines, and distribution networks. The rising cost of natural rubber, synthetic rubber, and other key raw materials has led to increased tire prices, impacting both manufacturers and consumers. Supply chain disruptions caused by geopolitical tensions, trade restrictions, and transportation bottlenecks have further contributed to market volatility. The COVID-19 pandemic highlighted vulnerabilities in global supply chains, prompting tire manufacturers to diversify sourcing strategies and invest in local production facilities. Additionally, the semiconductor shortage has indirectly affected the tire market by slowing down vehicle production, reducing the demand for original equipment (OE) tires. However, as the industry adapts to new supply chain strategies and logistics optimizations, market stability is expected to improve. Strengthening regional supply networks and investing in digital tracking systems are becoming key priorities for tire manufacturers to mitigate future disruptions.

Competitive Landscape and Key Market Players

The automotive tires market is highly competitive, with key players focusing on innovation, sustainability, and strategic partnerships to maintain market leadership. Leading companies such as Michelin, Bridgestone, Goodyear, Continental, and Pirelli are investing heavily in research and development to introduce next-generation tire technologies. These manufacturers are expanding their product portfolios with advanced tire solutions, including run-flat tires, self-sealing tires, and airless tires. Strategic mergers, acquisitions, and collaborations are shaping the industry, allowing companies to strengthen their market presence and enhance distribution networks. The emergence of regional tire manufacturers in Asia-Pacific and Latin America is intensifying competition, offering cost-effective solutions to growing consumer bases. Additionally, digital transformation is playing a crucial role in the industry, with companies leveraging e-commerce platforms for direct-to-consumer sales. As demand for high-performance and sustainable tires continues to rise, competition within the automotive tires market is expected to remain dynamic and innovation-driven.

Geographic Dominance:

The automotive tires market demonstrates strong geographic dominance, with significant contributions from regions such as Europe, North America, and Asia-Pacific. Europe remains a leading market due to the high demand for both replacement and original equipment tires, driven by a mature automotive industry and strict regulatory standards for tire performance and safety. North America, especially the United States, shows a growing preference for premium and high-performance tires, fueled by consumer interest in vehicle safety, durability, and fuel efficiency. The Asia-Pacific region is the largest and fastest-growing market, driven by robust automotive production in countries like China, India, and Japan. The region also benefits from increasing vehicle ownership and economic growth, which are expanding tire demand across both emerging and established markets. Latin America and the Middle East also contribute to market growth, albeit at a slower pace, due to rising vehicle sales and infrastructure development in these regions.

Automotive Tires Market Key Players Shaping the Future

The key players shaping the future of the automotive tires market include Michelin, Bridgestone Corporation, Goodyear Tire & Rubber Company, Continental AG, Pirelli & C. S.p.A., Sumitomo Rubber Industries, Ltd., Hankook Tire & Technology Co., Ltd., Yokohama Rubber Co., Ltd., Toyo Tire Corporation, and Kumho Tire Co., Inc. Other notable players contributing to market growth include Cooper Tire & Rubber Company, Apollo Tyres Ltd., Nokian Tyres plc, CEAT Limited, and MRF Limited. Emerging regional manufacturers and specialized tire companies are also influencing the competitive landscape through innovation and strategic expansions.

Automotive Tires Market Segment Analysis

The Automotive Tires market is segmented based on By Type, By Application and Geography, offering a comprehensive analysis of the industry.

By Type

• Radial Tires: Radial tires dominate the automotive tire market due to their superior performance, fuel efficiency, and durability. They offer better handling, reduced rolling resistance, and longer lifespan, making them a popular choice for passenger cars, light trucks, and commercial vehicles.
• Bias Ply Tires: These tires are primarily used in trucks, off-road vehicles, and older vehicles. Bias ply tires are known for their robust construction, providing greater load-bearing capacity and resilience. However, they tend to have higher rolling resistance compared to radial tires.
• Run-flat Tires: These tires are designed to continue performing even after a puncture, providing additional safety for drivers. Increasingly popular in luxury and high-performance vehicles, run-flat tires eliminate the need for a spare tire, contributing to space-saving and weight reduction.
• Tubeless Tires: These tires are becoming the standard in the automotive industry due to their ease of maintenance and reduced risk of air leakage. Tubeless tires are used widely in modern vehicles, offering better fuel efficiency and enhanced safety.

By Application

• Passenger Cars: The largest segment in the automotive tires market, driven by the high number of personal vehicles on the road. Demand is particularly strong for tires offering a balance of comfort, fuel efficiency, and performance.
• Commercial Vehicles: Tires for trucks, buses, and other heavy-duty vehicles are essential for transport and logistics industries. These tires are designed to handle heavy loads, long distances, and harsh driving conditions.
• Two-Wheelers: Tires for motorcycles, scooters, and electric bikes represent a growing segment, driven by increasing urbanization and the rising popularity of two-wheeled vehicles for short-distance travel.
• Off-the-Road (OTR) Tires: Used in agricultural, mining, and construction machinery, OTR tires are specifically designed for rough, uneven terrain. These tires are engineered for durability and high performance in demanding environments.

By Geography

• North America: The automotive tire market in North America is driven by high consumer demand for both replacement and original equipment tires. The presence of major tire manufacturers and a large automotive industry contribute to market growth.
• Europe: With stringent regulations related to tire safety and fuel efficiency, Europe remains a leading market for advanced tire solutions, including eco-friendly and high-performance tires.
• Asia-Pacific: The largest and fastest-growing region, Asia-Pacific benefits from high vehicle production and rising disposable incomes in countries like China, India, and Japan. The region also sees increased demand for both passenger and commercial vehicle tires.
• Latin America: While still emerging, Latin America is witnessing growth in automotive tire demand due to increased vehicle ownership and infrastructure development.
• Middle East and Africa: In this region, there is growing demand for both premium and off-road tires, particularly due to the expansion of commercial transportation and infrastructure projects.

Automotive And Transportation  

The automotive and transportation sector plays a crucial role in the growth of the automotive tires market. Tires are essential components for vehicles in this industry, ensuring optimal performance, safety, and efficiency. In the automotive segment, the demand for tires is driven by factors such as increasing vehicle production, rising consumer preferences for high-performance and fuel-efficient tires, and the growing popularity of electric vehicles (EVs). As the global automotive fleet expands, the need for replacement tires is also increasing, further boosting market growth. In the transportation sector, including logistics and commercial vehicles, the demand for durable, high-mileage tires is crucial to maintaining operational efficiency and minimizing downtime. Additionally, the increasing focus on tire technology, such as smart and eco-friendly tires, is transforming both sectors. These innovations not only enhance vehicle performance but also contribute to sustainability goals by reducing fuel consumption and lowering emissions. As the automotive and transportation industries evolve, the tire market will continue to experience steady growth.

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