Automotive Tires Market Overview
The Automotive Tires Market size accounted for USD 19.62 Billion in 2023 and is estimated to account for 20.25 Billion in 2024. The Market is expected to reach USD 95.33 Billion by 2034 growing at a compound annual growth rate (CAGR) of 2.81% from 2024 to 2034. An automotive tire is the circular vehicle component that is made of rubber and is used to cover the wheel’s rim externally. The main function of the tire is to protect the wheel rim and provide traction force between the road surface and the vehicle. As it is manufactured from rubber, it additionally provides a flexible cushion, hence lowering the impact of the vibrations and absorbs the shock of the vehicle. The rubber tire is made of thread, beads, jointless cap piles, and other materials such as fabric, synthetic rubber, and carbon black.
Global Automotive Tires Market Synopsis
Global Automotive Tires Market Dynamics
The major factors that have impacted the growth of Automotive Tires are as follows:
Drivers:
⮚    Technological Advancements in Tire Manufacturing
New development prospects in the tire industry are being generated by the ongoing developments in tire technology, such as run-flat tires, smart tires, and puncture-resistant tires. Tires are increasingly being fitted with sensors and digital technology to track wear, pressure, and performance in real time. Both consumers and automakers are placing more demand on these advances as they look to enhance performance and safety.
Restraint:
- High Capital Investment in Research and Development (R&D
Research and development expenditures must be increased significantly to meet the growing demand for sophisticated tires, such as run-flat, smart, or fuel-efficient tires. Manufacturers of tires under ongoing pressure to develop new products that enhance tire longevity, performance, and environmental effect. This requirement for ongoing innovation takes large resources, which can be a strain, particularly for smaller organizations. Additionally, producers take a risk when they spend in R&D because there is no assurance that their efforts will result in profitable products. Opportunity:
⮚    Growing Aftermarket Demand for Tire Replacements
For tire makers, the aftermarket sector, which includes tire replacement and maintenance services, offers a profitable opportunity. The need for tire replacements increases as cars get older and their tires get worn out. The world’s automobile fleet generates a continuous demand for aftermarket tires, particularly in areas where used car ownership is prevalent. Additionally, manufacturers have a lot of potential to capitalize on this replacement market due to the growing consumer knowledge of tire safety and maintenance as well as the growth of e-commerce platforms that sell tires.
Automotive Tires Market Segment Overview
By Season Type
Based on the Season Type, the market is segmented based on Summer, Winter And All Season. All Season segment dominates, as these tires offer versatility and convenience for consumers in regions with varying weather conditions, making them a popular choice among drivers.
By Vehicle Type
Based on Vehicle Type, the market has been divided into Passenger Car, Commercial Vehicle, Light Commercial, Heavy Commercial, And Electric Vehicle. Passenger Car segment dominates, driven by the high global demand for personal vehicles and the growing production of passenger cars in both developed and emerging markets.
By Rim Size
Based on the Rim Size, the market has been divided into Less Than 15 Inch, 15 To 20 Inch, And More Than 20 Inch. 15 to 20 inch rim size segment dominates, as this range is widely used in passenger vehicles, SUVs, and light trucks, which are popular across various regions.
By Distribution Channel
Based on Distribution Channel, the market has been divided into OEM and Aftermarket. Aftermarket segment dominates, driven by the constant demand for tire replacements and maintenance services as vehicles age, leading to frequent purchases from consumers and businesses.
Global Automotive Tires Market Regional Analysis
Based on region, the market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. The area of Asia-Pacific is anticipated to dominate the market for the usage of Automotive Tires, followed by those in North America and Europe.
Global Automotive Tires Asia Pacific Market
The Asia Pacific region holds a dominant position in the Automotive Tires market Asia Pacific dominates the global automotive tire market owing to the presence of leading tire manufacturers in the region, such as BMW AG and Volkswagen Group. In addition to this, factors such as low cost of production, government initiatives for FDIs, and lenient emission & safety norms have increased the investment in the Asia Pacific region. Furthermore, Asia- Oceania has some of the biggest tire manufacturers such as Hankook Tires, Bridgestone Corporation, and many more in the region. Europe is estimated to grow at a high CAGR due to increasing demand from the major markets of the European Union.
Global Automotive Tires North America Market
The North America region is witnessing rapid growth and emerging as a significant market for the Automotive Tires industry. The North America Automotive Tires Market is characterized by a solid demand driven by the high vehicle ownership rate and the presence of established tire manufacturers. The market is further stimulated by the region’s emphasis on performance requirements and safety laws, especially for premium and high-performance tires. Specialized tire development is also being facilitated by the increasing trend of electric vehicle use.
Competitive Landscape
The competitive landscape includes key players (tier 1, tier 2, and local) having a presence across the globe. Companies such as Bridgestone Corporation, Continental, Michelin, Pirelli Tyre C., and The Goodyear Tire & Rubber Company are some of the leading players in the global Automotive Tires Industry. These players have adopted partnership, acquisition, expansion, and new product development, among others as their key strategies.
Key Market Players:
- Bridgestone Corporation
- Continental
- Michelin
- Pirelli Tyre C.
- The Goodyear Tire & Rubber Company
- Toyo Tire Corporation
- Sumitomo Rubber Industries Ltd
- The Yokohama Rubber Co. Ltd
- Hankook Tire & Technology Co. Ltd.
- Nokian Tyres
Key Development:
August 9, 2023: Continental reported robust earnings in the Tires group sector and a high order intake of around €8.6 billion in the Automotive sector at the end of the second quarter of 2023. While the Automotive group’s earnings fell short of projections mostly because of currency effects and ongoing extra freight expenses, the ContiTech group sector produced strong results. In addition, the second quarter’s inflation-related price talks are still going on. Continental has modified its forecast for sales in the Tires group sector and for consolidated sales due to changed market expectations in the tire replacement industry. The adjusted EBIT margin expectation is still unchanged.
Scope of the Report
Global Automotive Tires Market, by Season Type
- Summer
- Winter
- All Season
Global Automotive Tires Market, by Vehicle Type
- Passenger Car
- Commercial Vehicle
- Light Commercial
- Heavy Commercial
- Electric Vehicle
Global Automotive Tires Market, by Rim Size
- Less than 15 Inch
- 15 to 20 Inch
- More than 20 Inch
Global Automotive Tires Market, by Distribution Channel
- OEM
- Aftermarket
Global Automotive Tires Market, by Region
- North America
- US
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Benelux
- Nordic
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- Indonesia
- Austalia
- Malaysia
- India
- Rest of Asia Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest of Middle East & Africa
| Parameters | Indicators |
|---|---|
| Market Size | 2034: USD 95.33 Billion |
| CAGR (2021-2034) | 2.81% |
| Base year | 2023 |
| Forecast Period | 2021-2034 |
| Historical Data | 2021 (2017 to 2020 On Demand) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Key Segmentations | Season Type, Vehicle Type, Rim Size, Distribution Channel |
| Geographies Covered | North America, Europe, Asia-Pacific, South America, Middle East, Africa. |
| Key Vendors | Bridgestone Corporation, Continental, Michelin, Pirelli Tyre C., The Goodyear Tire & Rubber Company, Toyo Tire Corporation, Sumitomo Rubber Industries Ltd, The Yokohama Rubber Co. Ltd, Hankook Tire & Technology Co. Ltd., Nokian Tyres |
| Key Market Opportunities | Governments are continually updating standards. Regulations concerning passenger safety. |
| Key Market Drivers | Increased vehicle production drives sales. |
REPORT CONTENT BRIEF:
- High-level analysis of the current and future Automotive Tires market trends and opportunities
- Detailed analysis of current market drivers, restraining factors, and opportunities in the future
- Automotive Tires market historical market size for the year 2022, and forecast from 2021 to 2034
- Automotive Tires market share analysis at each product level
- Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
- Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
- To identify and understand the various factors involved in the global Automotive Tires market affected by the pandemic
- To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
