Automotive Tire Market Size and Share, Growth, Industry, By Type (Replacement Tires, OE Tires), By Application (Passenger Car, Commercial Vehicle) Regional Forecast to 2032.

AUTOMOTIVE TIRE MARKET OVERVIEW

The global automotive tire market size was USD 135430 million in 2023 and is projected to touch USD 187533.6 million by 2032, registering a CAGR of 3.7% during the forecast period.

Most important, the market for automotive tires is witnessing significant growth as more vehicles are manufactured and replacements are sought worldwide. Tires, as safety items, are continuously under technological development and innovation to allow better performance and durability and better consumption of fuel. The high-growth market, in this respect, is the increased penetration of environmentally friendly and low rolling resistance tires. Indeed, it reflects the response of the industry to growing concerns about ecological issues and regulatory pressure.

The smart tire technologies that are getting shaped, incorporating sensors and monitoring systems with a focus toward improving safety as well as the performance, outline an aggressively growing market. All these advanced features growth, increased preference for all-season tires, and introduction of run-flat technologies further work as the current disrupting forces in the landscape of the industry itself while creating new opportunities to market players.

GLOBAL CRISES SHAPING THE AUTOMOTIVE TIRE MARKETCOVID-19 IMPACT

Automobile tire industry had adverse impact owing to lost production and fewer sales of motor vehicles in this COVID-19 pandemic period.

The global COVID-19 pandemic has been unprecedented and astonishing, with the market seeing less-than-expected demand as compared to pre-pandemic demand in all regions. The rapid growth in the market is evident from the upswing in CAGR, attributed to the fact that growth and demand in the market resumed their pre-pandemic positions.

The COVID-19 pandemic has significantly affected the automotive tire market, primarily on it from disruptions in supply chains, temporary shutdowns of plants, and lower automotive productions. Due to lockdown, consumer expenditure and the sales of automobiles reduced further, owing to reduced demand for OEM and replacement tires. However, the market shows resilience with adaptation towards new safety protocols and gradual recovery in automotive production and sales.

LATEST TRENDS

"This is due to sustainable manufacturing practices and smart tyre technologies that drive innovation in the market."

Smart tire technologies that are embedded with sensors able to report on real-time information about the tires concerning tire pressure monitoring, temperature sensing, and wear detection are getting increasingly popular in the automobile tire market. Among other improvements on the safety and performance of the car, upgrades also provide real-time data for predictive maintenance. Manufacturers are now playing greater attention to environment-related concerns and evolving regulatory requirements by placing more emphasis on sustainable production techniques and resources, such as recycled materials, for creating eco-friendly tyre compounds.

AUTOMOTIVE TIRE MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Replacement Tires, OE Tires

• Replacement Tires: The major customer purchase for replacement tires is to interchange the existing car tires with low-quality and worn out. The main categories of replacement tires include; passenger cars, light trucks, heavy-duty trucks, among others. Some of the aspects that influence reasons why people buy tires are related to factors such as; the wear in the tire, seasonal changes, preference in vehicle performance, and lack of finance. Market drivers for new tires come from expanding car ownership, growth in disposable income, and vehicle personalization.
• Original Equipment (OE) Tires: The original equipment manufacturers of OE tires sell them to the automobile makers in order to put them on their newly made cars. Tires are made based on the proper performing and safety requirements specified by a given car model. Maybe, vehicle weight handling, fuel efficiency, and noise level might probably determine the choice of the OE. Since the OE tyre market is directly related with the automobile industry, it is therefore directly influenced by the factors like vehicle volume produced, the volume of technology innovation, and customer demand.

BY APPLICATION

Based on the application, the global market can be divided into Passenger Car, Commercial Vehicle

• Passenger Car Tires- Passenger car tires were designed to suit various types of vehicles, including sedans, hatchbacks, SUVs, and crossovers. These tires have been focused on issues like handling performance, comfort ride, and fuel economy. There are three primary types of these tyres: summer performance tyres, winter tyres, and all-season tyres. Higher vehicle ownership rates, higher disposable incomes, and a trend towards vehicle customisation were the factors that developed the demand for passenger car tyres.
• Commercial truck tyres: These are automobiles tires which fall under categories like those of constructing equipment and heavy trucks. Their tires have to be strong and tough in the event that they will carry heavy loads and unbearable working conditions Truck tyres, bus tyres, and off road tyres are classified names under commercial vehicle tyres. Growth and expansion of mining, construction, and logistics industries will directly increase the demand for commercial vehicle tires.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.                 

DRIVING FACTORS

"Growing Vehicle Production and Sales to Boost Market Growth"

All these factors are core growth drivers for automotive tire market, especially with increased global production and sales, especially in emerging economies. The raised middle class, urbanization, and an elevated standard of living boost the level of vehicle ownership rates, which, accordingly, rises the demand for tires.

"Growing concern regarding vehicle safety and performance will drive the market's demand."

There is growing awareness and consciousness about the importance of tire safety and performance characteristics; hence, the requirement for high-quality tires increases. All these necessary criteria require consumers to spend a premium amount for better safety features and performance capabilities.

RESTRAINING FACTOR

"Fluctuating raw material prices could hamper market growth"

Prices of raw materials, such as natural rubber and synthetic rubber, fluctuate, hence presenting the most significant barrier to market expansion. Their fluctuations affect the cost of production and even the profit margins. Therefore, a higher end-product price and consequent declining demand are to be expected.

OPPORTUNITIES

"New markets will open themselves while adopting electric vehicles."

This would be a high-growth opportunity for specialized tire development as electric vehicles pose specific demands on tires such as low rolling resistance and higher load-bearing capacity for which the manufacturers are looking out for new market segments.

CHALLENGE

"Environmental Concerns and Disposal Issues Could Be a Major Challenge"

One significant challenge as far as environmental safety is concerned is the environmental impact of tire production and disposal. In this regard, manufacturers must address sustainability concerns while ensuring performance standards-the industry faces pressure to develop more environmentally friendly solutions.

AUTOMOTIVE TIRE MARKET REGIONAL INSIGHTS

• NORTH AMERICA

North America is the leading share region in the global automotive tire market led by a high rate of vehicle ownership and strong replacement demand for vehicle tires. United States automotive tire market sustained high growth due to the presence of major manufacturers and advanced networks of distribution prevalent in the region along with an increasing adoption of premium segments in tire. The significance of regulations concerning safety and all-season tires for the region bears further growth prospects for the market.

• EUROPE

Europe has a tight grasp over the global market with technology lead and high safety standards. The region is a leader in tire technology development related to sustainable technologies and solutions for smart tires. Shifting environmental awareness along with regulatory pressures continue to push demand for eco-friendly tire options.

• ASIA

Asia-Pacific captures the largest market share in the global automotive tire market. The two largest manufacturing hubs in China and India drive it, given its large production capacity in vehicles, growing vehicle ownership, and vast two-wheeler market. Gross urbanization and infrastructure development also contribute to rapid growth in the market of this region.

KEY INDUSTRY PLAYERS

Such players in the industry look at technological innovation as much as they do at sustainable manufacturing practices and upgrading expansion strategies in the market. Companies remain investing in research and development to engineer further advanced tire technologies while improving production processes and strengthening distribution networks. Strategic partnerships and acquisition continue shaping the competitive landscape.

LIST OF TOP AUTOMOTIVE TIRE COMPANIES

• Bridgestone Corporation, Japan
• Michelin (France)
• Continental AG (Germany)
• Goodyear Tire & Rubber Co. (USA)
• Pirelli & C. S.p.A, Italy
• Yokohama Rubber Company, Japan Hankook Tire & Technology Co., Ltd. South Korea
• Toyo Tire Corporation (Japan) Sumitomo Rubber Industries, Ltd. Japan
• Cooper Tire & Rubber Co. USA.

KEY INDUSTRY DEVELOPMENT

March 2023: Michelin introduced new tire designed for the new generation of electric vehicles. These tires are claimed to have better durability with lower rolling resistance.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the automotive tire market. It discusses various factors contributing to the growth of the market and explores a wide range of market categories and potential applications that may impact its trajectory in the years ahead. Current trends and historical turning points are analyzed to provide a holistic view of the market's components and show where growth can be realized. Continued growth in the automotive tire market will be primarily due to technological innovations, increasing vehicle production, and increased demand for specialty tire solutions. Despite raw material price volatility and environmental issues, the market does indeed adapt to new technologies and the mainstream sustainability initiatives in order to show resilience. The main movers in the industry are pushing forward through their investment in R&D, partnerships and market expansion efforts, while opportunities for growth and innovation within the sector are driven by the shift towards electric vehicles and smart tire technologies.