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The Global Automotive Tire Market size is forecast to increase by USD 55.94 billion, at a CAGR of 7.28% between 2023 and 2028. The market exhibits growth driven by key determinants. With a surge in global passenger vehicle sales, there's a corresponding uptick in demand for automotive tires. Furthermore, the increasing integration of e-commerce platforms by tire manufacturers enhances market accessibility and distribution channels. Additionally, declining prices of natural rubber, a key tire component, contribute to cost efficiencies in tire production, further stimulating market growth. This market research and growth report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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The aftermarket segment is estimated to witness significant growth during the forecast period. As vehicles age, the aftermarket tire segment gains momentum with consumers aiming to uphold or enhance their vehicle's performance and safety. Offering a variety of brands, types, and specifications, the aftermarket accommodates customization based on preferences, driving habits, and budget constraints
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The aftermarket segment was the largest segment and was valued at USD 74.12 billion in 2018. Seasonal changes prompt demand for specialized tires, while enthusiasts seek high-performance options for improved handling and aesthetics. Online platforms like Amazon facilitate easy access to a diverse selection of aftermarket tires, supporting segment growth. Notable manufacturers, including Goodyear, Hankook, and Pirelli, cater to consumer needs for replacement or upgraded tires in the aftermarket. Thus, such factors will drive market growth during the forecast period.
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APAC is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The APAC market is flourishing due to a burgeoning automotive industry and escalating vehicle demand. The presence of major manufacturers like Great Wall Motors, Toyota, Hyundai, and Tata in China, Japan, South Korea, and India respectively, solidifies APAC as a pivotal tire manufacturing hub.
Further, supportive government policies impact tire production and quality positively. APAC boasts the world's largest motorcycle industry, with a 13.2% increase in two-wheeler sales in India in 2022. Rising demand for tires spans passenger cars and light, and heavy commercial vehicles, notably from emerging markets like India and Bangladesh, fueled by increased disposable income and evolving lifestyles. Thus, such factors will drive the growth of the regional market during the forecast period.
The market continues to witness significant growth driven by sales of new vehicles and the demand for maintenance services, including tire replacement, with a focus on fuel economy, convenience, and maintenance costs. Manufacturers are investing in cutting-edge manufacturing technology to differentiate their products, catering to the diverse needs of OEMs and vehicle owners across passenger cars, light commercial vehicles, and high-performance automobiles. The market is characterized by a wide range of tire types, including radial, bias, tubeless, and tube tires, addressing various requirements for fuel efficiency, longevity, and balanced ride noise in compliance with safety regulations for automotive vehicles, including electric vehicles. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rise in sales of passenger vehicles globally is driving the market. The escalation in sales of passenger vehicles globally is fueling market growth. Various types of vehicles, such as sedans, hatchbacks, SUVs, MPVs, crossovers, and vans, are contributing to the increasing demand for tires. This demand is driven by the need for regular maintenance and tire replacement to ensure fuel economy, convenience, and cost-effective maintenance.
Original Equipment Manufacturers (OEMs) are utilizing both conventional and cutting-edge manufacturing technology to differentiate their products and enhance fuel efficiency, longevity, and balanced ride noise. This growth trend is observed in the production of tires for passenger and light commercial vehicles, including high-performance automobiles and electric vehicles, to meet the demands of global automotive production and safety regulations. Hence, such factors are driving the market during the forecast period.
The introduction of connected tires is the primary trend shaping market growth. Connected tires, equipped with sensors and communication technologies, drive automotive industry advancements. Real-time monitoring of tire pressure, temperature, and tread wear enhances safety and performance. Integration with vehicle systems optimizes efficiency, adjusting traction control and stability based on tire conditions. Data from connected tires improves road safety, preventing accidents from underinflated or overinflated tires.
Furthermore, in alignment with market trends and analysis, in commercial applications, connected tires play a pivotal role in fleet management, enabling remote monitoring and proactive maintenance scheduling based on tire performance data. Thus, as the automotive industry continues to embrace the era of connectivity and smart technologies, the integration of connected tires is expected to be a key driver for innovation, safety, and efficiency in the global market during the forecast period.
The increasing threat of counterfeit tires is a challenge that affects market growth. Counterfeit tires are notorious for being made with inferior materials and lacking proper safety features. This can lead to blowouts, tread separation, and inadequate traction, putting drivers and passengers at risk. The presence of counterfeit tires erodes consumer confidence in the authenticity and reliability of tires in the market. This can lead to a decline in trust for genuine tire brands, impacting their market share and overall sales. Thus, counterfeit tires bearing the branding of reputable manufacturers can tarnish the image and reputation of these legitimate companies.
Moreover, counterfeit tires often enter the market at lower prices, attracting cost-conscious consumers. This price competition can lead to a loss of revenue for legitimate tire manufacturers as they struggle to compete with counterfeit products on price. Furthermore, the prevalence of counterfeit tires creates an unfair playing field for legitimate manufacturers. Hence, the increasing threat of counterfeit tires is anticipated to impede market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market continues to evolve with the introduction of new vehicles equipped with advanced features such as improved fuel economy, enhanced convenience, and reduced maintenance costs. Tire manufacturers leverage cutting-edge manufacturing technology to produce conventional tires while focusing on product differentiation and sustainability. The market offers options for affordable solutions including retreaded tires, driving cost savings for commercial fleet operators. Embracing green energy and striving for carbon neutrality, the automotive industry caters to various segments such as car racing, bike racing, and extreme terrain rallies. Infrastructure development supports the replacement and aftermarket, ensuring the availability of rubber tires and synthetic rubber with elastomer grades like styrene-butadiene rubber (SBR). Original Equipment Manufacturers (OEMs) prioritize fuel efficiency, longevity, and a balanced ride noise for passenger and light commercial vehicles.
The market emphasizes affordability and cost-effectiveness, driving demand for crossover vehicles that offer a balance of performance and practicality. Amidst the technological development surge, there's a dedicated segment for automotive high-performance tires tailored for enthusiasts and motorsports events. Safety remains paramount, with a focus on safe vehicles and advancements like airless tires and non-pneumatic tires enhancing road safety. Moreover, vehicle production incorporates high-caliber products and aesthetic design to meet consumer demands. As the industry advances, technological innovation continues to redefine standards, offering high-performance and safer yet quieter tires, particularly crucial for the growing Electric Vehicle (EV) tires segment.
In the automotive vehicles industry, high-performance automobiles demand tires that match their capabilities, leading to the popularity of radial tires known for their enhanced grip and handling. Meanwhile, bias tires and tube tires remain relevant for specific applications, but tubeless tires dominate the market due to their safety and convenience. As global automotive production surges, driven in part by the rise of electric vehicles, manufacturers must adhere to stringent safety regulations. These regulations influence tire design and manufacturing, ensuring that they meet standards for durability, traction, and braking performance, thereby enhancing overall road safety.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.28% |
Market Growth 2024-2028 |
USD 55.94 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.76 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 42% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Apollo Tyres Ltd., Bridgestone Corp., CEAT Ltd., FURUKAWA Co. Ltd., Hankook Tire and Technology Co. Ltd., Hefei Wanli Tire Co., Ltd., JK Tyre and Industries Ltd., Michelin Group, MRF Ltd., Nokian Tyres Plc, Pirelli and C S.p.A, Sailun Group, Salsons Impex Pvt. Ltd., Schaeffler AG, Shandong Linglong Tyre Co. Ltd., Sumitomo Rubber Industries Ltd., The Goodyear Tire and Rubber Co., Toyo Tire Corp., Triangle Tyres, and Zhongce Rubber Group Co. Ltd. |
Market dynamics |
Parent market analysis, market growth and forecasting, market growth and trends, market analysis and report, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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