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The automotive tire market size is estimated to grow at a CAGR of 7% between 2022 and 2027. The market size is forecast to increase by USD 49.25 billion. The growth of the market depends on several factors, such as a rise in sales of passenger vehicles globally, an increase in two-wheeler production and sales, and reducing prices of natural rubber.
This automotive tire market report extensively covers market segmentation by distribution channel (OEM and aftermarket), vehicle type (passenger vehicle, commercial vehicle, and electric vehicle), and geography( APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 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 global automotive tire market is experiencing growth driven by the increasing sales of various passenger vehicles, including sedans, hatchbacks, SUVs, MPVs, crossovers, and vans. These vehicles have longer lifespans, resulting in a continuous demand for tires. The BRIC countries, namely Brazil, Russia, India, and China, have become key growth markets for the automotive industry due to their economic expansion and the competition among global vehicle manufacturers. In the US, the average age of vehicles in use is rising, reaching a new record of 12.5 years.
The improved durability and construction of vehicles lead consumers to keep their vehicles for longer periods. As a result, there is a growing demand for automotive replacement parts, including tires, to maintain and service these vehicles. With vehicles being used for extended periods, regular maintenance and tire replacements become essential. This creates a higher demand for tires through both offline and online channels. Consequently, the global automotive tire market is expected to witness significant growth in line with the increasing sales of passenger vehicles during the forecast period.
The development of airless tires is the trend in the key automotive tire market. Non-pneumatic automotive airless tires have rubber treads that are filled with a mixture of rubber and plastic. The spokes on these tires help distribute heat better. Airless tires, on the other hand, have limited operational capabilities, so they are only suitable for certain vehicles like ATVs, heavy industrial vehicles, and off-highway commercial vehicles like golf carts, construction vehicles, and agricultural vehicles. Major tire manufacturers have been working on prototypes of airless radial tires since 201, so the development of these tires for automotive applications is still in its early stages.
In recent years, tire manufacturers have introduced specific models of airless radial tires, showcasing continuous innovation in this field. For example, Crocodile Tyres launched the 50-510-900Mk1 airless tires for heavy industrial vehicles in 2018, while Michelin partnered with General Motors to introduce their Unique Puncture-proof Tire System (Uptis) in 2019. The Michelin Uptis offers enhanced durability and reduced vulnerability to punctures compared to conventional pneumatic tires. However, airless radial tires face challenges related to their operational limitations, such as heat generation and higher rolling resistance. Consequently, they are primarily suitable for low-speed vehicles with a maximum speed of around 65 km/h. To overcome these challenges, tire manufacturers are actively researching alternative tire tread designs and materials. The development of these technologically advanced airless tires holds the potential to drive growth in the global automotive tire market during the forecast period.
Environmental issues due to automotive tire manufacturing activities are challenging the market growth. During the production of automotive tires, the manufacturing plants release a substantial amount of hazardous air pollutants, which have detrimental effects on the local air quality. This poses a significant environmental and air pollution concern. To address this issue, regulatory bodies have implemented regulations to limit emissions during the tire manufacturing process. These regulations will impact automotive tire manufacturers, as they will be required to invest in expensive after-treatment systems and heavy machinery to ensure compliance with emission standards.
For example, the US Environment Protection Agency (US EPA) has established the National Emission Standards for Hazardous Air Pollutants (NESHAP) specifically targeting tire manufacturing companies. These standards enforce emission limits for hazardous air pollutants (HAPs). Manufacturers of automotive tires will need to adopt maximum achievable control technology (MACT) to control emissions of substances like methanol, styrene, formaldehyde, toluene, and hexane, which are known to be volatile organic compounds (VOCs) and can cause various health issues. Compliance with these stringent emission standards poses a significant challenge for automotive tire manufacturers in the forecast period, as they strive to mitigate the environmental impact of their production processes.
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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Tire Market Customer Landscape
Vendors 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.
Apollo Tyres Ltd: The company offers automotive tires such as Aspire 4G plus, Apterra HT 2, and Apterra AT2.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The OEM segments are estimated to witness significant growth during the forecast period. The OEM segment of the global automotive tire market is highly dependent on the tires fitted by original equipment manufacturers during vehicle production. The growth of the automotive industry, particularly in the production of vehicles, significantly drives the OEM segment.
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The OEM segment was the largest segment and was valued at USD 67.94 billion in 2017. OEMs prioritize providing high-quality tires that complement the features and handling capabilities of their respective vehicles. This segment holds a substantial share of the global market, primarily due to the presence of two-wheelers with extended tire replacement cycles. Manufacturers prefer equipping motorcycles and scooters with durable tires to balance production costs, procurement costs, and OEM margins. As two-wheelers are commonly used as cost-effective personal transportation options, OEMs often consider cost-cutting measures when selecting tires to maintain competitive pricing. It is worth noting that many two-wheeler tires are used beyond their recommended replacement period, resulting in longer replacement cycles. Therefore, the OEM segment plays a crucial role in driving the growth of the global automotive tire market during the forecast period.
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APAC is estimated to contribute 40% 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 region is experiencing significant expansion in the automotive tire market due to the thriving automotive industry and increasing vehicle demand. China, Japan, South Korea, and India, housing major manufacturers like Great Wall Motors, Toyota, Hyundai, and Tata Motors respectively, have established APAC as a prominent tire manufacturing hub. The growth in demand for automotive tires stems from factors such as population growth, urbanization, and rising disposable income, which drive the demand for passenger cars and commercial vehicles.
,APAC boasts the world's largest motorcycle industry, with notable sales growth in countries like India. The increasing demand for tires for passenger cars, light commercial vehicles, and heavy commercial vehicles from emerging markets like India and Bangladesh further fuel the regional market. The rise in disposable income and evolving lifestyles in India drive the demand for passenger cars, while the busy lifestyles of consumers contribute to the demand for replacement tires. Additionally, the trend of online purchases of automotive parts and equipment has spurred tire demand in the region. These factors collectively drive the growth of the APAC automotive tire market during the forecast period.
In 2020, the outbreak of COVID-19 negatively affected the growth of the regional automotive tire market. However, the pandemic was controlled by the end of 2021 with the help of large-scale COVID-19 vaccination drives conducted by various regional governments. As a result, the demand for automobile tires increased by the end of 2022, as the preference for personal transportation gained prominence after the outbreak of the COVID-19 pandemic. This is expected to drive the growth of the regional market in focus during the forecast period.
The automotive tire market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Automotive Tire Market Scope |
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Report Coverage |
Details |
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Page number |
156 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7% |
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Market growth 2023-2027 |
USD 49.25 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.45 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 40% |
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Key countries |
US, China, India, Japan, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Apollo Tyres Ltd., CEAT Ltd., Furukawa Electric 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, Zhongce Rubber Group Co. Ltd., and Bridgestone Corp. |
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Market dynamics |
Parent market analysis, 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. |
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Customization purview |
If our 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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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