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The 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 growth analysis depends on several factors such as, such as the rise in sales of passenger vehicles globally, the increasing adoption of e-commerce platforms by tire manufacturers, and the declining prices of natural rubber.
The report includes a comprehensive outlook on the Automotive Tire Market, offering forecasts for the industry segmented by Distribution Channel, which comprises Aftermarket, and OEM. Additionally, it categorizes Vehicle Type into passenger vehicle, commercial vehicle, and electric vehicle, and covers Regions, including APAC, Europe, North America, South America, and Middle East and Africa. The market 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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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 global 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.
Moreover, 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 market is expected to witness significant growth in line with the increasing sales of passenger vehicles 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.
Global Automotive Tire 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 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 analysis and report forecasts market growth and forecasting by revenue at global, regional & country levels and provides an analysis of the latest market growth and trends opportunities from 2018 to 2028.
Automotive Tire 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 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 report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
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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