Australia Advanced Tires Market by Region, Competition, Forecast & Opportunities, 2020-2030F

The Australia Advanced Tires Market was valued at USD 222.68 Million in 2024, and is projected to reach USD 317.12 Million by 2030, rising at a CAGR of 6.09%. The Australian advanced tires market is experiencing steady growth driven by technological innovations and the increasing demand for high-performance, durable, and fuel-efficient tires. According to the Federal Chamber of Automotive Industries (FCAI), Australia recorded 1.25 million new vehicle sales in 2023, a 12.5% year-on-year increase, a growing vehicle base directly boosts demand for advanced tire replacements and OEM fitments.

The rise in consumer awareness about safety and sustainability has made advanced tires more attractive. These tires incorporate features like low rolling resistance, better grip, and longer lifespans, which enhance vehicle performance and contribute to reduced fuel consumption and carbon emissions. Manufacturers are focusing on enhancing tire design with materials like silica and advanced polymers, which improve fuel efficiency and reduce environmental impact. The growth of electric vehicles (EVs) and the expansion of autonomous driving technologies are expected to further accelerate demand for specialized tire solutions that meet the unique needs of these vehicles.

The evolving automotive industry is fueling the demand for advanced tires, as more vehicle owners and manufacturers opt for tires that can deliver superior handling, durability, and safety. The increasing number of SUVs and performance cars on the road is a significant factor in this trend, as these vehicles require tires that can provide enhanced grip, better traction, and improved performance under diverse driving conditions. Furthermore, the shift towards electric and hybrid vehicles has influenced tire development, as these vehicles often have different weight distributions and require tires that are optimized for energy efficiency and low noise. Tires tailored to these vehicles help ensure maximum driving range and support the growing eco-conscious consumer base.

Market Drivers

Increasing Demand for Vehicle Safety and Performance

The rising focus on enhancing vehicle safety and performance has been a significant driver for the advanced tires market in Australia. Advanced tires equipped with embedded sensors provide real-time monitoring of parameters like pressure, temperature, and tread wear, enabling timely maintenance and reducing the risk of accidents. This technology ensures better grip, stability, and braking efficiency, appealing to both individual and commercial vehicle owners. The increasing adoption of advanced driver-assistance systems (ADAS) in vehicles has further boosted the demand for tires that integrate seamlessly with these technologies. Consumers are becoming more aware of the safety benefits offered by these innovations, driving widespread adoption.

Key Market Challenges

High Cost of Advanced Tire Technology

The high cost associated with advanced tire technology is a significant challenge for its widespread adoption in the Australian market. Advanced tires equipped with features like sensors, self-repair mechanisms, and innovative materials require substantial investment in research, development, and production. These costs are passed on to consumers, making advanced tires less accessible to price-sensitive buyers. The initial price difference compared to conventional tires often deters fleet operators and individual vehicle owners from transitioning to advanced options. Despite long-term benefits, the upfront expense remains a barrier for many, particularly in price-competitive markets.

Key Market Trends

Rising Integration of IoT in Tire Technology

The integration of Internet of Things (IoT) technology in advanced tires is a growing trend in Australia. IoT-enabled tires equipped with sensors offer real-time data on tire pressure, temperature, tread wear, and load conditions. Bridgestone Australia announced in 2023 that its Tirematics system which provides real-time pressure and temperature monitoring reduced roadside tire-related breakdowns by up to 90% in trial fleets.

These insights improve vehicle safety, optimize performance, and reduce maintenance costs for both individual and fleet operators. The adoption of IoT in advanced tires aligns with the increasing demand for connected vehicle ecosystems, enhancing predictive maintenance capabilities. This trend is gaining traction across commercial, industrial, and passenger vehicle segments, reflecting a shift toward data-driven operations.

Key Market Players

• Continental AG
• Bridgestone Corporation
• Michelin
• The Goodyear Tire & Rubber Company
• Pirelli Tyre S.p.A.
• The Yokohama Rubber Co., Ltd.
• Hankook Tire & Technology Co., Ltd.
• Nokian Tyres plc
• Toyo Tire Corporation
• JK Tyre & Industries Ltd.

Report Scope:

In this report, the Australia Advanced Tires Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Australia Advanced Tires Market, By Material Type:

• Natural Rubber
• Synthetic Rubber
• Steel
• Elastomers
• Others

Australia Advanced Tires Market, By Tire Type:

• Run-Flat
• Airless
• Pneumatic

Australia Advanced Tires Market, By Vehicle Type:

• Passenger Cars
• Commercial Vehicles

Australia Advanced Tires Market, By Technology Type:

• Chip Embedded Tires
• Self-Inflating Tires
• Multi Chamber Tires
• Others

Australia Advanced Tires Market, By Region:

• New South Wales
• Northern Territory
• Queensland
• South Australia
• Tasmania
• Victoria & Western Australia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Australia Advanced Tires Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.