Tire (Tyre) Market Overview, 2022-27

Tire refers to a rubber covering, placed around the rim of metallic wheel to provide flexible cushion with road for traction and smooth acceleration. The modern pneumatic tires are generally made up of synthetic rubber, natural rubber, fabric, wire, carbon black and other chemical compounds. Best quality of tire helps in increasing vehicle’s performance, reduces wear and tear, minimizing rolling resistance, improves mileage and traction, and enhances grip for safety. Owing to this, tire has wide applications in two-wheelers, passenger vehicles, light and commercial trucks, buses, and military vehicles. Tires are a kind of product that characteristically have a very limited scope of innovation and are heavily dependent on its allied automotive industry performance.

As per the report titled, “Global Tire Market Overview, 2027” the market is evaluated to be selling more than 2000 Million units as of 2021, and is expected to grow at a CAGR of more than 6% in terms of value from 2022 to 2027. The segments that were made during the comprehensive evaluation of the markets were based on vehicle types, end-use demand, and the demand for tyres based on their construction design. The vehicle types include vehicles such as passenger cars, light commercial vehicles, medium and heavy vehicles, 2 wheeler vehicles, 3 wheelers, and other vehicles including bicycles. The categorization based on end-use demand includes demand for replacement tyres and OEM demand for tyres. Based on design types, the tyre market is segmented as radial tyres and bias-ply tyres. To have a broader understanding of the landscape of the tyre market all over the globe, further segmentation has been made based on countries, and the sales channels through which the products are made available to the distributors and customers. Increasing sales of passenger, luxury, and electric vehicles (EVs) on account of rapid urbanization and expanding purchasing power of individuals represent one of the major factors positively influencing the demand for tires around the world.

In addition, the rising focus on driver and passenger safety and the growing number of fatal road accidents are catalyzing the demand for premium quality tires that have a longer operational life, enhanced stability and reliability, and high puncture resistance. Apart from this, key players are launching eco-friendly, lightweight, and airless three-dimensional (3D) printed variants. They are also focusing on recovering and recycling used tires to minimize their environmental impact and save a considerable amount of energy required to manufacture new ones. Besides this, there is a rise in the number of logistics and transportation activities to deliver packages on time. This, in turn, is propelling the market growth. Furthermore, increasing numbers of farming activities in the agricultural industry are anticipated to create lucrative growth opportunities for the market. Many countries are implementing strict tire performance regulations, including fuel savings and wet grip-related braking distance reduction, in response to growing safety concerns. As a result, there is much potential for tire manufacturing businesses to develop tires that can comply with standards. As a result of increased technological breakthroughs, suppliers are developing extremely effective tires that improve automobiles' overall fuel efficiency. Self-inflating technology and Low Rolling Resistance (LRR) technology are used by tire manufacturers to enhance safety and increase fuel efficiency. These developments are fueling the market growth.

The global tire market is constrained by fluctuating raw material prices, greater input costs driven by lack of natural rubber availability, and oil prices. Additionally, almost all raw materials are crude derivatives, making them dependent on the price of crude oil. Furthermore, the cost of manufacturing tires is mostly accounted for by the raw materials utilized in their production, with synthetic and natural rubber serving as the main raw materials. Prices for crude oil have increased sharply recently all across the world. As a result, it is anticipated that in the upcoming years, the cost of synthetic rubber and other crude derivatives used in the manufacture of tires will rise.

The global market is majorly driven by the USA, China, Japan, Germany, and India accounting for a combined share of more than 50% of the overall global tyre market. As some of the major tyre markets in the world are developing economies, such as China, India, and Brazil, there is still some scope for the global tyre companies to tap into the growth opportunities presented by these rapidly emerging economies. However, it is imperative to know that these national markets are led by some of the major local players especially in India and China which makes these markets highly difficult to penetrate for the global tyre leaders. As of 2021, it was derived that about 40.17 Million units of MHCV tyres were sold, making it one of the fastest-growing tyre segments in the world. 3 wheeler and other tyres and MHCV tyres are forecasted to be the fastest-growing tyre products in the global tyre market with a difference of 1 percentage between their forecasted growth rates during the period of 2022 to 2027.

COVID-19 Impact

The market was heavily influenced by the pandemic and the spread of the virus. Firstly the market experienced decline in demand with the shutting down of automobile production plants across the globe. Alon with this the travel restriction around the world caused in decreased wear and tear of tires which decreased the demand for replacement tires in the market. The market was heavily affected by the economic distress created by the pandemic. The fluctuation of prices for crude oil, an important raw material for tire manufacturing hampered the market significantly.

Key Players: Apollo Tires, Bridgestone, CEAT Tires, Continental, Giti, Goodyears Tires, Hankook, JK tires, Kenda Kumho, Maxxis International, Michelin, MRF, Nexen Tire Corp, Nokian Tires, Pirelli, Sailun Group Co., Ltd, Sumitomo Rubber Industries, Titan International , Toyo Tire Corporation, Triangle Tire Co, Zhongce Rubber Group Co, Yokohama, Doublestar Tire, Linglong, Nankang

Considered in the report

• Geography: Global
• Base Year: 2021
• Historical year: 2016
• Forecasted Year: 2027

Regions covered

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East

Aspects covered in the report

• Market Size by Value (2016-2027F)
• Market Size by Volume (2016-2027F)
• Market Share by Company
• Market Share by Vehicle Type
• Market Share by End Use
• Market Share by Design
• Market Share by Sales Channel
• Market Share by Region
• Market Share by Country

Intended Audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Automotive and Transport industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.


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