Automotive Tire Market Report 2025

The automotive tire market size has grown strongly in recent years. It will grow from $138.64 billion in 2024 to $145.87 billion in 2025 at a compound annual growth rate (CAGR) of 5.2%. The growth in the historic period can be attributed to automotive industry growth, radial tire adoption, globalization and supply chain dynamics, regulatory standards and safety requirements, shifts in consumer preferences.

The automotive tire market size is expected to see strong growth in the next few years. It will grow to $185.55 billion in 2029 at a compound annual growth rate (CAGR) of 6.2%. The growth in the forecast period can be attributed to market adaptation to changing vehicle types, rise in autonomous vehicles, sustainability and green initiatives, demand for all-terrain and all-weather tires, shift towards high-performance tires. Major trends in the forecast period include advancements in tire technology, shift towards electric vehicles (EVs), focus on fuel efficiency, sustainability and eco-friendly materials.

The rising production of vehicles, along with the increasing popularity of electric cars, pickup trucks, and similar light commercial vehicles, is driving growth in the automotive tire market. For example, in March 2024, the European Automobile Manufacturers Association (ACEA), a Belgium-based trade association, reported that global new car sales rose nearly 10% after achieving stability in 2022, with EU sales increasing by almost 14% to 10.5 million units. Battery-electric vehicle sales surged by 37%, capturing a 14.6% market share. Despite a slowdown in China’s car market during the first three quarters of 2023, full-year sales still grew by 4.5%. Meanwhile, Japan and the U.S. experienced robust growth, with sales up nearly 16% and over 14%, respectively. Therefore, the increasing production of vehicles globally is expected to boost the automotive tire market.

The rise of electric and hybrid vehicles is anticipated to further propel the growth of the automotive tire market in the future. An electric vehicle is defined as a type of automobile powered by electricity, typically using one or more electric motors instead of an internal combustion engine that relies on gasoline or diesel. Hybrid vehicles combine two or more distinct power sources to drive the vehicle. Automotive tires for electric and hybrid vehicles are crucial for optimizing energy efficiency, range, and overall performance, catering to the specific needs of electric and hybrid drivetrains. For instance, in October 2023, the European Environment Agency, a Denmark-based government agency, reported that the number of battery electric cars registered in Europe reached 1,126,682 in 2022, representing a 28.35% increase from the 878,092 cars registered in 2021. Consequently, the development of electric and hybrid vehicles is driving the growth of the automotive tire market.

Automotive tire manufacturers are concentrating on the development of airless tires for both passenger and commercial vehicles. These zero-pressure tires provide zero downtime and eliminate productivity loss for commercial vehicles while also enhancing auto safety and performance. For example, in October 2022, Hankook Tire, a South Korea-based company offering a diverse range of tire products and services across various segments, launched the Smart iON AU06+. This tire is notable as the first Truck and Bus Radial (TBR) tire in its innovative iON product line and is specifically designed for premium electric vehicles (EVs). It is engineered to meet the unique demands of electric trucks and buses, addressing challenges such as the added weight from drive batteries and the high torque delivered to the wheels. The Smart iON AU06+ improves grip on wet roads by approximately 10% compared to its predecessor, ensuring safer driving conditions.

Major players in the automotive tire market are actively engaged in developing cutting-edge solutions, including tire pressure sensors, to secure a competitive advantage in the industry. Tire pressure sensors, also referred to as TPMS sensors, are compact electronic devices incorporated into each wheel as part of a vehicle's tire pressure monitoring system (TPMS). A recent example is the launch of the XENSIV SP49 tire pressure monitoring sensor by Infineon Technologies AG in September 2023. This sensor integrates pressure and temperature sensors with an application-specific integrated circuit (ASIC), providing enhanced functionality and performance. Featuring a robust 32-bit Arm M0+ core, the sensor enables advanced tire capabilities such as on-tire auto-position sensing, tire inflation assistance, tire blowout detection, and load detection. This innovation reflects the ongoing efforts within the automotive tire market to introduce state-of-the-art technologies that enhance safety, efficiency, and overall tire performance.

In January 2024, Wonderland Tire, a Michigan-based company that specializes in offering a variety of tire services and products, acquired Carter Tire & Automotive for an undisclosed sum. This acquisition enables Wonderland Tire to extend its geographical reach into a new market area situated between its existing stores in western Michigan and Chicago, Illinois. This location is strategically beneficial for improving customer accessibility and enhancing service delivery in the region. Carter Tire & Automotive, based in Indiana, provides a wide range of services and products within the automotive sector, primarily focusing on tires and auto repair.

Major companies operating in the automotive tire market include Continental AG, Bridgestone Corporation, Michelin Group, Goodyear Tire & Rubber Company, Nankang Rubber Tire Corp. Ltd., Sumitomo Rubber Industries Ltd., Hankook & Company Co. Ltd., Pirelli & C. S.p.A, The Yokohama Rubber Co. Ltd., MRF Limited, Trelleborg AB, Toyo Tire Corporation, Sailun Group Co. Ltd., Cheng Shin Rubber Ind. Co. Ltd., Cheng Shin Rubber Industry Co., Apollo Tyres Ltd., Giti Tire Global Trading Pte. Ltd., Shandong Linglong Group Co. Ltd., Kumho Tire Co. Inc., Linglong Tire Co. Ltd., Cooper Tire & Rubber Company, Nexen Tire Corporation, Nokian Tyres plc, JK Tyre & Industries Ltd., CEAT Limited, Triangle Tyre Co. Ltd., Double Coin Holdings Ltd., Aeolus Tyre Co. Ltd., Salsons Impex Pvt. Ltd., Shinko Tires USA.

Asia-Pacific was the largest region in the automotive tire market in 2024. The regions covered in the automotive tire market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive tire market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

An automotive tire is a rubber ring positioned around the rim of a vehicle's wheel. It serves multiple functions within automobiles, including supporting the vehicle's weight, absorbing shocks from the road, transmitting traction, torque, and braking forces to the road surface, as well as aiding in changing and maintaining the direction of travel. These tires are affixed to rims, and they are typically filled with pressurized air to ensure proper functioning.

The primary rim categories for automotive tires encompass sizes less than 15 inches, 15 to 20 inches, and more than 20 inches, designed to suit vehicles with corresponding rim sizes. Specifically, ''less than 15 inches'' denotes tires for vehicles equipped with rims smaller than 15 inches. These tires are utilized across various vehicle types including passenger vehicles, commercial vehicles, and electric vehicles. Automotive tires are manufactured in two main types such as radial tires and bias tires. Distribution channels for automotive tires comprise Original Equipment Manufacturer (OEM) sales and aftermarket distribution. These tires are further categorized by seasonal use such as summer, winter, and all-season variations.

The automotive tire market research report is one of a series of new reports that provides automotive tire market statistics, including automotive tire industry global market size, regional shares, competitors with a automotive tire market share, detailed automotive tire market segments, market trends and opportunities, and any further data you may need to thrive in the automotive tire industry. This automotive tire market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The automotive tire market consists of sales of synthetic polymers, natural rubbers, fillers, antioxidants, and antiozonants. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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