Tire Market Report 2025

The tire market size has grown strongly in recent years. It will grow from $200.97 billion in 2024 to $211.22 billion in 2025 at a compound annual growth rate (CAGR) of 5.1%. The growth in the historic period can be attributed to automotive industry growth, consumer preferences for performance, safety and regulations, economic conditions, replacement tire market.

The tire market size is expected to see steady growth in the next few years. It will grow to $250.39 billion in 2029 at a compound annual growth rate (CAGR) of 4.3%. The growth in the forecast period can be attributed to electric vehicle (EV) adoption, autonomous vehicles, circular economy initiatives, innovations in tire materials, climate change considerations. Major trends in the forecast period include smart tire technologies, technological advancements, rising demand for sustainable and eco-friendly tires, advancements in tire technology, expansion of online tire retailing.

The increasing vehicle production is anticipated to drive the growth of the tire market in the future. Vehicle production refers to the mass manufacturing of identical models, including passenger cars, heavy and light trucks, pickups, vans, and sport utility vehicles. Tires play a crucial role in a vehicle's suspension and steering system, as they support the vehicle's weight, transmit traction and braking forces to the road, absorb road shocks, and help maintain the direction of travel. For example, in March 2022, a report from the European Automobile Manufacturers' Association (ACEA), which advocates for the automobile industry in the European Union, indicated that global motor vehicle production reached 85.4 million units in 2022, reflecting a 5.7% increase from 2021. Consequently, the rise in vehicle production is driving the growth of the tire market.

The surge in transportation activities is expected to drive the tire market's growth. Transportation activities encompass moving goods, people, or services via various modes such as roads, railways, airways, or waterways, significantly impacting tire market demand. For instance, Statistics Canada reported a 16.3% rise in Canada's urban transit trips to 136 million in October 2023 compared to October 2022. Consequently, the escalating transportation activities propel the tire market's expansion.

Technological advancements shape the trajectory of the tire market. Industry leaders concentrate on novel technologies to solidify their market stance. For instance, Zhongce Rubber Group, a Chinese tire manufacturer, introduced the EV Pro line-up in February 2023. This line of tires incorporates Zuper Silent technology, leveraging noise-absorbing compounds for all-season tire quietness. Additionally, features such as BPOT technology enhance handling with a larger contact area at high speeds, while Mixing Technology optimizes grip and stability. The Gen II Hybrid Silane Compound improves mileage, and the DMOT Design Theory reduces rolling resistance, contributing to overall tire performance.

Innovations in the tire market emphasize solutions tailored for electric vehicle (EV)-ready commercial tires, aligning with evolving consumer needs and market trends. Specifically designed and optimized for electric-powered commercial vehicles, these tires offer heightened durability and efficiency. For instance, in March 2022, Goodyear Tire & Rubber Company launched the Endurance RSA ULT and Fuel Max RSA ULT tires. These tires cater to higher load capacities of electric commercial vehicles, addressing last-mile delivery sector demands driven by e-commerce growth, fleet savings, and sustainability targets. The Electric Drive Ready Endurance RSA ULT, a premium all-position tire, caters to last-mile delivery vehicles, showcasing Goodyear's inaugural commercial tire badge suitable for both EVs and traditional fuel-powered work vehicles.

In March 2023, Zodo Tire, a China-based tire manufacturer, acquired Kaixuan Rubber for an undisclosed amount. This acquisition enables Zodo Tire to utilize Kaixuan’s advanced rubber processing technologies, enhancing product quality and durability. By integrating Kaixuan’s resources and expertise, Zodo aims to accelerate its innovation efforts and better meet market demands. Kaixuan Rubber is also a China-based manufacturer of tires.

Major companies operating in the tire market include Sumitomo Corporation, Continental AG, Bridgestone Corporation, Michelin Group, The Goodyear Tire and Rubber Company, Maxxis International, Yokohama Tire Corporation, Pirelli Tyre SpA, Zhongce Rubber Group Co Ltd., Cheng Shin Rubber Ind. Co Ltd., Sailun Group Co Ltd., Apollo Tyres Ltd., Trelleborg AB, MRF Limited, Kumho Tyre Pty. Ltd., Shandong Linglong Tire Co Ltd., Linglong Tire Co Ltd., Cooper Tire & Rubber Company, Nexen Tire Corporation, Hankook Tire and Technology Co Ltd., Nokian Tyres plc, Double Coin Holdings Ltd., JK Tyre & Industries Ltd., CEAT Limited, Triangle Tyre Co Ltd., Guizhou Tyre Co Ltd., Alliance Tire Group, Aeolus Tyre, GT Asia Pacific Holdings Pte. Ltd., Federal Corporation, JINYU Tire Group Co Ltd.

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

Tires, circular rubber components fitted onto vehicle wheels, provide traction and stability on various surfaces for smooth vehicle operation.

The primary categories of tires include bias tire, radial tire, and belted bias. A bias tire is constructed with cord plies that run perpendicular to the tread's center line. These tires are available through various distribution channels, both online and offline, and find application across a broad spectrum, including cars, bicycles, motorcycles, buses, trucks, heavy equipment, aircraft, and other vehicles. They serve as both replacement tires and original equipment manufacturer (OEM) tires.

The tire market research report is one of a series of new reports that provides tire market statistics, including tire industry global market size, regional shares, competitors with a tire market share, detailed tire market segments, market trends and opportunities, and any further data you may need to thrive in the tire industry. This 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 tire market consists of the sale of touring tires, track and competition tires, all-terrain, and specialty tires. 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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