Automotive Tire Market, By Type,,By Vehicle Type:By Season Type,By Application,By Distribution Channel:: By Region - Market Size, Industry Dynamics, Opportunity Analysis and Forecast for 2024-2032

Global Automotive Tire Market Forecast till 2032: Set to Reach US$ 728.88 Billion by 2032 with a CAGR of 17.93 %

Market Introduction:

The Global Automotive Tire Market is experiencing robust expansion, valued at US$ 167.63 billion in 2023 and projected to grow at a CAGR of 17.93 % from 2024 to 2032.

The global automotive tire market is experiencing robust growth, driven by the increasing production and sales of vehicles worldwide. Rising consumer demand for fuel-efficient and high-performance tires, advancements in tire technology, and the expansion of the automotive sector in emerging economies are significant contributors to market expansion. Key trends include the adoption of eco-friendly tires, the growing popularity of electric vehicles, and innovations in tire manufacturing processes. Major players are focusing on R&D to develop durable, high-performance tires to meet evolving consumer needs and regulatory standards. The market's dynamic nature indicates sustained growth in the coming years.

Growth Influencers:

The increasing sales of vehicles have a profound impact on the global automotive tire market across various dimensions, influencing its size, trends, and dynamics. Owing to higher vehicle sales directly correlate with increased demand for tires. As more cars, light trucks, and commercial vehicles are manufactured and sold globally, there is a corresponding need for tires to equip these vehicles. For instance, in emerging markets like China and India, rapid urbanization and rising disposable incomes have spurred a surge in vehicle ownership, thereby boosting tire sales. According to OICA, global vehicle sales reached over 92,724,668 units in 2023, demonstrating the scale of tire demand associated with automotive production.

Moreover, the type and volume of vehicles being sold impact the tire market composition. Consumer preferences for SUVs, crossover vehicles, and electric vehicles (EVs) have shifted tire demand towards larger sizes, specialized designs (e.g., low rolling resistance for EVs), and all-terrain capabilities. This shift necessitates tire manufacturers to innovate and expand their product offerings to cater to diverse vehicle segments. For instance, the increasing popularity of EVs has led to a growing demand for tires that enhance range and efficiency, driving innovation in tire materials and construction.

Furthermore, vehicle safety and performance standards influence tire specifications, with manufacturers continuously developing tires that meet or exceed regulatory requirements. As governments worldwide tighten emission standards and safety regulations, tire manufacturers are compelled to integrate advanced technologies such as run-flat tires, adaptive tread designs, and eco-friendly materials. This regulatory push not only fosters innovation but also expands the market for specialized tires that cater to specific vehicle types and environmental conditions.

Segment Overview:

The Automotive Tire market is categorized based on Type, Vehicle Type, Season Type, Application and Distribution Channel.

By Type

• Radial
• Tube
• Tubeless
• Bias

By Vehicle Type

• Commercial
• Light
• Medium
• Heavy
• Passenger
• Bikes
• Cars
• Buses
• Others
• Electric

By Season Type

• All Season Tires
• Summer Tires
• Winter Tires
• Touring Tires
• Performance Tires
• Rib Tires
• Others

By Application

• On the Road
• Off the Road

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By Distribution Channel

• OEM
• Aftermarket

The market is divided into radial and bias tires. Radial tires, further sub-segmented into tube and tubeless types, held the highest market share in 2023. Radial tires are constructed with layers of fabric cord running at right angles to the tread, offering enhanced stability, better grip, and improved fuel efficiency compared to bias-ply tires. Their popularity is attributed to superior performance characteristics, such as lower rolling resistance, which boosts fuel economy and reduces carbon emissions. Radial tires also provide improved traction, handling, and longevity, making them the preferred choice for passenger cars, trucks, and commercial vehicles. This segment is expected to witness the highest CAGR of 17.99% during the forecast period, driven by advancements in tire technology and manufacturing processes that increase durability and reliability.

On the basis of vehicle type, market is categorized into commercial, passenger, and electric vehicles. The passenger vehicle segment dominated the automotive tire market by holding 63.53% of share in 2023. This is due to the substantial number of passenger vehicles on the roads, which significantly outweighs other vehicle types such as commercial trucks or specialty vehicles. Passenger vehicles have diverse tire needs due to varying sizes, performance requirements, and terrains. Frequent tire replacements due to regular wear and tear from daily commuting also contribute to sustained demand. However, the electric vehicle segment is expected to grow at the highest CAGR during the forecast period. The rapid expansion of the electric vehicle market globally directly influences the demand for specialized tires designed for these vehicles. As more consumers opt for electric vehicles, the need for dedicated tires amplifies within this segment.

In terms of season type, the market is segmented into all-season tires, summer tires, winter tires, touring tires, performance tires, rib tires, and others. Among these, the all-season tires segment held 57.35% of market share in 2023. These tires are designed to offer balanced performance across various weather conditions, making them highly versatile and appealing to a broad consumer base. The convenience of eliminating the need to switch between summer and winter tires, coupled with their cost-effectiveness, makes all-season tires a practical and popular choice. All-season tires provide a balance between performance and longevity, reducing the need for frequent replacements associated with seasonal tires, thus offering good long-term value. This segment is expected to hold the highest CAGR during the forecast period, especially in regions with moderate climates where they meet the year-round needs of most drivers.

Based on application, the market is divided into on-road and off-road segments. The on-road segment held the highest share in 2023, catering primarily to tires used in passenger cars, commercial vehicles, and other vehicles predominantly utilized on roads and highways. The dominance of this segment is due to the large number of vehicles operating on paved surfaces, requiring regular tire replacements and maintenance. Passenger vehicles, including cars and light trucks, constitute a significant portion of the "on-road" segment. The commercial vehicle segment, encompassing trucks, buses, and other heavy-duty vehicles, also contributes significantly to this category's dominance. These vehicles rely heavily on tires designed for road surfaces to ensure traction, durability, and safety during transportation. This segment is expected to grow with the fastest CAGR of 17.98% as well, driven by growing urbanization, expansion of road networks, and increased commuting and transportation activities.

The market is segmented into OEM (Original Equipment Manufacturer) and aftermarket on the basis of distribution channel. The aftermarket segment dominated the market by accounting 75.79% share in 2023, representing the distribution channel where automotive tires are sold as replacements or upgrades after the original purchase. Vehicles regularly require tire replacements due to wear and tear, seasonal changes, or damage. This ongoing demand for new tires from existing vehicle owners drives significant sales within the aftermarket segment. The aftermarket caters to individual vehicle owners, businesses, fleet operators, and repair/service centers. Intense competition among tire manufacturers, retailers, and online platforms often leads to competitive pricing strategies. Consumers may find attractive deals, promotions, and packages, encouraging them to purchase tires from this channel. Robust distribution networks, including tire specialty stores, auto parts retailers, online platforms, and independent service centers, contribute significantly to aftermarket sales by offering convenient access to a wide range of tire options.

Regional Overview:

Based on Region, the market is divided into North America, Europe, Asia Pacific, Middle East and Africa, and South America.

• North America
• The U.S.
• Canada
• Mexico
• Europe
• Western Europe
• The UK
• Germany
• France
• Italy
• Spain
• Rest of Western Europe
• Eastern Europe
• Poland
• Russia
• Rest of Eastern Europe
• Asia Pacific
• China
• India
• Japan
• Australia & New Zealand
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East & Africa (MEA)
• Saudi Arabia
• South Africa
• UAE
• Rest of MEA
• South America
• Argentina
• Brazil
• Rest of South America

The Asia Pacific region held the highest share in the global automotive tire market in 2023, driven by several key factors. The region's robust automotive industry, characterized by substantial vehicle production and sales, significantly boosts tire demand across various segments. Rapid urbanization and a growing middle class with increasing disposable incomes further fuel vehicle ownership and tire replacement cycles. Asia Pacific's strategic role as a manufacturing hub for automotive components, including tires, provides a competitive edge. Favorable government policies, investments in infrastructure, and a burgeoning aftermarket sector also support market growth. Additionally, diverse terrain and climatic conditions necessitate a variety of tires, from standard to specialized variants. The presence of key tire manufacturers and continuous advancements in tire technology, especially eco-friendly and high-performance tires, reinforce Asia Pacific's leadership in the global automotive tire market.

Competitive Landscape:

The Automotive Tire market is characterized by a vigorous competitive landscape, with prominent entities like Michelin, Bridgestone, Goodyear, Continental, Sumitomo, Pirelli and Others. at the forefront, collectively accounting for approximately 51.04% of the overall market share. This competitive milieu is fueled by their intensive efforts in research and development as well as strategic partnerships and collaborations, underscoring their commitment to solidifying market presence and diversifying their offerings. The primary competitive factors include pricing, product caliber, and technological innovation. As the Automotive Tire industry continues to expand, the competitive fervor among these key players is anticipated to intensify. The impetus for ongoing innovation and alignment with evolving customer preferences and stringent regulations is high. The industry's fluidity anticipates an uptick in novel innovations and strategic growth tactics from these leading corporations, which in turn propels the sector's comprehensive growth and transformation.

Report Insights:

• The global automotive tire market is projected to reach US$ 728.88 billion by 2032, growing at a CAGR of 17.93% from 2024 to 2032.
• Asia Pacific emerged as the largest regional market in 2023, fueled by robust vehicle production, urbanization, and favorable economic conditions.
• Electric vehicles (EVs) are expected to exhibit the highest CAGR in tire demand, driven by the expanding global EV market and specialized tire requirements.
• Leading companies such as Michelin, Bridgestone, and Goodyear dominate the market landscape, emphasizing R&D and strategic partnerships to maintain competitive advantage.

Questions to be Answered:

• What is the estimated growth rate of the Automotive Tire market?
• What are the key drivers and potential restraints?
• Which market segments are expected to witness significant growth?
• Who are the leading players in the market?