Tyre Market Outlook, 2029

The Global tyre market is an allied market to the rapidly shifting automotive market. As vehicles are getting more efficient, infrastructure is getting smoother; the tyre market finds itself a suitable pedestal to grow upon. Technological advancements are also reshaping the market landscape, with a clear shift towards radial and tubeless tyre designs that offer superior performance, durability, and fuel efficiency compared to traditional bias ply tyres. Innovations such as smart tyre technologies that incorporate sensors for monitoring pressure and temperature are enhancing safety and performance.

Additionally, sustainability has become a focal point for manufacturers, leading to the development of eco-friendly tyres made from sustainable materials and innovative recycling methods. In order to have a broader understanding of the global landscape of the tyre market, further segmentation has been made based on regions, countries, companies, and the sales channels through which the product is 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.

According to the report, the market was valued at USD 275.54Billion in 2023 and it is anticipated to grow with a CAGR of more than 7% from 2024 to 2029, achieving USD 413.10 Billion by 2029. 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 manufacturers that make tires are developing a system called 'Contact Area Information Sensing' (CAIS), which consists of a sensor mounted to the internal wall of the tire and monitors the sensor's interactions with the road's surface. The technology analyzes the state of the road to determine whether it is dry, wet, slushy, fresh snow, or icy, and then transmits that information in real-time to the driver via a digital screen. The ability to exchange data with other vehicles that are similarly networked would allow CAIS technology, which is currently used by tire manufacturers, to become more advanced. This might enable the vehicle to foresee the actions of the automobile in front.

In the future, CAIS may connect air pressure data with air pressure sensors and provide information on tread wear. To improve performance and productivity on the one hand and to lessen the miner's exposure to risks, BKT has also implemented automated equipment and monitoring systems. The SPOTech (Satellite Performance Optimization Technology) monitoring system is designed to take measurements of variables such as average/maximum speed, cycle times, lateral/vertical/longitudinal forces, percent grade, and other relevant data that can be used to optimize haul road construction and resolve problems with tire operation such as uneven wear, belt contour separations, and heat buildup. These advancements in technology which provide better and convenience use to the consumer will drive the market in the forecast period.

The global tyre market is segmented into various categories, each reflecting distinct vehicle types and their respective demands. The primary segments include Passenger Cars, Commercial Vehicles (lightweight and heavy), Two-Wheelers, and Three-Wheelers. Passenger Cars represent a significant portion of the tyre market, driven by an increasing consumer preference for personal vehicles and the rise in luxury car sales, particularly in emerging economies like India and China. The demand for passenger car tyres is bolstered by technological advancements, such as the shift towards radial and tubeless tyres, which offer improved performance and fuel efficiency.

As of 2023, the passenger car tyre segment is projected to capture a substantial market share due to these trends. Commercial Vehicles, divided into lightweight and heavy categories, are also crucial to the tyre market. Lightweight commercial vehicles (LCVs) are experiencing growth due to increased urbanization and the expansion of e-commerce, which drives demand for logistics and delivery vehicles. Heavy commercial vehicles (HCVs) benefit from government spending on infrastructure projects, which enhances their operational demand. Two-Wheelers are particularly popular in Asia-Pacific, where they serve as a cost-effective transportation solution. The region's growing middle class and urban population contribute to this segment's robust growth. Tyre manufacturers are focusing on producing durable and efficient tyres tailored for two-wheelers to meet this increasing demand. The Three-Wheeler segment caters primarily to developing markets where these vehicles are essential for short-distance transport. The demand for three-wheeler tyres is rising alongside urbanization trends and the need for affordable transportation options.

Radial tyres are constructed with cords arranged radially from the center of the tyre, providing a more flexible sidewall compared to bias ply tyres. This design allows for better heat dissipation and lower rolling resistance, which translates to improved fuel efficiency. Radial tyres typically feature a steel belt that enhances strength and durability, making them suitable for high-speed driving and diverse road conditions. Their construction enables a longer lifespan, superior traction on asphalt, and enhanced vehicle stability. The demand for radial tyres has surged due to their performance advantages.

Innovations in this segment include the development of eco-friendly materials and smart tyre technologies that integrate sensors for real-time monitoring of tyre pressure and temperature. For instance, Pirelli's introduction of the P Zero AS plus 3 exemplifies advancements in all-season tyre technology, combining high performance with comfort and durability tailored for premium vehicles. Bias ply tyres have plies that crisscross at angles typically between 30 to 40 degrees. This construction provides enhanced durability against impacts and cuts, making them ideal for off-road conditions. Bias ply tyres are often heavier due to the increased amount of rubber used in their construction, which contributes to their ruggedness but also results in higher rolling resistance and faster tread wear compared to radial tyres. While bias ply tyres are less common in modern passenger vehicles, they remain relevant in specific applications such as agricultural machinery, vintage cars, and certain off-road vehicles. Innovations in this category include the use of advanced materials like Kevlar to enhance strength without significantly increasing weight.

The OEM segment involves tyre manufacturers supplying tyres directly to automobile manufacturers for installation on new vehicles. This channel is crucial as it accounts for a significant portion of tyre sales, with estimates indicating that it can represent around 24.6% to 44% of total market sales depending on the region and economic conditions. Major players in this segment include renowned tyre brands like Michelin, Bridgestone, and Goodyear, which have established long-term contracts with automakers. The distribution in this segment typically follows a direct sales model, where tyres are sold in bulk to manufacturers without the need for an elaborate intermediary network.

This allows for streamlined operations and cost efficiencies, although it also subjects tyre manufacturers to high bargaining power from OEMs, which can dictate pricing due to their large order volumes. The Replacement segment caters to vehicle owners who need to replace worn-out tyres. This market is broader and more diverse, accounting for approximately 46.5% of total tyre sales. The distribution channels here are more complex and include various intermediaries such as independent tyre dealers, wholesale distributors, regional retail chains, and online platforms. The replacement market is characterized by a mix of direct and indirect sales; while some distributors sell directly to large fleet operators (like transport companies), most sales occur through retail outlets where consumers can choose from multiple brands. Key drivers for demand in the replacement market include an increase in vehicle ownership, rising vehicle miles traveled (VMT), and growing awareness of vehicle maintenance among consumers. Additionally, the shift towards e-commerce has led to an increase in online tyre sales, further diversifying the distribution channels available to consumers.

Globally it has been observed that the different regions have different share patterns depending on the stage of the economy and the penetration of the automotive market and its allied tyre market. In highly developed regions in the globe, such as North America and Europe, where vehicle per 1000 inhabitants metric stands relatively higher than the rest of the world. In regions such as the Asia Pacific, which has become the hub for automotive manufacturing and assembly due to highly competitive labor rates, the productions, as well as sales of tyres, are growing rapidly. South America on the other hand is a major avenue for tyre production and assembly of automotive in the western hemisphere.

However, the South American markets are a little far from the Asian Pacific market which is poised with suitable demographics and economic outlook trends. However, a common characteristic of both these regional markets is that the global trend of using radial tyres is still penetrating these markets. Growing economic metrics like GDP per capita, personal disposable income in these regions suggest that their spending habits on the use of personal vehicles will be different from that in developed countries. Therefore the vehicle tyre consumptions on the basis of vehicle types also show slightly inconsistent patterns in some of the segments. However, irrespective of that, it has been observed that globally, passenger cars are the biggest driver for the global tyre market contributing to roughly 60% of the market size in value terms.

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. Along 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: 2023
• Historical year: 2018
• Forecasted Year: 2029

Regions & Countries covered

• North America (US, Canada, Mexico)
• Europe (UK, France, Germany, Italy, Spain, Russia)
• Asia Pacific (China, Japan, India, Australia)
• South America (Brazil, Argentina, Colombia)
• Middle East (UAE, Saudi Arabia, Qatar, South Africa)

Aspects covered in the report

• Market Size by Value (2018-2029F)
• Market Size by Volume (2018-2029F)
• 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

The approach of the report:

We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise.

This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations; validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

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.