Tyre Market Overview, 2024-29

Tyre manufacturers are focusing on innovation to stay competitive. There is a clear shift towards radial and tubeless tyre designs, which offer superior performance, durability, and fuel efficiency. Companies are also investing in sustainable materials, such as Michelin's tyre made from 46% recycled content. Smart tyres use sensors to monitor parameters like temperature, pressure, and tread wear, enhancing vehicle safety and fuel efficiency. Bridgestone and Continental AG are leaders in this space, providing advanced tire monitoring systems. The shift towards radial and tubeless tyres is significantly impacting the global tyre market, driving innovation and enhancing vehicle performance.

Radial tyres are increasingly preferred over traditional bias-ply tyres due to their superior characteristics, including improved durability, better fuel efficiency, and enhanced traction. This design features layers of cords arranged perpendicularly to the direction of travel, which allows for greater stability and grip on the road. As a result, radial tyres have become the dominant choice across various vehicle types, from passenger cars to commercial trucks, leading to a substantial market share growth for this segment. Similarly, tubeless tyres are gaining traction due to their numerous advantages over traditional tubed tyres. They offer improved safety by reducing the risk of sudden blowouts and enhancing heat dissipation. The absence of an inner tube also simplifies puncture repairs and contributes to a smoother ride. As consumer preferences shift towards high-performance and durable tyres, the demand for tubeless designs is accelerating, particularly in regions with stringent safety regulations like Europe and North America. Other innovations include airless, puncture-proof tyres, and tyres made from alternative materials like soybean oil. Tyre manufacturers are also leveraging automation and digitalization to optimize production and expand offerings.

According to the report, the market is anticipated to grow with a CAGR of more than 7% from 2024 to 2029, achieving USD 413.10 Billion by 2029. In addition, the rising focus on driver and passenger safety and the growing number of fatal road accidents are catalysing 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.

Passenger car tyres dominate the market, driven by increasing vehicle ownership and a shift towards premium products. The demand for lightweight tyres is particularly notable as consumers prioritize fuel efficiency and performance. In regions like Asia-Pacific, where rapid urbanization and rising incomes are prevalent, the growth of passenger vehicle sales significantly boosts tyre demand. The market is also witnessing a trend towards all-season tyres, which cater to diverse climatic conditions, particularly in North America and Europe. Commercial vehicles are categorized into light and heavy segments.

Light commercial vehicles (LCVs) are gaining traction due to the rise of e-commerce and logistics sectors, especially in developing countries like India and Brazil. Heavy commercial vehicles (HCVs) are also seeing increased demand driven by infrastructure development initiatives globally. The Asia-Pacific region leads in this segment, supported by robust industrial activity and government investments in transportation infrastructure. Two-wheelers are immensely popular in Asia-Pacific due to their affordability and maneuverability, making them a vital segment in the tyre market. The demand for two-wheeler tyres is expected to grow alongside rising urban populations and increasing disposable incomes. Similarly, three-wheelers are prevalent in many Asian countries for public transport, contributing to steady tyre demand in this category.

Radial tyres are characterized by their construction, where the cord plies run radially from bead to bead, typically at a 90-degree angle to the direction of travel. This design allows for greater flexibility in the sidewalls and a more stable tread pattern, resulting in enhanced performance characteristics. Radial tyres offer several advantages, including longer operational lifespans, better fuel efficiency due to reduced rolling resistance, and improved traction on paved surfaces. They are particularly popular in passenger vehicles and commercial applications where high-speed stability and durability are critical.

Bias ply tyres feature a construction where the plies are laid at angles (typically between 30-40 degrees) to one another, creating a crisscross pattern. This design provides a robust structure that is particularly suited for off-road conditions due to its ability to absorb impacts and resist cuts. While bias ply tyres have fallen out of favor for many modern vehicles, they still find applications in specific markets such as agricultural machinery, trucks operating on rough terrain, and older vehicle models. Innovations in this segment include enhancements in tread design and materials that improve durability and performance under demanding conditions. For example, some manufacturers have introduced bias ply tyres with reinforced sidewalls that enhance puncture resistance while maintaining flexibility.

The OEM segment involves the supply of tyres to automobile manufacturers for installation on new vehicles. This segment is crucial as it accounts for a significant portion of tyre sales, estimated at around 28.4% to 44% in various markets, such as India and North America. Major tyre manufacturers like Michelin, Bridgestone, and Continental supply high-quality tyres that meet the specific requirements of automakers. The OEM market is characterized by large volume orders, which often leads to intense price negotiations where manufacturers may sell at lower margins to retain contracts with major automotive companies.

The distribution in this segment is relatively straightforward, primarily involving direct sales from tyre manufacturers to car manufacturers without the need for extensive retail networks. The Replacement market caters to vehicle owners who need to replace worn-out tyres. This segment is more complex and diverse. The distribution channels for replacement tyres are multifaceted, including independent tyre dealers, multi-brand distributors, single-brand stores, and online platforms. Retailers play a crucial role in this segment, offering a variety of brands and types of tyres to meet consumer preferences. The rise of e-commerce has further transformed the landscape, enabling consumers to purchase tyres online with home delivery options.

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

Regions covered

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

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.