Automotive Tire Market Expected to Reach $166.1 Billion by 2033

According to a new report published by Allied Market Research, titled, “Automotive Tire Market," The Automotive Tire Market Size was valued at $113.9 billion in 2023, and is estimated to reach $166.1 billion by 2033, growing at a CAGR of 4% from 2024 to 2033. 

The automotive tire market encompasses the design, production, and sale of tires for vehicles, including passenger cars, commercial vehicles, and two-wheelers. It is driven by factors such as increase in vehicle production, rise in demand for fuel efficiency, and advancements in tire technology, including eco-friendly and smart tires.

In 2023, Asia-Pacific was anticipated to account for a major Automotive Tire Market Share. The Asia-Pacific region is dominating the market in terms of revenue, followed by Europe, North America, and LAMEA. In Asia-Pacific, China dominated the automotive tire market in 2023, whereas India is expected to grow at a significant rate during the Automotive Tire Market Forecast period. The rapid growth of the automobile sector across all segments fuels the growth of the automotive tire market.

There are prominent factors that drive the growth of the automotive tire market such as rise in the competition among global tire manufacturers and an increase in the operating life of automobiles. The increasing demand for special purpose tires also propels the growth of the Automotive Tire Market Size. Countries such as China, India, Brazil, and South Africa are growing economies. Thus, the manufacturing sector is witnessing prominent growth in these countries, which is expected to provide lucrative opportunities for the growth of the automotive tire market. Also, in some undeveloped countries, there is an increase in automobile sales, which is expected to boost the automotive tire market. In addition, an increase in the operating life of vehicles is anticipated to create after market opportunities for the growth of the global automotive tire market.

The process of replacing the tread on worn tires is known as remolding or retreading. It is recognized as the tire re-manufacturing process and is also known as recap or remold. When compared to the manufacturing of a new tire, the re-manufacturing process of the tire saves a significant amount of material.

As a result, the materials for this procedure are less expensive. Furthermore, compared to building a new one, it saves a significant amount of money on tires and material costs. As the labor and costs are much lower, retreading is environmentally friendly and far less expensive than purchasing new tires. A single tire can be retreaded up to ten times, extending its service life and saving significant energy and time in the manufacturing process, all while lowering landfill waste and carbon emissions. Over the years, the tire manufacturing industry has made significant progress all over the world. Premium technologies are used to produce high-quality tires that will perform flawlessly not only in their first life, but also in their second, third, and even fourth.

Moreover, in the tire retreading industry, the use of stronger tire casings, improved re-manufacturing procedures, and high-quality rubber compounds is increasing significantly for tire remold. Retreading directly reduces aftermarket costs. A significant increase in tire prices due to high production costs has accelerated the demand for retreaded tires. Retreading gives tires a new lease on life, and it can be done two to three times depending on the condition of the tire. This boosts the retreading tire Automotive Tire Industry while slowing the growth of the automotive tire market.

Owing to increase in concerns about global warming and pollution, the usage of electric vehicles (EVs) is anticipated to escalate considerably. In 2020, global electric vehicle sales increased by 43%, and in some regions, such as Norway and the Netherlands, sales surpassed petrol and diesel vehicles.

Electric vehicle sales in Europe exceeded half a million units in 2020, while the government in the U.S. is proposing incentives to put millions of EVs on the road. Technological advancements in energy-efficient vehicles, enforcement of stringent emission regulations, and low operating cost of EVs are expected to contribute to increasing the sales of automotive tires across the globe. Leading EV manufacturers are working to enhance the all-electric range of their vehicles.

Tires are one of the aspects that determine an EV’s performance, which encourages the development of high-performance tires such as entirely sustainable material and maintenance-free tires such as airless tires, plastic tires among others. For instance, General Motors revealed plans to launch passenger cars with Michelin airless tires in early 2024. It is engaged in testing the prototype tire on the Chevrolet Bolt EV before moving on to other automobiles. Furthermore, Goodyear is focusing on development of airless tires for EVs to commercialize the entirely sustainable material and maintenance-free tire by 2033.

The increased use of EVs in the coming years is projected to stimulate the development of advanced high-performance tires, which is anticipated to offer remunerative opportunities for the growth of the automotive tire market during the forecast period.

The automotive tire market is segmented on the basis of season type, vehicle type, rim size, distribution channel, load index and region. By season type, it is divided into summer, winter and all-season tires. By vehicle type, it is divided into passenger car, commercial vehicle, and electric vehicle. The commercial vehicles segment is further divided into light & heavy commercial vehicles. By rim size, the market is categorized into less than 15 inch, 15 to 20 inch, and more than 20 inch. By distribution channel, it is bifurcated into OEM and aftermarket. On the basis of load index, it is divided into up to 100, and above 100. By region, the Automotive Tire Industryis analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The global key players included in the Automotive Tire Market Analysis are Apollo Tyres Ltd, Bridgestone Corporation, CEAT Limited, Continental AG, Hankook & Company Co., Ltd., JK Tyre & INDUSTRIES LTD., Michelin, MRF Limited, Nokian Tyres PLC, Pirelli & C. S.p.A, Sailun Group Co., Ltd., Salsons Impex Pvt. Ltd, Shandong Linglong Group Co. Ltd., Sumitomo Rubber Industries, Ltd., The Goodyear Tire & Rubber Company, The Yokohama Rubber Co., Ltd., Triangle Tire Co., Ltd., Toyo Tire Corporation, Wanli Tire Co., Ltd., and Zhongce Rubber Group Co., Ltd.

Key Market Findings

• Based on Season Type, the All-Season and Winter segment dominated the global market in the year 2023 and is likely to remain dominant during the forecast period.
• Based on rim size, the 15 to 20 Inches segment dominated the global market in the year 2023 and is likely to remain dominant during the forecast period.
• Based on Vehicle Type, the Passenger Vehicle segment dominated the global market in the year 2023 and is likely to remain dominant during the forecast period.
• Based on Region, Asia-Pacific region segment dominated the global market in the year 2023 and is likely to remain dominant during the forecast period.