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Automotive Tires Market Size (2024 - 2029)

The automotive tire market is experiencing growth driven by factors such as increased vehicle sales, a focus on fuel economy, and the high costs associated with conventional tire maintenance and replacement. The market's expansion is further supported by the adoption of advanced manufacturing technologies that emphasize sustainability, durability, and affordability. The rising demand for retreaded tires is also contributing to market growth, as they offer a cost-effective solution for tire replacement, particularly for commercial fleets. Additionally, tire manufacturers are increasingly utilizing green energy in production processes to achieve carbon neutrality goals, which is influencing the market's development.

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Market Size of Automotive Tires Industry

Automotive tires market Overview
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR > 3.00 %
Fastest Growing Market Asia-Pacific
Largest Market Asia-Pacific
Market Concentration High

Major Players

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*Disclaimer: Major Players sorted in no particular order

Automotive Tire Market Analysis

The automotive tires market was valued at USD 105 billion in 2021, and it is anticipated to reach USD 115 billion by 2027, at a CAGR of more than 3% during the forecast period.

The COVID-19 pandemic had a significant effect on the automotive tires market directly in the short term as the production and sales of new vehicles witnessed a decline in 2020. Moreover, owing to restrictions, vehicle owners reduced the amount of driving resulting in delayed visits for maintenance or tire replacement. However, with the projected exponential increase in vehicle sales over the forecast period, the market is expected to be revived economically.

The growing focus on fuel economy, rising demand for convenience, and high maintenance or replacement costs of conventional tires are driving the growth of the automotive tires market. Another factor that is responsible for the growth of the industry is the adoption of cutting-edge manufacturing technology by OEMs to offer product differentiation through sustainability, durability, and affordability.

The demand for retreaded tires is increasing at a significant rate. The retreading of tires helps reduce the operating cost significantly in the aftermarket as it prevents the complete replacement of tires and is, thereby, a cost-effective option. The casings can help provide multiple life cycles, resulting in significant cost savings, especially for commercial fleet operators.

Tire makers are turning to green energy in their production as companies are working to achieve carbon neutrality by 2050, with investments in the direction of zero-carbon technology, energy efficiency, and green energy. For instance, in February 2021, Michelin Group announced that it is working toward making its tires 100% sustainable by 2050. For this, Michelin partnered with various organizations like Axens, IFP Energies Nouvelles, Pyrowave, Carbios, Enviro, and BlackCycle.

Automotive Tire Industry Segmentation

The Automotive Tires Market is Segmented by Tire Type (Winter Tires, Summer Tires, and Other Tire Types), by Application (On-the-Road and Off-the-Road), by Vehicle Type (Passenger Cars and Commercial Vehicles), End User (OEM and Aftermarket), and by Geography (North America, Europe, Asia-Pacific, South America, and Rest of the World). The report offers market size and forecasts for Automotive Tires in terms of value (USD billion) for all the above segments.

By Tire Type
Winter Tires
Summer Tires
Other Tire Types
By Application
On-the-Road
Off-the-Road
By Vehicle Type
Passenger Cars
Commercial Vehicles
By End User
OEM
Aftermarket
Geography
North America
United States
Canada
Rest of North America
Europe
Germany
United Kingdom
France
Italy
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
Rest of the World
South America
Middle-East and Africa
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Automotive Tires Market Size Summary

The automotive tire market is poised for growth, driven by several key factors including the increasing focus on fuel efficiency, the rising demand for convenience, and the high costs associated with the maintenance or replacement of conventional tires. The adoption of advanced manufacturing technologies by original equipment manufacturers (OEMs) is also contributing to market expansion, as these technologies enable product differentiation through sustainability, durability, and affordability. The market is witnessing a significant rise in the demand for retreaded tires, which offer a cost-effective alternative by extending the life cycle of tire casings, particularly benefiting commercial fleet operators. Additionally, tire manufacturers are increasingly investing in green energy and zero-carbon technologies to achieve carbon neutrality, with companies like Michelin leading initiatives to make their products fully sustainable by 2050.

The high-performance tire segment is expected to experience substantial growth, fueled by the growing popularity of motorsports and extreme terrain events, which serve as platforms for OEMs to enhance brand visibility. The increasing disposable income in emerging economies is driving demand for higher-capacity vehicles, such as SUVs and crossovers, further boosting tire sales. Rapid infrastructure development in countries like India and China is also contributing to the growth of commercial and construction vehicle sales, presenting lucrative opportunities in the replacement and aftermarket tire sectors. The global tire market is moderately concentrated, with major players like Michelin, Bridgestone, and Pirelli dominating the landscape, while regional markets in Asia are influenced by local manufacturers. These leading companies are investing heavily in research and development to integrate innovation with performance, resulting in the production of premium quality tires for both off-road and on-road applications.

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Automotive Tires Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Tire Type

      1. 2.1.1 Winter Tires

      2. 2.1.2 Summer Tires

      3. 2.1.3 Other Tire Types

    2. 2.2 By Application

      1. 2.2.1 On-the-Road

      2. 2.2.2 Off-the-Road

    3. 2.3 By Vehicle Type

      1. 2.3.1 Passenger Cars

      2. 2.3.2 Commercial Vehicles

    4. 2.4 By End User

      1. 2.4.1 OEM

      2. 2.4.2 Aftermarket

    5. 2.5 Geography

      1. 2.5.1 North America

        1. 2.5.1.1 United States

        2. 2.5.1.2 Canada

        3. 2.5.1.3 Rest of North America

      2. 2.5.2 Europe

        1. 2.5.2.1 Germany

        2. 2.5.2.2 United Kingdom

        3. 2.5.2.3 France

        4. 2.5.2.4 Italy

        5. 2.5.2.5 Rest of Europe

      3. 2.5.3 Asia-Pacific

        1. 2.5.3.1 China

        2. 2.5.3.2 Japan

        3. 2.5.3.3 India

        4. 2.5.3.4 South Korea

        5. 2.5.3.5 Rest of Asia-Pacific

      4. 2.5.4 Rest of the World

        1. 2.5.4.1 South America

        2. 2.5.4.2 Middle-East and Africa

Automotive Tires Market Size FAQs

The Automotive Tires Market is projected to register a CAGR of greater than 3% during the forecast period (2024-2029)

Bridgestone Corp., Continental AG, Goodyear, Michelin and Pirelli are the major companies operating in the Automotive Tires Market.

Automotive Tire Market Report Snapshots

Automotive Tire Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)