Automotive Tire Market Growth 2023 to 2032

Automotive Tire Market Size to Attain US$ 211.6 Billion by 2032

The global automotive tire market size surpassed US$ 130.5 billion in 2022 and is projected to hit around US$ 211.6 billion by 2032, at a notable CAGR of 5.00% from 2023 to 2032.

Key Points

  • The Asia Pacific contribution of more than 41% revenue share in 2022
  • By Vehicle Type, the Passenger vehicles segment held a revenue share of n 47% in 2022.

The automotive tire market is a vital segment of the automotive industry, encompassing the manufacturing, distribution, and sale of tires used in various vehicles, including passenger cars, commercial vehicles, and off-road vehicles. Tires play a critical role in ensuring vehicle safety, performance, and fuel efficiency, making them indispensable components of modern automobiles. The market is characterized by intense competition among global and regional players, driven by factors such as technological advancements, changing consumer preferences, and regulatory requirements. As the automotive industry continues to evolve, with a growing emphasis on sustainability and electric vehicles (EVs), the tire market is poised for significant transformations in the coming years.

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Growth Factors

Several key factors contribute to the growth of the automotive tire market. Firstly, the rising global demand for vehicles, fueled by economic growth, urbanization, and increasing disposable incomes, drives the need for tires. Additionally, technological advancements in tire manufacturing, such as the development of advanced materials, innovative tread designs, and improved manufacturing processes, enhance tire performance, durability, and safety, further stimulating market growth. Moreover, the growing adoption of electric vehicles (EVs) presents new opportunities for tire manufacturers, as EVs have distinct tire requirements due to their unique powertrain characteristics and weight distribution.

Region Analysis:

The automotive tire market exhibits regional variations influenced by factors such as vehicle sales, road infrastructure, consumer preferences, and regulatory frameworks. In developed regions like North America and Europe, the market is characterized by high vehicle penetration rates and stringent safety and environmental regulations, driving demand for premium tires with advanced features. Emerging economies in Asia-Pacific, Latin America, and Africa offer significant growth potential due to rapid urbanization, expanding middle-class population, and increasing vehicle ownership. Moreover, the Asia-Pacific region, led by countries like China and India, serves as a manufacturing hub for automotive tires, leveraging cost advantages and skilled labor.

Report Scope of the Automotive Tire Market

Report Highlights Details
Market Size USD 211.6 Billion by 2032
Growth Rate CAGR of 5.00% from 2023 to 2032
Largest Market Asia Pacific
Fastest Growing Market Europe
Base Year 2022
Forecast Period 2023 to 2032
Segments Covered Season Tire Type, Rim Size, Vehicle Type, Distribution Channel, Regional Outlook

SWOT Analysis

Strengths: The automotive tire market benefits from strong demand driven by global vehicle sales, technological advancements, and a wide range of product offerings catering to diverse vehicle segments and consumer preferences. Established players possess extensive distribution networks, brand recognition, and R&D capabilities, enabling them to maintain competitive positions in the market.

Weaknesses: Despite technological advancements, the automotive tire industry faces challenges related to environmental sustainability, particularly concerning tire disposal and recycling. Moreover, fluctuating raw material prices, such as natural rubber and synthetic rubber, impact production costs and profit margins, posing challenges for manufacturers.

Opportunities: The shift towards electric vehicles (EVs) presents opportunities for tire manufacturers to develop specialized tires optimized for EV performance, range, and efficiency. Additionally, the growing emphasis on sustainability and eco-friendly materials opens avenues for innovation in tire manufacturing processes, including the use of renewable materials and sustainable production practices.

Threats: Intense competition, both from established players and new entrants, poses a threat to market share and profitability. Furthermore, geopolitical uncertainties, trade tensions, and regulatory changes in key markets can impact supply chains, production costs, and market dynamics. Additionally, economic downturns and fluctuations in consumer spending patterns can affect vehicle sales and, consequently, tire demand.

Read Also: Automotive Sensor Market Size to Surpass USD 37.29 Bn by 2033

Competitive Landscape:

The automotive tire market is highly competitive, with several global and regional players vying for market share through strategies such as product differentiation, pricing, branding, and partnerships. Major players include Bridgestone Corporation, Michelin, Continental AG, Goodyear Tire & Rubber Company, and Pirelli & C. S.p.A. These companies invest heavily in R&D to develop innovative tire technologies, enhance performance, and meet evolving customer needs. Moreover, strategic acquisitions, mergers, and collaborations are common in the industry, enabling companies to expand their product portfolios, geographical presence, and manufacturing capabilities.

Some of the prominent players in the automotive tire market include:

  • Continental AG
  • Bridgestone Corporation
  • Pirelli Tyre C. S.p.A. (China National Chemical Corporation)
  • Toyo Tire Corporation
  • Hankook Tire & Technology Co., Ltd.
  • The Goodyear Tire & Rubber Company
  • The Yokohama Rubber Co., Ltd
  • Sumitomo Rubber Industries Ltd
  • Nokian Tyres plc

Segments Covered in the Report

This report analyses and projects market revenue and growth trend at global, regional, and country levels and offers an analysis of the modern industry developments in each of the sub-segments from 2020 to 2032. The global automotive tire market report is categorized on the basis of season tire type, rim size, vehicle type, distribution channel, and region:

By Season Tire Type

  • Winter
  • Summer
  • All Season

By Rim Size

  • Less than 15
  • Between 15 to 20
  • Greater than 20

By Vehicle Type

  • Commercial Vehicle
    • Light Commercial
    • Heavy Commercial
  • Passenger Car
  • Electric Vehicle

By Distribution Channel

  • Aftermarket
  • OEM

By Regional Outlook

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Rest of the World

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