Global Automotive Tire Market Growth, Share, Size, Trends and Forecast (2024 - 2030)

• In February 2024, Bridgestone Corporation launched its new tire technology for electric vehicles (EVs), designed to enhance the performance of EVs with reduced rolling resistance and improved longevity. This technology also focuses on sustainability by reducing CO2 emissions during tire production

• In December 2023, Michelin announced the acquisition of Lehigh Technologies, a company that specializes in sustainable materials, which will help Michelin further its commitment to sustainability and improve the circular economy in tire manufacturing

The global automotive tire market is segmented by type into radial and bias tires, each catering to different vehicle applications and performance requirements. Radial tires have become the dominant tire technology in the automotive industry due to their superior performance characteristics and benefits. Radial tires are constructed with radial ply layers, where the cords run perpendicular to the direction of travel, providing excellent traction, stability, and ride comfort. These tires offer lower rolling resistance, improved fuel efficiency, and longer tread life compared to bias tires, making them ideal for passenger cars, light commercial vehicles (LCVs), and high-speed highway driving applications.

On the other hand, bias tires feature a diagonal ply construction, where the cords run at an angle to the direction of travel. While bias tires offer advantages in terms of load-carrying capacity, puncture resistance, and durability, they typically exhibit higher rolling resistance and inferior ride comfort compared to radial tires. Bias tires are commonly used in off-road vehicles, agricultural equipment, and industrial applications where robust construction and traction performance are paramount.

In terms of product segmentation, the automotive tire market encompasses a wide range of vehicle categories, including light commercial vehicles (LCVs), high commercial vehicles (HCVs), and two-wheelers. LCVs, such as vans, pickup trucks, and delivery vehicles, require tires optimized for durability, load-carrying capacity, and fuel efficiency to support urban delivery operations, logistics, and commercial fleet applications. High commercial vehicles (HCVs), including trucks, buses, and heavy-duty vehicles, demand tires capable of withstanding heavy loads, long-distance travel, and harsh operating conditions on highways and construction sites. These tires must deliver superior traction, braking performance, and tread wear resistance to ensure safety and reliability in demanding commercial transport applications.

Two-wheelers, including motorcycles, scooters, and bicycles, represent another significant product segment within the automotive tire market. Two-wheeler tires are designed to provide optimal grip, stability, and maneuverability for riders across various road conditions, weather conditions, and riding styles. Motorcycle tires, in particular, come in a variety of designs, including street, off-road, touring, and sportbike tires, tailored to specific performance requirements and riding preferences. Scooter and bicycle tires also vary in tread patterns, rubber compounds, and construction techniques to meet the needs of urban commuters, recreational cyclists, and professional athletes.

The segmentation of the automotive tire market by type and product reflects the diverse needs and preferences of consumers, businesses, and industries worldwide. By offering a wide range of tire options tailored to different vehicle types, applications, and performance requirements, tire manufacturers can address market demand, drive innovation, and maintain competitiveness in the dynamic automotive industry landscape.

Global Automotive Tire Segment Analysis

In this report, the Global Automotive Tire Market has been segmented by Type, Product and Geography.

Global Automotive Tire Market, Segmentation by Type

The Global Automotive Tire Market has been segmented by Type into Radial and Bias.

The Global Automotive Tire Market is segmented by type into two primary categories: radial tires and bias tires. Radial tires have emerged as the dominant tire technology in the automotive industry due to their superior performance characteristics and widespread adoption across passenger cars, light commercial vehicles (LCVs), and high-speed highway applications. Radial tires feature a construction where the ply cords run perpendicular to the direction of travel, providing excellent traction, stability, and ride comfort. These tires offer advantages such as lower rolling resistance, improved fuel efficiency, and longer tread life compared to bias tires. As a result, radial tires are preferred for their overall performance and efficiency benefits, making them the standard choice for modern vehicles seeking optimal handling and comfort on various road surfaces.

Bias tires maintain a diagonal ply construction, where the cords run at an angle to the direction of travel. While bias tires excel in applications requiring robust construction, high load-carrying capacity, and puncture resistance, they typically exhibit higher rolling resistance and less favorable ride comfort characteristics compared to radial tires. Bias tires are commonly used in off-road vehicles, agricultural machinery, and industrial equipment, where durability and traction performance are paramount. Despite the dominance of radial tires in most automotive applications, bias tires continue to find niche usage in specialized sectors where their unique characteristics are valued, highlighting the importance of understanding the diverse needs and preferences of different vehicle segments within the Global Automotive Tire Market.

Global Automotive Tire Market, Segmentation by Product

The Global Automotive Tire Market has been segmented by Product into Light commercial vehicles, High commercial vehicles and Two wheelers.

Light commercial vehicles (LCVs), including vans, pickup trucks, and delivery vehicles, constitute a significant portion of the automotive tire market. LCV tires are designed to withstand the demands of urban delivery operations, logistics, and commercial fleet applications. These tires are optimized for durability, load-carrying capacity, and fuel efficiency, enabling LCVs to navigate diverse road conditions while efficiently transporting goods and passengers. With the rise of e-commerce and last-mile delivery services, the demand for LCV tires is expected to grow, driven by increased urbanization and the expansion of commercial transportation networks worldwide.

High commercial vehicles (HCVs), such as trucks, buses, and heavy-duty vehicles, represent another important segment of the automotive tire market. HCV tires play a critical role in supporting long-distance transportation, freight logistics, and construction operations. These tires are engineered to withstand heavy loads, extended travel distances, and harsh operating conditions on highways, construction sites, and off-road terrain. HCV tires must deliver superior traction, braking performance, and tread wear resistance to ensure safety, reliability, and cost-effective operation for commercial fleet operators and logistics companies.

Two-wheelers, including motorcycles, scooters, and bicycles, comprise a significant portion of the automotive tire market, particularly in regions with high levels of two-wheeler ownership and usage. Two-wheeler tires are designed to provide optimal grip, stability, and maneuverability for riders across various road conditions, weather conditions, and riding styles. Motorcycle tires come in a variety of designs, including street, off-road, touring, and sportbike tires, tailored to specific performance requirements and riding preferences. Scooter and bicycle tires also vary in tread patterns, rubber compounds, and construction techniques to meet the needs of urban commuters, recreational cyclists, and professional athletes.

The segmentation of the Global Automotive Tire Market by product reflects the diverse needs and preferences of consumers, businesses, and industries worldwide. By offering a wide range of tire options tailored to different vehicle types and applications, tire manufacturers can address market demand, drive innovation, and maintain competitiveness in the dynamic automotive industry landscape.

Global Automotive Tire Market, Segmentation by Geography

In this report, the Global Automotive Tire Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Automotive Tire Market Share (%), by Geographical Region, 2023

North America represents a significant market for automotive tires, driven by a large vehicle parc, robust transportation infrastructure, and consumer demand for quality tires. The region is characterized by a diverse mix of vehicle types, including passenger cars, light trucks, and SUVs, each with specific tire requirements. Additionally, the growing popularity of electric vehicles (EVs) and performance vehicles presents opportunities for tire manufacturers to offer specialized tire solutions tailored to these segments. With stringent regulations governing tire labeling, safety standards, and environmental sustainability, tire manufacturers in North America must ensure compliance while meeting consumer expectations for durability, performance, and value.

Europe is a major hub for automotive manufacturing and innovation, with a strong emphasis on vehicle safety, environmental sustainability, and performance. The region's automotive tire market is characterized by a diverse range of vehicle types, including passenger cars, commercial vehicles, and motorcycles, each with unique tire preferences and regulatory requirements. With increasing demand for fuel-efficient tires, winter tires, and eco-friendly tire solutions, tire manufacturers in Europe are investing in research and development to meet evolving consumer needs and regulatory standards. Additionally, the presence of leading tire manufacturers and suppliers in countries such as Germany, France, and Italy contributes to the competitiveness of the European automotive tire market.

Asia-Pacific is the largest and fastest-growing market for automotive tires, driven by rapid urbanization, rising disposable incomes, and expanding vehicle ownership. The region's automotive tire market is characterized by a diverse mix of vehicle types, including passenger cars, commercial vehicles, two-wheelers, and off-road vehicles, each with specific tire requirements tailored to local preferences and road conditions. With the emergence of electric vehicles (EVs), shared mobility services, and smart transportation initiatives, tire manufacturers in Asia-Pacific are adapting their product offerings to meet the evolving needs of consumers and OEMs. Additionally, the presence of key automotive manufacturing hubs in countries such as China, Japan, India, and South Korea further contributes to the growth and competitiveness of the Asia-Pacific automotive tire market.

The Middle East & Africa region represents a growing market for automotive tires, driven by infrastructure development, economic diversification, and increasing vehicle ownership. The region's automotive tire market is characterized by a mix of passenger cars, SUVs, commercial vehicles, and off-road vehicles, each with specific tire requirements tailored to local preferences and operating conditions. With the rise of electric vehicles (EVs), smart mobility solutions, and desert driving experiences, tire manufacturers in the Middle East & Africa are innovating their product offerings to meet the diverse needs of consumers and OEMs. Additionally, the presence of tire distribution networks and aftermarket channels further contributes to the growth and competitiveness of the Middle East & Africa automotive tire market.

This report provides an in depth analysis of various factors that impact the dynamics of Global Automotive Tire Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers :

• Rising Vehicle Production
• Increasing Vehicle Fleet Size
• Emphasis on Fuel Efficiency

• Expansion of Electric Vehicles (EVs) - The expansion of electric vehicles (EVs) represents a significant opportunity for the global automotive tire market, driving demand for specialized tire solutions tailored to the unique characteristics of electric propulsion systems. As EV adoption continues to grow worldwide, propelled by factors such as environmental concerns, government incentives, and advancements in battery technology, tire manufacturers are adapting their product offerings to meet the evolving needs of electric vehicle owners and OEMs.

  One of the key considerations in EV tire design is optimizing tire performance to maximize driving range and efficiency. EVs have specific tire requirements, such as low rolling resistance, reduced weight, and enhanced durability, to minimize energy consumption and extend battery life. Tire manufacturers are developing eco-friendly tire solutions using advanced materials, tread designs, and construction techniques to reduce rolling resistance and improve fuel efficiency, contributing to the overall sustainability of electric vehicles.

  EVs place unique demands on tire traction and handling due to their instant torque delivery and heavy battery weight. Tires for electric vehicles must provide excellent grip, stability, and braking performance to ensure safe and predictable handling in various driving conditions, including wet, dry, and snowy surfaces. Tire manufacturers are leveraging innovations in tread patterns, rubber compounds, and tire construction to enhance traction performance while maintaining low rolling resistance and minimizing road noise for a comfortable driving experience.

  EV tire design must consider the impact of electric propulsion systems on tire wear and longevity. The high torque output of electric motors and regenerative braking systems can result in increased tire wear, particularly on the drive wheels. Tire manufacturers are developing specialized tire compounds and tread designs to withstand the unique stresses imposed by electric propulsion systems, extending tire lifespan and reducing the frequency of tire replacements for electric vehicle owners.

  As the EV market continues to expand globally, driven by technological advancements and regulatory mandates, the demand for electric vehicle tires is expected to grow significantly. Tire manufacturers are investing in research and development to innovate and differentiate their product offerings, catering to the diverse needs of electric vehicle owners, fleet operators, and OEMs. By developing specialized tire solutions optimized for electric propulsion systems, tire manufacturers can play a pivotal role in supporting the transition to sustainable mobility and shaping the future of the automotive industry.

Restraints :

• Volatility in Raw Material Prices
• Stringent Regulatory Requirements
• Intense Market Competition

• Slowdown in Automotive Sales - A slowdown in automotive sales represents a significant challenge for the global automotive tire market, impacting demand for tires across various vehicle segments and regions. Several factors can contribute to a downturn in automotive sales, including economic recessions, geopolitical tensions, changes in consumer preferences, and shifts in regulatory policies.

  During periods of economic uncertainty or recession, consumer confidence tends to decline, leading to reduced spending on big-ticket items such as vehicles. As a result, automotive manufacturers may experience decreased demand for new vehicles, leading to production cutbacks, inventory buildup, and lower sales volumes. The slowdown in automotive sales directly affects the demand for tires, as new vehicles represent a primary source of replacement tire demand.

  Geopolitical tensions, trade disputes, and tariffs can also disrupt global supply chains and trade flows, impacting automotive production and sales. Uncertainties surrounding trade agreements and import/export restrictions can create market volatility, hindering investment decisions and consumer purchasing behavior. In such scenarios, automotive manufacturers may delay new vehicle launches or scale back production, resulting in reduced demand for tires and aftermarket accessories.

  Changes in consumer preferences and lifestyle trends can influence automotive sales patterns, particularly in mature markets where vehicle ownership rates may have reached saturation levels. Shifts towards urbanization, shared mobility services, and alternative transportation modes such as ride-sharing, carpooling, and public transit can dampen demand for personal vehicle ownership, affecting both new vehicle sales and aftermarket tire replacement demand.

  Regulatory policies aimed at reducing emissions, improving fuel efficiency, and promoting alternative fuel technologies can impact automotive sales by influencing vehicle design, pricing, and availability. Stringent emissions standards, fuel economy regulations, and vehicle electrification targets may incentivize consumers to opt for electric or hybrid vehicles over traditional internal combustion engine vehicles, altering the composition of the vehicle fleet and subsequent tire demand.

  In response to a slowdown in automotive sales, tire manufacturers may face challenges related to excess inventory, pricing pressures, and reduced profitability. To mitigate the impact of reduced demand, tire manufacturers may adjust production schedules, optimize inventory management practices, and diversify their product portfolios to target emerging segments such as electric vehicles, commercial fleets, and aftermarket tire replacements.

  Strategic initiatives such as marketing campaigns, promotional offers, and product innovation can help tire manufacturers maintain market share and customer loyalty during challenging economic conditions. By closely monitoring market trends, anticipating shifts in consumer behavior, and adapting business strategies accordingly, tire manufacturers can navigate the uncertainties of a slowdown in automotive sales and position themselves for future growth opportunities.

Opportunities :

• Rising Demand for Replacement Tires
• Expansion of Electric Vehicle (EV) Market
• Advancements in Tire Technology

• Focus on Sustainable Mobility - The increasing focus on sustainable mobility presents both challenges and opportunities for the global automotive tire market. As the automotive industry strives to reduce its environmental footprint and address climate change concerns, sustainable mobility has emerged as a key priority for consumers, governments, and automotive stakeholders alike.

  One of the main challenges for the tire industry in the context of sustainable mobility is the need to minimize the environmental impact of tire production, usage, and disposal. Tire manufacturing processes, particularly those involving rubber production and energy-intensive manufacturing techniques, can generate carbon emissions and other environmental pollutants. Additionally, tire disposal presents challenges in terms of waste management and recycling, as end-of-life tires contribute to landfill waste and environmental contamination if not properly managed.

  The focus on sustainable mobility also presents opportunities for tire manufacturers to innovate and develop eco-friendly tire solutions that align with environmental goals. Sustainable tire technologies aim to reduce the environmental impact of tire production and usage while maintaining or enhancing tire performance, safety, and durability. These technologies may include.

  In addition to technological advancements, tire manufacturers can also contribute to sustainable mobility through corporate social responsibility initiatives, supply chain transparency, and stakeholder engagement. By adopting sustainable business practices, collaborating with industry partners, and educating consumers about the environmental benefits of sustainable tires, tire manufacturers can play a vital role in driving the transition towards a more sustainable automotive industry.

  The focus on sustainable mobility presents tire manufacturers with an opportunity to innovate, differentiate, and contribute to environmental conservation efforts. By embracing sustainability as a core value and integrating eco-friendly practices into their operations, tire manufacturers can position themselves as leaders in the global transition towards a greener, more sustainable automotive future.

Key players in Global Automotive Tire Market include :

• Continental Group
• Cooper Tire & Rubber Company
• Goodyear Tire and Rubber Company
• Hankook Tire Co. Ltd.
• Michelin Group
• Pirelli & C. S.P.A.
• Sumitomo Rubber Industries
• The Bridgestone Group

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis