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Tires for vehicles are in high demand, but the market is very busy because many things affect supply, demand, and wider industry trends. Government rules, new technologies, and changes in what people want all have an effect on the market for automotive tires. It's easy to get raw materials like rubber, which has a big effect on the market for automotive tires. A big part of making tires is rubber, both natural and man-made, like butadiene. When the prices of these raw materials change, it costs a lot more to make things. These changes are often brought on by war or bad weather. There are many things that can cause tire prices to go up or down. Things like how many cars are made, how they are used, and how much money people have changed the need for tires. This can be seen in the tire market, where demand changes as the car industry moves toward electric vehicles (EVs). This is because tires for electric vehicles are not the same as tires for cars that use gas engines. Not all parts of the world have the same roads or people who like certain types of cars. This means that demand changes around the world. The market for automotive tires keeps changing as many people’s preferences change. People buy certain tires because they not only last longer, but also use less gas and grip better. People think about the price, the name, and how they feel about the surroundings as well. Automobile tire businesses spend money on research and development to meet growing consumer demand for better, greener, and more technologically advanced tire options. The market for automotive tires is also affected by changes in the laws and rules made by states and foreign groups. Most of the time, these rules are meant to protect the earth, keep people safe, and use less gas. People who make tires have to come up with new ways to meet or beat these standards. Laws in many countries say that tires need to have labels that say how much gas they use, how well they grip wet roads, and how loud they are. There are also more and more web stores that sell tires, which changes how the market works. Through online shops, it's easy to find a wide range of tires. Shops and makers need to change how they do business to accommodate people who buy tires online.
Automotive Tire Market Highlights:
Automotive Tire Market Overview:
Automotive Tire Market Size was valued at USD 134.9 Billion in 2023. The automotive tire market industry is projected to grow from USD 151.08 Billion in 2024 to USD 334.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.42% during the forecast period (2024 - 2032). Tires with low rolling resistance and advancements in tire manufacturing technology are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market Trends
Increased competition among tire manufacturers propels market growth
Increased competition among tire manufacturers is driving the market CAGR for automobile tire. Significant automakers continue to invest in emerging nations due to low labour costs, which further lower production costs and help to meet the expanding demand for vehicles. The tire industry has grown dramatically over the last ten years because to increased demand for automobiles and the usage of collaborative and consolidation manufacturing in the tire industry. At the same time, the automotive sector has grown at an exponential rate.
As a result, the automobile tire industry expands. Hankook Tire has created the "Dynapro AT2" for off-road and on-road SUVs. These tires perform admirably in all driving conditions due to their quietness, comfortable ride, and powerful off-road capability.
The automotive industry has recently undergone considerable expansion as a result of rapid industrialization, which has increased sales of commercial vehicles such as trucks, tractors, and trailers. Rising disposable income and living standards also have an impact on the growing sales of luxury passenger automobiles and premium category bikes. Furthermore, it is expected that sales of electric vehicles will increase during the forecast period. Electric car sales are further supported by the lowering cost of electric vehicle components such as batteries, transmissions, and alternators.
Furthermore, global automotive sector consolidation, which results in mergers and acquisitions between international and domestic vehicle manufacturers, boosts the growth of the automotive industry, influencing the car tire market share. As a result, the expansion of the vehicle industry is predicted to increase overall demand for tires.
Automotive Tire Market Segment Insights:
Automotive Tire Vehicle Type Insights
The Auto Tire Market segmentation, based on vehicle type includes 13"_15", 16"_ 18", 19"_21", >21". The 16"_ 18" segment contributed the largest amount to the market and is expected to increase at a CAGR of 4.1% during the forecast period. The rim sizes on most passenger and commercial vehicles range from 16 to 18 inches. Because there is more rubber on the road, these tires have better traction, especially for vehicles carrying more than average weight.
Automotive Tire Season Insights
The Automotive Tire Market segmentation, based on season, includes store winter, summer, all-season. The all-season segment was the largest contributor to the market and is expected to grow at a CAGR of 4.2% over the projected period. These tires are designed to withstand every weather condition, whether summer or winter. They are carefully developed with a unique and robust tread that lasts longer and can run on any terrain. All-season radials, like winter tires, provide excellent traction on wet surfaces.
Automotive Tire Propulsion Type Insights
The Automotive Tire Market segmentation, based on propulsion type, includes store ICE, EV. EV category had a significant market share. Electric vehicles have minimal operating expenses because they have fewer moving parts to maintain, and they are also very environmentally friendly because they consume little or no fossil fuels (petrol or diesel). While some EVs used lead acid or nickel metal hydride batteries, lithium ion batteries are now considered the standard for modern battery electric vehicles because they have a longer lifespan and are excellent at retaining energy, with a self discharge rate of only 5% per month.
Automotive Tire Vehicle Type Insights
The Vehicle Tire Market segmentation, based on vehicle type, includes passenger cars, LCV, HCV. In 2022, the passenger cars segment dominated the industry with a revenue share of more than 40%. Passenger car demand is mostly determined by economic factors such as exchange rate fluctuations, GDP growth, inflation levels, and changes in government policies.
Automotive Tire Distribution Channel Insights
The Car Tire Market segmentation, based on distribution channel, includes store OEM, Aftermarket. The aftermarket category was the largest contributor and is expected to expand at a CAGR of 4.5% during the projection period. Automotive OEMs are pre-installed channel kinds in which the tires, rims, and many services are installed with the vehicle when it is delivered to the customer.
Figure1: Automotive Tire Market, by Distribution channel, 2022 & 2032(USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Automotive Tire Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. In 2022, the North American car tire industry dominated the market, accounting for more than 40% of total sales. Because of the quantity of tire manufacturers cooperating with SUV and passenger car makers in the region. Furthermore, rising demand for off-roading tires among sports enthusiasts is propelling regional market growth.
Further, the major countries studiedin the market reportare The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: Automotive Tire Market Share By Region 2022 (Usd Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe’s auto tire market accounts for the second-largest market share due to the presence of several vehicle OEMs, since many of the world's largest automakers have manufacturing units in Europe. Further, the German vehicle tire market held the largest market share, and the UK auto tire market was the fastest growing market in the European region
The Asia-Pacific Auto Tire Market is expected to grow at the fastest CAGR from 2024 to 2032. This is because of rising domestic consumption and shifting norms, and cheap labour. Moreover, China’s automobile tire market held the largest market share, and the Indian automobile tire market was the fastest-growing market in the Asia-Pacific region.
Automotive Tire Key Market Players & Competitive Insights
Leading market players are investing heavily in R&D to expand their product lines, which will help the auto tire market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, automobile tire industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global car tire industry to benefit clients and increase the market sector. In recent years, the car tire industry has offered some of the most significant advantages to medicine. Major players in the auto tire market, including Kurho Tire (South Korea) , Giti Tire (Singapore), Maxxis International (Taiwan) . Nexen Tire Corporation (South Korea) and others, are attempting to increase market demand by investing in R&D operations.
Michelin is a French multinational tyre manufacturer headquartered in Clermont-Ferrand, France, in the Auvergne-Rhône-Alpes region. It is the world's second largest tyre manufacturer, trailing only Bridgestone, and larger than both Goodyear and Continental. It also owns the Kléber tyre company, Uniroyal-Goodrich Tire Company, SASCAR, Bookatable, and Camso trademarks in addition to Michelin. Michelin is also recognized for its Red and Green travel guides, roadmaps, the Michelin stars awarded to restaurants by the Red Guide for their culinary, and its company mascot Bibendum, informally known as the Michelin Man, who is a humanoid made of tyres. In June 2021, Michelin has introduced the MICHELIN Primacy 4ST tires in India. The tyre has excellent wet grip because to its revolutionary tread pattern, which incorporates 1.5X more grooves to eliminate more water. The next version of Silent Rib Technology has interlocking bands between tread blocks, giving in a smoother ride and enhanced comfort. Additionally, the new technique reduces the sound of air pumping during tire rolling.
Apollo Tyres Limited is a multinational Indian tyre manufacturer headquartered in Gurugram, Haryana. It was founded in 1972, and its first plant opened in Perambra, Chalakudy, Kerala (India). The organization today has five manufacturing facilities in India, one in the Netherlands, and one in Hungary. It has almost 5,000 dealerships in India, with over 2,500 of them being exclusive stores. The company earns 69% of its revenue in India, 26% in Europe, and 5% in other countries. In April 2021, Apollo Tires has announced the introduction of a new tire line in India under the Dutch brand Vredestein. Designed for high-performance motorbikes and luxury cars. With the introduction of these new tires, the company intends to dominate the premium car tire industry.
Key Companies in the automotive tire market include
- Michelin (France)
- Bridgestone (Japan)
- Continental AG (German)
- Hankook Tire (South Korea)
- Pirelli & C. S.p.A. (Italy)
- Toyo Tire Corporation (Japan)
- Kumho Tire (South Korea)
- Giti Tire (Singapore)
- Maxxis International (Taiwan)
- Nexen Tire Corporation (South Korea)
Auto Tire Industry Developments
August 9, 2023: Continental reported robust earnings in the Tires group sector and a high order intake of around €8.6 billion in the Automotive sector at the end of the second quarter of 2023. While the Automotive group's earnings fell short of projections mostly because of currency effects and ongoing extra freight expenses, the ContiTech group sector produced strong results. In addition, the second quarter's inflation-related price talks are still going on. Continental has modified its forecast for sales in the Tires group sector and for consolidated sales due to changed market expectations in the tire replacement industry. The adjusted EBIT margin expectation is still unchanged. As a result, the technology company anticipates higher consolidated earnings in the year's second half.
Automotive Tire Market Segmentation:
Automotive Tire Market By Rim Size Outlook
- 13"_15"
- 16"_18"
- 19"_21"
- >21"
Automotive Tire Market By Season Outlook
- Winter
- Summer
- All-Season
Automotive Tire Market By Propulsion Type Outlook
- ICE
- EV
Automotive Tire Market By Vehicle Type Outlook
- Passenger Cars
- LCV
- HCV
Automotive Tire Market By Distribution Channel Outlook
- OEM
- Aftermarket
Automotive Tire Market Regional Outlook
North America
- US
- Canada
Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
Rest of the World
-
Middle East
-
Africa
-
Latin America
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