Tire Material Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The world market for tyres will be worth around $84 billion in 2023, and is expected to rise to $90 billion by 2032, registering a compound annual growth rate of 3.1 per cent between 2024 and 2032. The steady growth of the market is largely driven by the increasing production of vehicles and the growing demand for high-performance tyres that enhance safety and fuel efficiency. As the auto industry continues to develop, the demand for advanced tyre materials, which can improve tyre performance and life, will also grow, thereby driving the market. There are several factors contributing to this growth. These include the development of new tyre materials that are more sustainable and environment-friendly, in line with the growing demand for eco-friendly products among consumers. Furthermore, the growing popularity of electric vehicles has given rise to new opportunities for tyre manufacturers. These vehicles require specialised tyres that can meet their unique requirements. Hence, companies such as Michelin, Bridgestone and Continental are investing in research and development to stay ahead of the competition.

Regional Market Size

Regional Deep Dive

Among the various reasons for the dynamic growth of the tire material market are the growing demand for automobiles, the rising demand for fuel-efficient vehicles, and the technological development of tires. The tire material market is characterized by unique regional characteristics, depending on the local economic conditions, regulations, and consumer preferences. North America is characterized by a strong focus on innovation and sustainability, whereas Europe is characterized by a focus on regulatory compliance and the use of eco-friendly materials. The Asia-Pacific region is characterized by rapid urbanization and industrialization, which are driving the demand for tires. The Middle East and Africa are gradually developing their own automobile industries, while Latin America is focusing on strengthening its local manufacturing capabilities to reduce its reliance on imports.

Europe

• The European Union’s strict regulations on tire performance and the environment are forcing tyre manufacturers to come up with new materials, with Continental and Pirelli in the lead.
• The rise of electric vehicles (EVs) in Europe is prompting tire manufacturers to create specialized materials that enhance energy efficiency and reduce rolling resistance, thereby improving EV performance.

Asia Pacific

• The Asia-Pacific region is witnessing rapid advancements in tire technology, with companies like Bridgestone and Yokohama investing heavily in R&D to develop smart tires equipped with sensors for real-time performance monitoring.
• Government initiatives in countries like China and India to promote electric vehicles are influencing tire material development, as manufacturers adapt to the unique requirements of EV tires.

Latin America

• Latin America is focusing on enhancing local manufacturing capabilities, with companies like Grupo Bimbo investing in tire production to reduce reliance on imports and boost the local economy.
• The region is also seeing a rise in demand for all-terrain tires due to increased outdoor recreational activities, leading manufacturers to explore new materials that offer better traction and durability.

North America

• The North American market is seeing a significant shift towards sustainable tire materials, with companies like Goodyear and Michelin investing in bio-based materials and recycling technologies to meet consumer demand for eco-friendly products.
• Regulatory changes, such as the U.S. Environmental Protection Agency's initiatives to reduce greenhouse gas emissions, are pushing manufacturers to innovate and adopt more sustainable practices in tire production.

Middle East And Africa

• In the Middle East and Africa, the automotive sector is gradually expanding, with local manufacturers like Al Dobowi and Al-Futtaim focusing on producing tires that cater to regional needs, such as high durability for off-road conditions.
• The region's growing infrastructure projects are increasing demand for commercial vehicle tires, prompting manufacturers to innovate in materials that enhance load-bearing capacity and longevity.

Did You Know?

“Did you know that approximately 70% of a tire's performance is influenced by its materials, including rubber compounds and reinforcing agents?” — Tire Industry Association

Segmental Market Size

The market for tire materials is currently undergoing a period of growth, driven by increasing demand for high-performance tires and the development of new materials. The demand for fuel-efficient and durable tires is rising, while stringent regulations are aimed at reducing vehicle emissions. Furthermore, the growing trend towards electric vehicles is resulting in a strong demand for specialized tire materials that offer enhanced performance and sustainable properties. In general, the use of new materials in tires is at the pilot stage. Companies like Michelin and Bridgestone are leading the way in developing smart tire technology and eco-friendly materials. The most important areas of application are in passenger cars, trucks, and racing tires, where performance and safety are of paramount importance. The main trends are the focus on sustainability and the drive for more sustainable mobility. Nanomaterials and advanced polymer composites are enabling the tire industry to produce lighter, stronger, and more fuel-efficient tires.

Future Outlook

The tire material market is expected to grow steadily from 2023 to 2032, with a projected CAGR of 2.99% from 2023 to 2032. The high-performance tire market is mainly driven by the continuous development of automobile technology and the pursuit of energy saving and green development. As the e-vehicle market develops, the demand for special tire materials with low rolling resistance will increase, and the market will continue to expand. By 2032, the penetration rate of advanced tire materials such as silica and synthetic rubber will reach about 40%, which is a significant shift from the traditional way of making tires to the innovation of tire materials. The development of smart tires with sensors and real-time monitoring will have a significant impact on the tire material market. The tightening of carbon emissions and the promotion of sustainable development will also drive tire manufacturers to invest in eco-friendly materials and production methods. The trend of using recycled tires in the production of tires will also have a significant impact on the market. The tire industry will continue to develop, but it will have to keep up with the changes in the market and the changes in the law.