Global sales of automotive tire stood at USD 240.9 billion in 2024. The industry is further projected to exhibit a y-o-y growth of 5.9% in 2025 and reach USD 256.1 billion in the same year and surging at a CAGR of 6.3% between 2025 and 2035, demand for the automotive tire is estimated to reach USD 471.7 billion by 2035.
Increased passenger and commercial vehicle production, especially in developing regions, together with increased urbanization and e-commerce activities, have immensely increased demand for automotive tires. Among such features are durability, fuel efficiency, and safety performance, all improved further in the recent past driven by consumer and regulatory needs. Increased demand for electric vehicles and specialty vehicles further add to the market's growth.
| Attributes | Key Insights |
|---|---|
| Estimated Size, 2025 | USD 256.1 billion |
| Projected Size, 2035 | USD 471.7 billion |
| Value-based CAGR (2025 to 2035) | 6.3% |
The leading position of the East Asia region in automotive production and consumer demand keeps this region at the front in the market for automotive tires. Giant manufacturing hubs like China, Japan, and South Korea ensure high demand for tires, not only at the OEM level but also at the replacement level. A growing middle class contributes to higher ownership of vehicles in such countries, thus driving the market.
With the rapid growth in the adoption of electric vehicles in the East Asia region, the demand for special tires for EVs is also growing fast, which requires lower rolling resistance and greater durability, therefore spurring innovation and growth in this market.
East Asia ensures continuous infrastructure development with urbanization and improvement in road networks, there is a surge in demand for commercial and passenger vehicle tires. All such factors make East Asia retain its position of the top-growing region in the automotive tire market.
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The table below presents the annual growth rates of the global automotive tire industry from 2025 to 2035. With a base year of 2024 extending to the current year 2025, the report examines how the sector's growth trajectory evolves from the first half of the year (January to June, H1) to the second half (July to December, H2). This analysis offers stakeholders insights into the industry's performance over time, highlighting potential developments that may emerge.
These figures indicate the growth of the sector in each half year, between the years 2024 and 2025. The industry is projected to grow at a CAGR of 6.1% in H1-2024.
| Particular | Value CAGR |
|---|---|
| H1 2024 | 6.1% (2024 to 2034) |
| H2 2024 | 6.3% (2024 to 2034) |
| H1 2025 | 6.2% (2025 to 2035) |
| H2 2025 | 6.4% (2025 to 2035) |
Moving into the subsequent period, from H1 2025 to H2 2025, the CAGR is expected to slightly decrease to 6.2% in the first half and relatively increase to 6.4% in the second half. In the first half (H1), the sector saw an increase of 10 BPS while in the second half (H2), there was a slight increase of 10 BPS.
Growth in Electric Vehicles (EVs), Drives the Market Growth
As EV sales surge, particularly in East Asia, North America, and Europe, the demand for tires specifically designed for EV driving conditions is rising. Low-rolling-resistance tires are essential for improving energy efficiency and driving range. Additionally, these tires must withstand the increased structural loads from battery-pack components while maintaining traction-promoting qualities.
A significant portion of these new EV tires utilize sustainable rubber compounds or incorporate recycled materials from worn tires, reducing costs and enhancing environmental sustainability. With vehicle manufacturers expanding their EV lineups, expectations for market growth are set to rise.
For example, Michelin has taken advantage of this electric vehicle growth to manufacture specialized tires such as the Michelin Pilot Sport EV. The low rolling resistance of such tires enhances energy efficiency for better battery range.
Besides that, the tires can bear the higher weight of electric vehicles because of larger-sized battery packs without losing their durability and performance. At the same time, Michelin's innovation in making tires specifically for EVs places it well to benefit from the increasing demand for electric vehicles and overall sustainable mobility solutions.
Rising Demand for Fuel-Efficient Tires That Reduce Rolling Resistance, Lowering Fuel Consumption and Emissions
The increasing demand for fuel-efficient tires is driven by the fact that these tires reduce rolling resistance, which improves fuel efficiency and cuts overall operating costs for vehicle owners. These tires respond to consumer demands for cost-effective and eco-friendly solutions.
With the proliferation of electric and hybrid vehicles, there is an increasing demand for sophisticated tire technologies that would further optimize energy efficiency and battery performance. With features such as better mileage and durability, fuel-efficient tires are gaining immense popularity among consumers seeking optimal vehicle performance, thereby contributing significantly to the growth of the automotive tire market globally.
Increase in Vehicle Production and Ownership, Boosts Adoption of Automotive Tire
Automotive tire demand is driven by vehicle production and ownership. Global vehicle production, specifically in emerging economies, causes an increase in demand for tires. Urbanization, growing disposable incomes, and easier access to finance are increasing vehicle ownership, thus boosting the demand in both the OEM and replacement tire markets.
The growth in private car ownership of developing nations further boosts demand for tires. With an increased number of vehicles on the road, the requirement for regular replacement and maintenance of tires also increases, thereby propelling the market growth. Manufacturers are addressing this demand by innovating and creating specialized tires tailored to the unique requirements of different vehicles, enabling them to secure a larger share of the growing market.
Volatility in Raw Material Prices Impacting Tire Manufacturing Costs
Price volatility of raw materials is among the key factors restraining growth in the automotive tire market. Manufacturing tires requires a great amount of raw materials that comprise natural rubber, synthetic rubber, steel, and oil-based products.
Since this is influenced by various factors ranging from disruption in supply chains and weather conditions to other global dynamics in trade, these fluctuations increase the cost of production due to the changing prices of commodities. This volatility, in turn, forces tire manufacturers either to bear the increased cost or pass it on to consumers, reducing demand.
Price instability makes it hard for businesses to forecast budgets, invest in innovation, or offer price competitiveness. As manufacturers battle to maintain profit margins in such uncertainty, overall market growth is affected negatively, further making it tough for the companies to sustain pricing stability and growth in the long run.
Competition from Emerging Alternative Tire Technologies and Materials
New technologies of tires, such as airless tires, are attracting interest with promises of advantages like puncture resistance and longer life. These emerging alternative technologies could reduce demand for conventional rubber tires and thereby depress market growth.
Competition also emanates from an increasing use of sustainable materials, such as bio-based or recyclable tires. As more eco-friendly products are being introduced, conventional tire companies need to change their production methodologies, which has an overall dampening effect on market growth.
The global automotive tire industry recorded a CAGR of 5.9% during the historical period between 2020 and 2024. The growth of automotive tire industry was positive as it reached a value of USD 240.9 billion in 2024 from USD 200.6 billion in 2020.
The growth in the global automotive tire market during 2020-2024 has been due to several reasons. Vehicle production and ownership have increased across most developing economies of the world, increasing demand for tires. An increase in disposable income with developing economies and growing preference towards private transport is fostering demand for tires.
The shift towards fuel-efficient and eco-friendly tires and the development of tire technologies for electric and autonomous vehicles supported the growth of the market. These, put together with recovery from the COVID-19 pandemic and increased vehicle sales, have driven the positive growth in the automotive tire industry.
Tier 1 companies include industry leaders with annual revenues exceeding USD 1,500 million. These companies are currently capturing a significant share of 45-50% globally. These frontrunners are characterized by high production capacity and a wide product portfolio.
They are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base. The firms provide a wide range of products and utilize the latest technology to meet regulatory standards. Prominent companies within Tier 1 include: Bridgestone Corporation, Michelin, The Hercules Tire and Rubber Company, Continental AG, and others.
Tier 2 companies encompass mid-sized participants with revenues ranging from USD 1,000-1,500 million, holding a presence in specific regions and exerting significant influence in local economies. These firms are distinguished by robust presence overseas and in-depth industry expertise.
They possess strong technology capabilities and adhere strictly to regulatory requirements. However, the firms may not wield cutting-edge technology or maintain an extensive global reach. Noteworthy entities in Tier 2 include Nitto tires, Pirelli and C. S.p.A., Yokohama Rubber Company Limited, and few others.
Tier 3 encompasses most of the small-scale enterprises operating within the regional sphere and catering to specialized needs with revenues below USD 1,000 million. These businesses are notably focused on meeting local demand and are hence categorized within the Tier 3 segment.
They are small-scale participants with limited geographical presence. In this context, Tier 3 is acknowledged as an informal sector, indicating a segment distinguished by a lack of extensive organization and formal structure in comparison to the structured one. Tier 3 includes Zhongce Rubber Group Co., Ltd., Cheng Shin Rubber Ind. Co. Ltd., Goodyear Tire and Rubber Company, and many more small and local players.
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The section below highlights assessments of automotive tire market sale across key countries. United Kingdom, India, and USA are expected to showcase promising growth, with each exhibiting a strong CAGR through the forecast period.
| Countries | Value CAGR (2025 to 2035) |
|---|---|
| United Kingdom | 7.2% |
| India | 6.9% |
| USA | 5.4% |
| China | 6.8% |
| Germany | 7.1% |
The boom in the United Kingdom automotive tire market is due to increasing electric vehicle adoption within the UK. Thus, with the UK government putting increased pressure on the adoption of cleaner and greener transportation, demand has started increasing for special low rolling resistance tires designed to increase energy efficiency and battery life. Hence, these companies are developing products to cater to the particular needs of EVs, requiring higher durability and weight-bearing capacity owing to larger-sized battery packs.
The growing demand for luxury vehicles in the UK further fuels the tire market. As consumers increasingly opt for high-performance cars, there is a rising need for premium tires offering better handling, safety, and fuel efficiency. Luxury car manufacturers emphasize quality and innovation, hence driving the growth of the tire market in terms of sales and innovation.
The tire market in India is growing with increasing vehicle ownership, driven by urbanization, rising disposable incomes, and the growing middle class. More people are buying passenger cars, two-wheelers, and light commercial vehicles, which is driving up demand for tires. The increase in private car ownership also leads to higher demand for replacement tires, fueling growth in the sector. This trend is more marked in the tier 2 and tier 3 cities where vehicle sales are growing faster.
Another driver is the growth in the e-commerce logistics sector in India, wherein more and more companies are investing in logistics fleets to cater to the demand for goods and deliveries. This, in turn, increases the demand for tires in commercial vehicles. The expansion of this sector boosts the demand for durable, cost-effective tires designed for heavy usage and long-distance travel.
Growth in China's tire market is highly indebted to the country's ever-growing automotive industry. China, the world's biggest car producer and consumer, continuously sees high demand for passenger vehicles, commercial vehicles, and EVs. Increasing automotive production and consumption boosts demand for both OEM tires and replacement tires across various vehicle segments, while China aims to take the lead globally in manufacturing and exporting vehicles.
This is further supported by the rise of electric vehicle production in China, with the government offering incentives for consumers to plum for EVs and generally growing interest in them. There is an increasing need for special tires for EVs that have lower rolling resistance and can bear the singular stresses EVs place on their tires. China's drive for sustainability and the move toward EVs will keep the demand for specialized tire products on their toes.
The section explains the market value of the leading segments in the industry. In terms of vehicle type, the passenger vehicle category will likely dominate and generate a share of around 56.3% in 2025. Based on tire structure, the radial (tubes, tubeless) segment is projected to hold a share of 84.3% in 2025. The analysis would enable potential clients to make effective business decisions for investment purposes.
| Segment | Passenger Vehicle (Vehicle Type) |
|---|---|
| Value Share (2025) | 56.3% |
The share of passenger vehicles stands at 56.3% owing to the increasing demand for personal transportation, especially in developing markets such as India, China, and North America. With growing urbanization and improvement in disposable incomes, the demand for passenger vehicles has risen among consumers across the globe, subsequently pushing tire sales.
All these, along with the development of ride-sharing services, enhanced road infrastructure, and consumer-oriented comforts, safety, and fuel efficiency, add to this segment's dominance. The increasing models of passenger vehicles-from sedans to SUVs and crossovers-create an increasing demand for specific tires catering to these vehicle types.
| Segment | Radial (Tire Structure) |
|---|---|
| Value Share (2025) | 84.3% |
The share of radial tires, both tube and tubeless, dominates the automotive tires market with about 54.3% because they offer the best performance, efficiency, and durability. Radial tires are offering better fuel economy, lower rolling resistance, and increased ride comfort compared to bias tires.
Advanced construction with steel belts and stronger sidewalls gives radial tires improved traction, stability, and durability, making them ideal for passenger and commercial vehicles. This, therefore, is one of the factors that make radial tires dominant in the automotive industry due to increasing demand for high-performance, long-lasting tires in both OEM and replacement markets.
The section provides comprehensive assessments and insights that highlight current opportunities and emerging trends for companies in developed and developing countries. It analyzes advancements in manufacturing and identifies the latest trends poised to drive new applications in the market.
A few key players in the automotive tire industry are actively enhancing capabilities and resources to cater to the growing demand for the compound across diverse applications. Leading companies also leverage partnership and joint venture strategies to co-develop innovative products and bolster resource base.
Significant players are further introducing new products to address the increasing need for cutting-edge solutions in various end-use sectors. Geographic expansion is another important strategy that is being embraced by reputed companies. Start-ups are likely to emerge in the sector through 2035, thereby making it more competitive.
Industry Updates
In terms of vehicle type, the industry is divided into 2 Wheeler, 3 Wheeler, Passenger Vehicle, Commercial Vehicle, and Specialty Vehicle.
In terms of tire structure, the industry is divided into Radial (Tubes, Tubeless), and Bias.
In terms of sales channel, the industry is divided into OEM, and Aftermarket.
Key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, Middle East and Africa (MEA), have been covered in the report.
The global market was valued at USD 240.9 billion in 2024.
The global market is set to reach USD 256.1 billion in 2025.
Global demand is anticipated to rise at 6.3% CAGR.
The industry is projected to reach USD 471.7 billion by 2035.
| Estimated Value (2025) | USD 5,887.3 million |
| Projected Size (2035) | USD 8,783.9 million |
| Value-based CAGR (2025 to 2035) | 4.1% |
| Market Value for 2024 | USD 3.47 billion |
|---|---|
| Projected Market Value for 2034 | USD 6.34 billion |
| CAGR (2024 to 2034) | 6.2% |
| Market Estimated Size (2023) | USD 6,211.0 million |
|---|---|
| Market Forecasted Size (2033) | USD 29,601.1 million |
| Market CAGR (2023 to 2033) | 16.9% |
| Market Size 2022 | USD 1,812.6 million |
|---|---|
| Market Size 2032 | USD 2,023.3 million |
| Value CAGR (2022 to 2032) | 2.50% |
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