The automotive tire market is expected to reach USD 503.91 billion in 2023. The automotive tire market is estimated to generate USD 928.3 billion by 2033. Automotive tire market revenue is expected to increase at a CAGR of 6.3%.
| Attributes | Key Insights |
|---|---|
| Automotive Tires Market Value in 2023 | USD 503.91 billion |
| Projected Industry Value in 2033 | USD 928.3 billion |
| Value-based CAGR from 2023 to 2033 | 6.3% |
Automotive Tire Industry Trends and Highlights
Government regulations regarding vehicles and safety are expected to drive demand in the coming years. The National Highway Traffic Safety Administration (NHTSA) regulates tire labels to make sure drivers know what their tires are capable of including tread life and speed. As skid resistance and the demand for ABS systems increase in coming years, demand for automotive tires is also expected to increase.
Researchers and manufacturers are continuing to develop durable and efficient tires, which will drive demand in the coming years. Investments and funds are rising which will lead to an expansion of the market in the future. Additionally, the market for automotive tires is expected to see growth as a result of the demand for refurbished automotive tires.
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As of 2022, automotive tire sales were valued at USD 472.9 billion. Global demand for automotive tires is expected to increase at a 6.3% CAGR between 2023 to 2033. Consumers are increasingly favouring larger tires for their sporty looks and improved performance.
| Market Value in 2023 | USD 472.9 billion |
|---|---|
| Market Value in 2033 | USD 503.91 billion |
With the growth of e-commerce in the tire industry, consumers are increasingly purchasing tires online. In addition to offering convenience, this trend often provides a greater selection of tires for consumers. Winter and snow tires remain in high demand in areas with harsh winters. Increasing fuel efficiency and reducing greenhouse gas emissions are top priorities of governments around the world. A remarkable amount of smart and efficient technology is being implemented for autonomous vehicles.
Artificial intelligence and smart sensors are expected to create demand in the coming years. Autonomous maintenance and damage repair will be possible in tyres, ensuring their continued use. Enhancing the accessibility and customizability of public transportation will increase sales of these tires in the market.
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Based on revenues, the following table illustrates the top 4 leading countries, led by China and the United States. Increasing demand for green tires and recyclable materials will result in higher automotive tire sales in these two countries through 2033.
Forecast CAGRs from 2023 to 2033
| The United Kingdom | 7.2% |
|---|---|
| India | 6.9% |
| The United States | 5.4% |
| China | 6.9% |
| Germany | 7.1% |
The United States is expected to dominate the automotive tire market. Over the forecast period, the market is predicted to expand at a CAGR of 5.4%. The demand for high-end automobiles and commercial vehicles is expected to increase over the forecast period.
The development of technologically advanced autonomous vehicles and the rise in electric vehicle sales will likely expand the market. A combination of changes in tax law and safe driving regulations is fueling the market's growth. As automotive production grows and heavy trucks become more popular, the market is expected to grow significantly in the market. Increasing innovation and technological advancements will increase demand in the future.
The automotive tire market in India is expected to expand at a CAGR of 6.9% during the forecast period. Rising disposable incomes and increased demand for passenger vehicles are expected to drive up demand for passenger vehicles in the future.
With the growing production of motorcycles and the presence of key manufacturers, India is set for future growth. SIAM reports that in 2020, two-wheeler production reached 18.34 million units in India, accompanied by the manufacturing of 624,939 commercial vehicles.
Increased investments in research and development activities and increasing demand for light vehicles are both contributing to rising automotive tire demand. Increasing government initiatives and raising public awareness about safe tires will increase demand. Atmanirbhar Bharat Abhiyan is another initiative launched by the Government of India to promote automobile manufacturing in the country.
China is expected to lead the market for automotive tires market. The market is expected to reach a CAGR of 6.9% during the forecast period. China's electric vehicle sales and production are expected to grow, leading to an increase in automotive tire demand.
China tyre manufacturers compete better with their global counterparts owing to cheaper logistics, resulting in more exports outside their boundaries. Increased production and adoption of vehicles used for agricultural purposes are expected to boost demand. As the government expands its efforts and invests in high-end vehicles, demand is expected to increase in the coming years.
The United Kingdom is leading the way in automotive tire demand in the market. A CAGR of 7.2% is predicted for the market during the forecast period. Fuel efficiency and environmental concerns can have a significant impact on tire demand.
As consumers strive to reduce their carbon footprint, fuel-efficient and eco-friendly tires may become more popular. Consumers are purchasing tires through online retail channels and e-commerce. The Society of Motor Manufacturers and Traders estimates that more than 30 manufacturers produce more than 70 types of vehicles in the United Kingdom.
Changes in weather conditions affect tire demand in the United Kingdom. Safety standards and tire tread depth regulations are strictly enforced in the United Kingdom. Demand for tires can also be influenced by consumer preferences. According to consumer preferences and the types of vehicles in use, performance or all-terrain tires may be more popular.
Sales and production of German cars are on the rise, and key manufacturers are actively competing for market share. A CAGR of 7.1% is forecast for the market during the forecast period.
The ownership of vehicles in Germany is high, including trucks, passenger cars, and commercial vehicles. Winters in Germany are typically cold, and summers are typically warm. Due to the differences between summer and winter seasons, summer and winter tires are both in high demand. Under certain weather conditions, government regulations and laws require winter tires.
Quality and safety are high priorities in Germany, which includes automotive components like tires. As a result, high-quality tires that conform to strict safety standards are preferred. Fuel-efficient and eco-friendly tires are becoming increasingly popular due to environmental awareness and regulations. Increasing fuel economy and reducing emissions have influenced tire demand in Germany.
The replacement market accounts for most of the tire demand in developed countries. New tires are always needed as tires wear out, which results in a constant need for replacements. In addition to the OEM market, there is also a critical role for the aftermarket. Premium tires are frequently available on German vehicles from automakers such as BMW, Volkswagen, Mercedes-Benz, and Audi.
According to market forecasts, radial tire structures are predicted to dominate the market until 2033. The market is expected to hold a share of 84.3% during the forecast period. Based on the vehicle type, the passenger vehicles is expected to exhibit a market share of 56.3% during the forecast period.
| Attributes | Details |
|---|---|
| Passenger Vehicle Market Share(2023 to 2033) | 56.3% |
| Radial Market Share (2023 to 2033) | 84.3% |
Based on the vehicle type, passenger vehicles are predicted to gain market share in the near future. A market share of 56.3% is expected between 2023 to 2033. Passenger tires specifically designed for standard passenger vehicles are expected to grow in demand. In addition to providing a smoother ride and excellent traction for light vehicles in wet conditions, these tires handle loads adequately.
Increasing consumer preferences for specific tire types may also affect demand. In addition to choosing tires that offer high performance to their vehicles, consumers also pay attention to durability and all-terrain capability at the time of tire selection. Demand for specific tire categories can be influenced by these preferences. Standards and regulations concerning safety can also influence tire demand. Regulations in some regions, such as winter and all-season tires, may require specific tire styles during specific weather conditions, contributing to the increase in demand.
Continual wear and tear of tires leads to a need to replace them. An increase in environmental consciousness as well as fuel efficiency can have a significant impact on tire choices. A growing concern about the environment may drive an increase in the demand for low-rolling-resistance tires. Consumer choices and demand can also be affected by improvements in tire technology, like self-sealing tires and run-flat tires. As a result demand for passenger vehicle tires is expected to grow in demand.
Based on the tire structure, the radial segment is likely to dominate the market in the near future. It is projected that a market share of 84.3% is going to be attained by passenger vehicles from 2023 to 2033.
Compared to other tires, radial tires offer improved handling and traction, which improves driving safety and stability. Their exceptional performance makes them ideal for passenger vehicles, commercial trucks, and off-road vehicles. Compared to bias-ply tires, radial tires last longer and are more durable. As a result, the need for tire replacements is reduced and maintenance costs are reduced, which reduces the cost of ownership over time.
Radial tires are especially popular in heavy commercial vehicles because they offer excellent performance characteristics, including less rolling resistance, better heat dissipation, and longer lifespan. In addition, radial tires have a low rolling resistance, which enhances their flexibility. In light of these qualities, radial tires are preferable for automotive use.
A number of automotive tire manufacturers are forming alliances and partnerships with other companies in order to increase their productivity while meeting the demands of an ever-growing customer base.
| Attributes | Details |
|---|---|
| Estimated Market Size in 2023 | USD 503.9 billion |
| Projected Market Valuation in 2033 | USD 958.8 billion |
| Value-based CAGR 2023 to 2033 | 6.6% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | Value in USD billion |
| Key Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; The Middle East & Africa |
| Key Market Segments Covered | Type, Tire Structure, Sales Channel, Region |
| Key Countries Profiled |
The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, Russia, Poland, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel
|
| Key Companies Profiled | Continental AG; Bridgestone Corp.; Michelin; Goodyear Tire And Rubber Company; Pirelli & C. S.P.A; Yokohama Rubber Company, Limited; Cheng Shin Rubber Industries; Sumitomo Rubber Industries Ltd.; Toyo Tire & Rubber Company; Trelleborg AB; Cooper Tire & Rubber Company; Hankook Tire |
The automotive tire market is expected to reach USD 503.9 billion in 2023.
The automotive tire market is set to expand by a CAGR of 6.3% by 2033.
The automotive tire industry is forecast to reach USD 958.8 billion by 2033.
The radical tire segment is expected to dominate the market.
Aftermarket sales channels are expected to account for the maximum share of the automotive tire market.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 5.1. 2/3 Wheeler 5.2. Passenger Vehicle 5.3. Commercial Vehicle 5.4. Light Commercial Vehicle 5.5. Heavy Commercial Vehicle 5.6. Specialty Vehicle 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Tire Structure 6.1. Radial (Tube, Tubeless) 6.2. Bias 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Sales Channel 7.1. OEM 7.2. Aftermarket 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Western Europe 8.4. Eastern Europe 8.5. South Asia and Pacific 8.6. East Asia 8.7. Middle East and Africa 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Continental AG 18.2. Bridgestone Corp. 18.3. Michelin 18.4. Goodyear Tire And Rubber Company 18.5. Pirelli & C. S.P.A 18.6. Yokohama Rubber Company, Limited 18.7. Cheng Shin Rubber Industries 18.8. Sumitomo Rubber Industries Ltd. 18.9. Toyo Tire & Rubber Company 18.10. Trelleborg AB 18.11. Cooper Tire & Rubber Company 18.12. Hankook Tire 19. Assumptions & Acronyms Used 20. Research Methodology
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Automotive Tire Market
