Europe Automotive Tire Market Outlook (2023 to 2033)

The Europe automotive tire market size is projected to reach USD 68.4 billion in 2023. Over the next ten years (2023 to 2033), automotive tire sales in Europe are set to rise at around 4.8% CAGR. The market is likely to surpass a valuation of USD 108.7 billion by 2033.

The demand for automotive tires in Europe is closely tied to vehicle sales. High production of vehicles including passenger cars, light commercial vehicles, and heavy commercial vehicles, can impact tire demand.

Factors such as economic conditions, consumer purchasing power, and government regulations play a role in vehicle sales and, consequently, tire demand.

According to the European Automobile Manufacturers’ Association (ACEA), in 2022 about 10.9 million passenger cars were produced in the European Union in 2022. This high production of vehicles in turn is bolstering automotive tire sales and the trend is expected to continue through 2033.

Europe experiences varying weather conditions throughout the year, including summer and winter seasons. This creates a demand for specific types of tires, such as summer tires and winter tires, which are designed to provide optimal performance in different weather conditions. Seasonal fluctuations can influence the demand for these specialized tires.

Government regulations and standards related to tire safety, labeling, and environmental impact can affect the tire market. Regulations such as the EU tire labeling requirements, which provide information on fuel efficiency, wet grip, and noise levels, impact consumer choices and market dynamics.

Rising popularity of autonomous vehicles is triggering innovations in automotive tires. Autonomous vehicles prioritize safety and reliability, as they operate without human intervention.

Tires play a crucial role in ensuring the safety and performance of these vehicles. Tire manufacturers are focusing on developing tires with advanced tread designs, materials, and construction techniques to provide excellent grip, stability, and durability, contributing to the overall safety and reliability of autonomous driving systems.

Advanced tread patterns optimize water evacuation, improve grip on wet surfaces, and reduce braking distances. Specialized rubber compounds are formulated to provide better grip, wear resistance, and reduced rolling resistance, ensuring optimal performance and safety.

Growing need for replacement tires is another key factor boosting the Europe market. As vehicles age, tires experience wear and tear, reducing their performance and safety. The need for tire replacement increases as older vehicles require new tires to maintain optimal traction, handling, and overall safety on the road.

Other Drivers Propelling the Europe Automotive Tire Industry:

  • Rising adoption of smart tire technology which incorporates sensors and connectivity to provide real-time data on tire pressure, temperature, and tread wear for monitoring tire health, optimizing performance, and enhancing safety will likely boost the market.
  • Development of innovative tread designs and rubber compounds to enhance traction, handling, and performance in various road and weather conditions is expected to fuel market expansion.
  • Growing demand for replacement tires is a significant driver in the Europe automotive tire industry, fueled by several factors that contribute to the need for tire replacements.
  • Increasing preferences towards high-performance tires to improve fuel efficiency and environmental sustainability is expected to spur growth in Europe market.

Opportunities in the Europe Automotive Tire Market:

  • Growing demand for autonomous vehicles is projected to significantly impact the automotive tire market and create lucrative opportunities for automotive tire manufacturers.
  • Rising awareness about the crucial role that tires play in ensuring the safety and performance of vehicles such as autonomous vehicles will boost the market.
  • Surging popularity of smart tire technology in the automotive tire industry will support market expansion.

Latest Trends in the Europe Automotive Tire Market:

  • Growing popularity of electric vehicles coupled with rising need for tires with low rolling resistance will boost the Europe automotive industry.
  • Usage of stronger materials and reinforcing tire structures to handle the additional weight of vehicles will positively impact automotive tire sales.
  • Development of advanced technologies and materials to improve various aspects of tire performance will create new growth prospects for automotive tire manufacturers.
  • Growing focus on improving safety of vehicles to elevate demand for durable and high-performance automotive tires.

Challenges for Companies /Manufacturers in the Europe Automotive Tire Market:

Price competition is a significant challenge in the tire market. Companies often face pressure to offer competitive pricing while maintaining profitability. Fluctuations in raw material costs, currency exchange rates, and intense competition can put downward pressure on tire prices, impacting manufacturers' profit margins.

The rapid pace of technological advancements poses both opportunities and challenges for tire manufacturers. Keeping up with the latest technologies, such as smart tires, connected systems, and advanced manufacturing processes, requires significant investments in research, development, and production capabilities.

Factors such as increased demand for fuel-efficient tires, eco-friendly options, and enhanced performance have created challenges for manufacturers. Suppliers need to adapt their product offerings and meet changing consumer expectations.

Disruptions in the supply chain, such as raw material shortages or transportation challenges, can impact production schedules and customer satisfaction.

Attributes Key Insights
Estimated Europe Automotive Tire Market Size (2023) USD 68.4 billion
Projected Europe Automotive Tire Market Value (2033) USD 108.7 billion
Value CAGR (2023 to 2033) 4.8%

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2018 to 2022 Europe Automotive Tire Sales Outlook Compared to Demand Forecast from 2023 to 2033

From 2018 to 2022, sales of automotive tires in the Europe market grew at a CAGR of 4.6%, reaching a market size of USD 68.4 billion in 2023.

Europe is one of the leading markets for automotive tires globally, driven by factors such as the expansion of automotive sector, consumer demand for new vehicles, and high need for replacement tire sales.

The demand for automotive tires from OEMs is influenced by new vehicle sales. As the automotive sector in Europe continues to introduce new models and technologies, OEM demand for tires remains important to the market. Europe has a strong market for premium and high-performance tires.

Europe also has a strong market for premium and high-performance tires. Consumers in the region value safety, performance, and handling characteristics, leading to a demand for specialized tires that offer enhanced traction, handling, and durability.

Future Forecast for Europe Automotive Tire Industry

Looking ahead, the Europe automotive tire industry is expected to rise at a CAGR of 4.8% from 2023 to 2033. Total market size is projected to reach USD 108.7 billion by the end of 2033.

The rise of electric vehicles is expected to have a significant impact on the automotive tire industry. EVs typically require tires with low rolling resistance to maximize their driving range. As EV adoption increases, tire manufacturers are likely to invest in the development of specialized tires that meet the specific requirements of electric vehicles.

There is a growing focus on sustainability in the automotive sector, and this trend extends to tire manufacturing as well. In the future, there may be an increased emphasis on using eco-friendly and recyclable materials in tire production.

Manufacturers might explore alternative materials and manufacturing processes to reduce the environmental impact of tire production and disposal.

The development and deployment of autonomous vehicles will impact the automotive tire industry in several ways. AVs may require specialized tires with enhanced durability, safety features, and connectivity capabilities to support their autonomous functions.

Further, increased ride-sharing and fleet operations with AVs could lead to higher tire replacement rates, creating new opportunities for tire manufacturers.

To increase sales and expand their customer base, leading automotive tire manufacturers are focusing on improving tire performance.

Performance enhancements in tires involve the development of advanced technologies and materials to improve various aspects of tire performance. Tire manufacturers are investing in research and development to enhance handling, cornering, braking, and overall performance characteristics.

Companies are developing high-performance tires that deliver superior grip, stability, and responsiveness, catering to the demands of performance-oriented vehicle owners. These tires are designed to provide enhanced traction on both dry and wet surfaces, enabling drivers to experience improved control and safety

Nikhil Kaitwade
Nikhil Kaitwade

Principal Consultant

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Country-wise Insights

What is the Demand Outlook for Germany Automotive Tire Market?

Growing Popularity of Electric Vehicles to Elevate Automotive Tire Demand in Germany

Country Germany
Market Size (USD billion) by End of Forecast Period (2033) USD 11.4 billion
CAGR from 2023 to the End of Forecast (2033) 5.7%

Germany automotive tire industry is expected to reach a valuation of USD 11.4 billion by 2033. Overall demand for automotive tires in Germany market is likely to rise at 5.7% CAGR from 2023 to 2033.

Rising adoption of electric vehicles and strong presence of leading automakers are key factors expected to boost Germany market.

Germany has a robust automotive sector, known for its high-quality vehicles and engineering expertise. The country is home to leading automotive manufacturers such as Volkswagen, BMW, and Mercedes-Benz, which contribute to the demand for automotive tires.

Germany has a significant market for high-performance tires, driven by high adoption of sporty and luxury vehicles. The demand for tires with superior handling, grip, and speed capabilities is strong in the German market.

How is the United Kingdom Automotive Tire Industry Performing?

Surging Demand for Premium and Ultra High-performance Tires Boosting the United Kingdom Market

Country United Kingdom
Market Size (USD billion) by End of Forecast Period (2033) USD 10.8 billion
CAGR from 2023 to the End of Forecast (2033) 5.4%

As per Future Market Insights, the United Kingdom automotive tire market is forecast to total a valuation of USD 10.8 billion by 2033. It is projected to thrive at a CAGR of 5.4% between 2023 to 2033.

The United Kingdom automotive tire industry is diverse, catering to a wide range of vehicles, including passenger cars, commercial vehicles, and motorcycles. The market offers opportunities for various tire segments and manufacturers.

The country experiences distinct seasons, leading to demand for both summer and winter tires. Drivers often switch between the two tire types based on weather conditions, creating seasonal demand patterns.

Demand in the United Kingdom remains particularly high for premium and ultra-high-performance tires, driven by the presence of luxury and sports car enthusiasts. Consumers prioritize tire quality, performance, and brand reputation.

What Strategies are Employed by Automotive Tire Manufacturers to Increase Sales in Spain Market?

Manufacturers Offering Cost-effective Automotive Tires to Boost Sales in Spain

Country Spain
Market Size (USD billion) by End of Forecast Period (2033) USD 8.7 billion
CAGR from 2023 to the End of Forecast (2033) 5.3%

The automotive tire industry in Spain is anticipated to reach a market valuation of USD 8.7 billion by 2033. From 2023 to 2033, automotive tire sales in Spain are projected to soar at a CAGR of 5.3% CAGR.

Spain has a growing automotive market, with domestic manufacturers like SEAT and international brands manufacturing vehicles in the country. This growth contributes to the demand for automotive tires.

Spain is a popular tourist destination, attracting millions of visitors each year. The demand for summer tires is high due to the warm Mediterranean climate and the influx of tourists during the summer months.

The Spanish market is known for its price sensitivity, with consumers often considering affordability when purchasing tires. This creates opportunities for both budget and mid-range tire manufacturers.

To meet this demand, prominent automotive tire manufacturers are offering cost-effective solutions to their customers. This will further boost Spain market.

What is Fueling Demand for Automotive Tires in France?

Rising Vehicle Production and Focus on Improving Safety Fueling Automotive Tire Demand in France

Country France
Market Size (USD billion) by End of Forecast Period (2033) USD 7.6 billion
CAGR from 2023 to the End of Forecast (2033) 3.7%

France automotive tire industry is projected to cross a valuation of USD 7.6 billion by 2033. Over the next ten years, demand for automotive tires in France is likely to rise at a CAGR of 3.7%.

Increasing vehicle production and rising focus on improving vehicle & passenger safety are prominent factors boosting France market.

France has a well-established automotive market and is home to prominent manufacturers like Renault and PSA Group (Peugeot, Citroën, DS). The country's automotive sector supports a substantial demand for tires.

Safety is a key priority in France with consumers valuing tires that provide excellent grip, handling, and braking performance. There is a strong emphasis on safety standards and regulations.

France experiences winter weather conditions in some regions, leading to significant demand for winter tires. Winter tire usage is encouraged, and regulations mandate their use in certain areas during winter months or in specific weather conditions.

Category-wise Insights

Which Vehicle Type will Dominate the Europe Automotive Tire Industry?

Passenger Cars Segment to Lead the Europe Market

Based on vehicle type, passenger cars segment is expected to dominate the Europe automotive tire industry. It is forecast to expand at a steady CAGR, creating remunerative opportunities for automotive tire manufacturers. This is due to rising production and sales of passenger vehicles globally.

Passenger car tires or touring tires are the most common tire type for regular passenger cars. They are designed to provide a balance of comfort, handling, and durability for everyday driving.

In recent years, there has been a sharp rise in passenger car ownership across European countries. This in turn is creating a plethora of growth opportunities for automotive tire manufacturers.

As per the European Automobile Manufacturers’ Association (ACEA), around 9.67 million passenger cars were registered across the EU between 1990 and 2021. Driven by this rising passenger car ownership, sales of automotive tires across Europe will rise steadily.

Growing popularity of electric vehicles or electric cars is another key factor that is expected to elevate automotive tire demand and boost Europe automotive tire industry.

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How Key Players Stay Competitive in the Europe Automotive Tire Industry?

The Europe automotive tire industry is highly competitive, with several players aiming at improving their market shares. As a result, key companies need to adopt effective strategies to stay ahead of the competition.

Key Strategies Adopted by the Players

Product Innovation

In a competitive market, tire manufacturers in Europe focus on continuous product innovation and differentiation. They invest in research and development to introduce advanced tire technologies, such as all-season tires, run-flat tires, low rolling resistance tires, and eco-friendly tires. These innovations aim to enhance performance, durability, fuel efficiency, and safety, meeting the changing requirements of consumers and complying with stringent regulations.

Strategic Partnerships and Collaborations

Collaboration with automotive manufacturers, original equipment manufacturers (OEMs), and technology providers is a common strategy in the European automotive tire industry. Tire companies form partnerships to develop customized tires for specific vehicle models, enhance performance, and ensure optimal compatibility. Collaborations also help manufacturers gain insights into emerging market trends and leverage the expertise of their partners.

Expansion into Emerging Markets

Key players are also establishing local sales and service operations in emerging markets. They are setting up offices, hiring local staff, and building a local distribution network to serve customers in these regions. European tire manufacturers often expand their manufacturing footprint to cater to increasing demand and optimize production efficiency. They establish new production facilities or acquire existing ones in strategic locations to enhance their market presence and serve local markets effectively.

Mergers and Acquisitions

Prominent automotive tire manufacturers are also using the merger and acquisition strategy to solidify their position. They are acquiring smaller players or competitors to expand their customer base and improve their market share.

Key Players in the Europe Automotive Tire Industry

  • Bridgestone Corporation
  • Michelin
  • The Hercules Tire and Rubber Company
  • Continental AG
  • Nitto tires
  • Pirelli & C. S.p.A.
  • Yokohama Rubber Company Limited
  • Zhongce Rubber Group Co., Ltd.
  • Cheng Shin Rubber Ind. Co. Ltd.
  • Goodyear Tire & Rubber Company
  • KUMHO TIRE Co., Inc.
  • HANKOOK TIRE & TECHNOLOGY Co., Ltd.
  • Toyo Tires
  • Nankang Rubber Tire Corp., Ltd.
  • NEXEN TIRE

Key Developments in the Europe Automotive Tire Industry:

  • In 2023, Bridgestone EMIA was selected as the official technical partner of Lamborghini. This partnership entails the development and supply of new fitments and premium tires that optimize the performance of Lamborghini's exotic and luxury sports cars.
  • In 2022, to acquire Michelin Russia Tire Manufacturing Company (MRTMC) LLC and Camso CIS LLC, an agreement was signed by Michelin with Power International Tires LLC. This acquisition will expand Michelin's presence in Russia and the CIS markets, further strengthening its global footprint and market position.
  • In July 2021, a new tire with high load marking for SUVs and hybrid or electric cars was introduced by Pirelli. The new tire is designed to provide low-rolling resistance and high level of driving comfort.
  • In March 2021, E.Primacy, the first eco-designed tire was launched by MICHELIN. It is designed to reduce environmental impact. The new tire also offers low rolling resistance, resulting in fuel savings and low carbon emissions.

Europe Automotive Tire Market Segmentation

By Vehicle:

  • Passenger Cars
  • LCV
  • HCV
  • 2/3 wheelers
  • Specialty Vehicle

By Aspect Ratio:

  • 35 to 55
  • 65 to 70
  • 75 to 85
  • Granite
  • Wood
  • Others

By Material Type:

  • Natural Rubber
  • Synthetic Rubber

By Tire Type:

  • All season Tire
  • Winter Tire
  • Touring Tire
  • Special Tire

By Ply Type:

  • Radial
  • Bias

By Sales Channel:

  • OEM
  • After Market

By Tube Category:

  • Tube Tire
  • Tubeless Tire

By Country:

  • Germany
  • Italy
  • France
  • United Kingdom
  • Spain
  • Netherlands
  • Luxembourg Countries
  • Belgium
  • Russia
  • Rest of Europe

Frequently Asked Questions

Which is the Leading Country in the Global AI-Powered Design Tools Market?

The United States leads as it acquired a revenue of USD 1.1 billion in 2022.

What is the Growth Outlook for the Europe Automotive Tire Market?

The overall market might follow a y-o-y growth rate of 4.8% through 2033.

What is the Current Valuation of the Europe Automotive Tire Market?

The Europe market size is estimated to secure a valuation of USD 68.4 billion in 2023.

What are the Emerging Trends in Europe’s Automotive Tire Market?

Surging demand for smart tire technology is expanding the demand for automotive tires.

Which is the Leading Vehicle Type requiring Automotive Tire in Europe?

The passenger cars segment commanded over 50% of the Europe market in 2022.

Table of Content
	1. Executive Summary
	2. Market Overview
	3. Key Market Trends
	4. Key Success Factors
	5. Market Demand Analysis 2018 to 2022 and Forecast, 2023 to 2033
	6. Market - Pricing Analysis
	7. Market Demand (in Value or Size in USD Billion) Analysis 2018 to 2022 and Forecast, 2023 to 2033
	8. Market Background
	9. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type
		9.1. Passengers cars
		9.2. LCV
		9.3. HCV
		9.4. 2/3 Wheelers
		9.5. Specialty Vehicle
	10. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Tire Type
		10.1. All Season Tire
		10.2. Winter Tire
		10.3. Touring Tire
		10.4. Special Purpose Tire
			10.4.1. Performance Tire
			10.4.2. All Terrain Tire
			10.4.3. Mud Terrain Tire
			10.4.4. UTV/ATV
	11. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Material Type
		11.1. Natural Rubber
		11.2. Synthetic Rubber
	12. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Aspect Ratio
		12.1. 35 to 55
		12.2. 65 to 70
		12.3. 75 to 85
	13. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Ply Type
		13.1. Radial
		13.2. Bias
	14. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Sales Channel
		14.1. OEM
		14.2. After Market
	15. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Tube Category
		15.1. Tube Tire
		15.2. Tubeless Tire
	16. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	17. Germany Market Analysis 2018 to 2022 and Forecast 2023 to 2033
	18. Italy Market Analysis 2018 to 2022 and Forecast 2023 to 2033
	19. France Market Analysis 2018 to 2022 and Forecast 2023 to 2033
	20. United Kingdom Market Analysis 2018 to 2022 and Forecast 2023 to 2033
	21. Spain Market Analysis 2018 to 2022 and Forecast 2023 to 2033
	22. Netherlands Market Analysis 2018 to 2022 and Forecast 2023 to 2033
	23. Luxembourg Countries Market Analysis 2018 to 2022 and Forecast 2023 to 2033
	24. Belgium Market Analysis 2018 to 2022 and Forecast 2023 to 2033
	25. Russia Market Analysis 2018 to 2022 and Forecast 2023 to 2033
	26. Rest of Market Analysis 2018 to 2022 and Forecast 2023 to 2033
	27. Market Structure Analysis
	28. Competition Analysis
		28.1. Bridgestone Corporation
		28.2. Michelin
		28.3. Continental AG
		28.4. Pirelli & C. S.p.A
		28.5. Yokohama Rubber Company Limited
		28.6. Cheng Shin Rubber Ind. Co. Ltd
		28.7. Goodyear Tire & Rubber Company
		28.8. KUMHO TIRE Co., Inc.
		28.9. Nankang Rubber Tire Corp., Ltd.
		28.10. HANKOOK TIRE & TECHNOLOGY Co., Ltd
		28.11. Toyo Tires
		28.12. NEXEN TIRE
		28.13. Sumitomo Rubber Industries (Dunlop Tires)
		28.14. Cooper Tire & Rubber Company
		28.15. Elangperdana Tyre Industry (Accelera Radial)
		28.16. JK Tyre & Industries
		28.17. Madras Rubber Factory (MRF)
		28.18. Özka Tyres
	29. Primary Insights
	30. Assumptions and Acronyms Used
	31. Research Methodology
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