The overall valuation of the global EV tire market is estimated to be around USD 9,444.1 million in the year 2023. According to a market survey report, the global demand for EV tires is projected to grow by 26.6% from 2023 to 2033. Also according to the EV tire market analysis report, the market is expected to rise up to USD 99,884.7 million by 2033.
The rising usage of electric vehicles instead of combustible fuel cars has greatly enhanced the EV tire sector in recent years. Furthering this trend of sustainability, tire types that produce fewer carbon emissions during manufacturing are a popular choice in the present market.
These tires produce less sound than standard tires, so are primarily preferred for the EVs that are comparatively quieter than fuel engines. Moreover, as the EV engines are quitter so it necessitates the cancellation of noise produced from the tires and reaching the passengers.
The additional weight of the batteries in EVs results in improved stiffness and resistance on the road when driving. So because of better EV tire technology and reduced noise within the cabin, the demand for EV tires is rising across the nations.
The EV tires give a better grip since they have minimal rolling resistance, enabling the vehicle's complete body to swing into momentum quickly. Such tires also minimize the vehicle's time duration and the distance traveled when the emergency brakes are applied. This represents a significant advancement with the goal of attaining significant growth within the anticipated period.
EV tires also help reduce the overall maintenance cost of the car contributing to the consumer's preference for electric automobiles. This would promote further the adoption of EV tires, which are a great fit for the latest technology employed in vehicle operation on the roadway.
The EV tires provide a better driving experience for the user while also having a lower effect on the road condition. Its preference for conventional vehicles is also anticipated to aid in the EV tires market growth throughout the anticipated period.
| Attributes | Details |
|---|---|
| EV Tires Market Share (2022) | USD 7,430.5 million |
| EV Tires Market Size Value (2023) | USD 9,444.1 million |
| EV Tires Market Size Value (2033) | USD 99,884.7 million |
| EV Tires Market Growth Rate (2023 to 2033) | 26.6% |
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Based on the previous market survey reports, the total sales of EV tires in the year 2018 were of mere USD 4,160.9 million. In the subsequent years, the market witnessed a promising growth rate in tandem with the growing adoption of electric and hybrid vehicles.
The market experienced a brief period of a halt during the pandemic years after recording a CAGR of 15.6% during the preceding years. Following the pandemic, the demand for passenger vehicles in electric vehicles has skyrocketed and has boosted the demand for all manufacturing components.
The international movement for enhanced transportation solutions followed by the establishment of EV component factories is poised to boost the EV tire market. The advancement of the battery industry is also expected to boost electric mobility and have a favorable influence on the sales of EV tires.
Proper selection and availability of raw materials also play a crucial role in the success of EV tire production and its business. Most of the leading players have managed to research and develop the use of synthetic and unconventional materials for the production of better EV tires. In addition, the EV tire industries are also employing custom-developed polyurethane foam to reduce road noise by 20%.
Michelin sport EV tires and e Primacy have been designed to provide users with a smooth experience when driving the car in actual situations. Moreover, it produces the minimum carbon emissions possible throughout its everyday operation.
Tires constitute one of the essential aftermarket goods in many nations, thus many EV manufacturing companies are showing interest in this segment lately. Otherwise, original equipment manufacturers (OEMs) are the prominent segment for the production and supply of EV tires around the world till now.
Based on tire types, the composite EV tire rapidly growing segment of the market with an above-average CAGR. Owing to higher performance and minimum maintenance features it is expected to remain the most preferred segment for most end-user verticals.
Based on propulsion type, the hybrid electric vehicle (HEV) segment of the market contributes the highest revenue share. In 2022, this segment generated a revenue of USD 2,779 million and currently, it acquires a market share of 37.4%.
Contrarily, all the other types of electric vehicles contribute within 50% of the total sales of EV tires achieved globally. In the upcoming years, the PEV segment is expected to garner a higher growth rate with the introduction of luxurious electric vehicles.
According to this market report of FMI, the USA stands second in the demand for EV tires and generated around USD 832.2 million in 2022. Today the USA EV tire market players contribute around 9.3% of the revenue generated globally.
The United States has seen enormous development as a result of its quick migration to EVs over IC-engine automobiles. People’s choices with increased awareness have helped to significantly improve the electric vehicle and its component industries, including EV tires.
Germany is the global leader in manufacturing and export of EV tires around the world, particularly to the USA the net worth of the German EV tire Market is about to cross USD 1 billion in the year 2023. On the other hand, the UK is ahead of Germany in terms of growth in the sales of EVs.
As per the EV tire market statistics report released by FMI, it is going to register a higher CAGR of 22.4% through 2033. The United Kingdom EV tire industry is predicted to rise as electric vehicle demand vehicles develop, creating sales potential for its components including EV tires.
The growing trend toward environmentally conscious products and advances has boosted the demand for EV tires in all major European nations. France and Italy also present significant opportunities for the EV tires market, as they are assisting in meeting this objective over the projection period. Pirelli is an international tire maker in Italy that launched its Pirelli Elect brand of electric vehicle tires in 2019.
China is emerging as a top-notch competitor for all the previously established countries in the manufacturing and sales of EV tires. As per the recently released report, the annual growth rate of the China EV tire market is pegged at nearly 20.8% from 2023 to 2033. Owing to the presence of a strong foundation of manufacturing industries and higher production of rubber this region is projected to garner a higher growth rate in the future. With a higher population base getting interested in purchasing electric vehicles, China is anticipated to become the most lucrative region for global players as well.
Another significant producer and consumer of EV tires in the Asia Pacific region is Japan contributing to around 0.6% of the global market. By the year 2033, the EV tire manufacturers in Japan are anticipated to generate a revenue of around USD 600 million together.
India ranks at the top for the growth in the adoption of EV tires with a projected growth rate of 30.4% over the forecasted years. Besides, the growing popularity of electric mobility options in this country, the government has also spent a substantial amount in furthering the trend. As a consequence of the government's efforts to induce behavioral change, the demand for EV tires is expected to increase at a faster rate.
India is aiding the global EV tire market and is in the early stages of establishing electric mobility in the country. Large corporations have established production divisions in emerging nations such as India and others that would further strengthen the regional market.
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Michelin is one of the leading tire manufacturers in the world, and now provides a growing selection of EV tires for a variety of circumstances and applications. As Formula E's founding partner and authorized tire manufacturer, it introduced the Pilot Sport EV as its first electric vehicle tire.
Continental produces around 100 tire styles appropriate for all EVs and HEVs, establishing it as one of the market's leading EV tire manufacturers. When more automobile manufacturers establish comprehensive EV line-ups, tire manufacturers are expected to introduce inventive new solutions to meet their demands.
Increased competitiveness in the EV tire market has resulted from large-scale manufacturers' combined efforts with public-private initiatives throughout the industrial economies. Furthermore, the adaptability of EV tire market key players with large-scale production capability has rendered them a dominant position over these years.
Integration of advanced technologies for tracking the performance of the tire is a very new development getting enthusiastically adopted by prominent market players. This may enable EV tire manufacturers to record and manage their products in the market further strengthening the emerging trends.
The market is expected to progress at 26.6% CAGR until 2033.
The market recorded USD 7,430.5 million in 2022.
Environmental concerns and rising electric vehicle sales provide lucrative opportunities.
Radial tires are the most preferred type.
In India, a growth rate of 30.4% is predicted by 2033.
| Estimated Value (2024E) | USD 26,874.4 million |
|---|---|
| Projected Size (2034F) | USD 143,000.0 million |
| Value-based CAGR (2024 to 2034) | 18.2% |
| Market Value for 2024 | USD 2,281.63 million |
|---|---|
| Market Value for 2034 | USD 16,992.56 million |
| Value-based CAGR of Market for 2024 to 2034 | 22.24% |
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