The global low rolling resistance tire market size is anticipated to reach USD 20.5 billion in 2024. It is predicted to surge at a CAGR of 11.7% during the assessment period to reach a value of USD 55.6 billion by 2034. It is projected to exhibit a y-o-y growth of 11.4% in 2024.
Low-rolling resistance tires have been gaining more ground in the transport business. By 2024, passenger cars are estimated to constitute a 46.7% share of the low rolling resistance tire industry.
Citing OICA’s report, global vehicle production was valued at 65.3 million units with a rise of 10.3% from the previous calendar year. The boom in the production of vehicles fueled the forthcoming demand for low-rolling resistance tires, which are beneficial in resource conservation and environmental protection.
New technologies making the vehicle lighter and improving its fuel economy have already been introduced. As per the Global Fuel Economy Initiative (GFEI), an enhancement of 1.7% was recorded on average between 2005 and 2008.
The enhancement was under the required rate of the GFEI target of a new light-duty vehicle fuel economy improvement of 50% by 2030, which would require a minimum improvement rate of 2.7% per year. In the same manner, the International Energy Agency (IEA) adheres to the idea that the average fuel consumption of newly registered LDVs reached 7.2 liters of gasoline in a distance of 100 km.
| Attributes | Description |
|---|---|
| Estimated Global Low Rolling Resistance Tire Market Size (2024E) | USD 20.5 billion |
| Projected Global Low Rolling Resistance Tire Market Value (2034F) | USD 55.6 billion |
| Value-based CAGR (2024 to 2034) | 11.7% |
In 2034, the demand for low-rolling resistance tires is likely to be 2.4 times higher compared to the current value. These tires contribute toward the improvement of fuel consumption since energy loss caused by the movement of the vehicle is minimized, which is significant with increasing fuel prices and the desire for a clean environment.
The imposition of stringent standards regarding environmental pollution and emissions is contributing to the mounting use of low-rolling-resistance tires as they help achieve these goals and reduce total greenhouse gas emissions. Innovations in technology have been able to enhance the performance and serviceability of these tires, increasing their congeniality to consumers as well as manufacturers.
The strategy enables low-rolling resistance tire product manufacturers to strengthen their share through the introduction of value-generating products based on new-generation gripping technology development. A typical example is the case of the Bridgestone Corporation which offers specific ECOPIA low rolling resistance tires for light vehicles. These green tires are not only highly performing on the road but also assist in improving safety and fuel efficiency.
ECOPIA tires are effective in achieving the goals of rolling resistance and managing the reduction of carbon dioxide. The forecast period is likely to witness increased growth owing to continuous product development by key manufacturers.
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The table below projects the estimated CAGRs for the global low rolling resistance tire market over semi-annual periods ranging from 2023 to 2024. The analysis provides companies with a better understanding of the growth in the market over the year by divulging critical performance and growth patterns of the industry. The first half (H1) of 2023 spans from January to June. The second half or H2 includes July to December.
Figures showcased in the table anticipate the growth rate for each half between 2023 and 2024. The industry is projected to grow at a CAGR of 11.1% in the first half (H1) of 2023. The second half of the same year is predicted to exhibit a spike in the growth rate at a CAGR of 11.5%.
| Particular | Value CAGR |
|---|---|
| H1 | 11.1% (2023 to 2033) |
| H2 | 11.5% (2023 to 2033) |
| H1 | 11.4% (2024 to 2034) |
| H2 | 11.9% (2024 to 2034) |
Moving in the following period, from H1 2024 to H2 2034, the CAGR is estimated to experience a slight dip to 11.4% in the first half (H1) and then increase to 11.9% in the second half (H2). The industry experienced an increase of 30 BPS in the first half (H1) and a surge of 40 BPS in the second half (H2).
Superior Durability Compared to Traditional Tires to Spur Demand
Increasing inclination toward environmental protection and conservation of natural resources, coupled with the increasing demand for fuel-efficient vehicles, has resulted in a rising demand for next-generation low rolling resistance tires. Several tire manufacturers are evolving their existing product lineup to include these environmentally friendly and fuel-efficient tires that are designed to save fuel and reduce emissions.
According to the United States Department of Energy, the adoption of low-rolling-resistance tires can save 10% to 15% of fuel. For some vehicles, it can be down to 3%. Though 3% doesn’t seem enough, it can save a substantial amount of fuel and spending in the long run.
Low-rolling resistance tires are extra flexible and elastic, allowing better control in adverse weather conditions. This triangle of fuel efficiency, lower rolling resistance, and reduced tread depth is anticipated to drive demand for the tires.
Growing Vehicle Parc and Increasing Production to Bolster Demand
The increasing vehicle parc and rising production rates are significant drivers of the low rolling resistance tire market. The global vehicle parc reached around USD 1.5 billion units in 2023, reflecting a substantial base of vehicles on the road. This expansive vehicle fleet necessitates constant replacement of tires. Low rolling resistance tire options are becoming increasingly popular owing to their fuel efficiency benefits.
Global vehicle production surged to around USD 93.5 million units in 2023, driven by a growth rate of around 10.3% from the previous year. This boost in production has led to a higher demand for tires, including those with low rolling resistance, as automotive manufacturers aim to meet fuel efficiency standards and consumer preferences for eco-friendly options.
Stringent Regulations Aimed at Reducing Carbon Footprint to Raise Demand
Stringent regulations aimed at reducing carbon footprints are driving growth in the low rolling resistance tire market. Governments across the globe are implementing strict emission control standards to combat climate change and reduce greenhouse gas emissions.
For instance, the European Union's (EU) Euro 6 standards and the United States Environmental Protection Agency's (EPA) Tier 3 standards impose stringent limits on vehicle emissions. These further help in pushing manufacturers to adopt technologies that lower fuel consumption and emissions.
Low rolling resistance tires play a crucial role in meeting these regulations, as they enhance fuel efficiency and reduce the emissions produced by carbon dioxide. The regulatory push encourages both consumers and manufacturers to opt for these tires, accelerating their adoption across the automotive industry. This regulatory pressure, coupled with growing environmental awareness, is fueling demand for low-rolling resistance tires as a key component in achieving sustainability goals.
Technological Innovations in Tire Materials to Augment Growth
The constant change in tire materials presents various opportunities for the enhancement of performance and efficiency of low-rolling resistance tires. Improvements in rubber compounds, such as developing tire tread compounds with silica content, reduce the rolling resistance while increasing the traction, translating to better fuel economy and safety. The invention of synthetic polymers and unique elastomers increases tire performance while minimizing tire wear resulting in extended tire life.
The use of new manufacturing processes as well as smart tire technologies help in enhancing performance. For instance, cutting-edge fillers and the use of nanotechnology can reduce rolling resistance, thereby enhancing tire performance. Such improvements are anticipated to make low-rolling resistance tires popular as they are set to offer better fuel economy, improved performance, and long-lasting durability.
Principal Consultant
The global low rolling resistance tire industry witnessed a CAGR of 4.5% during the historical period ranging from 2019 to 2023. It was valued at USD 18.4 billion in 2023.
Demand for low rolling resistance tires inclined significantly during the historical period, as key automotive manufacturers looked to leverage efficient tire technology to improve automotive performance. As fuel economy concerns surged, car manufacturers sought solutions that enabled less fuel consumption while in transit.
The demand for low rolling resistance tires suffered a significant setback in the initial half of 2020, attributed to the imposition of lockdowns amid the COVID-19 pandemic. This resulted in the cessation of manufacturing activities across the automotive industry, causing automobile output to decline considerably, leading to curtailed demand for low-rolling resistance tires. As restrictions eased in the latter half, growth projections were restored.
The industry is estimated to reach USD 20.5 billion by 2024 and is further anticipated to rise at a CAGR of 11.7% during the forecast period. It is projected to reach USD 55.6 billion by 2034.
The forecast period is anticipated to witness steady growth in the low rolling resistance tire market due to several converging factors. Rising concerns over increasing automotive emission levels are prompting key manufacturing companies to rethink and reformulate existing automobile production approaches. Implementation of stringent regional and global level emission regulation standards has induced a paradigm shift in automobile usage, with an emphasis on achieving fuel economy.
Tier 1 segment comprises industry leaders with annual revenues exceeding USD 800 million. These businesses capture a significant share ranging between 55% to 60% globally. They are characterized by high production capacity and an extensive product portfolio. These companies are distinguished by their expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base.
The organizations provide a wide range of products and utilize the latest technology to meet regulatory standards. Prominent companies within Tier I include MICHELIN, The Goodyear Tire & Rubber Company, Bridgestone Corporation, Continental AG, Pirelli & C. S.p.A., Hankook Tire, Sumitomo Rubber Industries Ltd, and Trelleborg AB.
Tier 2 segment encompasses a huge portion of small-scale enterprises that operate within the regional sphere and cater to specialized needs. These organizations have revenues ranging between USD 400 million to USD 800 million. They are notably focused on meeting the local demand and are hence categorized within the Tier 2 segment.
The small-scale participants have a limited geographical presence. Tier 2 players such as Yokohama Rubber Company, Apollo Tyres Ltd., and Maxxis International have been considered in this Tier where they are projected to account for 25% to 25% share of the market.
Tier 3 includes most of the small-scale companies operating at the local level and serving niche markets. These enterprises have a revenue below USD 400 million. These companies are notably oriented toward fulfilling local demands and are consequently classified within the Tier 3 segment.
They are small-scale players and have limited geographical reach. The segment includes manufacturers, such as Sterling Solid Tyres (p) Ltd., MAXAM Tire International Ltd., and local-level vendors who are anticipated to hold 15% to 20% of the share.
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The section offers organizations with an overview of the industry. It consists of a detailed examination of the emerging trends and opportunities on a country-by-country basis. This country-specific analysis of the dynamics is projected to assist organizations in understanding the complex nature of the market.
The analysis consists of key factors, potential challenges, and forecasts impacting the demand, production, and consumption of the product within each country. It aims to assist companies make informed decisions and develop strategies customized to individual countries.
India is anticipated to dominate during the assessment period with a CAGR of 13.1%. China, Japan, and the United States are predicted to follow behind to become the key countries with estimated CAGRs of 12.4%, 10.7%, and 9.4% respectively.
| Countries | CAGR 2024 to 2034 |
|---|---|
| India | 13.1% |
| China | 12.4% |
| Japan | 10.7% |
| United States | 9.4% |
| Germany | 9.1% |
The low rolling resistance tire market in India is poised to exhibit a CAGR of 13.1% during the assessment period. It is anticipated to attain a value of USD 5,266.2 million by 2034.
Rising initiatives to reduce carbon emissions, improve fuel efficiency, and decrease vehicle weight have driven the country’s tire industry to adopt unique manufacturing trends. Contributing 3% to the manufacturing GDP, the tire industry, valued at around USD 10 billion, witnesses active participation from key players like MRF Ltd., Apollo Tyres Ltd., CEAT Ltd., JK Tyre & Industries Ltd., and Goodyear India Ltd.
China’s tire industry has grown exponentially over a decade, catered by an estimated 230 large and small tire makers. As of 2020, the country’s prominent tire manufacturers recorded about USD 400 million units of automotive tire production over the first 11 months, representing an increase of 1% compared to 2019.
Presently, China ranks among the topmost tire manufacturers in the world, reaching the number one spot in 2017. Unprecedented automotive manufacturing has primarily catalyzed domestic tire production across the country. Several key brands, such as Michelin, Bridgestone, Goodyear, Continental, Pirelli, Yokohama, Hankook, and Kumho have a significant presence across the regional landscape.
Sales of low-rolling-resistance tires in China are projected to soar at a CAGR of around 12.4% during the assessment period. The total value in the country is anticipated to reach USD 10,426.9 million by 2034.
The United States low rolling resistance tire market size is projected to reach USD 8,898.1 million by 2034. The demand for these tires in the country is set to rise at a CAGR of 9.4% during the assessment period.
According to the North American Council for Freight Efficiency (NACFE), low rolling resistance (LRR) dual tires help save significant amounts of fuel as compared to conventional tires. The cost of fuel these tires consume due to rolling resistance is five times higher than the initial purchase price of the tire. Rolling resistance constitutes 30% to 33% of the total fuel cost of a Class 8 truck or about USD 0.13 per mile. The typical purchase price of the tire is about USD 0.038 per mile.
As per the organization’s report, the United States EPA Smart Way-verified tire list extended 37 times over the previous decade, rising from eight tire offerings in 2010 to over 300 as of 2020. Prominent manufacturers like Goodyear Tire and Rubber Company have a highly robust presence in the country, offering a wide range of fuel max tires, such as the Fuel Max® LHD® 2, the G572 1AD® Fuel Max®, Fuel Max SSD®, and Fuel Max® LHT® among others. These tires incorporate cool-running, fuel-efficient rubber compounds, tire constructions, and tread designs to help lower rolling resistance and enhance fuel economy.
The section offers businesses insightful data and analysis of the two leading segments. Segmentation of these categories helps organizations understand the dynamics of the market and invest in beneficial zones.
Analysis of the growth assists businesses to attain a thorough understanding of the trends, opportunities, and challenges. This examination is anticipated to help businesses navigate the complex environment of the business world and make informed decisions.
Passenger car is predicted to lead the vehicle type segment with a value share of 46.7% in 2024. In terms of width type, the wide band category is estimated to lead with a value share of 77.4% in the same year.
| Segment | Passenger Car (Vehicle Type) |
|---|---|
| Value Share (2024) | 46.7% |
Passenger vehicles are projected to emerge as the dominant vehicle type of low rolling resistance (LRR) tires over the next decade, with a CAGR of 13%. The International Organization of Motor Vehicle Manufacturers (OICA) reported global passenger vehicle sales of USD 53.5 million units in 2020, highlighting the potential for increased LRR tire adoption in this segment. Light-duty vehicles consume 5% to 15% of fuel to overcome rolling resistance.
A 2003 California Energy Commission report exhibited that using LRR tires can save USD 300 million gallons of gasoline annually, improving fuel efficiency by 3%. The rising emphasis on fuel economy and environmental sustainability is anticipated to drive LRR tire demand among passenger vehicles.
| Segment | Wide Band (Width Type) |
|---|---|
| Value Share (2024) | 77.4% |
Low rolling resistance tires with wide bandwidths are becoming increasingly popular. The segment is anticipated to grow at a CAGR of 15.4% during the forecast period. Wide bandwidth tires help distribute vehicle load across a larger surface area, reducing frictional heat and the likelihood of tire damage. They can save up to 800 pounds of vehicle weight, enhancing fuel economy and cargo capacity.
The tires also improve rider comfort by absorbing road vibrations, offering a smooth ride. Additionally, a wide tire at low pressure provides improved rolling resistance, making it a preferred choice for both performance and efficiency.
Key players in the industry include Bridgestone Corporation, The Goodyear Tire & Rubber Company, Sumitomo Rubber Industries Ltd., Pirelli & C S.p.A, Hankook Tire, MICHELIN, Continental AG, and Trelleborg AB. These players in the low rolling resistance tire market are actively working toward enhancing their capabilities and resources to cater to the growing demand for these tires, especially in developed nations. They are also leveraging partnership and joint venture strategies to co-develop innovative products.
Manufacturers are working toward introducing new products to address the increasing need for cutting-edge solutions. Geographic expansion is another important strategy that is being embraced by reputed companies.
Start-ups are likely to emerge in the industry through 2034, thereby making it highly competitive. Key companies are investing in continuous research for the production of new tires and increasing their manufacturing capacity to meet the rising end-user demand. They are also showing an inclination toward adopting strategies, including acquisitions, partnerships, mergers, and facility expansions to strengthen their footprint.
Industry Updates
In terms of vehicle type, the market is divided into passenger vehicles, light commercial vehicles, and heavy commercial vehicles.
Dual type and wide band type are the two width types.
Original equipment manufacturer (OEM) and aftermarket are the two main sales channels.
The industry is spread across North America, Latin America, Western Europe, Eastern Europe, South Asia and Pacific, East Asia, and the Middle East and Africa.
The market is estimated to reach USD 20.5 billion in 2024.
The market is predicted to attain a size of USD 55.6 billion by 2034.
Bridgestone Corporation, The Goodyear Tire & Rubber Company, Sumitomo Rubber Industries Ltd., Pirelli & C S.p.A, Hankook Tire, MICHELIN, Continental AG, and Trelleborg AB are the key manufacturers.
They offer a good overall performance that can assist in reducing fuel consumption, costs, and environmental impact.
It is set to rise at a CAGR of 11.7% through 2034.
Lower rolling resistance can increase speed as fewer watts are lost.
India is anticipated to lead with a CAGR of 13.1% during the forecast period.
1. Executive Summary
2. Industry Introduction, including Taxonomy and Market Definition
3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
5. Pricing Analysis
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
6.1. Vehicle Type
6.2. Width Type
6.3. Sales Channel
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Vehicle Type
7.1. Passenger Vehicle
7.2. Light Commercial Vehicle
7.3. Heavy Commercial Vehicle
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Width Type
8.1. Dual Type
8.2. Wide Band Type
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Sales Channel
9.1. OEM
9.2. Aftermarket
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
10.1. North America
10.2. Latin America
10.3. Western Europe
10.4. South Asia
10.5. East Asia
10.6. Eastern Europe
10.7. Middle East & Africa
11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
17. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
18. Sales Forecast 2024 to 2034 by Vehicle Type, Width Type, and Sales Channel for 30 Countries
19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
20. Company Profile
20.1. Bridgestone Corporation
20.2. The Goodyear Tire & Rubber Company
20.3. Sumitomo Rubber Industries Ltd.
20.4. Pirelli & C S.p.A
20.5. Hankook Tire
20.6. MICHELIN
20.7. Continental AG
20.8. Trelleborg AB
20.9. The Yokohama Rubber Co. Ltd
20.10. Apollo Tyres Ltd.
20.11. Maxxis International (Cheng Shin Rubber)
20.12. Marangoni S.p.A
20.13. MRF Tyres
20.14. Bridgestone Corporation
20.15. The Goodyear Tire & Rubber Company
20.16. Sumitomo Rubber Industries Ltd.
20.17. Pirelli & C S.p.A
20.18. Hankook Tire
20.19. Continental AG
20.20. Trelleborg AB
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Low Rolling Resistance Tire Market
