Auto Tire Market Size, Share, Growth, and Industry Analysis, By Type (OE Tire & Replacement Tire), By Application (Passenger Vehicle & Commercial Vehicle), and Regional Insights and Forecast to 2035

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AUTO TIRE MARKET OVERVIEW

The global Auto Tire Market is set to rise from USD 166.71 Billion in 2025 to USD 175.38 Billion in 2026, on track to hit USD 276.76 Billion by 2035, growing at a CAGR of 5.2% between 2025 and 2035.

The auto tire market produces tires for passenger cars, commercial trucks, and motorcycles while distributing and selling these vehicle tires throughout the market. The performance and safety as well as fuel economy of vehicles heavily depend on auto tires. The market shows expansion because of rising vehicle production levels and growing market needs for high-performance tires along with eco-friendly tires. The market keeps advancing because of developments in tire technology, which include run-flat technology and efficient, low-rolling-resistance tires. The market grows because of growing automotive product sales together with maintenance requirements.

KEY FINDINGS

COVID-19 IMPACT

Auto Tire Industry Had a Negative Effect Due to Factory Shutdowns, and Reduced Vehicle Production and Sales during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic produced adverse effects on the auto tire market because it disrupted supply chains and reduced production of vehicles. The halt of factory operations together with transportation limitations resulted in a substantial reduction of tire manufacturing amounts and market sales volumes. The reduction in new vehicle sales together with minimized driving activities created smaller market demands for tire replacement. Raw material delivery delays due to import-export restrictions caused negative effects on production capability. The automotive sector worldwide experienced reduced operations that caused market trends to decrease steadily.

LATEST TRENDS

Smart and sustainable tire innovations drive market growth

Auto tire manufacturers continue developing advanced tire technology through their production of sensor-enabled smart tires, which provide real-time pressure, temperature, and wear monitoring capabilities. The sustainable direction dominates the market as manufacturers substitute conventional materials with recycled rubber and bio-based compounds. The combined benefits of safety and fuel efficiency achieved by run-flat tires together with low rolling resistance tires result in their increasing popularity among users. Specialized tires are required for the growing market of electric vehicle (EV) adoption. Performance and safety improvement becomes possible through the increasing emphasis on smart tire development.

• According to the U.S. Department of Transportation (DOT), nearly 92% of newly manufactured passenger vehicles in 2024 were equipped with advanced tire pressure monitoring systems (TPMS), up from 78% in 2020, showcasing the trend toward intelligent tire technologies that enhance road safety and fuel efficiency.

• As per the European Tyre and Rubber Manufacturers’ Association (ETRMA), 36% of tire production in Europe in 2024 used sustainable or recycled materials, a rise from 21% in 2019, indicating a strong industry transition toward eco-friendly manufacturing.

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AUTO TIRE MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into OE Tire & Replacement Tire

• OE Tire: Auto manufacturers directly install Original Equipment (OE) tires as original components when preparing new vehicles for the market. Tires produced for OE purposes follow the particular requirements for performance along with handling and safety performance for vehicle models. Vehicle manufacturers work exclusively with tire producers to create OE tire models that yield better fuel efficiency and ride comfort while improving braking capabilities. The quantity of OE tires directly depends on the manufacturing activity and sale numbers of new vehicles. Two technological advancements in tire technology, namely low rolling resistance and run-flat technology, shape the OE tire market. The market exhibits exposure to changes in automotive industry production rates along with worldwide supply chain disturbances.

• Replacement Tire: Motorists buy replacement tires at dealerships for fixing broken or used-up tire conditions. Tires used for replacement make up the bulk of the market demand since vehicles need regular tire replacements. Car buyers mainly seek three essential features when replacing their tires: enhanced performance, extended durability, and reduced fuel consumption. Electric vehicles (EVs) have amplified demand for unique tires capable of handling increased torque because of their weight needs. The market receives its driving force from increased vehicle possession and prolonged vehicle operation durations. The market for replacement tires receives additional sales momentum from climate-dependent tire requirements between winter and summer seasons.

By Application

Based on application, the global market can be categorized into Passenger Vehicle & Commercial Vehicle

• Passenger Vehicle: Tires made for car and light truck operation deliver comfort at the same time, eliminating excessive fuel use and generating safe driving conditions. The design features of passenger vehicle tires ensure comfort during driving along with noise reduction capabilities and secure traction through numerous road settings. More buyers opt for electric and hybrid passenger vehicles now that manufacturers produce low-rolling-resistance and high-performance tires. The market requires all-season tires together with run-flat tires for both convenience and safety reasons. The amount of population living in cities combined with growing wealth has fueled both rising vehicle ownership numbers and increased demand for tires. Self-sealing technology combined with smart tires through technological progress supports overall passenger vehicle tire market desirability.

• Commercial Vehicle: Commercial vehicle tires maintain heavy-duty capability to serve trucks, buses, and vans as part of their construction purpose. This tire type delivers performance under heavy weight and extended traveling durations and harsh terrain. The consideration of fuel efficiency together with tread life and retreadability capabilities serves as a determining factor for customer purchases in this market segment. The logistics sector, along with expanding e-commerce, has raised the need for commercial vehicle tires. Fleet operators buy durable and cost-effective tires to cut down operational expenses. Modern tire monitoring systems alongside pressure management technologies both enhance commercial vehicle safety while improving overall performance on the road.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Rising vehicle production and sales drive market growth globally

The rise in global vehicle production and sales drives the Auto Tire Market Growth. The tire consumption market benefits from rising sales of both passenger vehicles and commercial vehicles, specifically in developing nations, including China and India. Growing consumer demand has prompted automakers to enhance their production capacity and thus create greater need for OE (Original Equipment) tires. Vehicle ownership continues to grow because people have increasing disposable income while cities expand. The growth of electric hybrid transport markets along with specialized tires demonstrates an increasing market demand. The market expansion of auto tires directly correlates with this particular trend pattern.

• According to the International Energy Agency (IEA), global electric vehicle (EV) sales exceeded 14 million units in 2023, accounting for 18% of new car sales, which has directly accelerated the demand for specialized low-rolling-resistance tires used in EVs.

• As per Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT), the number of on-road passenger vehicles reached 79.5 million units in 2024, representing a 4% increase from 2021—driving replacement tire demand across Asia’s mature automotive markets.

Technological advancements and sustainability drive market growth globally

Continued innovation in tire engineering enables companies to produce vehicles with improved performance characteristics together with extended lifespan and reduced fuel consumption. Smart tires with built-in sensor technology track tire pressure as well as road conditions simultaneously, which leads to enhanced safety and performance. The reduction of rolling resistance in tires delivers fuel savings that appeal to environmentally oriented customers, along with commercial fleets. The production of all-season and run-flat tires helps deliver more safety alongside better convenience to users. Bio-based materials as well as recycled rubber in sustainable tire production help increase market demand. Market growth expands because new technological developments enable tires to become more affordable and sustainable.

Restraining Factor

Rising material costs and regulations hinder market growth

Rising material costs function as the leading market limitation throughout the auto tire industry. Market costs for natural rubber, synthetic rubber, and petroleum-based materials remain unstable because of supply chain disruptions along with geopolitical conflicts. Market-based production costs rise with changing raw material values, therefore increasing the final tire prices, which consumers must pay. Manufacturing tire products under present environmental regulations leads to additional production costs. Several factors reduce profit margins at the same time they obstruct market expansion.

• According to India’s Ministry of Petroleum and Natural Gas (MoPNG), crude oil prices rose by 22% between 2022 and 2024, significantly increasing synthetic rubber production costs, which account for 40% of total tire raw materials.

• As per the U.S. Environmental Protection Agency (EPA), about 290 million scrap tires are generated annually in the United States, and only 76% are recycled or reused, posing sustainability challenges and limiting large-scale tire disposal compliance.

EV demand and specialized tires drive market growth

Opportunity

The surging interest in electric and hybrid vehicles offers the auto tire market substantial market expansion possibilities. The vehicles need particular low-rolling-resistance tires alongside high-performance tires, which help improve efficiency and battery durability. The market demand for EVs continues to rise because of growing environmental awareness and government promotions of EV technology. Tire manufacturers implement creative materials and designs to fulfill these industry requirements. The market expansion benefits from this trend through new business opportunities.

• According to the European Commission’s Mobility and Transport Department, the implementation of EU tire labeling regulations in 2024 influenced over 68% of consumers to prioritize low-noise and energy-efficient tires, opening opportunities for premium tire categories.

• As per the China Association of Automobile Manufacturers (CAAM), domestic tire exports from China grew by 14.8% year-on-year in 2024, reflecting opportunities for tire makers to expand in international markets amid increased global vehicle demand.

Price volatility and rising costs hinder market growth

Challenge

Raw material price volatility presents a major obstacle for the market that produces auto tires. The market value of natural rubber and synthetic rubber and several required materials experiences extreme price changes, which impact manufacturing expenses. Higher transportation expenses and labor rates require manufacturers to compromise their profit margins. Market competition puts major obstacles in the way of cost increase transmission to customers. Manufacturers experience dual requirements to keep prices competitive and achieve acceptable profits.

• According to the National Highway Traffic Safety Administration (NHTSA), improper tire maintenance contributes to 11,000 road crashes annually in the United States, emphasizing the challenge of ensuring consumer tire safety awareness and compliance.

• As per the Rubber Board of India, natural rubber output fell by 8% in 2024 due to climatic disruptions and disease outbreaks in plantations, posing supply chain challenges for tire manufacturers reliant on consistent raw material availability.

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AUTO TIRE MARKET REGIONAL INSIGHTS

• North America

North America's automotive production and tire demand drive market growth expansion

North America holds the largest Auto Tire Market Share because of its extensive automotive production alongside high replacement tire requirements. This area maintains an effectively developed tire distribution system while owners drive a large number of vehicles. High-performance and eco-friendly tire demands fuel market expansion in the United States Auto Tire Market. U.S.-based tire producers spend money on modern technological advances, which result in increased durability alongside efficiency improvements of their products. The market continues expanding due to government-imposed tire safety requirements and emission standards.

• Europe

Europe's eco-friendly innovation and EV demand drive market growth expansion

The automotive manufacturing sector, combined with innovative tire technologies, keeps Europe active in the global auto tire market. Leading tire producers in Germany, France, and Italy focus on developing eco-friendly and high-performance tires. The market experiences increased growth because this area requires harsh rules about tire safety and environmental solutions. The market continues to expand because electric vehicle (EV) tires experience rising demand. The European tire industry uses research funding to develop environmentally sustainable production materials as well as improved tire rolling efficiency.

• Asia

Asia's market growth thrives on EV demand and infrastructure improvements

Asia maintains significant influence over the auto tire market because it hosts large-scale tire manufacturing operations together with major automotive manufacturing facilities across China, Japan, and India. The market expands through increased sales of vehicles combined with infrastructure improvements. Industrial companies throughout Asia concentrate on both economical production techniques and advanced tire innovation. The growing market for electric vehicles (EVs) requires specialized tires because of rising demand. Government entities in different regions back the market development by implementing beneficial trade regulations and funding essential infrastructure improvements.

KEY INDUSTRY PLAYERS

Market growth thrives as leading firms innovate with sustainable technology

The auto tire market follows Michelin, Bridgestone, and Goodyear because these entities drive change through their research and business relationships and worldwide expansion. The companies dedicate resources to manufacturing innovative materials alongside implementing smart tire technology, which improves vehicle performance together with safety capabilities. The market presence of companies grows by their strategic acquisition deals and partnerships with automakers. Organizations put their attention on two main sustainable manufacturing elements, which include using environmentally friendly materials and operations that recycle waste. R&D investments enable manufacturers to develop durable and fuel-efficient tire products, which boost market expansion together with business competitiveness.

• Bridgestone Corporation – According to Japan’s Ministry of Economy, Trade and Industry (METI), Bridgestone invested in eco-efficient manufacturing plants that reduced CO₂ emissions per tire by 26% between 2018 and 2024, reinforcing sustainability leadership.

• Goodyear Tire & Rubber Company – As per the U.S. Department of Energy (DOE), Goodyear’s advanced silica-infused tread design improved fuel efficiency by up to 4% across its passenger tire range in 2024, promoting greener mobility.

List of Top Auto Tire Companies

• Bridgestone (Japan)
• GoodYear (U.S.)
• Continental (Germany)
• Michelin (France)
• Sumitomo (Japan)
• Pirelli (Italy)
• Yokohama (Japan)
• Zhongce Rubber (China)

KEY INDUSTRY DEVELOPMENT

January, 2025: Goodyear introduced SightLine smart tires designed to monitor rain and ice hazards, which boost automatic emergency braking (AEB) functionality. Under joint development by TNO and Goodyear, these tires interface with built-in vehicle assistance systems to initiate AEB at earlier stages of dangerous weather conditions, which shortens brake distances and lowers the probability of collisions. Training at a speed of 50 mph on low-friction roads remains effective for the technology's operation. This innovation is designed to comply with anticipated future U.S. AEB requirements for all car models by 2029, as it provides solutions for current system constraints. The demonstration phase of SightLine concludes while Goodyear moves to market this safety enhancement technology as a vital feature, which will improve the performance of AEB at multiple road conditions for automakers.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.