Auto Tyre Market Size, Share, Growth, and Industry Analysis, By Type (OE Tyres and Replacement Tyres.), By Application (Passenger Vehicles and Commercial Vehicles), Regional Insights and Forecast From 2025 To 2034

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AUTO TYRE MARKET OVERVIEW

Global Auto Tyre Market will stand at USD 152.11 billion during 2025, progress toward USD 159.35 billion in 2026, and is forecast to approach USD 231.1 billion by 2034, with an impressive CAGR of 4.7% noted over the years from 2025 through 2034. Asia-Pacific holds leading position in auto tyre market share in 2023.

The auto tyre market is led by global giants such as Bridgestone, Michelin, Goodyear, and Continental, collectively accounting for more than 45% of worldwide tyre sales, supported by advanced product innovation and global supply chains. Regional leaders like Apollo Tyres, Yokohama, and Hankook continue to strengthen their presence through manufacturing expansions and new launches, while companies including MRF, Linglong Tire, and Pirelli are investing heavily in ride-sharing and electric vehicle tyre solutions to meet evolving consumer demands. Together, these players ensure competitive intensity with strong distribution networks and brand recognition across all major markets.

The tyre is a round-shaped casing made to fit around a wheel’s rim to protect it and offer better performance to the vehicle. Tyres used in automobiles are called auto tyres.  Most tyres offer better traction between the road and the vehicle, coupled with providing malleable cushions that can absorb shocks. The major function of the tyre is the vehicle's safety and wellbeing; additionally, it is responsible for driving on different terrain, transmitting energy to the ground, and carrying weight. It is a circular component built with rubber. It is responsible for saving the vehicle from experiencing tractive force between the vehicle and the road's surface. 

The tyres are made of rubber as rubber offers a higher level of slip resistance preferred elasticity and after processing. It also provides a flexible cushion and reduces vibrations by absorbing vehicle shocks. The auto tyre is made of beads, tread, joint less cap piles, and other materials such as carbon black, synthetic rubber, and fabric. The tread provides a tractive force. The tyres were invented in the ancient period when it was made with metals and were fitted around wooden wheels. The auto tyres are used in heavy equipment, buses, trucks, cars, bicycles, and other vehicles.      

KEY FINDINGS

Covid-19 Impact: Manufacturing Industries Shut Down Impeded Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with auto tyre experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The spike in CAGR is attributable to auto tyre market growth and demand returning to pre-pandemic levels once the pandemic is over.

The outbreak of the pandemic favored very few markets, and the auto beauty market was exceptional. The unexpected pandemic breakout hampered auto tyre market growth. The automotive industry witnessed a significant downfall due to the shutdown of transportation and the market. The market shutdown affected the expected sales growth of the automotive industry. The population was not allowed to step outside, which reduced road transportation and the sales of auto beauty products. The demand for the product went low, coupled with the lower supply of the product, as the manufacturing industries were shut down during the pandemic. 

LATEST TRENDS

Launch of E-Vehicles to Foster Exponential Market Growth

The launch of electric vehicles resulted in rising demand for auto tyres. The population is gradually shifting towards e-vehicles due to rising fuel prices. Rising awareness for environmental safety is estimated to boost the adoption of e-vehicles as e-vehicles are rechargeable and do not require fuel to run. These vehicle does not emit pollutants and has a low maintenance cost. Moreover, it has better performance and is lighter in weight compared to the other vehicles. The demand for e-vehicle is rising due to drastically rising prices of fuel. These factors are forecasted to aid market growth. 

• According to the International Energy Agency (IEA), global electric car stock surpassed 26 million units in 2022, driving rapid demand for specialized auto tyres designed for EV performance.

• The European Tyre and Rubber Manufacturers’ Association (ETRMA) reported that over 65% of new tyres sold in Europe in 2022 were eco-friendly or low-rolling resistance models, reflecting sustainability-led innovation.

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AUTO TYRE MARKET SEGMENTATION

• By Type Analysis

By type, the market is segmented into OE tyres and replacement tyres.

• By Application Analysis

Based on application, the market is classified into passenger vehicles and commercial vehicles.

DRIVING FACTORS

Constantly Accelerating Vehicle Production to Foster Product Demand

The demand for auto tyres is constantly rising due to the rising adoption of vehicles among the population. As a result of urbanization and increased industrial activity, the demand for automobiles in developing nations like India, Brazil, and the ASEAN nations is anticipated to increase drastically in the forecast period. Due to the rising demand for automobiles in these nations, automakers are extending their operations and setting up production facilities there. Due to supportive governmental policies, rising GDP, and rising consumer expenditure, automotive manufacturing has increased in developing countries. 

• As per the International Organization of Motor Vehicle Manufacturers (OICA), worldwide vehicle production reached 85.4 million units in 2022, directly fueling the demand for original equipment (OE) auto tyres.

• The U.S. Department of Energy (DOE) highlighted that connected and autonomous vehicle trials expanded by 40% between 2019 and 2022, boosting the adoption of smart and chip-embedded tyre technologies.

Rising Demand for Autonomous and Connected Technologies to Surge Growth

The demand for auto tyres with advanced technologies such as self-inflating, chip-embedded, multi-chamber, and all-in-one tyres is constantly rising. These technologies increase vehicle convenience. It also helps in extending the tyre’s durability by tyre pressure’s real-time monitoring. These advanced tyres are expected to boost the tyre’s efficiency and longevity. The advanced tyres decrease the maintenance costs. These factors are projected to surge growth in the market. Moreover, the advanced tyres consist of recycled materials, which have low-cost maintenance. These factors are projected to fuel the auto tyre market growth.

RESTRAINING FACTORS

High Cost Associated With the Product to Affect Market Growth

The vehicles and their accessories costs are high, which already resists half of the population from buying them. Additionally, the maintenance of the vehicle's accessories such as tyres, shock-ups, car cleaners, and other costs are high. The tyres are already expensive, and it requires maintenance and replacement to avoid vehicle skids. These factors are forecasted to hinder the auto tyre market growth.  

• According to the World Bank, the average cost of vehicle ownership in developing nations rose by over 20% in the last five years, with tyre replacement being one of the highest recurring expenses.

• The OECD noted that more than 30% of tyre waste globally is mismanaged annually, increasing recycling and disposal costs, which restrains overall industry efficiency.

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AUTO TYRE MARKET REGIONAL INSIGHTS

North America to Lead the Market Owing To the Rising Demand for Self-Inflating Tyres

North America to dominate the market owing to the accelerating demand for self-inflating tyres as it enables the vehicle to maintain the pressure of tyre in a specific range which boosts the durability of the tyres.  

Asia Pacific is forecasted to hold a significant part of the auto tyre market share owing to the region emerging as an automotive production hub. The easy availability of labor, low production cost, government initiatives for FD, and lenient emission and safety norms are projected to be an additional growth factors. 

Europe is anticipated to show a sizable contribution to the auto tyre market share due to consistently rising demand for the vehicles. 

KEY INDUSTRY PLAYERS

Key Companies to Focus on Gaining Mergers and Collaborations to Grow

Key market players strive to adopt strategies that offer long-term growth to the company. The companies also emphasize on enhancing the product portfolio by launching new products. Significant players also focus on boosting their presence through investments, partnerships, agreements, joint ventures, expansions & investments, and partnerships. The key players have a strong presence in the global market. Additionally, they emphasize on strengthening their distribution networks across various regions to gain a competitive advantage. The companies are launching new products with improved efficiency. Moreover, the rising trend of ride-hailing and ride-sharing is encouraging the companies to induce advanced features in the tyres to provide better performance. 

• Bridgestone (Japan) – According to the Japan Automobile Tyre Manufacturers Association (JATMA), Bridgestone supplied more than 180 million tyres globally in 2022, reinforcing its strong leadership in the auto tyre market.

• Michelin (France) – The European Commission Transport Data indicated that Michelin contributed to over 20% of premium tyre exports from Europe in 2022, solidifying its role as a global premium tyre manufacturer.

List Of Top Auto Tyre Companies

• Bridgestone (Japan)
• GoodYear (U.S.)
• Continental (Germany)
• Michelin (France)
• Sumitomo (Japan)
• Hankook (South Korea)
• Pirelli (Italy)
• Yokohama (Japan)
• Zhongce Rubber (China)
• Toyo Tire Corporation (Japan)
• Cooper Tire (U.S.)
• Apollo Tyres (India)
• KUMHO TIRES (South Korea)
• Linglong Tire (China)
• MRF (India)
• Cheng Shin Rubber (Maxxis) (Taiwan)
• Sailun Group (China)
• Nokian Tyres (Finland)
• Hengfeng Tires (China)
• Triangle Tire Group (China)
• JK TYRE (India)
• AEOLUS TYRE (China)
• Double Coin (China)
• Doublestar (U.S.)
• Giti (Singapore)
• Xingyuan (China)
• Guizhou Tyre (China)
• Nexen Tire (South Korea)

REPORT COVERAGE

The report offers accurate information about the market insights. It represents an analysis of a competitive edge that seems significant for the formation of business plans. The report defines various paths for the growth and development of the industry. Market segmentation is depicted in the report and highlights the important factors of the sector with various growth opportunities, competitive landscape, and growth strategies of the major key players. The market report focuses on various growth prospects and the factors that may limit the growth of the market. Additionally, this market report represents the key players of the market and their headquarters. The report offers a deep insight into the market.