Tires Market Size, Share, Growth, and Industry Analysis, By Type (Rim Diameter ≤29 inch, 29 inch＜Rim Diameter≤39 inch, 39 inch＜Rim Diameter≤49 inch & Rim Diameter ＞49 inch), By Application (Heavy Duty Truck Tires, OTR Tires & Agricultural Tires), and Regional Forecast to 2032

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TIRES MARKET REPORT OVERVIEW

The Tires Market size was valued at approximately USD 214.43 billion in 2024 and is expected to reach USD 309.6 billion by 2032, growing at a compound annual growth rate (CAGR) of about 4.7% during forecast period.

In the overall automotive industry, the global tire market has great potential regarding growth, demand, and innovations in technology due to the increasing number of vehicle production, electric vehicle demand, and tire technology advancement. Tires play a vital and critical role by creating a link between the vehicle and the road for traction, stability, and security. Modern tires maintain their essential functions of providing fuel economy, longevity, and performance. They are produced for the broad and varied segments ranging from passenger vehicles to commercial vehicles and off-road applications. In addition, intelligent tires, run-flat technology, and green materials are just a few of the numerous innovations changing the industry focused on sustainability and performance. Furthermore, increased demand in developing countries and constant research on the next generation tire solutions keep pushing the global expansion of this market.

COVID-19 IMPACT

"Tires Industry Had a Negative Effect Due to disruptions and restrictions 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 effects of the coronavirus pandemic have been very adverse to the global tires market, given that it brought about supply chain disruptions, factory closures, and a drastic decline in vehicle production and sales. The lockdowns and restrictions on movement led to a reduced transport activity, resulting in a sharp decline in the demand for replacement tires. The sectors of commercial and passenger vehicles were mainly affected because an economic downturn thwarted consumer spending on new vehicles and maintenance. In addition to this, tire manufacturing facilities were severely impacted due to staff shortages and reduced capacity, thus further stalling market growth. The decline during the pandemic, therefore, showed how vulnerable the market is to world crises and led to almost two cost cuts in revenue for tire manufacturers globally.

LATEST TREND

"Market growth driven by smart, sustainable tire innovations and technology"

Innovations and sustainability are among the strongest trends defining the global tire market, with an increasing focus on environmentally friendly and smart tire solutions. One of the main trends is the growing phenomenon of smart tires equipped with sensors to measure pressure, temperature, and tread wear in real-time for enhanced safety and performance of vehicles. This technology is becoming popular, especially in vehicles with an electric drive and autonomous operation, where the very high standards of efficiency and precision one expects from such vehicles are to be attained. It is also opening opportunities in employing sustainable materials, such as recycled rubber and bio-based components for further environmental impact reduction. Last but not least, an increased focus on fuel-efficient/low-rolling-resistance tires is also something the industry is heading toward with innovation and greener solutions.

TIRES MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Rim Diameter ≤29 inch, 29 inch＜Rim Diameter≤39 inch, 39 inch＜Rim Diameter≤49 inch & Rim Diameter ＞49 inch

• Rim Diameter ≤29 inches: The tire diameters ranging from less than or equal to 29 inches are generally observed in the segment of passenger vehicles and light commercial vehicles, as they are highly utilized in daily commuting and small-scale transport systems. Such tires are built considering optimum fuel efficiency, comfort, and durability to cater to compact, sedan, and SUV segments. These tires always remain in demand with an excellent volume of vehicles of this category available, thus maintaining a high frequency for replacements.

• 29 inch＜Rim Diameter≤39 inch : 29 inch This segment mainly supports heavy-duty commercial, bus, and medium truck applications demanding high strength and load-bearing capability. Tires of this range are built for superior highway performance and long-distance travel with damage-resisting and fuel-efficient designs. This segment benefits further from increased demand for these tires in current and future construction growth coupled with expanding logistics industries.

• 39 inch＜Rim Diameter≤49 inch : 39 inch Most tires within this range have been designed for application on off-road vehicles, mining trucks, and the industrial engineering surface, whereby extreme durability and traction have been put into consideration. These tires can endure severe conditions and are, therefore, crucial in enforcing operations in mining and agriculture or major construction projects. The consumption of these tires is likely to improve as infrastructure development worldwide progresses with resource extraction activities.

• Rim Diameter > 49 inches: Tires that have diameters above this are meant to work in ultra-heavy machines and heavy equipment for mining and large-scale construction use. This type of tire is built for extreme performance, bearing heavy weights and running smoothly in rough, off-highway conditions. Modern improvements, like the incorporation of monitoring systems, are said to be increasing the reliability and life expectancy of these tires.

By Application

Based on application, the global market can be categorized into Heavy Duty Truck Tires, OTR Tires & Agricultural Tires

• Heavy-Duty Truck Tires: Heavy-duty truck tires are specially engineered for long-haul distances, heavy loads, and an uninterrupted period, making them vital components of freight, logistics, and construction industries. These tires are thus designed to prioritize aspects like durability, fuel efficiency, and the load-bearing capability that enables operational performance on highways and the roughest terrains. This ever-growing global trade and infrastructure development have resulted in increasing demand for this tire category over the last few years.

• OTR Tires: OTR tires are special tires used on extremely heavy machinery and mean vehicles in operations in the heaviest of conditions, such as mining, construction, industrial works, etc. The OTR tires are engineered to produce great traction, stability, and strength to meet the requirements of the severe ruggedness of the ground and the immense load on the vehicle. Therefore, the increase in the number of infrastructure projects and resource extraction activities is fueling the growth in the demand for OTR tires at the global level.

• Agricultural Tires: Agricultural tires are defined as the rubber tires mounted on tractors, harvesters, and other machinery used in agricultural activity. They are meant to provide high traction with only minimal soil compaction for maximum efficiency in an operation. These tires are aimed to provide durability and performance under diverse field conditions, further maximizing productivity and fuel consumption efficiency. The steady growth in this segment can be attributed to mechanization in agriculture and a growing demand for food production.

MARKET DYNAMICS

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

Driving Factors

"Market growth driven by vehicle demand in emerging economies' tire market"

Emerging economies have become a driving force behind the manufacturing and sales of vehicles in the world and thus a major market force in the tire trade. Since urbanization, rising disposable income, and improving living standards have increased demand for passenger cars, two-wheelers, and commercial vehicles, there would be more ownership of such vehicles to increase demand for tires, both in the original equipment (OE) and replacement markets. As the automotive seed grows, the entire tire organization continues benefiting from the need for reliable, high-performance tires.

"Technological innovations and sustainability drive market growth"

Technological innovations, such as smart tires and fuel-efficient low rolling-resistance tires, revolutionize the marketplace in addition to influencing demand greatly. Smart tires equipped with sensors are valuable in improving the safety, fuel efficiency, and maintenance of a vehicle by giving real-time performance data. This is invaluable, especially for electric and autonomous vehicles. The industry is also changing toward more environmentally valuable materials such as recycled rubber and bio-based components because of the environmental issues involved. These kinds of innovations bring more opportunities to automakers and green consumers.

Restraining Factor

"Raw material price volatility limits market growth "

The major restraining issue of the tire market is the volatility of raw material prices, particularly rubber, synthetic materials, and crude oil derivatives. Tire manufacture relies on both natural and synthetic rubber, which assesses their price and supply relationship with the whole production costs for the tire market. Changing weather patterns, geopolitical instability, and disruptions in global supply chains are some of the factors that still create unstable raw material situations. These price intuitions are great in reducing profit margins for tire manufacturers as well as resulting in increased costs for the end consumer, thereby blocking market entry.

Opportunity

"Electric vehicle trend drives market growth in specialized tire development"

The rising popularity of electric vehicles has created a good opportunity in the tire business, meaning that these vehicles are specially built tires that require low-rolling resistances, high durability, and effective energy use. It is projected that the traction of this type of tire will grow as more and more governments advocate for EV adoption and enhanced emission regulations. Tire makers focus on creating new products that fit EV technology, thus meeting this expanding market. The electric mobility trend drives new growth avenues for the global tire industry.

Challenge

"Environmental compliance challenges market growth "

The major challenge for the Tires Market Growth is increasing with the stringent environmental compliance and sustainability pressures. With governments tightening tire recycling, waste management, and emission standards worldwide, manufacturers now have to invest in eco-friendly material and production. Significant research and investment will be required into the development of recyclables, biodegradable, and environmentally friendly tires. A good delicate balance has always been very tough for tires to attain in the score against sustainability versus performance and cost.

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TIRES MARKET REGIONAL INSIGHTS

• North America

"North America drives market growth through innovation and manufacturing dominance"

The global tires market is hyper-dominant for North America owing to the presence of a well-established automotive manufacturing base, high rates of ownership of vehicles, and prowess in advanced manufacturing. The United States Tires Market, one of the most significant areas demonstrating this dominance, is attributed to the massive consumer population and the continuing demand for replacement tires for passenger and commercial segments. Also, the U.S. is the leading nation on tire innovation, with a lot of investments in research and development. This contributes a lot towards the general market growth, especially in aspects concerning technological advancement and sustainability initiatives.

• Europe

"Europe drives market growth through innovation, sustainability, and regulations"

Europe is an important part of the global tire market, which has been driven by a strong automotive sector and a high emphasis on innovation and sustainability. The largest manufacturers of tires are in Europe, and advanced tire technologies, including low-rolling-resistance and smart tires, go on in this region. European countries also have strong environmental regulations in place that harness the adoption of green tire solutions and recycling initiatives. Furthermore, the increasing demand for electric vehicles in Europe has propelled the market further, as these tires are specifically outfitted for electric vehicles.

• Asia

"Asia's market growth driven by manufacturing, consumption, and urbanization"

Asia holds a notable Tires Market Share due to the large automotive manufacturing base in the region, particularly in countries like China, India, and Japan. The world's largest vehicle producer and consumer, China, continues to dominate the place in terms of tire production as well as consumption. Urbanization is fast, and highways are increasing in India and Southeast Asia, thus putting more people into ownership of vehicles; hence, this has triggered demand for tires, especially replacements. Additionally, Asia is a key player in tire manufacturing, with many companies focusing on cost-effective production and the expansion of their presence in emerging markets.

KEY INDUSTRY PLAYERS

"Key players drive market growth through innovation, partnerships, sustainability"

Key players in the industry have been impacting the global tire market significantly through continuous innovation, strategic partnerships, and investments in sustainability. Michelin, Bridgestone, Goodyear, and Continental are top companies in the race of tire technology advancements, such as smart tires and the like, low-rolling-resistance models, and eco-friendly materials, and have been setting standards high for performance, durability, and fuel efficiency so as to be credited as such in these parameters. Their marketing and strong branding create consumer preference for them. R&D activity also ensures that the market innovates new solutions to meet the requirements of electric vehicles, autonomous driving, and stricter environmental regulations.

List of Top Tires Companies

• Bridgestone (Japan)
• Michelin (France)
• Goodyear (U.S)
• Continental (Germany)
• Zhongce Rubber (Germany)

KEY INDUSTRY DEVELOPMENTS

April 2024: Michelin unveiled its new e-Primacy 2 tire, designed specifically for electric vehicles (EVs) and hybrid cars. This next-generation tire focuses on enhanced rolling efficiency, reducing energy consumption to improve EV battery range by up to 7%. Michelin incorporated sustainable materials, including bio-sourced and recycled components, aligning with their long-term goal of producing 100% sustainable tires by 2050. The launch highlights Michelin's commitment to innovation in the EV tire segment as the demand for eco-friendly and high-performance tires continues to grow.

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.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.