Automotive Tire Market Research Report - Global Forecast till 2030

Automotive Tire Market Research Report: Information By Rim Size (13”–15", 16”–18", 19”–21" and >21"), Season (Winter, Summer and All-Season), Propulsion Type (ICE and EV), Vehicle Type (Passenger Cars, LCV and HCV), Distribution Channel (OEM and Aftermarket) - Forecast till 2030

ID: MRFR/AM/1655-CR | 106 Pages | Published By Sejal Akre on December 2020         

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Automotive Tire Market

The Global Automotive Tire Market Size is expected to cross USD 290 billion by 2030 at a CAGR of 12% during the forecast period ending in 2030

By Rim Size 13”–15" 16”–18" 19”–21" and >21"
By Season Winter Summer All-Season
By Propulsion Type ICE EV
By Vehicle Type Passenger Cars LCV HCV
By Distribution Channel OEM Aftermarket
Key Players
Companies Profiled   Michelin (France)    Bridgestone (Japan)    Continental AG (Germany)    Hankook Tire (South Korea)    Pirelli C. S.p.A. (Italy)    Toyo Tire Corporation (Japan)    Kumho Tire (South Korea)    Giti Tire (Singapore)    Maxxis International (Taiwan)    Nexen Tire Corporation (South Korea)
Market Driving Forces   Increased accident rates across the globe    Increasing vehicle production    Sales propel    Governments constantly update norms    Regulations related to passenger safety
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Automotive Tire Market Overview

Automotive Tire Market is expected to grow further at 12% CAGR during the forecast period (2020-2030).

Report Overview 

The automotive tire market report features unique and relevant factors expected to significantly impact the market growth during the anticipated period. The detailed market information in the report would help industry players understanding the market better. The MRFR automotive tire market analysis elaborates on the historical and current trends boosting the automotive tire market growth. 

Additionally, the analysis of COVID-19 impact on the automotive tire market is also included in the report. Regional assessment in this report unlocks several untapped opportunities in regional and international markets. Detailed company profiling enables users to evaluate company shares, emerging product lines, the scope of the product in new markets, pricing strategies, innovation possibilities, and much more.

  • October 2022- Kistler is set to display a portfolio of testing solutions, such as wireless wheel force transducers and optical sensors, at the 2022 Automotive Testing Expo in Novi, Michigan, from October 25-27. As new technologies are launched, high-tech equipment is required to ensure recently produced vehicles are ready for use and, more significantly, are safe for their occupants.

Regional Analysis

APAC Dominates the Global Automotive Tire Market.

Asia Pacific holds the largest share in the global automotive tire market. APAC is one of the largest automotive aftermarkets. In 2019, the region accounted for the largest market share with a valuation of USD 57,932.4 million. Factors such as the rapid increase in the automotive industry and economy, especially in China, India, and Japan, drive the automotive tire market growth. 

The increased automotive tire market demand in the region can be accredited to the increasing construction activities, rapid industrial development, and the rise in demand for fuel-efficient technologies. Besides, the presence of several raw material suppliers and favorable government guidelines boost the automotive tire market size. Countries such as Japan, China, and South Korea have a strong focus on agriculture, and hence the demand for automotive tires for agricultural vehicles is also expected to be high.

  • September 2022- The Indian government has been instructed to keep enforcing anti-dumping duties on new tires from China for another three years, based on the results of a recently performed sunset review. Initially enacted in 2017, the responsibilities cover introducing new or unused pneumatic radial tires with or without tubes and rubber flaps with nominal rim diameter code above 16 inches utilized for trucks and buses. In the declaration of its final results on 21 Sept, India's Directorate General of Trade Remedies (DGTR) stated the review determined that there was "positive proof of the probability of dumping and injury if the present anti-dumping duties are enabled to cease."

Competitive Landscape

Players Focus on Product Development & Expansion Plans

The worldwide automotive tire industry appears extremely fragmented, considering the presence of well-established tire manufacturers, OEMs, and distributors. They seek opportunities to integrate across the extensive value chain while focusing on R&D investments, production facility expansion, and M&A activities to gain impetus. New automotive tire industry players enter the market with aggressive pricing to undercut the established providers and gain footholds in international markets. 

List of the Key Companies Operating in the Automotive Tire Market are

  • Michelin (France)

  • Bridgestone (Japan)

  • Continental AG (Germany)

  • Hankook Tire (South Korea)

  • Pirelli & C. S.p.A. (Italy)

  • Toyo Tire Corporation (Japan)

  • Kumho Tire (South Korea)

  • Giti Tire (Singapore)

  • Maxxis International (Taiwan)

  • Nexen Tire Corporation (South Korea)

Bridgestone is a Japanese automotive parts manufacturer and a leading global tyre and rubber manufacturing company. Bridgestone undertakes constant upgrades in production level to satisfy the ever-increasing demand of the global automotive market. It also initiates various marketing programs to increase brand presence across the world. Bridgestone offers a wide range of automotive tire types, including B-SERIES, S-SERIES, ECOPIA, DUELER, ALENZA, POTENZA, and others for all types of vehicles and CUVs & SUVs.

COVID-19 Analysis

COVID 19 hit the global automotive tire market, severely affecting the overall automotive industry. The coronavirus pandemic has caused a steep decline in the tyre sector, forcing tire manufacturers to reduce the output at their production plants. The disruption caused by the epidemic prompted various key raw material suppliers to cut back production in some areas.

While many companies had to consolidate and reduce staff, some tire market players intensively started working on countermeasures in order to minimize the impact. These tire manufacturing companies extended their relationships, driving tie-ups with automotive original equipment manufacturers (OEMs) with a global presence. 

Besides, they adopted bold approaches, such as aggressive online presence and responsive customer service. This initiative to adopt digital channels to engage with prospective buyers proves to be a game-changer. Resultantly, the automotive tire market is rapidly returning to normal.

  • October 2022- Nokian Tyres has announced the acquisition of the total share capital of the industrial property at Pirkkalaistie in Nokia, Finland, from Nokian Portti Oy, a real estate company. The net floor area of the building is nearly 27,000 square meters and is directly linked to Nokian Tyres' headquarters and factory, as per the official company statement. After the deal, the company states that it has close to 150,000 square meters of space along Pirkkalaistie.

Automotive Tire Market Dynamics

Drivers & Opportunities

Stringent Vehicle Safety Norms Increase the Tire Market

Due to the growing road accident rates, the governments have updated significantly more rigorous safety rules, which in turn, drive the market growth. To minimize escalating accident rates, monitoring bodies in developed regions are making it compulsory to install advanced automotive tires in vehicles. Moreover, increasing vehicle production and sales propel the growth of the market. The increase in vehicle sales across the world leads to high automotive tire demand.

Restraints & Challenges

Raw Material Shortages Act as Major Market Restraints

Price volatility and the demand-supply gap in the raw materials required for tire production are the major factors anticipated to hamper the growth of the market. Besides, the requirement for achieving a duty-free process poses commercial and compliance challenges for both vehicle and parts manufacturers.

Cumulative Growth Analysis

Tires Play a Causal Role in Vehicle & Passenger Safety

The rising awareness of the importance of high-quality tires is projected to offer significant opportunities for market growth. Moreover, increasing numbers of OEMs and MRO services are major automotive tire market trends expected to foster market growth. Furthermore, regular MRO activities of agriculture tractors and construction vehicles would support the market growth throughout the review, suggesting the need to change tires due to wear & tear.

Automotive Tire Market Segment Overview

Global Automotive Tire Market is segmented on the basis of Rim Size, Distribution Channel, Vehicle Type, Season Propulsion Type and Region.

13"–15" Rim Size Segment Accounts for the Largest Market Share

The rim size segment is bifurcated into 13”–15", 16”–18", 19”–21", and >21". The 13"–15" rim size segment accounts for the largest market share due to the increasing use in passenger cars with GVWR <3.0 tons. Automotive tires with rim sizes ranging from 16" to 18" are used in wheels that need a lower sidewall height to maintain adequate clearance when they go over bumps and potholes, making the suspension fully compress and rebound. 

OEM Segment is the Dominating Distribution Channel

The distribution channel segment is sub-segmented into OEM and aftermarket. Among these, the OEM segment accounts for the largest market share, including production, procurement, and installation of automotive tires. Many automotive tire manufacturing companies worldwide are working on enhanced safety and comfort using advanced production techniques.

Passenger Cars is the Largest Vehicle Type

The vehicle type segment is sub-segmented into passenger cars, light commercial vehicles (LCV), and heavy commercial vehicles (HCV). Among these, the passenger car accounts for the largest segment due to the increasing production of passenger vehicles due to the increasing demand and sales of these vehicles. 

Light commercial vehicles (LCVs) include minivans, pickup trucks, and buses. Continuous growth in manufacturing, processing, logistics, and tourism & hospitality sectors creates a substantial demand for LCVs. On the other hand, growth in heavy commercial vehicles (HCVs) is driven by the growing use of heavy trucks, tractors, and trailers in the rapidly growing transportation & logistics industry across the globe. 

Winter is the Largest Season Segment

The Season segment is bifurcated into winter, summer, and all-seasons. Among these, 

 the winter Tires segment accounts for the significant market share. Winter/snow tires can endure in nerve-wracking winter driving conditions. On the other hand, summer tires with their special tread patterns and tread compounds guarantee a high grip on wet and dry roads. 

All-season tires are available in a range of many types/models, load capacities, sizes, and speed ratings and are used in a wide variety of vehicles, from economy cars and sedans to minivans and pickup trucks.

EV and IC Propulsion Type

The propulsion type segment is bifurcated into Electric vehicles and internal combustion engines (ICE). The EV segment is further sub-segmented into battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs). BEVs are fully EVs without an internal combustion engine or fuel tank and runs on a fully electric drivetrain powered by rechargeable batteries. HEVs combine an IC engine system with an electric system.

  • October 2022- A prominent leader in tire sensor and data management, Tyrata, has launched rough tread wear detection and tire mismatch ability for its IntelliTread® Drive-Over System™ (DOS) and platform. This critical new feature generates digital tire profiles of every tire in the fleet. It automatically alerts fleet managers when tires wear unevenly, which indicates misalignment or other mechanical problems. The system can also notify users when tires in a dual or axle pair begin wearing at separate rates, a mismatch. With extra uneven wear and mismatch information, fleets can make advised tire rotation choices to expand the life of their tires and preserve tire casings for retreading. Uneven wear is one of the vehicle's most vital signs of evolving mechanical and safety issues. Sadly, with manual inspection, uneven wear on tires is frequently noted too late, leading to high tire costs, considerable repair costs, and severe safety violations leading to accidents. Therefore, the initial recognition of irregular or mismatched wear in tires is possibly one of the cheapest and best methods for a fleet to manage cost, lower downtime, and prevent CSA (compliance, safety, accountability) breaches.

Recent Developments

Jan 06, 2021 ---- Michelin North America, Inc., a multinational tyre manufacturing company, announced that Purcell Tire & Rubber Company would join the MICHELIN Commercial Service Network (MCSN), Michelin Retread Technologies, Inc. (MRTI), and Oliver Rubber Company, LLC (Oliver) retreading networks. The partnership would enable Michelin to secure a relationship across our entire line of business-to-business on- and off-road products and services.

Oct 12, 2020 ---- Continental AG, a German multinational automotive parts manufacturing company, announced winning tire technology award for its CARE tire concept for electric robotaxis. The "Journey to Automation" award was presented by the European Rubber Journal (ERJ). Conti CARE tire concept is cloud-based connectivity that offers fleet operators particularly efficient solutions for electric mobility management.

Sep 14, 2020 ---- Telle Tire & Auto Centers Inc., a St.Louis-based auto repair dealership announced the acquisition of J&W Automotive. In 2018, Telle Tire & Auto Centers reported nearly USD 11.3 million in revenues. With the J&W acquisition, Telle Tire would have 16 locations in the Americas. 

Sep 13, 2020 ---- Off-highway tyre-maker Alliance Tire Group (ATG), a Yokohama Rubber Manufacturing company, announced a $ 165 million investment in setting up its third plant in Visakhapatnam (India). The proposed plant would add over 20,000 tonnes per annum of rubber production.

Continental AG, a German automotive manufacturing company, has inaugurated its car and light truck tire plant in Thailand. The plant has been designed to facilitate the production of 4 million tires per year by 2022.

Iris Group in collaboration with Cimcorp, industry automation specialists, has announced the completion of the first test phase of its Algerian tire factory.

Global Automotive Tire Market was valued at USD USD~260 Billion in 2019, which is expected to grow further at 12% CAGR during the forecast period (2020-2027).

Currently, many automotive tire market players are substantially investing in product development and to increase production capacities. Also, substantial investments are poured into the R&D centers of various tire manufacturing companies and universities to test innovative prototypes. 

Governments constantly update norms & regulations related to passenger safety. Therefore, tyre manufacturers are innovating new technologies that can help manufacturing tires that can instill vehicle safety. Moreover, increased accident rates across the globe foster the demand for advanced tires.

Segmentation Table

By Rim Size

  • 13"–15"

  • 16"–18"

  • 19"–21"

  • >21"

By Season

  • Winter

  • Summer

  • All-Season

By Propulsion Type

  • ICE

  • EV

By Vehicle Type

  • Passenger Cars

  • LCV

  • HCV

By Distribution Channel

  • OEM

  • Aftermarket

By Region

  • North America

  • Europe

  • Asia Pacific

  • Rest of the World (RoW)

Report Scope:

Report Attribute/Metric Details
  Market Size   2030 : Significant value
  CAGR   12% CAGR (2020-2030)
  Base Year   2021
  Forecast Period   2020-2030
  Historical Data   2019 & 2020
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Rim Size, Season, Propulsion Type, Vehicle Type
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Michelin (France), Bridgestone (Japan), Continental AG (Germany), Hankook Tire (South Korea) , Pirelli & C. S.p.A. (Italy) , Toyo Tire Corporation (Japan) , Kumho Tire (South Korea) , Giti Tire (Singapore) , Maxxis International (Taiwan) , Nexen Tire Corporation (South Korea)
  Key Market Opportunities

  • Governments constantly update norms
  • Regulations related to passenger safety
  •   Key Market Drivers

  • Increased accident rates across the globe
  • Increasing vehicle production
  • Sales propel

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    Frequently Asked Questions (FAQ) :

    Automotive Tire Market is predicted to grow at a 12% CAGR between 2022- 2030.

    Michelin Group, Bridgestone, Continental, The Goodyear Tire & Rubber, Toyo Tire & Rubber, Hankook Tire, Pirelli, Cooper Tire & Rubber Company, Rubber, Sumitomo Rubber Industries, and Yokohama.

    Global Automotive Tire Market Report: Information by Type, Section Width, Vehicle Type, End Market – Forecast till 2030.