USD 266.8 billion
Report ID: SQMIG25B2003 | Region: Global | Published Date: February, 2024 | Pages: 157 | Tables: 59 | Figures: 75
Global Automotive Tire Market size was valued at USD 266.8 billion in 2021 and is poised to grow from USD 310.05 billion in 2022 to USD 521.10 billion by 2030, growing at a CAGR of 7.7% during the forecast period (2023-2030).
The automotive tire market is highly competitive, prompting companies to prioritize product differentiation through innovative technologies. These technologies provide exceptional performance and durability. One example is a self-regenerating tread pattern that maintains a high level of grip even as the tire wears down. With the global increase in sales of passenger and commercial vehicles, the demand for tires is expected to grow significantly. The International Organization of Motor Vehicle Manufacturers reported the production of over 90 million new vehicles worldwide, marking a growth rate of 1.1% compared to previous years. Europe accounted for approximately 17 million vehicles, representing 19% of global production and contributing to the rising demand for automotive tires. Tire manufacturers are actively involved in developing sustainable tire solutions that are both cost-effective and meet stringent performance standards. Lehigh Technologies, for instance, offers Micronized Rubber Powder (MRP), an environmentally friendly and high-performance material used in the production of over 300 million tires. This low-cost and customizable feedstock supports sustainability efforts in the industry. The adoption of Low Rolling Resistance (LRR) and self-inflating technologies by tire manufacturers is on the rise due to increasing awareness about fuel efficiency. LRR tires reduce energy wastage and minimize rolling effort, aligning with the industry's goal to improve fuel mileage. As a result, all manufacturers are compelled to incorporate these tires to meet the growing pressure for enhanced fuel efficiency. Automotive tire suppliers competing for original equipment fitments are striving to improve Corporate Average Fuel Economy (CAFE) standards. The federal mandate of achieving 54.5 miles per gallon drives their efforts to enhance fuel efficiency.
Global Market Size
USD 266.8 billion
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The Global Automotive Tire Market is segmented by type, end-user, and region. Based on type, the market can be segmented into radial tires, and bias tires. Based on end-user, the market is segmented into passenger vehicles, and commercial vehicles. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Automotive Tire Market Analysis by Type
By type, the market can be segmented into radial tires and bias tires. Radial tires dominated the global automotive tire market. The increasing demand for passenger vehicles worldwide, coupled with the advantages provided by radial tires, has contributed to their market dominance. Factors such as fuel efficiency, improved vehicle handling, and enhanced safety have made radial tires the preferred choice for consumers and original equipment manufacturers (OEMs). The dominance of radial tires is expected to continue in the foreseeable future, driven by ongoing technological advancements and consumer preference for vehicles equipped with radial tires.
The bias tire segment is experiencing notable growth. The demand for bias tires is primarily driven by the commercial vehicle sector, including heavy-duty trucks and agricultural machinery. These vehicles require tires that can withstand challenging conditions, heavy loads, and rough terrains. Additionally, the growth of construction and mining industries in emerging economies further contributes to the demand for bias tires. As a result, the bias tire segment is expected to witness steady growth, albeit at a slower pace compared to radial tires, due to its niche applications and specific requirements.
Automotive Tire Market Analysis by End-User
By end-user, the market can be segmented into passenger vehicles and commercial vehicles. Passenger vehicles dominated the global automotive tire market. The increasing demand for personal transportation, coupled with rising consumer expectations for safety, comfort, and performance, has fueled the growth of this segment. The dominance of passenger vehicles is expected to continue due to factors such as urbanization, increasing population, and improving economic conditions in emerging markets. OEMs and tire manufacturers focus on developing innovative tire technologies to meet the evolving demands of passenger vehicle owners, ensuring their continued dominance in the market.
The commercial vehicle segment is the fastest-growing segment in the global automotive tire market. Factors such as economic growth, infrastructure development, and expanding e-commerce activities contribute to the increasing demand for commercial vehicles. This, in turn, drives the demand for tires designed specifically for commercial applications. As industries such as logistics, construction, and agriculture continue to expand, the need for commercial vehicles and their corresponding tires is expected to grow steadily. Tire manufacturers are investing in research and development to develop technologically advanced tires that offer enhanced load-carrying capacity, fuel efficiency, and durability to cater to the evolving needs of the commercial vehicle segment.
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North America dominated the global automotive tire market, largely driven by the presence of well-established automobile manufacturing industries and a high demand for vehicles. The region's dominant position is further strengthened by a robust transportation infrastructure and a strong emphasis on technological advancements. Key market players in North America, such as Goodyear, Bridgestone, and Michelin, contribute to the region's dominance through their extensive distribution networks, brand recognition, and continuous innovation efforts. Additionally, the region's strict safety and quality regulations create a favorable environment for tire manufacturers, boosting their market position.
While the Asia-Pacific region is experiencing the fastest expansion in the global automotive tire market. The rising population, urbanization, and expanding automotive industry in the region are propelling the demand for tires. Moreover, governments in APAC countries are focusing on infrastructure development, including road construction projects, which further drives the demand for automotive tires. Additionally, the region's growing emphasis on eco-friendly and fuel-efficient vehicles is leading to the adoption of advanced tire technologies, such as low rolling resistance and self-inflating tires, further stimulating market growth.
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Automotive Tire Market Drivers
Increasing demand for tires
Automotive Tire Market Restraints
Fluctuating prices of raw materials
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The global automotive tire market is characterized by intense rivalry among numerous companies striving to differentiate their products and gain a larger market share. Companies in this industry focus on innovation, offering technologies that enhance performance, durability, and fuel efficiency. They also emphasize sustainability, aiming to develop cost-effective and eco-friendly tire solutions. Continuous research and development, strategic partnerships, and effective distribution networks are key factors driving competitiveness in the market, enabling companies to meet evolving customer demands and navigate the dynamic regulatory landscape.
Automotive Tire Market Top Player’s Company Profiles
Automotive Tire Market Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global automotive tire market analysis, the market is driven by the increasing sales of passenger and commercial vehicles worldwide. With a focus on product differentiation, tire manufacturers strive to offer innovative technologies that enhance performance, durability, and fuel efficiency. Additionally, there is a growing demand for eco-friendly and sustainable tire solutions to address environmental concerns. Fluctuating prices of raw materials, particularly rubber, pose a challenge for manufacturers in maintaining stable pricing. The competitive landscape is characterized by intense rivalry, requiring companies to invest in research and development, strategic partnerships, and effective distribution networks.
|Market size value in 2021
|USD 266.8 billion
|Market size value in nbsp
|Forecast Unit (Value)
|North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
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Parent Market Analysis
KEY MARKET INSIGHTS
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Global Automotive Tire Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Automotive Tire Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Automotive Tire Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
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