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Automotive Tire Market

Market Study on Automotive Tire: In the Light of Consistently Enhancing Safety Practices in Automotive Tires, PMR Foresees a Host of Opportunities for Automotive Tire Manufacturers in the Years to Come

A Detailed Analysis of the Automotive Tire Market Based on Improving Manufacturing Practices, Focus on Good Environmental Practices, and Improved Production

Automotive Tire Market

The global automotive tire market is forecast to expand at a CAGR of 4.2% and thereby increase from a value of US$134.2 Bn in 2023, to US$179 Bn by the end of 2030.

Attributes

Key Insights

Automotive Tire Market Size (2023E)

US$134.2 Bn

Projected Market Value (2030F)

US$179.0 Bn

Global Market Growth Rate (CAGR 2023 to 2030)

4.2%

Historical Market Growth Rate (CAGR 2018 to 2022)

3.2%

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Market Introduction and Definition

The Automotive Tire Market encompasses the manufacturing, distribution, and retail of tires that are manufactured specifically for automobiles, tractors, and motorcycles, among others. The automotive sector is significantly impacted by this market, which serves as a vital element that determines the performance, safety, and fuel economy of vehicles. The health of the worldwide automotive sector is closely intertwined with the demand for automotive tires, as it reflects developments in vehicle manufacturing, consumer inclinations, and regulatory prerequisites.

Numerous determinants influence the fluctuations of the worldwide automotive tire market. The primary concern is the consistent growth of the automotive sector on a global scale. The expansion of economies and the concurrent rise in disposable incomes contribute to a heightened demand for automobiles, thereby driving the requirement for tires.

Moreover, progress in tire technology, encompassing advancements in tread design, materials, and manufacturing processes, facilitates improved fuel efficiency, durability, and performance, thereby stimulating market expansion. Government regulations and environmental considerations that advocate for fuel efficiency and sustainability are significant factors that stimulate the growth and implementation of environmentally friendly tire alternatives.

The market is additionally impacted by changing consumer preferences, which place greater emphasis on aesthetics and safety features, thereby determining the demand for specialized tire variants.

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Market Growth Drivers

Increased Focused on Manufacturing of Advanced Tires, and Improving R&D

A substantial factor promoting the worldwide automotive tire market is the ceaseless quest for technological advancements in tyres. Tires are currently experiencing a period of significant change, characterized by ongoing research and development initiatives that seek to improve performance, safety, and sustainability. Tire design, material, and manufacturing process technological advancements significantly influence the competitive environment and propel market expansion.

In recent times, considerable attention has been devoted to enhancing the ecological footprint of automotive tires. There is a growing trend among manufacturers to allocate resources towards the advancement of environmentally sustainable and energy-efficient tire alternatives. The implementation of material innovations, including the utilization of sustainable and recyclable compounds, aids in the mitigation of the ecological impact associated with tire manufacturing and disposal.

Further, the incorporation of sophisticated tread patterns and tire configurations is intended to maximize fuel economy, which is consistent with international endeavors to diminish carbon emissions originating from motor vehicles. The prioritization of environmentally favorable technologies not only satisfies regulatory requirements but also appeals to environmentally conscious consumers, thereby stimulating a transition towards more sustainable options and impacting market trends.

Concurrently, tire manufacturers are capitalizing on state-of-the-art technologies to augment safety attributes. The integration of intelligent materials and sensor technologies enables the continuous surveillance of tire conditions in real time, furnishing motorists with vital data about to tire temperature, pressure, and tread wear.

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Market Restraints

Unpredictable Nature of Basic Material Costs

One significant limiting factor in the worldwide automotive tire industry is the unpredictable nature of basic material costs. Critical components utilized extensively in the tire manufacturing sector include rubber, steel, and synthetic compounds. The production costs and, as a result, the pricing of automotive tires is substantially influenced by variations in the costs of these basic materials.

Numerous variables affect the volatility of raw material costs, such as global economic trends, geopolitical events, and climatic conditions that impact rubber plantations. As a fundamental component in the manufacturing of tires, the rubber market is especially vulnerable to fluctuations. Natural rubber, which is predominantly obtained from Southeast Asia, is susceptible to supply chain disruptions caused by climatic conditions, diseases, and geopolitical factors.

Increasing Number of Regulations Around Production

Increasing tire regulations and standards complexity constitutes a substantial obstacle for the worldwide automotive tire market. To improve energy efficiency, resolve environmental concerns, and enhance vehicle safety, governments across the globe are implementing stricter regulations.

Although these regulations are critical for the automotive industry as a whole and its constituents, they present tire manufacturers with a significant obstacle. To adhere to rigorous performance and safety criteria, tire manufacturers are obligated to make substantial investments in research and development to comply with a multitude of dynamic regulations.

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Opportunities

Intensifying Focus on Electric Vehicles, and Growing Focus on Environmental Concerns

An opportunistic factor propelling the worldwide automotive tire market is the increasing market demand for electric vehicles. At the vanguard of this global automotive industry transformation toward environmentally friendly and sustainable transportation solutions are electric vehicles. With the increasing focus of governments across the globe on mitigating climate change and reducing carbon emissions, the automotive sector is currently experiencing a notable upswing in the manufacturing and acceptance of electric vehicles. This transition offers a substantial opportunity for the automotive tire industry to conform to the distinct demands of electric vehicles and serve an expanding market segment.

Electric vehicles, which are distinguished by their renewable energy credentials, differ from conventional internal combustion engine vehicles in terms of their powertrain and performance specifications. The optimization of electric vehicle efficiency and safety is significantly influenced by tires, thereby presenting tire manufacturers with prospects to innovate and produce specialized products. There is a growing demand for tires that possess enhanced durability, reduced road pollution, and lower rolling resistance to suit the distinctive attributes of electric vehicles better.

Furthermore, the distinct torque and weight distribution characteristics of electric vehicles require tire configurations that deliver ideal traction and handling characteristics. This presents opportunities for advancements in tire technology. By capitalizing on this opportunity to create specialized tires for electric vehicles, manufacturers can attain a competitive advantage in a rapidly expanding market, thereby stimulating additional expansion in the automotive tire market.

Analyst’s Viewpoint

The automotive tire market is anticipated to undergo substantial expansion and change. Significant development is anticipated in the global automotive tire market because of a convergence of factors that are reshaping the industry's dynamics. The continuous technological innovation in tire design and manufacturing processes has been a significant factor in this expansion.

By making substantial investments in research and development, manufacturers are capable of manufacturing tires that exhibit enhanced performance, safety attributes, and environmental sustainability. This advancement not only addresses the changing demands of consumers but also strategically positions tire manufacturers to adhere to rigorous international regulations concerning vehicle emissions and safety.

The dynamic between manufacturers and consumers is of utmost importance in determining the course of the market. The growing consciousness among consumers regarding the significance of tire quality, safety, and environmental impact is compelling manufacturers to incorporate education and transparency into their marketing strategies. The notable aspect lies in the emphasis placed on sustainability, as environmentally aware consumers actively pursue tire options that are favorable to the environment. The current change in consumer preferences is encouraging manufacturers to establish a more cooperative partnership by ensuring that their product offerings are in line with the values and preferences of consumers.

Another determinant is the worldwide proliferation of the automotive industry, specifically in the burgeoning economies of South Asia, and Oceania. Elevated levels of vehicle ownership in these regions are a result of the expanding middle class and urbanization, which in turn increases the demand for automotive tires. The formation of strategic alliances between automotive companies and tire manufacturers is anticipated to be of utmost importance in effectively navigating these expansive and varied markets.

In a nutshell, the automotive industry is transforming technological advancements and shifting consumer preferences all contribute to the expansion of the worldwide automotive tire market. Manufacturers who achieve success will possess the ability to effectively navigate the intricate complexities of regulatory frameworks, establish robust consumer relationships via transparent communication and sustainable practices, and promptly adjust to the ever-changing dynamics of the market.

Supply-side Dynamics

The global automotive tire market is distinguished by the existence of major actors who exert a substantial impact on market dynamics. Prominent tire manufacturers, including Bridgestone Corporation, Michelin, and The Goodyear Tire & Rubber Company, control significant market shares by capitalizing on their substantial research and development capacities to unveil groundbreaking tire solutions.

When considering dominant nations, China emerges as a significant participant in market utilization due to its rapidly expanding automotive sector and the enormous magnitude of vehicle manufacturing. Additionally crucial are the United States and Germany, both of which place considerable emphasis on tire solutions propelled by technology. An example of this is the substantial market for high-performance tires in the United States, which reflects the nation's preference for sports and luxury automobiles.

The dominant actors are actively influencing the industry landscape in the automotive tire market via strategic initiatives. These corporations are making substantial R&D investments to introduce innovative tire technologies, such as tread design, material, and manufacturing process advancements.

As an example, Bridgestone is a leader in the development of environmentally friendly tire solutions that are in line with international environmental initiatives. Michelin is at the forefront of tire sensor technology advancements, which improve both performance and safety. A focus of The Goodyear Tire & Rubber Company's initiatives is the integration of sensors for real-time monitoring into intelligent tire technologies.

Market Segmentation

Which Tire Types Are Expected to Benefit the Most Through 2030?

Radial Tires Continue to Capture the Maximum Market Share on the Back of Improved Fuel Efficiency

It is anticipated that the radial tire segment will hold the most market share on a global scale in the automotive tire industry. Radial tires are the choice of many types of vehicles due to their superior performance characteristics, which include increased fuel efficiency, enhanced traction, and improved steering. With the growing emphasis on performance attributes in the automotive industry, it is anticipated that the Radial tire segment will maintain its market dominance because of its extensive utilization of diverse vehicle types.

On the contrary, it is expected that the bias tire segment will witness the most rapid expansion in the forthcoming years. At this time, radial tires maintain a position of dominance; however, the Bias tire segment is experiencing growth, specifically in niche markets. The robust construction of the Bias tire renders it well-suited for specific applications, including off-road vehicles and specific types of industrial equipment.

What Kind of Tires are the Most Preferred One for Automotive Tire Installations During Different Seasonal Variations?

Highest Preference Intact for All Season Tires that Deliver Optimal Performance During All Weather Conditions

It is anticipated that the all season tire segment will hold the most significant portion of the worldwide automotive tire market. All-season tires accommodate a wide range of consumers by providing an optimal combination of performance characteristics that are appropriate for diverse weather conditions over the year.

The considerable consumer preference for this versatility contributes to the market dominance of the all season tire segment, which is a result of its extensive adoption in various geographic regions. Concurrently, it is anticipated that the Winter Tire segment will expand at the quickest rate. The significance of utilizing specialized tires for winter traveling conditions is becoming increasingly understood as climate variations intensify.

Which Vehicle Type Leads the Market?

Passenger Cars Account for the Maximum Revenue Generation

It is expected that the passenger car tire segment will account for the most significant portion of the worldwide automotive tire market. Due to its status as the most prevalent and extensively operated vehicle category, the passenger car segment exhibits a significant demand for tires. The substantial number of passenger cars in operation worldwide is a significant factor in the segment's dominance, which in turn plays a pivotal role in propelling the overall tire market.

With respect to the fastest-growing sector, the LCV tire industry is positioned for substantial growth. The escalating necessity for light commercial vehicles, propelled by the expansion of e-commerce, the rise in last-mile delivery services, and urbanization patterns, is augmenting the demand for specialized tires capable of withstanding the distinctive specifications of such vehicles.

Top Regional Markets

Which is the Dominating Region?

Increasing Adoption Rate Secures First Spot for North America

With the highest potential market share, the North American region is positioned to dominate the global automotive tire market in 2023. The robust consumer demand for a diverse range of vehicles, the firmly established automotive industry, and high rates of vehicle ownership collectively contribute to this prevailing dominance.

Furthermore, the market share in this region is further enhanced by the demand for technologically advanced and high-quality tires, which is propelled by rigorous regulations that prioritize safety and environmental standards.

What Opportunities Lie in South Asia, and Oceania for Manufacturers?

Exploding Automotive Sector, and Escalating EV Adoption Hold Opportunities

It is anticipated that South Asia and Oceania will experience the most rapid expansion in the worldwide automotive tire market. The expansion of this phenomenon can be ascribed to the flourishing automotive sector in nations such as India, in addition to the escalating disposable incomes and expanding middle class.

A rise in vehicle sales is occurring as a result of the region's urbanization and economic growth, which in turn is increasing the demand for tires. Furthermore, the accelerated growth rate in South Asia & Oceania is attributed to the evolving transportation infrastructure and an increasing consciousness regarding tire safety and efficiency. These factors position the region as a key focus for market expansion.

Competitive Intelligence and Business Strategy

Prominent participants in the worldwide automotive tire market, including Bridgestone Corporation, Michelin, and The Goodyear Tire & Rubber Company, implement strategic initiatives to safeguard and augment their market dominance. Constant investment in research and development (R&D) is a crucial tactic. For instance, Bridgestone devotes significant resources to the development of tire technology. This encompasses the creation of novel materials, the optimization of tread designs, and the improvement of manufacturing processes. Bridgestone endeavors to provide exceptional tire solutions that align with the latest technological advancements, thereby captivating a wide range of consumers and sustaining a competitive advantage in the industry.

Conversely, Michelin emphasizes the strategies of diversification and premiumization. The organization maintains an extensive range of products to accommodate diverse vehicle categories, including passenger cars and commercial vehicles. By consistently positioning its high-performance tires as premium products, Michelin can attract market segments that place a premium on safety and quality. By adopting this strategic positioning, Michelin can establish a higher price point, which in turn stimulates revenue expansion and solidifies its market position.

Moreover, these prevailing entities are actively participating in sustainable initiatives. As an example, Bridgestone is committed to the development of environmentally sustainable tire solutions to address environmental issues. Michelin has established audacious sustainability objectives, with a particular emphasis on tire recycling and the mitigation of its ecological impact. Additionally, The Goodyear Tire & Rubber Company prioritizes the use of eco-friendly materials in tire manufacturing as part of its commitment to sustainability.

Key Company Developments

Product Collaboration

In January 2023, a collaborative effort was established between Sumitomo Rubber Industries, and the Global Data Service Organization for Tyres and Automotive Components (GDSO) to improve tire traceability through the identification and administration of individual tires. Using RFID technology, the tire manufacturer will also develop a database that grants consumers access to information regarding the company's tires.

Market Impact: The partnership established between the Global Data Service Organization for Tyres and Automotive Components (GDSO), and Sumitomo Rubber Industries to improve tire traceability via RFID technology and a specialized database represents a substantial advancement for the worldwide automotive tire industry. This advancement is positioned to increase accountability and transparency within the tire industry. Through the provision of direct access to extensive information regarding the manufacturing processes and performance attributes of individual tires, this endeavor is anticipated to enhance consumer confidence, advocate for safety, and catalyze a favorable market transformation toward a more knowledgeable and quality-oriented clientele.

(Source: Tire Technology International News)

New Product Launch

In 2022, Hankook Tire introduced Smart iON AU06+, the first Truck and Bus Radial tire in its iON product line designed for high-end electric vehicles in South Korea. The Smart iON AU06+ is the most recent addition to its iON tire family for passenger EVs, which also includes winter and summer tires.

Market Impact: The introduction of the Smart iON AU06+ by Hankook Tire for high-end electric vehicles in the Korean market signifies a strategic response to the growing demand for specialized tires in the electric vehicle segment. This development reflects the tire industry's adaptation to the evolving automotive landscape, specifically catering to the unique requirements of electric trucks and buses. By expanding its iON product line to include a tire tailored for electric commercial vehicles, Hankook Tire is not only aligning with the rising prominence of electric mobility but also positioning itself to capture a niche market, contributing to the overall growth and diversification of the global Automotive Tire Market.

(Source: Tire Technology International News)

Automotive Tire Market Report Scope

Attribute

Details

Forecast Period

2023 to 2030

Historical Data Available for

2018 to 2022

Market Analysis

US$ Billion for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • South Asia & Pacific
  • East Asia
  • The Middle East & Africa  

Key Countries Covered

  • U.S.
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • Türkiye
  • China
  • Japan
  • South Korea
  • India
  • Southeast Asia
  • ANZ
  • New Zealand
  • GCC
  • Egypt
  • South Africa
  • North Africa  

Key Market Segments Covered

  • Tire Type
  • Season
  • Vehicle Type
  • Region

Key Companies Profiled

  • Continental Group
  • Cooper & Rubber Company
  • Hankook Co. Ltd.,
  • Goodyear & Rubber Company
  • Michelin Group,
  • Pirelli
  • Sumitomo Rubber Industries Ltd.,
  • The Bridgestone Group
  • Toyo & Rubber Co Ltd.
  • Yokohama Rubber Co. Ltd.

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

Available upon request

Automotive Tire Market Research Segmentation

By Tire Type:

  • Radial
  • Bias

By Season:

  • Summer Tire
  • Winter Tire
  • All Season Tire

By Vehicle Type:

  • Passenger Car
  • LCV
  • HCV

By Region:

  • North America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Latin America
  • Middle East & Africa

- Companies Covered in This Report -

  • Continental Group
  • Cooper & Rubber Company
  • Hankook Co. Ltd.,
  • Goodyear & Rubber Company
  • Michelin Group,
  • Pirelli
  • Sumitomo Rubber Industries Ltd.,
  • The Bridgestone Group

- Frequently Asked Questions -

The market for automotive tires is anticipated to grow at a value CAGR of 4.2% during the projected period, 2023 - 2030.

The automotive tire market was valued at US$134.2 Bn as of 2023.

The US presently holds the largest revenue share of the automotive tire market in the year 2023.

Some of the prominent players in the automotive tire market include Continental Group, Cooper & Rubber Company, Hankook Co. Ltd., Goodyear & Rubber Company, Michelin Group, and Pirelli.

LCVs represent the most lucrative, i.e., the fastest-growing segment in the automotive tire market during the forecast period.

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