Comprehensive Snapshot for Pneumatic Tire Market, Including Regional and Country Analysis in Brief.
Industry: Automotive & Transportation
Published Date: May-2025
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 192
Report ID: PMRREP35268
The global pneumatic tire market size is projected to rise from US$ 377.9 Bn in 2025 to US$ 517.8 Bn at a CAGR of 4.6% by 2032. According to the report by Persistence Market Research, rising demand for pneumatic tires from the automotive sector, increasing investments in road infrastructure development, and rapid growth of electric vehicles (EVs) are factors anticipated to favor market growth in the forthcoming years.
The rise in number of vehicle fleets is another factor likely to create positive impact in the foreseeable future. For example, as per studies, the global fleet is projected to expand from approximately 29,000 aircraft in 2025 to 38,300 by 2035, overall a 32% increase. On average, fleet vehicles replace tires 2-3 times faster than personal-use vehicles due to heavy usage, running on rough terrains, and constant operation. As a result, fleet owners require smart, durable, cost-efficient, and eco-friendly tires, encouraging a huge demand in the coming years.
Key Industry Highlights:
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Global Market Attribute |
Key Insights |
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Pneumatic Tire Market Size (2025E) |
US$ 377.9 Bn |
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Market Value Forecast (2032F) |
US$ 517.8 Bn |
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Projected Growth (CAGR 2025 to 2032) |
4.6% |
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Historical Market Growth (CAGR 2019 to 2024) |
3.8% |
One of the key drivers shaping the growth is the rapid electrification of vehicles. Unlike traditional internal combustion engine vehicles, EVs require specific performance demands on tires. These include the need for low rolling resistance to extend battery range, enhanced grip to handle high torque, and noise reduction for a quieter ride experience. As a result, manufacturers are focusing on developing specialized pneumatic tires with advanced rubber compounds, optimized tread patterns, and reinforced sidewalls for EVs. These designs help reduce energy loss, improve safety, and enhance overall driving comfort.
This shift is significant evident in countries leading the global EV transition, such as the U.S., China, and Germany. These markets are experiencing a surge in EV sales and are backed by strong government initiatives to support green mobility. For instance, China’s 14th Five-Year Plan aims to increase the share of new energy vehicles (NEVs) to 40% of all vehicle sales by 2030, directly accelerating demand for EV-compatible tires. These initiatives are anticipated to favor market growth during the forecast period.
Companies are expected to face challenges due to the volatile pricing of raw materials such as natural and synthetic rubber, carbon black, and petroleum-based chemicals. These materials form the foundation of tire manufacturing, yet their prices are increasingly unpredictable. Natural rubber is highly sensitive to climate conditions and geopolitical issues in major producing countries such as Thailand, Indonesia, and Vietnam. When flooding or drought hits these regions, rubber tapping is disrupted, leading to supply shortages and price spikes. According to the Association of Natural Rubber Producing Countries (ANRPC), natural rubber prices surged by over 20% in early 2024 due to unfavorable weather patterns combined with tighter supply chains. This leads to the original equipment manufacturers (OEMs) witnessing high manufacturing costs, further impacting the overall profitability and operational planning. The price volatility of raw materials is expected to impact companies operating in the price-sensitive regions of Asia Pacific, Latin America, and Africa.
Predictive maintenance is gaining traction as companies are focusing on boosting efficiency and reducing operational costs. Pneumatic tires embedded with IoT sensors can monitor critical parameters such as air pressure, temperature, tread depth, and road conditions in real time. This data allows fleet managers to predict failures before they happen, schedule timely maintenance, and avoid costly breakdowns. Further, this gives companies a valuable edge in time-sensitive industries such as delivery, construction, and long-haul transport.
Increasing adoption of connected vehicle systems is accelerating this shift, especially in regions such as the U.S., Germany, and parts of Southeast Asia, where fleet digitization is picking up pace. For tire manufacturers, this presents a dual opportunity of not only to sell smarter, premium tire products but also to partner with telematics and fleet management platforms, becoming part of a larger mobility ecosystem. With increasing demand for safety, uptime, and fuel efficiency, smart tire solutions are gaining global traction. This presents long-term growth and innovation opportunities for industry players. For instance, in January 2025, Yokohama Rubber, a Japan-based tire manufacturing company, began testing a novel AI-based tire pressure monitoring system (TPMS) to gauge air pressure through sound made by tapping bus and truck tires. This technology aims to help logistics companies improve fuel efficiency and reduce operational costs.
Based on product, the market is segmented into radial and cross-ply. Among these, the radial segment is expected to register an astonishing share of 72% in 2025. Radial tires are widely adopted in passenger vehicles across the globe. For instance, as per studies, radial tires account for a larger portion in passenger vehicles. These tires offer enhanced fuel efficiency, longer tread life, and better handling and ride comfort, driving demand from commercial fleets, and high-speed applications as well.
On the other hand, cross-ply segment is projected to register the fast growth during the forecast period. Cross-ply tires offer advantages such as better resistance and high load-carrying capacity. Therefore, increasing demand from agricultural machinery, off-road and heavy-duty applications is driving the segment growth.
By vehicles, the industry is divided into 2-wheelers and 4-wheelers. Out of these, the 4-wheelers segment is projected to dominate and register a share of approximately 82% in 2025. This segment includes passenger cars, SUVs, light trucks, and heavy commercial vehicles. The 4-wheeler segment is likely to witness leading growth due to factors such as a surge in road travel, dense commercialization and, improving road infrastructure.
Asia Pacific is likely to register a revenue share of about 32% in 2025 and dominate the market in the forthcoming years. This is primarily due to the high vehicle production levels, dense population, and rapid urbanization across several countries. Increasing use of two-wheelers and affordable passenger vehicles, especially in developing nations, continues to drive tire demand. Moreover, major rubber-producing countries such as Thailand, Indonesia, and Vietnam contribute to cost advantages in tire production, strengthening the region’s global footprint.
China pneumatic tire market is experiencing substantial growth, fueled by the country's strong domestic demand for passenger cars, commercial trucks, and electric vehicles. China is the largest automobile market in the world and a major hub for tire manufacturing and exports. According to data, in 2024, China’s automotive industry witnessed the sale of about 31.44 million vehicles, registering a 4.5% year-on-year increase.
North America is anticipated to witness considerable growth in the market between 2025 and 2032. The region is seeing increased investment in smart tire technology and predictive maintenance, especially among logistics firms and public transportation fleets. Additionally, the resurgence of domestic manufacturing in the U.S., combined with a consumer shift toward sustainable tire options, is expanding the market for both new and replacement tires.
The U.S. is investing heavily in EV infrastructure and smart mobility, which is expected to further boost demand for advanced pneumatic tires designed for electric and autonomous vehicles. According to the U.S. Department of Transportation, the government is investing significantly in the development of EV infrastructure with the Infrastructure Investment and Jobs Act allocating US$ 7.5 billion to build nationwide EV chargers.
The global pneumatic tire market is witnessing intense competition, shaped by the presence of global giants, regional players, and specialized niche companies. The competition is driven by a combination of pricing strategies, technological innovation, distribution reach, product durability, and brand recognition. Companies are adopting strategies such as partnerships, investments in research and development activities, and collaborations with regional players to diversify their product portfolios. For instance in April 2025, OTR Engineered Solutions announced its partnership with P.S.I Partner to launch an innovative TPMS that provides real-time monitoring, telematics, alerts, and simple installation for off-road vehicles.
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Report Attribute |
Details |
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Historical Data/Actuals |
2019 - 2024 |
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Forecast Period |
2025 - 2032 |
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Market Analysis |
Value: US$ Bn |
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Geographical Coverage |
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Segmental Coverage |
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Competitive Analysis |
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Report Highlights |
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Customization and Pricing |
Available upon request |
By Product
By Vehicles
By Sales
By Region
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The global market is projected to value at US$ 377.9 Bn in 2025.
The market is driven by rising demand from the automotive sector, increasing road infrastructure investments, and the rapid growth of electric vehicles (EVs).
The market is poised to witness a CAGR of 4.4% from 2025 to 2032.
The key market opportunities include the integration of smart tire technology and the growing demand for predictive maintenance solutions in fleet operations.
Major players in the pneumatic tire industry include, Continental AG, Michelin, Yokohama, Pirelli & C. S.p.A, and Cooper Tire & Rubber Company.
