PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1565693
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1565693
The market for Electric Vehicle Tire was projected to reach USD 2,951.2 million in 2023 and expand at a CAGR of 22.20% between 2024 - 2032.
The tires for electric vehicles are specially made to fit their particular needs. With improved performance, safety, and efficiency, these tires are designed to handle the fast torque delivery and greater weight that come with electric cars. Passenger automobiles, commercial vehicles, and electric buses are among the main uses for electric vehicle tires. Stricter fuel economy and pollution criteria are being imposed by governments across the globe, which is having an impact on tire design and production procedures. In the electric vehicle market, eco-friendly tire designs and materials are becoming more popular due to regulations aimed at cutting carbon emissions, which is further influencing the regulatory environment for tires for electric vehicles.
Electric Vehicle Tire Market- Market Dynamics
Government Strict Rules are Encouraging Electric Vehicle Adoption
To boost the sales and uptake of EVs, governments everywhere have implemented a variety of laws and initiatives. To promote the use of electric vehicles, India introduced the FAME II plan in April 2019 with a budget of USD 1.19 billion (INR 10,000 crore). The strategy was designed to help with the deployment of a million e-two-wheelers, 500,000 e-three-wheelers, 55,000 e-passenger vehicles, and 7,000 e-buses. As stated in the budget for the fiscal year 2022-2023, the Indian government opted to prolong the FAME II plan through March 2024, even though it was scheduled to expire in 2022. Moreover, international regulatory agencies have declared that the adoption of EVs will assist residents in rural areas in reducing their expenses and carbon emissions, as well as the environmental impact of transportation in the local communities. For instance, by 2030, the federal government of the United States wants half of all new car sales to be zero-emission vehicles. Their main goal is to create a sensible and practical network of 500,000 chargers so that all Americans can use electric vehicles for short- and long-distance travel. Moreover, national strategies and goals have been established by nations like Sweden, Italy, Germany, France, the Netherlands, and the Netherlands to advance the development of electric vehicles. These policies, which aim to increase the adoption of EVs, include grants and financial incentives for both private and public charge installations. They also include programs like free public charging around cities. Furthermore, governments across the globe provide various incentives aimed at expediting the uptake of electric vehicles.
Electric Vehicle Tire Market- Key Insights
According to our research analyst's analysis, the global market is projected to expand at a CAGR of approximately 22.20% during the forecast period of 2024-2032.
The passenger vehicles category was predicted to hold the largest market share in 2023 based on type.
The 15-18'' category was predicted to hold the largest market share in 2023 based on tire size.
In 2023, the radial category emerged as the top segment based on application.
In 2023, the original equipment manufacturers (OEM) category emerged as the top segment based on distribution channel.
North America held the largest revenue share by region in 2023.
The Global Electric Vehicle Tire Market is segmented into Type, Tire size, Technology, Propulsion, and Region.
Based on propulsion, the market is segmented into Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), and Plug-in Hybrid Electric Vehicle (PHEV). The battery electric vehicle (BEV) category led the market in 2023 due to advancements in battery technology that are steadily easing consumer concerns about range anxiety. Due to improvements in battery chemistries and density, BEVs can now go farther between charges every year. Because of this, BEVs are now a more practical choice for daily commuting and city travel. Government programs encouraging the use of BEVs have increased public trust in electric drivetrains even more. Meanwhile, automakers have concentrated on combining longer vehicle ranges with amenities and performance that are on par with gasoline-powered vehicles. The fear that drivers would become stranded in the middle of their trip has been alleviated by these combined efforts. Because of this, more customers are at ease using BEVs for all of their daily transportation needs. BEVs continue to dominate the market because of the increasing acceptance and desire for them over other forms of electric vehicles.
In terms of distribution channel, the market is segmented into Aftermarket and original equipment manufacturers (OEM). Since auto manufacturing requires frequent replacements, the original equipment manufacturers (OEM) category held the largest market share in 2024. Original tires are standard equipment on new cars when they come off the assembly lines. These tires will need to be replaced after a few years due to wear and tear. To win this profitable post-warranty business, automakers use their first-fit contracts. Additionally, during routine maintenance, dealerships offer OEM-branded replacements. Convenience and brand loyalty retain a significant amount of replacement demand within automaker networks, even as independent dealers compete for the aftermarket. Furthermore, OEMs have an unrivaled chance to build enduring partnerships and post-purchase revenue through their electric lineup as zero-emission drivers become the standard. This guarantees that during their useful lives, the OEM segment will continue to derive value from electric fleets.
Electric Vehicle Tire Market- Geographical Insights
The Electric Vehicle Tire market is widely distributed geographically in North America, Latin America, Europe, Asia Pacific, the Middle East and Africa. These areas are further separated based on the countries that provide business.
The largest market growth is expected to occur in Asia-Pacific because of the region's popular tire manufacturers, the region's favorable government policies, the significant EV adoption in developing nations, and the region's rapid investment in various R&D initiatives to create cutting-edge tire technologies for EVs. Furthermore, Chinese enterprises have the potential to improve the online tire purchasing process by delivering a more streamlined shopping experience, which is why China has the greatest market revenue share in the APAC electric vehicle tire market. By using smartphone technology to quickly scan tire sidewall characteristics, such as size and load rating, tire scanning technology would make it easier for customers to identify and choose the right tires for their cars.
In the meantime, the market for electric vehicle tires is expanding at the quickest rate in North America, due to significant investments in EV infrastructure and technology made by both the public and commercial sectors. This market segment is driven by major automakers and tire manufacturers, who are increasingly concentrating on creating tires that are optimal for electric vehicles. In addition, the demand for electric vehicle tires is fueled by customers' desire for EVs due to environmental concerns and the availability of government subsidies for EV adoption, which uphold North America's dominant position in the market.
Leading companies such as Sumitomo Rubber Industries, Ltd., Apollo Tyres, Bridgestone Corporation, Goodyear Tire and Rubber Company, Continental AG, and others are concentrating on many crucial commercial approaches, including alliances, mergers and acquisitions, car innovations, and joint ventures, in order to broaden their range of technologies and boost their market shares in various areas. The two main strategic strategies that businesses in this industry have adopted are expansion and investing. Players in the industry are making significant investments in supply chain optimization, new manufacturing facility construction, and R&D.
January 2024: The Goodyear Tire & Rubber Company unveiled Goodyear ElectricDrive 2, the most recent model in its ElectricDrive range. With its eco-friendly construction, low rolling resistance, and long tread life, this all-season EV tire promises the best possible EV performance.
October 2023: In order to construct a tire manufacturing facility in Saudi Arabia, the Public Investment Fund (PIF) of Saudi Arabia and the well-known Italian tire maker Pirelli & C. SpA. joined into a joint venture. The plant is expected to start producing passenger vehicle tires of superior quality in 2026.
March 2023: The debut of FALKEN e. ZIEX, a new range of replacement tires for electric vehicles (EVs) in Europe, was announced by Sumitomo Rubber Industries. ZIEX is Sumitomo's second line of replacement tires made for electric vehicles, complementing the DUNLOP e. SPORT MAXX, which was introduced in China last year. The tire offers the highest fuel (energy) economy of any tire the firm has supplied to date.