Global Automotive Tire Market Size, Share, Growth Analysis, By Type(Radial Tires and Bias Tires), By End-User(Passenger Vehicles and Commercial Vehicles) - Industry Forecast 2024-2031

The global automotive tire market size was valued at USD 310.05 billion in 2022 and is poised to grow from USD 333.92 billion in 2023 to USD 604.47 billion by 2031, growing at a CAGR of 7.7% in the forecast period (2024-2031).

The automotive tire sector is fiercely competitive, driving companies to prioritize product differentiation through innovative technologies that offer exceptional performance and durability. One such innovation is the development of a self-regenerating tread pattern, ensuring consistent grip even as the tire wears down. With the global surge in sales of both passenger and commercial vehicles, the demand for tires is projected to witness substantial growth. According to the International Organization of Motor Vehicle Manufacturers, over 90 million new vehicles were produced worldwide, marking a 1.1% increase compared to previous years. Europe contributed approximately 17 million vehicles to this total, representing 19% of global production and driving the escalating demand for automotive tires. Tire manufacturers are actively engaged in creating sustainable tire solutions that are not only cost-effective but also meet rigorous performance criteria. For instance, Lehigh Technologies offers Micronized Rubber Powder (MRP), an environmentally friendly and high-performance material utilized in the production of over 300 million tires. This versatile and cost-effective feedstock supports sustainability initiatives within the industry. The adoption of technologies such as Low Rolling Resistance (LRR) and self-inflating mechanisms is gaining momentum among tire manufacturers, driven by the increasing emphasis on fuel efficiency. LRR tires, by reducing energy wastage and minimizing rolling effort, are aligned with the industry's objective to enhance fuel mileage. Consequently, manufacturers are compelled to integrate these technologies into their tires to meet the growing demand for improved fuel efficiency. Automotive tire suppliers vying for original equipment fitments are actively working to enhance Corporate Average Fuel Economy (CAFE) standards. The federal mandate to achieve 54.5 miles per gallon is propelling efforts to boost fuel efficiency across the industry.

Top-down and bottom-up approaches were used to estimate and validate the size of the global automotive tire market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Automotive Tire Market Segmental Analysis

The global automotive tire market is segmented based on type, end-user, and region. By type, the market is segmented into radial tires, and bias tires. By end-user, the market is segmented into passenger vehicles, and commercial vehicles. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Automotive Tire Market

A significant factor propelling growth in the global automotive tire market is the escalating demand for tires, driven by the robust sales of both passenger and commercial vehicles on a global scale. According to data from the International Organization of Motor Vehicle Manufacturers, the production of new vehicles has been steadily increasing, resulting in a significant uptick in tire consumption. This trend is anticipated to persist as countries invest in enhancing transportation infrastructure and meeting the growing demand for vehicles, consequently spurring the requirement for automotive tires.

Restraints in the Global Automotive Tire Market

A notable restraint in the global automotive tire market is the instability in raw material prices, notably rubber, which is a vital component in tire production. The unpredictable nature of rubber prices, influenced by factors like weather conditions, supply chain disruptions, and geopolitical events, poses a significant obstacle for tire manufacturers. Fluctuations in rubber prices can lead to increased production costs, affecting profitability and pricing stability. To address this challenge, tire manufacturers must adopt proactive supply chain management practices, closely monitor market trends, and consider alternative sourcing strategies to mitigate the impact of raw material price fluctuations.

Market Trends of the Global Automotive Tire Market

A significant trend in the global automotive tire industry is the growing demand for environmentally friendly and sustainable tire solutions. With increasing awareness of environmental issues and stricter regulations, there is a rising focus on developing tires that are energy-efficient, emit fewer carbon emissions, and support recycling and reuse initiatives. Tire manufacturers are investing in research and development to introduce innovative materials like bio-based or recycled rubber. They are also incorporating technologies such as low rolling resistance and self-inflating tires to improve fuel efficiency and minimize environmental impact. These efforts reflect the evolving preferences of consumers and the industry's commitment to sustainability.