Automotive Tire Market to Reach US$ 179 Bn by 2030 at 4.2% CAGR - Persistence Market Research

The automotive tire market is witnessing robust growth, driven by the increasing demand for vehicles globally, alongside the growing emphasis on improving vehicle performance, safety, and fuel efficiency. According to a Persistence Market Research report, the automotive tire market is expected to reach US$ 179 billion by 2030, growing at a CAGR of 4.2% during the forecast period from 2024 to 2030. The demand for tires continues to rise due to increased vehicle production, with a specific focus on the growing popularity of electric vehicles (EVs), which further necessitate high-performance tires.

Key drivers behind this growth include advancements in tire technology, the rising awareness regarding vehicle safety, and the increasing need for fuel-efficient tires. Leading market segments include the radial tire and all-season tire categories, both of which are gaining preference due to their durability, performance, and ability to cater to a wide variety of driving conditions. The Asia Pacific region is expected to dominate the market, driven by robust vehicle manufacturing hubs such as China and India, which are not only key producers but also large consumers of automotive tires.

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Key Highlights from the Report

• The automotive tire market is projected to reach US$ 179 billion by 2030.
• The market is expected to grow at a CAGR of 4.2% during the forecast period.
• Radial tires are expected to remain the dominant product type in the market due to their superior performance and safety features.
• The all-season tire segment is likely to lead in terms of demand due to its versatility across different weather conditions.
• Asia Pacific is expected to be the leading geographical region, driven by the significant automotive manufacturing industries in China and India.
• Electric vehicle (EV) adoption is anticipated to fuel demand for high-performance and energy-efficient tires.

Market Segmentation

The automotive tire market is segmented by product type, end-user, and distribution channel, providing a detailed breakdown of the market dynamics.

• By Product Type: The market is primarily segmented into radial tires, bias tires, and others. Radial tires are forecasted to dominate due to their superior performance, fuel efficiency, and safety features. They are widely preferred in both passenger and commercial vehicles due to their ability to reduce rolling resistance and improve fuel economy. Additionally, the all-season tires category is expected to see substantial demand as consumers continue to favor tires that provide reliable performance across varying weather conditions.

• By End-User: The market is segmented into OEM (Original Equipment Manufacturer) and replacement categories. The OEM segment accounts for a significant share of the market, driven by increasing vehicle production across various regions. However, the replacement tire segment is projected to grow at a faster pace, as consumers replace tires at regular intervals to maintain vehicle performance and safety. Additionally, the demand for replacement tires is increasing due to the growing average lifespan of vehicles and the rising number of vehicles on the road.

Regional Insights

• Asia Pacific: The Asia Pacific region is expected to dominate the automotive tire market due to the strong presence of key vehicle manufacturing hubs such as China, India, and Japan. China is not only a significant producer but also the largest consumer of automotive tires globally. The rapid urbanization, increased disposable income, and demand for vehicles in developing countries like India are also contributing to the market growth. Furthermore, the increasing adoption of electric vehicles (EVs) in these countries further drives the demand for energy-efficient and high-performance tires.

• North America: North America, particularly the United States, is another important region in the automotive tire market. The rising adoption of SUVs and trucks, along with an increasing focus on vehicle safety, is driving the demand for premium tires. Additionally, the growing awareness regarding fuel-efficient tires and eco-friendly products is boosting the market. With many automotive companies in the region investing in the development of electric vehicles, there is also growing demand for high-performance tires suited for EVs.

Market Drivers

Several factors are contributing to the growth of the automotive tire market:

• Increasing Vehicle Production: Global vehicle production continues to rise, especially in emerging markets like China, India, and Brazil, which drives the demand for automotive tires. As vehicle manufacturing ramps up, the need for both OEM and replacement tires increases significantly.

• Technological Advancements in Tire Manufacturing: Continuous innovation in tire technology is also a key driver. Advancements such as smart tires, tire pressure monitoring systems (TPMS), and energy-efficient tires are being introduced to improve vehicle performance, safety, and fuel efficiency. These innovations are shaping the future of the tire industry, making tires more durable, cost-effective, and environmentally friendly.

• Growing Adoption of Electric Vehicles: The global push for electric vehicles (EVs) is opening up new opportunities for the tire industry. EVs require tires that provide low rolling resistance to enhance their range and efficiency. This has resulted in a significant demand for tires specifically designed for electric vehicles, driving the growth of the market.

Market Restraints

Despite the growth prospects, the automotive tire market faces several challenges:

• Fluctuating Raw Material Prices: The prices of essential raw materials like rubber, steel, and oil are highly volatile, which can impact the overall cost of tire production. This volatility can affect tire pricing and profit margins for manufacturers, posing a challenge for industry growth.

• Environmental Concerns and Regulations: The tire industry faces increasing pressure to develop environmentally friendly products and reduce tire waste. The disposal of used tires has become a growing environmental concern, leading to stricter regulations regarding tire manufacturing and recycling. Adapting to these regulations requires investment in sustainable technologies and materials, which could add to operational costs.

• Competition from Retreaded Tires: The market for retreaded tires, particularly in the commercial vehicle segment, is increasing due to their lower cost compared to new tires. While retreaded tires are a more sustainable option, they present competition to new tire manufacturers, particularly in regions where cost is a critical factor.

Market Opportunities

The automotive tire market is filled with ample growth opportunities:

• Electric Vehicle (EV) Tire Demand: As the adoption of electric vehicles continues to increase globally, there is a growing need for tires specifically designed for EVs. These tires must offer low rolling resistance, high durability, and better traction to accommodate the unique demands of electric drivetrains. Tire manufacturers are capitalizing on this opportunity by developing specialized tires for electric vehicles.

• Rising Demand for Premium and Performance Tires: There is an increasing demand for premium tires with better durability, fuel efficiency, and safety features. Consumers are willing to pay a premium for tires that offer superior performance, especially in the light of rising vehicle safety awareness. This trend is expected to continue as consumers increasingly prioritize quality over price when it comes to tires.

• Emerging Markets: The rapid growth of the automotive industry in developing regions such as Africa and Latin America presents a significant opportunity for tire manufacturers. With rising disposable incomes, increasing urbanization, and growing vehicle ownership, these regions offer a large, untapped market for automotive tires.

Reasons to Buy the Report

✔ Gain insights into market trends and future projections for the automotive tire market.
✔ Understand the impact of technological advancements on tire manufacturing and the growing demand for performance tires.
✔ Evaluate the growth potential of different tire segments, such as radial, bias, and all-season tires.
✔ Analyze regional market dynamics and identify opportunities in high-growth regions such as Asia Pacific and North America.
✔ Assess the competitive landscape and strategies of leading players in the market, enabling better business decisions.

Get a Sample PDF Brochure of the Report (Use Corporate Email ID for a Quick Response): www.persistencemarketresearch.com/samples/33549

Frequently Asked Questions (FAQs)

1. How Big is the Automotive Tire Market?
2. Who are the Key Players in the Automotive Tire Market?
3. What is the Projected Growth Rate of the Automotive Tire Market?
4. What is the Market Forecast for the Automotive Tire Market in 2030?
5. Which Region is Estimated to Dominate the Automotive Tire Market through the Forecast Period?

Company Insights

Key players in the automotive tire market include:

• Bridgestone Corporation
• Michelin
• Goodyear Tire & Rubber Company
• Continental AG
• Pirelli & C. S.p.A.

Recent Developments:

1. Bridgestone announced the launch of a new eco-friendly tire designed to reduce CO2 emissions, supporting the shift toward more sustainable mobility solutions.
2. Michelin is investing heavily in the development of airless tires as part of its commitment to innovation and sustainability, aiming to provide a longer-lasting, maintenance-free alternative to traditional tires.

The automotive tire market is experiencing growth due to the increasing demand for advanced tires across the automotive industry, with major players continuously innovating to meet the evolving needs of consumers and regulations. With opportunities in electric vehicles, emerging markets, and technological advancements, the tire industry is poised for further growth in the coming years.

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