Automotive Tire Market to Reach US$ 626.67 Billion by 2034, Advancing at 3.6% CAGR

The global automotive tire market is projected to increase from a value of US$ 403.53 billion in 2024 to US$ 626.67 billion by the end of 2034. Worldwide sales of automobile tires have been projected to rise at 3.6% CAGR from 2024 to 2034.The rising demand for automotive tires is driven by the global increase in vehicle production and sales, particularly in developing economies, coupled with advancements in tire technology. Automotive tires, essential components made of rubber and other materials like carbon black and synthetic rubber, provide traction, protect wheel rims, and absorb road vibrations. The growing popularity of electric vehicles (EVs), autonomous vehicles, and connected cars has further fueled demand for specialized tires, such as those with low rolling resistance for EVs, which enhance range and efficiency.

The surge in vehicle manufacturing, especially passenger and light commercial vehicles, is a key driver of the automotive tire market. As disposable incomes rise and road infrastructure improves globally, vehicle ownership has increased, particularly in regions like North America, East Asia, and South Asia. Additionally, the shift toward eco-friendly tires, prompted by stringent environmental regulations, is reshaping the market. Governments worldwide are enforcing laws to reduce CO2 emissions and improve fuel efficiency, driving demand for sustainable tire solutions. For instance, the European Union aims to cut vehicle CO2 emissions by 37.5% by 2030, while the United States mandates an average fuel efficiency of 54.5 miles per gallon by 2025, pushing tire manufacturers to innovate with bio-based materials like orange oils and synthetic rubber derived from biomass.

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"Investment in sustainable tire technologies and advanced manufacturing processes is crucial for meeting regulatory demands and consumer expectations. Tire manufacturers must prioritize eco-friendly materials and innovative designs to stay competitive in this evolving market," opines a Fact.MR analyst.

Automotive Tire Market Insights: Key Trends and Growth

The Fact.MR report underscores robust growth in the automotive tire market, driven by rising vehicle production and increasing consumer preference for high-performance and eco-friendly tires. The global production of passenger cars reached over 68 million units in 2022, a 7.9% increase from the previous year, directly boosting tire demand. All-season tires, valued at USD 171.5 billion in 2024, dominate the market due to their versatility and reliable performance in diverse weather conditions, such as light snow and rain. The passenger car segment, accounting for USD 273.19 billion in 2024, is the largest end-use category, fueled by growing consumer demand and advancements in tire durability and safety.

Technological innovations, such as airless and non-pneumatic tires, are gaining traction, particularly in markets like China, where consumers prioritize cost-effectiveness, durability, and performance. These tires, which offer puncture resistance and improved fuel efficiency, are expected to drive market growth. Additionally, the aftermarket tire segment is expanding due to increased vehicle longevity and higher annual mileage, with the U.S. Federal Highway Administration reporting an average of 13,476 miles driven per passenger vehicle annually. However, challenges such as volatile raw material costs, particularly for natural rubber, and supply chain disruptions pose significant hurdles to market expansion.

Key Takeaways from the Market Study

* The global automotive tire market is forecasted to grow at a CAGR of 3.6% from 2024 to 2034.
* North America holds a 35.7% market share in 2024, with the United States contributing USD 109.72 billion and growing at a CAGR of 5.1%.
* East Asia, led by China, is valued at USD 151.21 billion in 2024, with China's market projected to reach USD 101.76 billion by 2034 at a CAGR of 4.3%.
* All-season tires account for 42.5% of the market share in 2024, with a projected value of USD 258.81 billion by 2034.
* The passenger car segment dominates, with a market value of USD 273.19 billion in 2024, expected to reach USD 407.96 billion by 2034.
* Winter tires are projected to reach USD 180.48 billion by 2034, driven by demand in colder regions.
* South Korea's market is expected to grow at a CAGR of 3.9% through 2034.

Automotive Tire Market Competitive Landscape

Key players in the global automotive tire market include Continental AG, Bridgestone Corp., Michelin, Goodyear Tire and Rubber Company, and Pirelli & C. S.P.A. These companies are heavily investing in research and development to innovate with sustainable materials and advanced tire designs, such as tubeless and airless tires. Strategic partnerships with automakers and expansion of manufacturing facilities are common strategies to strengthen market presence. For example, Bridgestone introduced the R192E tire for electric buses in May 2023, designed to meet the specific performance needs of EVs. Similarly, Hankook Tire announced a USD 1.6 billion investment in August 2022 to double its manufacturing capacity in Clarksville, Tennessee, by 2026. Smaller players, such as Sailun Tires Ltd. and Apollo Tyres Ltd., leverage technological advancements from industry leaders to enhance their offerings. The competitive landscape is shaped by innovation, regulatory compliance, and global distribution networks.

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Automotive Tire Industry News

* In May 2023, Bridgestone launched the R192E tire, tailored for electric buses, addressing the need for high-torque and heavy battery pack compatibility.
* In August 2022, Hankook Tire expanded its manufacturing facility in Clarksville, Tennessee, with plans to significantly increase production capacity by 2026.
* In 2024, Michelin introduced a new line of eco-friendly tires using bio-based materials, aligning with global sustainability goals and regulatory requirements.

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