Automotive Tire Market to Reach USD 186.5 Billion by 2031, Growing at 4.2% CAGR | Persistence Market Research

The global automotive tire market has witnessed a steady expansion over recent years, driven by rising vehicle production, replacement demand, and the growing focus on advanced tire technologies. According to Persistence Market Research, the market was valued at USD 140.1 billion in 2024 and is projected to reach USD 186.5 billion by 2031, expanding at a healthy CAGR of 4.2% during the forecast period. Increasing urbanization, higher disposable incomes, and consumer preference for personal mobility continue to drive demand across both passenger and commercial vehicle categories.

One of the major drivers of growth is the adoption of durable and fuel-efficient tires, supported by technological advancements in tire materials and manufacturing processes. Radial tires dominate the product landscape due to their widespread use in passenger cars, while Asia-Pacific emerges as the leading region thanks to massive vehicle sales and a strong automotive manufacturing base in China and India. With sustainability becoming a core priority, demand for eco-friendly tires is further accelerating the market's growth trajectory.

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Key Highlights from the Report

➤The global automotive tire market was valued at USD 140.1 billion in 2024.
➤It is forecasted to reach USD 186.5 billion by 2031.
➤The market is set to expand at a CAGR of 4.2% during 2024-2031.
➤Passenger car tires account for the largest revenue share.
➤Asia-Pacific leads the market, driven by large-scale vehicle production.
➤Sustainability and fuel-efficient tires are gaining notable traction.

Market Segmentation

The automotive tire market is segmented on the basis of product type, where radial tires hold the largest share owing to their superior performance, durability, and fuel efficiency. Radial tires are extensively used in passenger vehicles and light commercial vehicles, while bias tires continue to be preferred in certain heavy-duty and off-road applications. With the rise of electric vehicles (EVs), specialized tires with low rolling resistance and high load-bearing capacity are also witnessing growing adoption, further diversifying the product segment landscape.

On the end-user front, the market is broadly categorized into OEM (original equipment manufacturer) and aftermarket segments. The aftermarket remains the dominant contributor to revenue due to the recurrent replacement cycle of tires, typically ranging from 3 to 5 years depending on vehicle type and usage conditions. OEM demand, however, is strongly linked with global vehicle production trends, which are showing consistent growth, especially in emerging markets across Asia-Pacific, Africa, and Latin America.

Regional Insights

Regionally, Asia-Pacific dominates the automotive tire market, fueled by high vehicle sales in China, India, and Japan. The region's strong manufacturing ecosystem, cost-competitive labor, and expanding middle-class population continue to reinforce its leadership. Rapid infrastructure development and increased adoption of personal mobility solutions also contribute to the rising demand for passenger and commercial vehicle tires across this region.

Meanwhile, North America and Europe hold significant shares, supported by a mature automotive industry and rising replacement demand. These regions are also leading in the adoption of sustainable tire technologies, particularly with the rising penetration of EVs. In contrast, the Middle East and Africa show promising growth potential, driven by expanding logistics and construction activities that increase the demand for heavy-duty vehicle tires.

Market Drivers

A key growth driver for the automotive tire market is the consistent rise in global vehicle production, particularly in developing economies. With the demand for passenger cars and commercial vehicles climbing steadily, tire manufacturers are scaling up production capacity to meet growing needs. In addition, advancements in tire technology, including self-sealing, run-flat, and low rolling resistance tires, are fueling replacement demand, especially in developed markets.

Sustainability is another strong driver shaping the industry. Increasing environmental regulations are pushing manufacturers to innovate eco-friendly tires that reduce emissions and enhance fuel efficiency. The rise of EVs has also created opportunities for specialized tire designs that can handle higher torque and battery load requirements. Together, these factors are boosting both OEM and aftermarket demand globally.

Market Restraints

Despite the positive outlook, the market faces notable challenges. Volatility in raw material prices, particularly natural rubber and synthetic rubber, impacts the overall cost structure for manufacturers. Fluctuating crude oil prices also affect production expenses since many tire components are derived from petroleum-based materials.

In addition, the highly competitive nature of the tire market often results in pricing pressure, reducing profit margins for manufacturers. Strict government regulations related to tire labeling, testing, and environmental impact can also increase compliance costs, particularly for smaller players that may lack the resources to invest heavily in R&D.

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Market Opportunities

The automotive tire market presents significant growth opportunities with the rising adoption of electric and hybrid vehicles. EV-specific tires with reduced rolling resistance, enhanced grip, and noise reduction features are expected to see substantial demand over the next decade. This creates room for innovation and differentiation among tire manufacturers.

Another major opportunity lies in the digitization of tires, with smart tires integrated with sensors for real-time performance monitoring. Such products offer predictive maintenance benefits, appealing strongly to fleet operators and logistics companies. Emerging markets, particularly in Africa and Southeast Asia, also provide immense potential for aftermarket growth due to increasing vehicle ownership and expanding road infrastructure.

Frequently Asked Questions (FAQs)

➤How big is the automotive tire market in 2024, and what is its forecasted value by 2031?
➤Who are the key players in the global automotive tire market?
➤What is the projected growth rate (CAGR) of the automotive tire market during 2024-2031?
➤What is the market outlook and forecast for the automotive tire industry beyond 2031?
➤Which region is estimated to dominate the automotive tire market through the forecast period?

Company Insights

The automotive tire market is highly competitive, with leading companies focusing on capacity expansion, sustainability, and innovation. Key players include:

• Continental Group
• Cooper & Rubber Company
• Hankook Co. Ltd.,
• Goodyear & Rubber Company
• Michelin Group,
• Pirelli
• Sumitomo Rubber Industries Ltd.,
• The Bridgestone Group
• Toyo & Rubber Co Ltd.
• Yokohama Rubber Co. Ltd.

Recent Developments:

Several manufacturers have introduced EV-specific tires with improved durability and lower rolling resistance to cater to the fast-growing electric vehicle segment.
Leading tire makers are increasingly investing in sustainable materials and circular economy initiatives, such as recycling programs, to reduce environmental impact.

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