Automotive Tire Market to Exceed USD 471.7 billion by 2035, Driven by EV Growth and Smart Technology

The global automotive tire market is on a trajectory of robust growth, with a new market report forecasting a compound annual growth rate (CAGR) of 6.3% between 2025 and 2035. This expansion is projected to see the market swell from an estimated USD 256.1 billion in 2025 to a significant USD 471.7 billion by 2035, fueled by rising vehicle ownership, the booming electric vehicle (EV) sector, and a surge in technological innovation.

The report, a semi-annual market update, highlights key trends and segments shaping the industry. The first half of 2025 saw a strong performance, with a CAGR of 6.2%, which is expected to increase to 6.4% in the latter half of the year. This momentum is driven by a global push for enhanced vehicle performance, safety, and sustainability.

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Key Market Insights and Segments:

• Passenger Vehicle Market Dominance: The passenger vehicle segment is set to be the largest and most dynamic category, commanding a 48.0% market share in 2025. This is propelled by increasing urbanization and a growing middle class in emerging economies, which is driving up demand for both original equipment (OEM) and replacement tires.

• Radial Tires Lead with Efficiency: Radial tires will continue their dominance, projected to hold a 62.0% share of the tire structure market in 2025. Valued for their superior durability, reduced rolling resistance, and improved fuel efficiency, radial tires are a go-to choice for automakers and consumers seeking cost-effective and high-performance solutions.

• Electric Vehicle (EV) Growth Accelerates Market: The surging demand for EVs, particularly in East Asia, North America, and Europe, is a primary growth driver. EV-specific tires-like the Michelin Pilot Sport EV-are designed to meet unique requirements for low rolling resistance to maximize battery range, as well as handle the increased weight and torque of electric vehicles.

• Smart Tires and Sustainability Drive Innovation: The industry is undergoing a technological transformation. On January 7, 2025, Goodyear announced the development of its Sightline smart tire technology, which can detect hazardous road conditions and integrate with a vehicle's automatic emergency braking (AEB) system, a major step forward in vehicle safety. Concurrently, sustainability is a core focus, with companies like Goodyear introducing products with up to 100% sustainable materials, reflecting a global shift toward eco-friendly solutions.

Competitive Landscape Overview
The automotive tire market is a highly competitive arena, segmented into three tiers based on revenue and market influence.
• Global Leaders: These industry giants, with annual revenues exceeding USD 1,500 million, capture 45-50% of the global market. Companies like Bridgestone, Michelin, and Continental are defined by their extensive production capacity, wide product portfolios, and robust global presence. They lead in R&D, consistently introducing cutting-edge technologies and sustainable practices. Recent developments include Continental's expansion of its Rayong, Thailand plant in October 2024 to meet growing demand in the Asia-Pacific region.

• Mid-Sized Players: With revenues between USD 1,000 million and USD 1,500 million, these firms, including Pirelli and Yokohama, have a strong presence in specific regions and wield significant influence in local economies. They possess deep industry expertise and are quick to adopt new technologies, although they may not have the same global reach as their counterparts.

• Regional Specialists: This segment consists of smaller, regional enterprises with revenues below USD 1,000 million. They cater to specialized local demands and are highly competitive within their niche. This group includes a vast number of local players and companies like Goodyear Tire and Rubber Company, which despite being a prominent global name, is a part of this category based on the report's revenue segmentation.

The competitive environment is ripe for partnerships, joint ventures, and new product introductions, with startups expected to further intensify the landscape by 2035. While the market faces headwinds from raw material price volatility, the overarching trends of technological advancement and increased demand will continue to drive its growth and evolution.

Market Report Now Available. Request Customization or Purchase Here: https://www.futuremarketinsights.com/reports/sample/rep-gb-2686

Explore FMI's related ongoing Coverage in Automotive Domain:

Automotive Tire Inflator Market: https://www.futuremarketinsights.com/reports/automotive-tire-inflator-market

Automotive Tire Accessories Market: https://www.futuremarketinsights.com/reports/automotive-tire-accessories-market

Europe Automotive Tire Market: https://www.futuremarketinsights.com/reports/europe-automotive-tire-market

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