The global automotive tire market is poised for substantial growth, with sales expected to rise from USD 256.1 billion in 2025 to USD 471.7 billion by 2035, representing a CAGR of 6.3%. This expansion is fueled by a combination of rising vehicle production, evolving consumer preferences, and technological innovation. Developing regions, in particular, are driving demand due to increased manufacturing of passenger and commercial vehicles. Rapid urbanization and the surge in e-commerce activities have further accelerated tire consumption as logistics and transportation networks expand.
| Attributes | Key Insights |
|---|---|
| Estimated Size, 2025 | USD 256.1 billion |
| Projected Size, 2035 | USD 471.7 billion |
| Value-based CAGR (2025 to 2035) | 6.3% |
Consumer expectations and regulatory pressures are shaping product development, with emphasis placed on durability, fuel efficiency, and safety. Tire manufacturers are responding with advanced technologies that enhance performance while adhering to stricter environmental and safety standards.
A significant factor influencing the market is the accelerated adoption of electric vehicles (EVs). EVs demand specialized tires capable of handling higher torque and reducing rolling resistance to optimize battery efficiency. This has prompted tire producers to invest heavily in research and development of EV-specific tire technologies, aiming to improve range, comfort, and safety for electric cars.
Sustainability is becoming a core focus within the industry. The use of eco-friendly raw materials and sustainable manufacturing processes is gaining traction. Innovations such as integrating recycled components and developing energy-efficient tire designs are being increasingly adopted to reduce the environmental footprint of tire production and use.
Technological advancements are also redefining the market landscape. The introduction of smart tires equipped with sensors enables real-time monitoring of pressure, temperature, and tread wear. These intelligent systems facilitate predictive maintenance, enhancing vehicle safety and operational efficiency.
Asia Pacific is expected to continue dominating the automotive tire market, supported by a thriving automotive manufacturing sector and rising vehicle ownership. North America and Europe are projected to experience steady growth, driven by technological progress and growing emphasis on sustainability. This combination of market dynamics underscores a promising outlook for the global automotive tire industry over the next decade.
The table below presents the annual growth rates of the global automotive tire industry from 2025 to 2035. With a base year of 2024 extending to the current year 2025, the report examines how the sector's growth trajectory evolves from the first half of the year (January to June, H1) to the second half (July to December, H2). This analysis offers stakeholders insights into the industry's performance over time, highlighting potential developments that may emerge.
These figures indicate the growth of the sector in each half year, between the years 2024 and 2025. The industry is projected to grow at a CAGR of 6.1% in H1-2024.
| Particular | Value CAGR |
|---|---|
| H1 2024 | 6.1% (2024 to 2034) |
| H2 2024 | 6.3% (2024 to 2034) |
| H1 2025 | 6.2% (2025 to 2035) |
| H2 2025 | 6.4% (2025 to 2035) |
Moving into the subsequent period, from H1 2025 to H2 2025, the CAGR is expected to slightly decrease to 6.2% in the first half and relatively increase to 6.4% in the second half. In the first half (H1), the sector saw an increase of 10 BPS, while in the second half (H2), there was a slight increase of 10 BPS.
The passenger vehicle segment is projected to dominate the automotive tire market, accounting for approximately 56.3% of the market share in 2025. This dominance is fueled by rising personal vehicle ownership, especially across rapidly urbanizing regions such as India, China, and parts of North America. Improved disposable income levels and consumer preference for enhanced comfort and safety features have significantly driven tire demand for sedans, SUVs, and crossover vehicles.
Growing investments in road infrastructure, the proliferation of ride-sharing platforms, and advancements in vehicle technology are further propelling the segment’s expansion. As vehicle models diversify, demand increases for tailored tire specifications catering to different driving conditions and performance expectations. OEMs and aftermarket players alike are scaling production and inventory to meet rising consumer needs, reinforcing the passenger vehicle segment's leadership in the tire industry.
The radial tire segment-including both tubed and tubeless variants-is projected to command a dominant 84.3% share of the automotive tire market in 2025. Radial tires are widely adopted across vehicle types due to their structural advantages, including steel-belt reinforcement and flexible sidewalls, which offer better traction, improved ride comfort, and reduced rolling resistance. These attributes contribute to enhanced fuel efficiency and prolonged tire lifespan.
As automotive manufacturers prioritize sustainability, fuel economy, and reduced CO₂ emissions, radial tires are emerging as the preferred choice across both OEM and replacement segments. Their ability to deliver stable performance in both urban and highway environments has positioned them as the standard for modern vehicles. Increased demand for long-lasting, high-performance tires continues to accelerate the radial segment’s dominance, especially as electric and hybrid vehicles gain traction in global markets.
Growth in Electric Vehicles (EVs), Drives Market Growth
As EV sales surge, particularly in East Asia, North America, and Europe, the demand for tires specifically designed for EV driving conditions is rising. Low-rolling-resistance tires are essential for improving energy efficiency and driving range. Additionally, these tires must withstand the increased structural loads from battery-pack components while maintaining traction-promoting qualities.
Many of these new EV tires utilize sustainable rubber compounds or incorporate recycled materials from worn tires, reducing costs and enhancing environmental sustainability. With vehicle manufacturers expanding their EV lineups, expectations for market growth are set to rise.
For example, Michelin has used this electric vehicle growth to manufacture specialized tires such as the Michelin Pilot Sport EV. The low rolling resistance of such tires enhances energy efficiency and provides a better battery range.
Besides that, the tires can bear the higher weight of electric vehicles because of larger-sized battery packs without losing their durability and performance. At the same time, Michelin's innovation in making tires specifically for EVs places it well to benefit from the increasing demand for electric vehicles and overall sustainable mobility solutions.
Rising Demand for Fuel-Efficient Tires That Reduce Rolling Resistance, Lowering Fuel Consumption and Emissions
The increasing demand for fuel-efficient tires is driven by the fact that these tires reduce rolling resistance, which improves fuel efficiency and cuts overall operating costs for vehicle owners. These tires respond to consumer demands for cost-effective and eco-friendly solutions.
With the proliferation of electric and hybrid vehicles, there is an increasing demand for sophisticated tire technologies to optimize energy efficiency and battery performance. With features such as better mileage and durability, fuel-efficient tires are gaining immense popularity among consumers seeking optimal vehicle performance, thereby contributing significantly to the growth of the automotive tire market globally.
Increase in Vehicle Production and Ownership, Boosts Adoption of Automotive Tire
Automotive tire demand is driven by vehicle production and ownership. Global vehicle production, specifically in emerging economies, causes an increase in demand for tires. Urbanization, growing disposable incomes, and easier access to finance are increasing vehicle ownership, thus boosting the demand in both the OEM and replacement tire markets.
The growth in private car ownership in developing nations further boosts tire demand. With an increased number of vehicles on the road, the requirement for regular replacement and maintenance of tires also increases, propelling market growth. Manufacturers are addressing this demand by innovating and creating specialized tires tailored to the unique requirements of different vehicles, enabling them to secure a larger share of the growing market.
Volatility in Raw Material Prices Impacting Tire Manufacturing Costs
Price volatility of raw materials is among the key factors restraining growth in the automotive tire market. Manufacturing tires requires many raw materials, including natural rubber, synthetic rubber, steel, and oil-based products.
Since this is influenced by various factors ranging from disruption in supply chains and weather conditions to other global dynamics in trade, these fluctuations increase the cost of production due to the changing prices of commodities. This volatility, in turn, forces tire manufacturers to bear the increased cost or pass it on to consumers, reducing demand.
Price instability makes it hard for businesses to forecast budgets, invest in innovation, or offer price competitiveness. As manufacturers battle to maintain profit margins in such uncertainty, overall market growth is affected negatively, further making it tough for the companies to sustain pricing stability and development in the long run.
Competition from Emerging Alternative Tire Technologies and Materials
New technologies of tires, such as airless tires, are attracting interest with promises of advantages like puncture resistance and longer life. These emerging alternative technologies could reduce demand for conventional rubber tires, thereby depressing market growth.
Competition also emanates from increasingly using sustainable materials, such as bio-based or recyclable tires. As more eco-friendly products are being introduced, conventional tire companies need to change their production methodologies, which dampens market growth overall.
The global automotive tire industry recorded a CAGR of 5.9% during the historical period between 2020 and 2024. The growth of the automotive tire industry was positive as it reached a value of USD 240.9 billion in 2024 from USD 200.6 billion in 2020.
The global automotive tire market growth during 2020 to 2024 has been due to several reasons. Vehicle production and ownership have increased across most developing economies, increasing tire demand. An increase in disposable income in developing economies and a growing preference towards private transport foster demand for tires.
The shift towards fuel-efficient and eco-friendly tires and the development of tire technologies for electric and autonomous vehicles supported the market's growth. These, put together with recovery from the COVID-19 pandemic and increased vehicle sales, have driven positive growth in the automotive tire industry.
Tier 1 companies include industry leaders with annual revenues exceeding USD 1,500 million. These companies are currently capturing a significant share of 45-50% globally. These frontrunners are characterized by high production capacity and a wide product portfolio.
They are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base. The firms provide a wide range of products and utilize the latest technology to meet regulatory standards. Prominent companies within Tier 1 include: Bridgestone Corporation, Michelin, The Hercules Tire and Rubber Company, Continental AG, and others.
Tier 2 companies encompass mid-sized participants with revenues ranging from USD 1,000-1,500 million, holding a presence in specific regions and exerting significant influence in local economies. These firms are distinguished by their robust presence overseas and in-depth industry expertise.
They possess strong technology capabilities and adhere strictly to regulatory requirements. However, the firms may not wield cutting-edge technology or maintain an extensive global reach. Noteworthy entities in Tier 2 include Nitto Tires, Pirelli and C. S.p.A., Yokohama Rubber Company Limited, and others.
Tier 3 encompasses most small-scale enterprises operating within the regional sphere and catering to specialized needs with revenues below USD 1,000 million. These businesses are notably focused on meeting local demand and are categorized within the Tier 3 segment.
They are small-scale participants with limited geographical presence. In this context, Tier 3 is acknowledged as an informal sector, indicating a segment distinguished by a lack of extensive organization and formal structure compared to the structured one. Tier 3 includes Zhongce Rubber Group Co., Ltd., Cheng Shin Rubber Ind. Co. Ltd., Goodyear Tire and Rubber Company, and many more small and local players.
The section below highlights assessments of automotive tire market sale across key countries. United Kingdom, India, and USA are expected to showcase promising growth, with each exhibiting a strong CAGR through the forecast period.
| Countries | Value CAGR (2025 to 2035) |
|---|---|
| United Kingdom | 7.2% |
| India | 6.9% |
| USA | 5.4% |
| China | 6.8% |
| Germany | 7.1% |
The boom in the United Kingdom automotive tire market is due to increasing adoption of electric vehicles within the UK. Thus, with the UK government putting increased pressure on adopting cleaner and greener transportation, demand has started increasing for special low-rolling resistance tires designed to increase energy efficiency and battery life. Hence, these companies are developing products to cater to the particular needs of EVs, requiring higher durability and weight-bearing capacity owing to larger-sized battery packs.
The growing demand for luxury vehicles in the UK further fuels the tire market. As consumers increasingly opt for high-performance cars, there is a rising need for premium tires offering better handling, safety, and fuel efficiency. Luxury car manufacturers emphasize quality and innovation, driving the tire market's growth in terms of sales and innovation.
The tire market in India is growing with increasing vehicle ownership, driven by urbanization, rising disposable incomes, and the growing middle class. More people are buying passenger cars, two-wheelers, and light commercial vehicles, which is driving up tire demand. The increase in private car ownership also leads to higher demand for replacement tires, fueling growth in the sector. This trend is more marked in the tier 2 and tier 3 cities where vehicle sales are growing faster.
Another driver is the growth in the e-commerce logistics sector in India, wherein more and more companies are investing in logistics fleets to cater to the demand for goods and deliveries. This, in turn, increases the demand for tires in commercial vehicles. The expansion of this sector boosts the demand for durable, cost-effective tires designed for heavy usage and long-distance travel.
China's tire market growth is highly indebted to the country's ever-growing automotive industry. China, the world's biggest car producer and consumer, continuously sees high demand for passenger vehicles, commercial vehicles, and EVs. Increasing automotive production and consumption boosts demand for both OEM and replacement tires across various vehicle segments, while China aims to take the lead globally in manufacturing and exporting vehicles.
This is further supported by the rise of electric vehicle production in China, with the government offering incentives for consumers to pay for EVs and generally growing interest in them. There is an increasing need for special tires for EVs with lower rolling resistance and can bear the singular stresses EVs place on their tires. China's drive for sustainability and the move toward EVs will keep the demand for specialized tire products on their toes.
The section provides comprehensive assessments and insights that highlight current opportunities and emerging trends for companies in developed and developing countries. It analyzes advancements in manufacturing and identifies the latest trends poised to drive new applications in the market.
A few key players in the automotive tire industry are actively enhancing capabilities and resources to cater to the growing demand for the compound across diverse applications. Leading companies also leverage partnership and joint venture strategies to co-develop innovative products and bolster resource base.
Significant players are further introducing new products to address the increasing need for cutting-edge solutions in various end-use sectors. Geographic expansion is another important strategy that reputed companies are embracing. Start-ups are likely to emerge in the sector through 2035, thereby making it more competitive.
Industry Updates
| Report Attributes | Details |
|---|---|
| Current Total Market Size (2025) | USD 256.1 billion |
| Projected Market Size (2035) | USD 471.7 billion |
| CAGR (2025 to 2035) | 6.3% |
| Base Year for Estimation | 2024 |
| Historical Period | 2020 to 2024 |
| Projections Period | 2025 to 2035 |
| Quantitative Units | USD billion for value; Million units of tires for volume |
| Vehicle Types Covered (Segment 1) | 2-Wheeler, 3-Wheeler, Passenger Vehicle, Commercial Vehicle, Specialty Vehicle |
| Tire Structures Analyzed (Segment 2) | Radial (Tubes, Tubeless), Bias |
| Sales Channels Covered (Segment 3) | OEM, Aftermarket |
| Regions Covered | North America; Latin America; Europe; Asia-Pacific; Middle East & Africa |
| Countries Covered | United States, China, India, Germany, France, Japan, South Korea, Brazil, Canada |
| Key Players Influencing the Market | Bridgestone, Michelin, Hercules Tire and Rubber, Continental AG, Nitto Tires, Pirelli, Yokohama Rubber, Zhongce Rubber, Cheng Shin Rubber, Goodyear Tire and Rubber |
| Additional Attributes | Dollar sales by vehicle type and tire structure, trends in OEM vs aftermarket demand, fuel efficiency impact, regional infrastructure growth |
| Customization and Pricing | Customization and Pricing Available on Request |
In terms of vehicle type, the industry is divided into 2 Wheeler, 3 Wheeler, Passenger Vehicle, Commercial Vehicle, and Specialty Vehicle.
In terms of tire structure, the industry is divided into Radial (Tubes, Tubeless), and Bias.
In terms of sales channel, the industry is divided into OEM, and Aftermarket.
Key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, Middle East and Africa (MEA), have been covered in the report.
The global market was valued at USD 240.9 billion in 2024.
The global market is set to reach USD 256.1 billion in 2025.
Global demand is anticipated to rise at 6.3% CAGR.
The industry is projected to reach USD 471.7 billion by 2035.
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