Automotive Tires Market Size By Tire Type (Winter Tires, Summer Tires, Luxury Touring Tires), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles), By End User (OEM, Aftermarket), By Geographic Scope And Forecast

Automotive Tires Market Size And Forecast

Automotive Tires Market size is valued at USD 115.23 Billion in 2024 and is anticipated to reach USD 170.50 Billion by 2031, growing at a CAGR of 5.02% from 2024 to 2031.

• Automobile tires are a crucial component of a vehicle, providing propulsion and reacting to various road conditions.
• They are made from materials such as natural and synthetic rubber, wire, fabric, and carbon black. To create high-performance tires, manufacturers invest in research and development, with a focus on integrating nanotechnology into tire production.
• Demand for automobile tires is expected to increase over the forecast period. Modern pneumatic tires consist of two partsthe tread and the body. The body functions as a container for compressed air, while the tread provides traction.
• Furthermore, tires are classified based on their application, load capacity, and the type of vehicle they are used on, such as cars, airplanes, or bicycles.

Automotive Tires Market Dynamics

The key market dynamics that are shaping the automotive tires market include

Key Market Drivers

• Vehicle Sales and ProductionThe sales and production of automobiles in North America have a direct impact on the automotive tire market. Since tires are necessary for every vehicle, the demand for them increases during periods of increased vehicle production or sales. The demand for new tires is closely influenced by variables like consumer confidence, economic growth, and vehicle replacement cycles.
• Replacement DemandThe market for car tires is significantly influenced by replacement demand. Owners of vehicles must replace their tires as they become worn out from use, the elements, and the state of the road. The performance, longevity, and safety requirements of tires are some of the factors that affect how often they need to be replaced.
• Technological AdvancementsThe creation of run-flat, low-rolling-resistance, and all-season tires, among other innovations in tire technology, is what propels market expansion. The demand for improved tires is fueled by manufacturers’ continuous introduction of new materials and designs that improve tire performance, fuel efficiency, and safety.
• Environmental Concerns and Regulatory StandardsTight government rules about tire performance, safety, and the environment spur innovation and market expansion.
• Expanding Automotive Aftermarket SectorTire sales are significantly influenced by the automotive aftermarket sector, which includes tire retailers, repair facilities, and internet platforms. The demand for aftermarket tires is influenced by variables like consumer preferences, e-commerce penetration, and vehicle ownership trends, which presents opportunities for tire manufacturers and retailers.

Key Challenges

• Tight CompetitionThere are many national and international competitors fighting for market share in the automobile tire industry. The competition that is too fierce puts pressure on prices, reduces profit margins and makes it necessary to constantly innovate and set oneself apart to remain competitive.
• Price Volatility of Raw MaterialsSeveral factors, including changes in geopolitical tensions, the dynamics of global supply and demand, and fluctuations in currency values affect the prices of raw materials used in tire manufacturing, including natural rubber, synthetic rubber, and materials derived from oil.
• Safety Standards and Regulatory ComplianceTire manufacturers face difficulties in adhering to strict safety regulations and standards.
• Sustainability and Environmental ConcernsThe automotive sector, which includes the tire industry, is coming under more and more scrutiny for its sustainability and environmental policies.
• Supply Chain DisruptionsEvents like natural disasters, trade disputes, traffic jams, and geopolitical unrest can all lead to supply chain disruptions in the automobile tire industry.
• Rapid Technological AdvancementsTire manufacturers face challenges in keeping up with changing consumer preferences and evolving technologies, even as these advancements offer opportunities for innovation.

Key Opportunities

• Growing Replacement MarketWith a large vehicle park in North America, there is a significant replacement market for tires. As vehicles age and tires wear out, there’s a constant demand for replacement tires.
• Innovations in Tire TechnologyThere’s a growing demand for tires with advanced features such as run-flat technology, self-sealing capabilities, and improved fuel efficiency.
• Shift towards Electric Vehicles (EVs) and Autonomous Vehicles (AVs)The rise of electric vehicles and autonomous vehicles presents opportunities for tire manufacturers to develop specialized tires tailored to the unique needs of these vehicles.
• Focus on Sustainable and Eco-Friendly TiresThere’s a growing consumer demand for environmentally sustainable products, including tires. Manufacturers can capitalize on this trend by developing eco-friendly tires made from renewable materials, incorporating recycled materials, and optimizing tire designs for reduced carbon emissions and environmental impact.
• Expansion of Online Tire RetailingThe e-commerce channel for tire sales is growing rapidly in North America, driven by factors such as convenience, price transparency, and the availability of a wide selection of tire brands and models.
• Customization and PersonalizationConsumers are increasingly seeking personalized products and experiences, and tires are no exception. Manufacturers can offer customization options such as tire sizes, tread patterns, sidewall designs, and color variations to cater to individual preferences and vehicle aesthetics, creating opportunities for premium pricing and brand differentiation.
• Expansion into Emerging MarketsWhile North America remains a mature market for automotive tires, there are opportunities for expansion into emerging markets within the region, such as Mexico and Central America, where vehicle ownership and demand for tires are growing steadily.

Automotive Tires Market Regional Analysis

Asia Pacific

• The region with the largest revenue contribution, Asia-Pacific, is predicted to expand at a 4.5% CAGR. The rising demand for automobiles in expanding Asian economies has made the automobile business one of the fastest growing.
• The Asia-Pacific automotive tire market is anticipated to expand more quickly. The growth of the automotive industry in this region is aided by the improvement in living conditions brought about by a significant increase in disposable income.
• The Asia-Pacific region’s total tire production costs are anticipated to decrease due to low labor costs and easy access to raw materials. This is encouraging tire manufacturers to expand their market share in this region.
• The need for sophisticated feature vehicles is further increased by rising manufacturing capacity and rising demand for both light and heavy vehicles in nations like China, Japan, India, and South Korea.

North America

• The third-largest region is North America. Mexico, Canada, and the United States make up North America.
• The automotive industry is regarded as mature in North America. North American manufacturers are trying to lower labor costs by moving to more easily accessible raw material areas or by investing more capital.
• The development of high-tech tires for passenger cars is being spearheaded by major automakers, which is fueling the expansion of the tire market in North America.
• The need for fuel-efficient vehicles and a greater emphasis on lowering carbon footprints are other factors driving the growth of the automotive tire market.

Automotive Tires MarketSegmentation Analysis

The Automotive Tires Market is segmented based on Tire Type, Vehicles Type, End-user, and Geography.

Automotive Tires Market, By Tire Type

• Winter Tires
• Summer Tires
• Luxury Touring Tires
• Others

Based on Tire Type, the market is segmented into Winter Tires, Summer Tires, Luxury Touring Tires, and Others. The luxury touring tires segment is estimated to exhibit the highest growth during the forecast period. With the addition of more responsive handling, luxury tires are designed to provide a comfortable ride and reliable all-season traction. They have a higher speed rating than all-season touring tires, and they frequently have an asymmetrical tread pattern.

Automotive Tires Market, By Vehicle Type

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Others

Based on Vehicle Type, the market is segmented into Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, and Others. The passenger car segment is expected to account for the largest global market share during the forecasted years. Passenger automobiles often have rims that are 13″ to 15″ in diameter.

Automotive Tires Market, By End-user

• OEM
• Aftermarket

Based on End-user, the market is segmented into OEM and Aftermarket. The OEM segment is estimated to dominate the market during the forecast period. These tires are referred to as the Original Equipment tires or “OE” tires. Simultaneously, the aftermarket segment is expected to grow in sales as automotive makers collaborate with tire producers to meet their unique needs.

Automotive Tires Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the world

Based on Regional Analysis, the automotive tires market is classified into North America, Europe, Asia Pacific, and the Rest of the world. The Asia-Pacific region is expected to be the largest market for original equipment tires as it has emerged as a hub for automotive production manufacturers owing to cheap labor, large population, and evolving standards Owing to significant investment in the tire business, India is expected to dominate the region.

Key Players

The “Automotive Tires Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are Continental Corporation, Bridgestone Corporation, Pirelli Tire C. S.p.A. (China National Chemical Corporation), MICHELIN, Toyo Tire Corporation, Hankook Tire & Technology Co., Ltd., The Goodyear Tire & Rubber Company, and The Yokohama Rubber Co.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Automatic Tires Market Recent Developments

• In September 2022, Bridgestone Brazil funded a tire manufacturing facility in Camacari, Bahia. The firm is investing more than R$ 270 million in the modernization and expansion of production to keep up with the rising market demand for high-performance tires. This puts the company’s total investments announced since 2021 for the Bahia plant to more than R$ 970 million.
• In August 2022, Bridgestone and AWS announced Strategic Relationship Focused on Platform Development and Launching New Customer Solutions.

Report Scope

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• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments (which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes an in-depth analysis of the market from various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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