- Summary
- Table Of Content
- Methodology
Automotive Tire Market Size:
Automotive Tire Market size is estimated to reach over USD 166.07 Billion by 2032 from a value of USD 119.72 Billion in 2024 and is projected to grow by USD 122.63 Billion in 2025, growing at a CAGR of 4.4% from 2025 to 2032
Automotive Tire Market Scope & Overview:
Tires are a point of contact between the automobile and the road surface providing traction for acceleration, braking and limit the transmission of road vibrations to the automobile body. Additionally, the rising safety concerns associated with road accidents are driving the automotive tire market demand. Also, the advantages include improved handling, enhanced traction, better driving performance, and reduced road shock among others. Further, increased focus on sustainability is paving the way for advancing automotive tire market growth.
Automotive Tire Market Dynamics - (DRO) :
Key Drivers:
Smart Tire Technology Boosting Market Growth for Automotive Tire
The rising adoption of tires embedded with sensors and IoT connectivity in turn providing real-time data related to pressure, temperature, and tread wear among others is driving the automotive tire market growth. Further, smart tire technology innovation enhances safety, optimizes performance, and contributes to overall vehicle health monitoring driving the automotive tire market demand. Furthermore, monitoring capabilities empowers fleet managers to proactively tackle maintenance issues and maximize operational efficiency in turn driving the market progress.
- For instance, in February 2021, Sumitomo Rubber Industries, Ltd. launched sensing core which detects tire wear, road conditions, tire pressure and tire load and other pertinent information over the cloud for improving the automotive tire longevity.
Therefore, the rising adoption of smart tires empowering monitoring capabilities is driving the proliferation of market progress.
Key Restraints:
Safety Concerns are restraining the market growth
The common issues faced by tire manufacturers include over inflation, under inflation, cracking and bulging, misalignment among others which hinders the automotive tire market expansion. Also, tires utilized for longer period of time incur wear and tear impacting the performance of tires in turn hindering the market progress. Further, the damaged tire reduces braking efficiency and increases maintenance and cost.
Therefore, the aforementioned issues faced by tire is restraining the automotive tire market expansion.
Future Opportunities :
Durable and Sustainable Tire Material is Expected to Promote Potential Opportunities for Market Growth
The increasing focus towards manufacturing synthetic rubbers tires made from butadiene derived from biomass is driving the market towards sustainability as butadiene is a key component utilized to manufacture tires. Additionally, rising adoption of natural rubber is paving the way for automotive tire market opportunities.
- For instance, in January 2024, The Goodyear Tire & Rubber Company launched all season electric vehicle tire enhanced with sustainable materials. The tire contains at least 50% sustainable materials per tire by weight driving sustainability in automotive industry.
Hence, the rising adoption of natural rubber and tires made from butadiene derived from biomass is anticipated to increase the utilization in turn promoting prospect for automotive tire market opportunities during the forecast period.
Automotive Tire Market Segmental Analysis :
By Type:
Based on the type, the market is bifurcated into radial tires and bias ply tires.
Trends in the Type:
- The rising demand for more fuel-efficient and longer lifespan tires is driving the radial tires market trend.
- The bias play tires provide rigid sidewalls for operating in harsh conditions such as forests, brush, or stony ground in turn driving the automotive tire market development.
Radial Tires accounted for the largest revenue share in the year 2024.
- Radial tires are the most common types of tires utilized in the modern vehicles. Also, the tires offer smoother, more comfortable rides than Bias Ply tires driving the radial tire segment progress which in turn drives the automotive tire market size.
- Further, the rising adoption of tubeless radial tires is driving the radial tires segment development which in turn is boosting the automotive tire market share.
- For instance, in July 2023, MRF launched steel brace radial tires for application in high-performance motorcycles. The steel brace radial tires provide extraordinary performance under extreme conditions driving the segment performance.
- Thus, according to the automotive tire market analysis, rising adoption of tubeless tires is driving the radial tires segment progress.
The bias ply tires segment is anticipated to register the fastest CAGR during the forecast period.
- The bias ply tires are suitable for off-road conditions due to their rugged construction and tough tread patterns driving adoption in commercial vehicles.
- Additionally, the bias ply tires are less expensive than radial tires paving the way for bias ply tires segment adoption which in turn is fueling the automotive tire market share.
- Therefore, as per the market analysis, the rising adoption in commercial vehicles is anticipated to boost the market during the forecast period.
By Season Type:
Based on the season type, the market is segmented into summer tires, winter tires, all season tires, and others.
Trends in the Season Type:
- The trend towards technological advancement in winter tires such as better tread design and rubber compounds making it easier to use in winter season.
- The trend towards adoption of soyabean oil for manufacturing summer tires by blending oil with other materials to create a more sustainable, less polluting rubber compound.
All season tires accounted for the largest revenue share in the year 2024.
- The ability to maintain safe driving conditions during any season by incorporating soft rubber compound which maintains optimal properties at different temperatures is driving the adoption of all season tires.
- Additionally, the all-season tires are embedded with features such as tread patterns, sipes, and rubber compounds to provide grip and handling in dry, wet, and light snow/ice conditions in turn drives the automotive tire market size.
- For instance, in May 2021, Cooper Tire & Rubber Company launched rugged trek tire which is an all season tire designed for application in pickup truck and SUV for improving flexibility, reliability and performance on road.
- Thus, according to the automotive tire market analysis, the ability to maintain safe driving conditions is driving the adoption of all season tires.
The summer tires segment is anticipated to register the fastest CAGR during the forecast period.
- The summer tires provide key advantages such as improved speed and agility, increased cornering and braking capability, less grooving for maximum road holding performance, among others.
- Further, the increasing demand for renewable resource used to make summer tires is driving the automotive tire market progress.
- Therefore, as per the market analysis, the aforementioned advantages are anticipated to boost the market during the forecast period.
By Rim Size:
Based on the rim size, the market is segmented into below 15 inches, 15 inches to 20 inches, and above 20 inches.
Trends in the Rim Size:
- The trend toward vehicle customization is driving the adoption of above 2- inch rim size tires for providing improved performance on road.
- The towards enhancing vehicle’s look and performance is driving the adoption of 15 inch to 20 inch rim size tires.
The 15 inches to 20 inches accounted for the largest revenue share of 58.04% in the year 2024.
- The rising adoption of passenger cars, SUVs, and light commercial vehicles is driving the 15 inch to 20 inch segment. Also, the advantages of tires with 15 inches to 20 inches include improved performance, enhanced handling, and others.
- For instance, in April 2022, Goodyear Tire & Rubber Company expanded mastercraft courser portfolio by incorporating four new all-season tires ranging from 15 to 20 inch wheel diameters.
- Thus, as per the market analysis, the rising adoption of passenger cars, SUVs, and light commercial vehicles is driving the progress of 15 inch to 20 inch segment.
Above 20 inches is anticipated to register the fastest CAGR during the forecast period.
- The growing market for performance-oriented vehicles such as sport and luxury vehicles are driving the adoption of above 20 inch tires due to improved grip and braking efficiency.
- Further, the above 20 inch tires enhance their road command and stability as well as better road presence and handling driving applications in SUVs, crossovers and vehicles which run both on and off the road.
- Therefore, as per the market analysis, the growing market for performance-oriented vehicles is anticipated to boost the market during the forecast period.
By Application:
Based on the application, the market is segmented into passenger vehicles, commercial vehicles, two wheelers, and others.
Trends in the Application:
- The improvement in ADAS technology enhancing safety and performance of passenger vehicles is driving the automotive tire market trend.
- The shift towards hybrid vehicles is driving the adoption of commercial and passenger vehicles which in turn is fueling the market trend.
Commercial vehicles accounted for the largest revenue share in the year 2024.
- The rapidly growing infrastructure development and improving road connectivity is paving the way for the progress of commercial vehicles segment.
- Further, the rising adoption of electric vehicles is paving the way for the progress of commercial vehicles segment which in turn is fueling the automotive tire industry.
- For instance, according to International Organization of Motor Vehicle Manufacturers, commercial vehicles sales in Europe increased from 7% in FY2022 to 18% in FY2023 driving the progress of commercial vehicles segment.
- Thus, as per the market analysis, rapidly growing infrastructure development is driving the commercial vehicles segment development.
Passenger vehicles segment is anticipated to register the fastest CAGR during the forecast period.
- The increasing consumer preference for personal mobility is driving the sale of passenger vehicles.
- Additionally, the rapidly changing models and features in passenger vehicles driving adoption of advanced technologies such as IoT, ABS, ADAS among others which in turn is driving the passenger vehicles segment progress.
- Therefore, the increasing consumer preference as well as rapidly changing models and features are anticipated to boost the market during the forecast period.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 42.45 billion in 2024. Moreover, it is projected to grow by USD 43.57 billion in 2025 and reach over USD 60.33 billion by 2032. Out of this, China accounted for the maximum revenue share of 36.93%. The market growth for vehicle tires is mainly driven by increasing sales of commercial as well as passenger vehicles in the region. Furthermore, factors including growing electric vehicles sales are projected to drive the market during the forecast period.
- For instance, according to SIAM, passenger vehicle sales increase from 3.89 million units in FY2022-23 to 4.21 million units in FY 2023-24 driving the progress of passenger vehicles.
North America is estimated to reach over USD 44.32 Billion by 2032 from a value of USD 32.37 Billion in 2024 and is projected to grow by USD 33.12 Billion in 2025. The market in North American region is growing due to demand for automotive vehicles offers lucrative growth prospects for the market. Additionally, the progress of hybrid and electric vehicles is driving the market development.
- For instance, according to bureau of transportation statistics, annual motor vehicle production reached 9.15 million units in 2021 with 11.83 million units annual domestic sales proving a surging demand for vehicles in US region.
The regional evaluation depicts that the proliferation of eco-friendly vehicles as well as stringent rules and regulations is driving the market in Europe. Additionally, the key factor driving the market is growth of the transportation and logistics sectors in the Middle East and African region. Further, urbanization and increasing global trade activity is paving the way for the progress of market in Latin America region.
Top Key Players and Market Share Insights:
The global automotive tire market is highly competitive with major players providing automotive tire to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the automotive tire industry. Key players in the automotive tire market include-
- Pirelli & C. S.p.A. (Italy)
- Giti Tire (Singapore)
- Bridgestone Corporation (Japan)
- Continental AG (Germany)
- Michelin (France)
- Toyo Tire Corporation (Japan)
- The Yokohama Rubber Co., Ltd. (Japan)
- The Goodyear Tire & Rubber Company (USA)
- Hankook Tire (South Korea)
- Sumitomo Rubber Industries (Japan)
Recent Industry Developments :
Product Launch:
- In March 2025, Bridgestone launched R273 Ecopia regional tire and Duravis M705 enhanced with ENLITEN technology to help expand performance capabilities and elevate focus toward sustainability.
- In April 2024, Kumho Tire launched EV tire lineup designed to reduce cabin noise and enhance comfort with an added level of all-weather performance.
Collaborations and Partnerships:
- In April 2024, Continental AG partnered with Brabus to test the limits of the newly launched MaxContact MC7 sporty tires made for APAC region.
- In January 2024, Goodyear Tire & Rubber Company partnered with ZF cubiX for integration of tire intelligence technologies with vehicle motion control software.
Automotive Tire Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 166.07 Billion |
| CAGR (2025-2032) | 4.4% |
| By Type |
|
| By Season Type |
|
| By Rim Size |
|
| By Application |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the automotive tire market? +
The automotive tire market size is estimated to reach over USD 166.07 billion by 2032 from a value of USD 119.72 billion in 2024 and is projected to grow by USD 122.63 billion in 2025, growing at a CAGR of 4.4% from 2025 to 2032.
What specific segmentation details are covered in the automotive tire report? +
The automotive tire report includes specific segmentation details for type, season type, rim size, application, and regions.
Which is the fastest segment anticipated to impact the market growth? +
In the automotive tire market, the summer tire is the fastest growing segment during the forecast period due to increasing demand for renewable resource for manufacturing of summer tire. Who are the major players in the automotive tire market.The key participants in the automotive tire market are Pirelli & C. S.p.A. (Italy), Giti Tire (Singapore), Bridgestone Corporation (Japan), Continental AG (Germany), Michelin (France), Toyo Tire Corporation (Japan), The Yokohama Rubber Co., Ltd. (Japan), The Goodyear Tire & Rubber Company (USA), Hankook Tire (South Korea), Sumitomo Rubber Industries (Japan) and others.
What are the key trends in the automotive tire market? +
The automotive tire market is being shaped by several key trends including trend towards vehicle customization as well as adoption of soyabean oil for manufacturing of summer tires and other are the key trends driving the market.
