According to the report by Expert Market Research (EMR), the global tyre market is projected to grow at a CAGR of 6.3% between 2024 and 2032. This growth is supported by the rising demand for vehicles across the globe, advancements in tyre technology, and the growing trend towards more eco-friendly and sustainable solutions in the automotive sector. The market’s expansion is further fueled by the increased need for tyres with superior performance, durability, and efficiency, which can withstand the demands of modern driving.
Tyres are crucial components of vehicles, providing traction, stability, and safety, and their performance directly impacts fuel efficiency and the overall driving experience. With automotive manufacturing steadily increasing, particularly in emerging markets such as India and China, the tyre industry is witnessing a surge in demand. Additionally, the development of innovative tyres, such as those designed for electric vehicles (EVs), high-performance tyres, and smart tyres, is reshaping the global market, offering opportunities for growth and diversification.
The increasing popularity of electric vehicles, which require specific types of tyres to support their design and functionality, further strengthens the tyre market. As electric vehicles grow in popularity due to their environmental benefits, tyre manufacturers are focusing on creating more efficient, longer-lasting tyres that meet the unique requirements of EVs, including lower rolling resistance and improved durability.
Urbanization and the growing middle class in developing economies also contribute significantly to the tyre market’s growth. As more individuals in these regions acquire vehicles, the demand for tyres continues to rise, expanding the market. Furthermore, the shift towards larger vehicles, such as SUVs and crossovers, has also driven tyre demand, as these vehicles require larger and more robust tyres.
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Market Segmentation
The global tyre market can be segmented based on type, distribution channel, vehicle type, and region.
Market Breakup by Type
- Radial Tyres: Radial tyres dominate the global market due to their superior performance, fuel efficiency, and enhanced durability. They are primarily used in passenger cars, trucks, and buses, offering improved handling and comfort. The continuous development of radial tyre technologies, such as reinforced sidewalls and better heat dissipation, further supports their widespread adoption.
- Bias Ply Tyres: Bias ply tyres are primarily used in commercial and agricultural vehicles due to their strong construction and load-bearing capacity. While their use is declining in passenger vehicles, demand remains high in specific applications, such as off-road vehicles and trucks.
- Tubeless Tyres: Tubeless tyres have gained significant popularity due to their safety benefits, such as reduced risk of blowouts, and ease of maintenance. These tyres are widely used in passenger vehicles, motorcycles, and commercial vehicles.
Market Breakup by Distribution Channel
- Original Equipment Manufacturer (OEM): OEM tyres are supplied directly to automobile manufacturers for use in new vehicle production. As the automotive sector grows, OEM tyres are expected to witness significant growth, driven by the increasing production of passenger vehicles and commercial trucks.
- Replacement Market: The replacement market, where consumers replace worn-out tyres, is a key driver of the tyre market. It is supported by the rising number of vehicles on the road, growing vehicle lifespan, and the increasing need for regular tyre replacements. The growing trend of tyre retailing via e-commerce platforms is further bolstering the replacement market.
Market Breakup by Vehicle Type
- Passenger Vehicles: The demand for tyres in passenger vehicles remains the largest segment. With increasing global vehicle production and rising disposable income in developing regions, the passenger vehicle segment will continue to expand. Additionally, the rise of electric passenger vehicles is contributing to a shift in the types of tyres being produced.
- Commercial Vehicles: Commercial vehicles, including trucks and buses, require durable and high-performance tyres to support heavy loads and long-distance travel. The rising demand for freight and logistics services globally is a key factor in driving the demand for commercial vehicle tyres.
- Two-Wheelers: The two-wheeler segment, which includes motorcycles and scooters, is witnessing increased tyre demand due to the growth of the motorcycle market in Asia-Pacific. Tyres for two-wheelers are evolving, with manufacturers focusing on enhancing grip, durability, and fuel efficiency.
- Off-the-Road (OTR) Vehicles: This segment includes tyres for agricultural, mining, and construction vehicles. As industrial and agricultural activities increase globally, particularly in emerging markets, the demand for OTR tyres is growing.
Market Breakup by Region
- North America: North America remains a major market for tyres, driven by the presence of key automotive manufacturers and the high rate of vehicle ownership. The increasing demand for both replacement tyres and OEM tyres is expected to propel the market in this region.
- Europe: Europe is home to several well-established tyre manufacturers and is witnessing strong growth in the electric vehicle sector, which is driving innovation in tyre design. The focus on sustainability, including the development of eco-friendly tyres, will further fuel market growth in the region.
- Asia Pacific: Asia Pacific holds the largest share of the global tyre market, driven by the robust growth in vehicle production and sales, particularly in China and India. As the automotive sector continues to expand in this region, the demand for tyres is set to rise. Additionally, the rapid urbanization and increasing disposable incomes in these countries are driving demand for personal vehicles and, consequently, tyres.
- Latin America: The tyre market in Latin America is expected to grow, supported by the expanding automotive industry and growing vehicle fleet. Brazil and Mexico are the key markets in this region, with a rising demand for both OEM and replacement tyres.
- Middle East and Africa: The Middle East and Africa region is also experiencing growth, particularly in commercial vehicle tyres, as demand for transportation and infrastructure development increases. The tyre market in Africa is primarily driven by the demand for tyres in agricultural vehicles and machinery.
Competitive Landscape
The EMR report delves into the market shares, investments, plant turnarounds, capacities, and mergers and acquisitions of the leading companies operating in the global tyre market. Some of the major players explored in the report by Expert Market Research are as follows:
- Bridgestone Corporation: Bridgestone is one of the world’s largest manufacturers of tyres, offering a wide range of products for passenger vehicles, commercial vehicles, and motorcycles. The company is focused on innovation, including the development of sustainable tyres and solutions for electric vehicles.
- Michelin Group: Michelin is known for its high-quality tyres, which are widely used in both OEM and replacement markets. The company is also investing heavily in the development of advanced technologies, such as airless tyres and tyres for autonomous vehicles.
- Goodyear Tire & Rubber Company: Goodyear is a leading global tyre manufacturer, offering products for various vehicle types, including passenger cars, trucks, and aircraft. The company is actively working on improving tyre performance through advancements in materials and designs.
- Continental AG: Continental is a key player in the global tyre market, known for its innovative tyres designed for performance, safety, and fuel efficiency. The company’s focus on smart tyres and solutions for electric and autonomous vehicles strengthens its position in the market.
- Pirelli & C. S.p.A.: Pirelli is renowned for producing premium tyres, especially for high-performance vehicles. The company is focused on expanding its product portfolio to meet the growing demand for tyres designed for electric and luxury vehicles.
- Toyo Tire & Rubber Co., Ltd.: Toyo Tire manufactures tyres for a wide range of vehicles, including passenger cars, trucks, and heavy-duty vehicles. The company is also exploring the development of tyres with low environmental impact.
- Hankook Tire & Technology Co., Ltd.: Hankook is another key player in the tyre industry, offering a broad product range and focusing on developing tyres that combine performance, safety, and sustainability.
- Sumitomo Rubber Industries Ltd.: Sumitomo is a leading tyre manufacturer, producing tyres for cars, trucks, and motorcycles. The company is investing in the development of advanced technologies, including eco-friendly tyres and high-performance tyres.
- Yokohama Rubber Company Ltd.: Yokohama Rubber offers a wide variety of tyres designed for different types of vehicles. The company is dedicated to producing tyres that provide superior performance and reduce environmental impact.
- Others: Other notable players in the tyre market include Kumho Tire, Cooper Tire & Rubber Company, and Apollo Tyres, among others.
The global tyre market is poised for steady growth in the coming years, driven by factors such as increasing vehicle production, the demand for more efficient and durable tyres, and the ongoing trend towards sustainability and eco-friendly solutions. Manufacturers are focusing on innovation and the development of tyres designed for specific vehicle types, including electric and autonomous vehicles, to cater to evolving consumer needs.
With a growing global vehicle fleet, rising disposable incomes, and technological advancements in tyre design, the market offers significant opportunities for both established players and new entrants. To remain competitive, companies must focus on research and development, adopt sustainable practices, and cater to the growing demand for tyres that offer improved performance, safety, and environmental benefits.
