Automotive Tire Market Size

Increased competition among tire manufacturers propels market growth

Increased competition among tire manufacturers is driving the market CAGR for automobile tire. Significant automakers continue to invest in emerging nations due to low labour costs, which further lower production costs and help to meet the expanding demand for vehicles. The tire industry has grown dramatically over the last ten years because to increased demand for automobiles and the usage of collaborative and consolidation manufacturing in the tire industry. At the same time, the automotive sector has grown at an exponential rate.

As a result, the automobile tire industry expands. Hankook Tire has created the "Dynapro AT2" for off-road and on-road SUVs. These tires perform admirably in all driving conditions due to their quietness, comfortable ride, and powerful off-road capability.

The automotive industry has recently undergone considerable expansion as a result of rapid industrialization, which has increased sales of commercial vehicles such as trucks, tractors, and trailers. Rising disposable income and living standards also have an impact on the growing sales of luxury passenger automobiles and premium category bikes. Furthermore, it is expected that sales of electric vehicles will increase during the forecast period. Electric car sales are further supported by the lowering cost of electric vehicle components such as batteries, transmissions, and alternators.

Furthermore, global automotive sector consolidation, which results in mergers and acquisitions between international and domestic vehicle manufacturers, boosts the growth of the automotive industry, influencing the car tire market share. As a result, the expansion of the vehicle industry is predicted to increase overall demand for tires.

The Global Automotive Tire Market Industry is projected to witness substantial growth in the coming years. With a market value of 151.1 USD Billion in 2024, it is anticipated to expand significantly, reaching 449.6 USD Billion by 2035. This growth trajectory indicates a compound annual growth rate of 10.42% from 2025 to 2035, reflecting the increasing demand for tires driven by various factors such as vehicle production, technological advancements, and changing consumer preferences. The market's expansion is likely to create new opportunities for manufacturers and suppliers, fostering a competitive landscape that encourages innovation and quality improvements.

The Global Automotive Tire Market Industry is experiencing growth driven by an increase in vehicle production worldwide. In 2024, the market is valued at 151.1 USD Billion, reflecting the rising demand for tires as more vehicles are manufactured. Countries such as China and India are leading in vehicle production, contributing significantly to this growth. As automotive manufacturers ramp up production to meet consumer demand, the need for high-quality tires becomes paramount. This trend is likely to continue, with projections indicating that the market could reach 449.6 USD Billion by 2035, suggesting a robust expansion in the automotive sector.

The increasing adoption of electric vehicles (EVs) is significantly influencing the Global Automotive Tire Market Industry. As governments worldwide implement policies to promote EV usage, the demand for specialized tires designed for electric vehicles is on the rise. These tires are engineered to support the unique weight distribution and performance characteristics of EVs, ensuring safety and efficiency. The growing EV market is expected to contribute substantially to the overall tire market, with projections indicating a potential market size of 449.6 USD Billion by 2035. This trend underscores the importance of adapting tire offerings to meet the evolving needs of the automotive landscape.

The Global Automotive Tire Market Industry is also influenced by the increasing focus on safety regulations across various regions. Governments are implementing stricter standards for tire performance, durability, and safety, compelling manufacturers to enhance their product offerings. Compliance with these regulations not only ensures consumer safety but also fosters innovation in tire design and technology. As manufacturers invest in meeting these standards, the market is likely to experience growth, with projections suggesting a compound annual growth rate of 10.42% from 2025 to 2035. This regulatory environment is expected to drive the demand for high-quality, compliant tires.

Technological innovations in tire manufacturing are a pivotal driver for the Global Automotive Tire Market Industry. Advancements such as the development of eco-friendly materials and smart tires equipped with sensors enhance performance and safety. These innovations not only improve fuel efficiency but also extend the lifespan of tires, appealing to environmentally conscious consumers. As manufacturers adopt these technologies, the market is poised for growth, potentially achieving a compound annual growth rate of 10.42% from 2025 to 2035. This shift towards advanced tire technology is likely to reshape consumer preferences and drive market dynamics.

The expansion of e-commerce and online sales channels is reshaping the Global Automotive Tire Market Industry. Consumers increasingly prefer the convenience of purchasing tires online, leading to a surge in online tire retailers. This shift not only broadens market access but also enhances competition among tire manufacturers, driving innovation and pricing strategies. As more consumers turn to digital platforms for tire purchases, the market is likely to see an increase in sales volume and revenue. This trend aligns with the projected growth of the market, which could reach 449.6 USD Billion by 2035, reflecting the changing dynamics of consumer behavior.

Leading market players are investing heavily in R&D to expand their product lines, which will help the auto tire market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, automobile tire industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global car tire industry to benefit clients and increase the market sector. In recent years, the car tire industry has offered some of the most significant advantages to medicine. Major players in the auto tire market, including Kurho Tire (South Korea) , Giti Tire (Singapore), Maxxis International (Taiwan) . Nexen Tire Corporation (South Korea) and others, are attempting to increase market demand by investing in R&D operations.

Michelin is a French multinational tyre manufacturer headquartered in Clermont-Ferrand, France, in the Auvergne-Rhône-Alpes region. It is the world's second largest tyre manufacturer, trailing only Bridgestone, and larger than both Goodyear and Continental. It also owns the Kléber tyre company, Uniroyal-Goodrich Tire Company, SASCAR, Bookatable, and Camso trademarks in addition to Michelin. Michelin is also recognized for its Red and Green travel guides, roadmaps, the Michelin stars awarded to restaurants by the Red Guide for their culinary, and its company mascot Bibendum, informally known as the Michelin Man, who is a humanoid made of tyres.

In June 2021, Michelin has introduced the MICHELIN Primacy 4ST tires in India. The tyre has excellent wet grip because to its revolutionary tread pattern, which incorporates 1.5X more grooves to eliminate more water. The next version of Silent Rib Technology has interlocking bands between tread blocks, giving in a smoother ride and enhanced comfort. Additionally, the new technique reduces the sound of air pumping during tire rolling.

Apollo Tyres Limited is a multinational Indian tyre manufacturer headquartered in Gurugram, Haryana. It was founded in 1972, and its first plant opened in Perambra, Chalakudy, Kerala (India). The organization today has five manufacturing facilities in India, one in the Netherlands, and one in Hungary. It has almost 5,000 dealerships in India, with over 2,500 of them being exclusive stores.

The company earns 69% of its revenue in India, 26% in Europe, and 5% in other countries. In April 2021, Apollo Tires has announced the introduction of a new tire line in India under the Dutch brand Vredestein. Designed for high-performance motorbikes and luxury cars. With the introduction of these new tires, the company intends to dominate the premium car tire industry.