Passenger Tire Market Research Report By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles), By Tire Size (16 Inches, 16-18 Inches, 18-20 Inches, >20 Inches), By Speed Rating (S-Speed Rated, T-Speed Rated, H-Speed Rated, V-Speed Rated, W-Speed Rated, Y-Speed Rated, ZR-Speed Rated), By Ply Rating (4-Ply, 6-Ply, 8-Ply, 10-Ply), By Application (Highway, Off-Road, All-Season, Winter) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Passenger Tire Market Overview

As per MRFR analysis, the Passenger Tire Market Size was estimated at 179.09 (USD Billion) in 2022. The Passenger Tire Market Industry is expected to grow from 185.09 (USD Billion) in 2023 to 248.89 (USD Billion) by 2032. The Passenger Tire Market CAGR (growth rate) is expected to be around 3.35% during the forecast period (2024 - 2032).

Key Passenger Tire Market Trends Highlighted

Key Market Drivers: Growing vehicle ownership in emerging markets. Increasing demand for fuel-efficient tires. Government regulations on tire safety and environmental performanceOpportunities to Explore: Development of smart tires with advanced sensors and connectivity Expansion into electric vehicle and autonomous driving markets.  Targeting niche segments, such as performance and off-road tires. Leveraging e-commerce platforms to reach a wider customer base. Recent Market Trends: the rise of run-flat tires for increased safety and convenience, Adoption of silica-based rubber compounds for improved traction and fuel economy, Focus on sustainable tire production using recycled materials, Growing interest in premium and aftermarket tire brands, Emergence of innovative tire tread designs for enhanced performance

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Passenger Tire Market Drivers

Increasing Demand for Electric Vehicles

The rising popularity of electric vehicles (EVs) is a major driver of growth in the passenger tire market. EVs require tires that are specifically designed to handle the unique demands of electric powertrains, such as high torque and instant acceleration. As the adoption of EVs continues to increase, so too will the demand for passenger tires that are optimized for EV performance. The Passenger Tire Market Industry is expected to witness significant growth due to increasing demand for electric vehicles.Electric vehicles require tires that can handle the unique demands of electric powertrains, such as high torque and instant acceleration. As the adoption of electric vehicles continues to increase, so too will the demand for passenger tires that are optimized for EV performance. In addition, the growing popularity of ride-sharing services is also contributing to the demand for passenger tires. Ride-sharing services typically use vehicles that are driven more frequently than personal vehicles, which leads to increased tire wear and tear.As a result, ride-sharing companies are increasingly looking for passenger tires that are durable and long-lasting. Furthermore, the increasing adoption of advanced driver-assistance systems (ADAS) is also driving the demand for passenger tires. ADAS features such as lane departure warning and automatic emergency braking require tires that can provide high levels of grip and handling. As ADAS features become more common, so too will the demand for passenger tires that are designed to meet the specific requirements of these systems.

Growing Demand for SUVs and Crossovers

Besides, one of the significant growth drivers of the passenger tire market is the rising demand for SUVs and crossovers. They can be narrowed down to the fact that SUVs and crossovers have a higher weight, and their ground clearance is also higher compared to sedans. These vehicles need tires that are capable of supporting the former and are designed to ensure good off-road characteristics. The increase in the number of people who become interested in various outdoor activities, hiking, biking, and camping, drives the demand for SUVs and crossovers, the tires of which need to ensure good driving performance qualities regardless of the surface, including both paved and unpaved roads.

Rising Consumer Awareness of Tire Safety

Awareness among consumers about tire safety has increased, mainly because of the number of incidents recorded with regard to tire accidents. As such, consumers are replacing their tires more frequently before they wear out or get damaged. This has generally driven the demand for passenger tires and is thus above average for the time of year.

Passenger Tire Market Segment Insights:

Passenger Tire Market Vehicle Type Insights

The Passenger Tire Market has been further divided into Vehicle Type, which include Passenger Cars, Light Commercial Vehicles, and Heavy Commercial Vehicles. Among these, the Passenger Cars segment was the major shareholder of 2023, with over 65% of the Passenger Tire Market’s revenue. The demand for Passenger Cars is more owing to the increasing requirement for personal vehicles for travelling with friends and family. Consequently, the requirement of travel and tourism for the guests are also driving the Passenger Cars requirement.In addition to this, ride-sharing and car rental companies are continuously requiring passenger cars, which further propels the demand for passenger car tires. At the same time, the Light Commercial Vehicles segment is expected to grow at a higher CAGR in the upcoming years with the rising e-commerce and last-mile delivery services, which require more and more light commercial vehicles. The segment is also using more electric and hybrid models owing to the rising pollution, which is also propelling the demand for its tires. Heavy Commercial Vehicles are also estimated to hold a considerable market share during the forecast period.The increasing number of construction and mining activities, along with the growing demand for heavy goods transport, will drive the requirement for its tires. In conclusion, the Passenger Tire Market is expected to maintain a lucrative market during the forecast period due to the increasing number of vehicles in different segments. The increasing popularity of electric and hybrid vehicles as the vehicles of tomorrow is likely to contribute to the budding growth of this market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Passenger Tire Market Tire Size Insights

The Passenger Tire Market is segmented by tire size into '16 Inches', '16-18 Inches', '18-20 Inches', and '>20 Inches'. The '16 Inches' segment accounted for the largest share of the market in 2023 and is expected to continue to dominate the market over the forecast period. The '16-18 Inches' segment is expected to witness the highest growth rate over the forecast period. The growth of the '16 Inches' segment can be attributed to the increasing demand for passenger vehicles in developing countries, where smaller cars are more popular. The '16-18 Inches' segment is expected to grow due to the rising popularity of SUVs and crossovers.The '>20 Inches' segment is expected to grow at a slower pace, as it is primarily driven by the demand for luxury vehicles. In 2023, the Passenger Tire Market revenue was estimated at 185.09 USD Billion. The market is expected to grow at a CAGR of 3.35% over the forecast period, reaching a valuation of 248.89 USD Billion by 2032. The growth of the market is attributed to the increasing demand for passenger vehicles, the rising popularity of SUVs and crossovers, and the growing demand for luxury vehicles.

Passenger Tire Market Speed Rating Insights

The Passenger Tire Market is segmented by Speed Rating into 'S-Speed Rated', 'T-Speed Rated', 'H-Speed Rated', 'V-Speed Rated', 'W-Speed Rated', 'Y-Speed Rated', 'ZR-Speed Rated'. The S-Speed Rated segment accounted for the largest share of the market in 2023 due to its wide use in standard passenger vehicles. The V-Speed Rated segment is expected to grow at the highest CAGR during the forecast period, owing to the increasing demand for high-performance tires in luxury and sports vehicles. The Y-Speed Rated segment is expected to witness significant growth due to the rising popularity of electric vehicles, which require tires with higher speed ratings.

Passenger Tire Market Ply Rating Insights

The Passenger Tire Market is segmented by ply rating into 4-Ply, 6-Ply, 8-Ply, and 10-Ply. Among these, the 6-Ply segment held the largest market share of around 40% in 2023. This is due to the increasing demand for high-performance tires in the passenger vehicle segment. The 8-Ply segment is also expected to witness significant growth during the forecast period, owing to the growing popularity of SUVs and CUVs. The 4-Ply segment is expected to remain relatively stable, while the 10-Ply segment is expected to gain some traction in the coming years.

Passenger Tire Market Application Insights

The Application segment of the Passenger Tire Market holds significant importance, with each sub-segment catering to specific vehicle types and driving conditions. Highway: Highway tires are designed for on-road performance, emphasizing durability, stability, and fuel efficiency. They account for a substantial share of the market, comprising passenger cars and light trucks used for daily commutes and long-distance travel. By 2024, the highway tire segment is projected to reach USD 120 billion. Off-Road: Off-road tires provide traction and durability for vehicles operating on rough terrain.They are commonly used in SUVs, pickup trucks, and specialized vehicles for construction, mining, and outdoor activities. The off-road tire segment is expected to reach USD 25 billion by 2024, driven by the growing popularity of adventure vehicles and outdoor recreation. All-Season: All-season tires combine versatility and convenience, offering a balance of performance in various weather conditions. They are suitable for regions with moderate climates and fluctuating temperatures. The all-season tire segment is forecasted to reach USD 60 billion by 2024, benefiting from its widespread adoption in urban and suburban areas.Winter: Winter tires are specifically designed for cold weather conditions, providing enhanced grip and safety on icy and snowy roads. They are essential in regions with harsh winters and are projected to reach USD 15 billion by 2024. The Passenger Tire Market segmentation offers insights into the diverse needs of consumers and vehicle manufacturers, driving innovation and specialization within the industry.

Passenger Tire Market Regional Insights

North America holds a significant share in the Passenger Tire Market owing to the presence of major automakers and a large consumer base. The region is expected to continue its dominance in the coming years due to increasing vehicle production and sales. Europe is another key market for passenger tires, driven by stringent regulations regarding tire safety and performance. The APAC region is projected to witness the fastest growth in the Passenger Tire Market market, driven by rising disposable income, increasing urbanization, and growing vehicle ownership.South America and MEA are also expected to contribute to the overall market growth, albeit at a slower pace compared to other regions.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Passenger Tire Market Key Players And Competitive Insights:

Major players in the Passenger Tire Market industry are continuously investing in research and development to enhance their product offerings and gain a competitive edge. Leading Passenger Tire Market players are focusing on developing innovative tire technologies that improve performance, safety, and fuel efficiency. The Passenger Tire Market development is also driven by the growing demand for electric vehicles, which require tires that are specifically designed to handle the unique characteristics of these vehicles. The Passenger Tire Market Competitive Landscape is expected to remain highly competitive in the coming years, with major players vying for market share through product innovation, strategic acquisitions, and aggressive marketing campaigns.Michelin is a leading global tire manufacturer with a strong presence in the Passenger Tire Market. The company offers a wide range of tires for passenger cars, SUVs, and light trucks. Michelin is known for its innovative tire technologies, such as its Total Performance System, which optimizes tire performance in all areas. The company has a strong brand reputation and a loyal customer base. Michelin is well-positioned to continue to be a major player in the Passenger Tire Market in the coming years.Bridgestone is another major player in the Passenger Tire Market. The company offers a wide range of tires for passenger cars, SUVs, and light trucks. Bridgestone is known for its high-quality tires and its commitment to safety. The company has a strong global presence and a loyal customer base. Bridgestone is well-positioned to continue to be a major player in the Passenger Tire Market in the coming years.

Key Companies in the Passenger Tire Market Include:

• Pirelli C. S.p.A


• Sumitomo Rubber Industries


• The Goodyear Tire Rubber Company


• Toyo


• Nexen Tire Corporation


• Continental AG


• Giti Tire


• Yokohama Rubber


• Bridgestone Corporation


• Michelin


• Cooper Tire Rubber Company


• Kumho Tires


• Hankook Tire Technology

Passenger Tire Market Industry Developments

The Passenger Tire Market is projected to reach USD 248.89 billion by 2032, exhibiting a CAGR of 3.35% during the forecast period (2024-2032). Rising demand for passenger vehicles, particularly in emerging economies, is a key driver of market growth. Growing awareness of safety and fuel efficiency is also fueling demand for high-performance tires. The increasing adoption of electric vehicles is expected to create new opportunities for the passenger tire market as these vehicles require specialized tires designed to handle the unique characteristics of electric motors.Recent news developments include the launch of new tire technologies such as self-sealing tires and airless tires. These technologies aim to improve safety, convenience, and durability. Additionally, major tire manufacturers are investing in sustainable practices and developing eco-friendly tires to meet growing consumer demand for environmentally conscious products.

Passenger Tire Market Segmentation Insights

• Passenger Tire Market Vehicle Type Outlook
  
  
  
  • Passenger Cars
  
  
  • Light Commercial Vehicles
  
  
  • Heavy Commercial Vehicles
  
  
  
  

• Passenger Tire Market Tire Size Outlook
  
  
  
  • 16 Inches
  
  
  • 16-18 Inches
  
  
  • 18-20 Inches
  
  
  • >20 Inches
  
  
  
  

• Passenger Tire Market Speed Rating Outlook
  
  
  
  • S-Speed Rated
  
  
  • T-Speed Rated
  
  
  • H-Speed Rated
  
  
  • V-Speed Rated
  
  
  • W-Speed Rated
  
  
  • Y-Speed Rated
  
  
  • ZR-Speed Rated
  
  
  
  

• Passenger Tire Market Ply Rating Outlook
  
  
  
  • 4-Ply
  
  
  • 6-Ply
  
  
  • 8-Ply
  
  
  • 10-Ply
  
  
  
  

• Passenger Tire Market Application Outlook
  
  
  
  • Highway
  
  
  • Off-Road
  
  
  • All-Season
  
  
  • Winter
  
  
  
  

• Passenger Tire Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa