Automotive Tire Market: Key Growth Potential and Forecast Analysis (2024-2030) by Type, Solutions, and Region

Automotive Tire Market Overview:

A rubber-covered circular vehicle component that covers the rim of the wheel from the outside is known as an automotive tyre. The fundamental function of the tyre is to protect the wheel rim while also providing tractive force between the vehicle and the road surface. It also acts as a flexible cushion, reducing the impact of vibrations and absorbing the vehicle's shock because it is constructed of rubber. A rubber tyre is made composed of tread, joint less cap piles, beads, and other materials such synthetic rubber, carbon black, and fabric. The automotive tire market report provides you, PESTLE analysis, PORTER's five force analysis and segment analysis with market shares and forecast size, on the basis of vehicle type, tire type, material, rim size, sales channel and region.

 

 

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Automotive Tire Market Dynamics:

Leading companies invest considerably in research and development to improve efficiency and produce high-quality tyres. Tire producers have developed adaptable and lightweight tyres specifically for electric and hybrid vehicles as the popularity of electric vehicles grows. An growth in automobile manufacturing and robust demand for passenger cars are expected to boost the automotive tire market over the forecast period. Sport utility vehicles (SUVs) are growing in popularity in India and China, with significant market growth potential. According to the IOMM, 55.83 million passenger cars and 21.78 million commercial vehicles will be produced worldwide in 2020. As a result of tighter tyre performance standards and increased demand for fuel-efficient automobiles, tyre producers are being driven to design new tyres with better wet grip and lower rolling resistance. Furthermore, tyre manufacturers are resorting to automation in order to boost efficiency and productivity in order to satisfy rising demand.

 

Advancements in the realm of composite materials, as well as the usage of carbon fibre and metals in tyre manufacturing, will benefit the automotive tire market over the forecast period. Green tyres are gaining popularity among the younger population since they are environmentally friendly and increase mileage, especially in large vehicles. Green tyres have a low rolling resistance and can boost a vehicle's fuel efficiency by up to 2% in commercial vehicles. Green tyres, on the other hand, are more expensive, but they are expected to be recouped within a few years. Volatile natural rubber prices, on the other hand, and growing environmental concerns about rubber tyre disposal around the world are the main reasons limiting demand in the automotive tire market.

 

Increase in call for tire remolding:

 

The method of changing the tread on worn tires is referred to as remolding or retreading. It is identified because the tire re-production method and is likewise referred to as recap or remold. When in comparison to the producing of a brand new tire, the re-production method of the tire saves a extensive quantity of fabric.

 

As a result, the substances for this manner are much less pricey. Furthermore, in comparison to constructing a brand new one, it saves a extensive sum of money on tire and fabric prices. As the hard work and prices are a lot lower, retreading is environmentally pleasant and a long way much less pricey than buying new tires. Single tire may be retreaded up to 10 times, extending its carrier existence and saving extensive strength and time withinside the production method, all whilst reducing landfill waste and carbon emissions. Owing to those benefits, the financial savings may be extensive for agencies with massive fleets of vehicles. Over the years, the tire production enterprise has made extensive development all around the world. Premium technology are used to supply awesome tires in an effort to carry out perfectly now no longer handiest of their first existence, however additionally of their second, third, or even fourth.

 

Automotive Tire Market Segmentation:

The Passenger Cars category dominated the automotive tire market by revenue in 2023, contributing for over 48% of total revenue. Economic conditions, which are influenced by changes in exchange rates, GDP growth, inflation rates, and government policies, have a big impact on passenger car demand. Furthermore, passenger automobile demand is influenced by fluctuating fuel prices and transit infrastructure. The improving economic outlook in the United States, as well as emerging markets like China and India, are expected to bolster PC demand in the future.

 

The Light Commercial Vehicle (LCV) segment accounted for roughly 37% of total sales in 2020, capturing a major share of the market. The cost of operating and maintaining an LCV is low. Furthermore, because LCVs are more fuel efficient than passenger cars, tyre manufacturers are creating more commercial tyre products than passenger car tyres, as the CV market is rapidly catching up.

 

 

Size of rim: 13–15 inches, segment is on the rise In terms of sales:

 

This rim size is typically found on passenger cars with a gross vehicle weight rating (GVWR) of less than 3.0 tonnes. Passenger automobiles in the hatchback and compact sedan categories use these rim size tyres. For example, 13"-15" rim size tyres are standard on the Hyundai Avante, Volkswagen Polo, VW Rapid, Hyundai Accent, and other vehicles. These are the most common passenger vehicle types in Asia and other parts of the world. As a result, 13"-15" rim size tyres are in high demand. For example, 13"-15" rim size tyres are standard on Hyundai Avante, Nissan Bluebird, Toyota Corolla, Ford Escort, VW Santana, and other popular passenger cars in China. As a result, there is an increasing number of sales of the rim size.

 

The Radial Tires segment has the highest CAGR:

 

Due to strong steering and better road contact, low heat created in tyres during operation, and flexible side walls, the radial tyre segment dominates the market with around 70% market share in terms of revenue. Furthermore, the growing desire for comfort when driving heavy-duty vehicles is complemented by radial tyres, which provide high-rate traction. Furthermore, the radial tyres' superior resilience to tread-related difficulties is a major reason driving the segment's growth in the automotive tire market.

 

Because of the benefits provided by the tyre types to trucks and buses of various weight categories, the radial tyres market is expanding at a CAGR of over 7%, which is the largest among the segments.

 

New Product Launches in the Market:

 

1. JK tyres made use of Treel sensors. These sensors are built into the tyres and convey information to the company's mobile app. These sensors send data to a mobile app that the client can use, such as tyre pressure, tyre temperature, auto insurance reminders, and average fuel use. This information will help the driver immediately assess the condition of his vehicle and its fuel consumption. These sensors can be used on a variety of vehicles, including scooters and trucks.
2. Continental AG has developed new ContiSense tyres, which are made of an electronically conductive rubber compound that can withstand pressures up to 14.7 psi and can also detect and display temperature to the driver.
3. In the year 2020, Goodyear tyres debuted Sound Comfort Technology. It provides cushioning and dampeners as well as reducing vehicle noise. It is designed specifically for passenger cars and light commercial vehicles.

 

Automotive Tire Market Regional Insights:

In 2020, the Asia-Pacific automotive tire market accounted for more than 40% of total sales, and from 2021 to 2025, it is predicted to grow at a CAGR of more than 6%. Emerging economies like China and India are expected to drive regional growth throughout the forecast period. Due to rapidly rising domestic consumption, evolving norms, low-cost labour, and a large demographic base, these countries are likely to complement future global economic growth. India is the fastest-growing country in the APAC area in the LCV and passenger vehicle markets, owing to rising demand from the rural sector.

 

According to ICRA, the Indian tyre sector will increase at a CAGR of 13-14 percent starting in FY 2021. The Indian tyre sector is likely to grow by 13-15 percent in the OEM segment and 7-9 percent in the replacement market segment this fiscal year, according to ratings agency ICRA, after two years of recession. According to ICRA, capital investment in the tyre sector of over INR 20,000 Cr. between FY2022 and FY2025, which would be predominantly debt funded, has resumed following a halt in recent months, with strengthening local and foreign demand.

 

Demand for luxury and heavy-duty vehicles is expanding in Europe, particularly in the United Kingdom, France, Italy, and Germany, with a CAGR of around 7.5% expected by 2020. As the frequency of SUVs grows in the region, Germany is the leading region in terms of sales, with a 40% market share. Because a number of tyre manufacturers are cooperating with SUV and passenger car makers in the region, North America is experiencing considerable market expansion. Furthermore, the region's automotive tire market is growing due to rising demand for off-roading tyres among sports enthusiasts.

 

 

The objective of the report is to present a comprehensive analysis of the Automotive Tire Market to the stakeholders in the industry. The report provides trends that are most dominant in the Automotive Tire Market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

 

The qualitative and quantitative data provided in the Automotive Tire Market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Automotive Tire Market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the market.

 

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals are existing, who they are, and how their product quality is in the Market. The report also analyses if the Automotive Tire Market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly if the market is dominated by a few players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Automotive Tire Market is aided by legal factors.

 

Automotive Tire Market Scope:

Automotive Tire Market
Market Size in 2023	USD 141.80 Bn.
Market Size in 2030	USD 217.77 Bn.
CAGR (2024-2030)	6.32%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	by Vehicle Type Passenger Cars LCV (Light Commercial Vehicles) HCV (Heavy Commercial Vehicles)
	by Tire type Radial Bias
	by Material 13-15 16-18 19-21 >21 inches
	by Sales Channel • OEM • Aftermarket
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

Automotive Tire Market Players:

• The Goodyear Tire & Rubber Company (USA)
• Pirelli & C.S.p.A. (Italy)
• Apollo Tyres Ltd. (India)
• CEAT Ltd. (Italy)
• China National Tire & Rubber Co. Ltd. (China)
• Cooper Tire & Rubber Co., Ltd. (UK)
• Giti Tire (Singapore)
• Bridgestone Corporation (Japan)
• Continental AG (Germany)
• Michelin (France)
• Sumitomo Rubber Industries, Ltd. (Japan)
• Toyo Tire & Rubber Co., Ltd. (Japan)
• Yokohoma Tire Corporation (Japan)
• Maxxis International (Taiwan)
• Cheng Shin Rubber Industry Co. (China)
• Hangzhou Zhongce Rubber Co., Ltd. (China)
• Hankook Tire (South Korea)
• JK Tyre & Industries Ltd. (India)
• Kumho Tire Co., Inc. (South Korea)
• Nexen Tire Corporation (South Korea)
• Nokian Tyres plc (Finland)
• Qingdao Fullrun Tyre Corp., Ltd. (China)