Global Auto Tyre Market – Industry Trends and Forecast to 2030

The Auto Tyre market is experiencing robust expansion, with market size projected to increase from XX billion in 2023 to xx billion by 2030, demonstrating a consistent year-over-year growth rate of 6.30%. Auto Tyre Market Size, Share, Competitive Landscape and Trend Analysis Report, , And regions ({regionNms}) : Industry Forecast and Opportunity Analysis for 2023 - 2030

The automotive tire industry on a global scale is involved in the making, supplying, and selling of tires for vehicles such as passenger vehicles, trailers, buses, and motorcyclists, among others. Every vehicle is fitted with tires that can be defined as circular soft rubber materials usually fixed on the wheels. Their primary purpose is to provide traction, durability, and also absorb shocks. Several elements are encouraging the market, such as an increase in vehicle production, a rising population, and an increase in individual purchasing power. Also, tire technological factors such as high fuel-efficient tires or advanced performance tires have also contributed to the growing market. In the future to come, as the automobile sector continues to develop, there will still be a strong demand for modern tires of exceptional quality.

Auto Tyre Report Highlights

Report Metrics	Details
Forecast period	2019-2030
Base Year Of Estimation	2023
Growth Rate	CAGR of 6.30%
Key Market Players	Goodyear Tire & Rubber Company (United States) Continental AG (Germany) Michelin (France) and Sumitomo Rubber Industries Bridgestone Corporation (Japan)
By Region

Auto Tyre Market Trends

The automotive tire industry is increasingly shifting towards the production of environmentally friendly and fuel-efficient tires due to rising consumer awareness about environmental issues as well as the pressing need for more considerate environmental policies. Among these, tire manufacturers make great efforts to create low rolling resistance tires that are less aggressive in terms of gas guzzling and, hence, are more in line with the current ideology of sustainable development. Also, the trend of using more and more recycled and bio-based materials in tire production is on the rise, resulting in corporations embracing such new approaches towards production in order to fit the green needs of their consumers. Furthermore, there is also the increasing incorporation and acceptance of intelligent and connected tire technology, especially in electric and autonomous vehicles, in the automotive tire market. Smart tires come embedded with sensors that provide information such as tire pressure, temperature, and wear, therefore improving safety performance and efficiency. This is because the technology reduces vehicle downtime and maximises the useful life of tires, making it popular with fleet owners and motor vehicle manufacturers. Moreover, as the emphasis on electric vehicles (EVs) increases, so does the appetite for specialised low-noise, high-durability tires, which is bound to affect the overall tire design and innovations in the future.

Auto Tyre Market Leading Players

The key players profiled in the report are Goodyear Tire & Rubber Company (United States), Continental AG (Germany), Michelin (France) and Sumitomo Rubber Industries, Bridgestone Corporation (Japan)

Growth Accelerators

The major market catalyst for the auto tire industry is the continuous growth in global vehicle production and ownership. This is especially true in developing countries, where the rise in income patterns allows people to buy cars unlike before. In this case, as the automotive sector expands, so does the need for original equipment manufacturer (OEM) tires. In addition, due to the rapid development of the transportation networks as well as the increase of both passenger and commercial vehicles, there exists a high demand for the replacement tires too, which is driving development in both OEM as well as aftermarket. The other important participant is the tire technology evolution that is focused on safety, fuel economy, and the green nature of the tire. Because of this, automotive manufacturers and buyers want tires with less rolling resistance so as to reduce the rate of fuel consumption and thus the output of exhaust gases. Globalization has also led to concerns over the need to tackle climate change, which have made it important for manufacturers to use products that do not harm the environment, such as biodegradable tires. Other innovations include smart tires that can monitor and alert the user to the status of the tires using sensors, which advances safety and revolves around new marketing in the tire industry.

Auto Tyre Market Segmentation analysis

The Global Auto Tyre is segmented by and Region.
. Geographically, the market is assessed across key Regions like {regionNms} and others, each presenting distinct growth opportunities and challenges influenced by the regions.

Competitive Landscape

The growth can be attributed to growing vehicle production, increasing disposable income with respect to cars, and development in tire technology, especially smart tires with monitoring devices. The passenger car segment of the marketplace is the largest, taking a market share of more than 65%, while the upsurge in the demand for electric cars (DVs) is causing major changes in the situation in the market since EVs have specific tires whose sales are expected to escalate further. Regarding the structure of the market, it is rather characterized by a high degree of concentration, with a lot of well-recognized diversifying market players like the Michelin Group, Bridgestone Corporation, and Goodyear Tire & Rubber Company. Such firms are investing in research and development in order to create differentiated products for the already congested market. The Asia-Pacific region is at the forefront of the industry in terms of value due to the existence of a strong local market coupled with the strong operational facilities in the region, like factories in China and India, where the production rates are high. Also, the North American and European centers are expanding owing to the innovation and development of the sector and the rising demand for sporty tires.

Challenges In Auto Tyre Market

One of the major issues impacting the auto tire market is a rise in raw material prices—mostly natural rubber and synthetic components—which greatly affect its production costs. Globalised rubber supply chains, easily influenced by geopolitical and environment-related variables, push through higher costs to the company's production lines. The tire manufacturers have to fight between increasing costs and remaining competitive, and usually, such pressure falls on profit margins. In addition, investment in sustainable materials creates another complexity layer because these materials could be more costly and would also require new manufacturing processes. The increasing demand of consumers for longer-lasting and fuel-efficient tires has made it increasingly competitive among manufacturers to innovate continuously in the auto tire market. Significant investment in research and development is necessary for developing tires that provide durability, safety, and performance while reducing rolling resistance for better fuel efficiency. It is challenging for smaller and medium-sized companies to match such innovation demands, making it more competitive for bigger brands that have already been established.

Risks & Prospects in Auto Tyre Market

The auto tire market is one area that will experience rapid growth due to increasing vehicle ownership across the world, especially in the fast-developing markets. As urbanisation takes its course and people are able to access more money, there is an increasing need for both new tires and their replacements. On top of this, the growth of electric vehicles (EVs) provides a novel segment of the market because EVs use special tires that can endure the higher torque of the vehicle as well as help in preserving battery charge. This trend motivates tire makers to design and make products that will be used on these electric vehicles in anticipation of the emergent market within the larger auto tire segment. Similarly, given the rising adoption of such tires by the general populace, a provision of high-tenacity and green tires would present another opportunity, this time especially in those areas that have stringent pollution control measures. For example, tire manufacturers have developed sustainable materials and fuel-saving designs and integrated them with smart tire technologies to win over green consumers and meet their requirements. In addition, as e-commerce is on the rise, so are tire manufacturers and retailers providing online sales channels to the consumers of their products. This shift increases the market and allows the companies to reach more clients and also provide additional services like delivery and installation of the products to the customers.

Key Target Audience

The automotive tire market's major focus group primarily consists of individual vehicle owners who are in need of long-lasting and quality tires for their general and also seasonal use. This includes people who own family saloons, other motor cycles, as well as SUVs and light trucks, all looking for quality tires that offer better performance of the vehicle, safety, and fuel consumption. A considerable amount of such people, however, would also be in the market for purpose-orientated tires on different driving conditions, for instance, all-season tires, winter tires, and off-road tires, which call for flexibility and reliability.,, The demand for auto tires extends beyond individuals, as there is a significant segment made up of commercial fleet operators, particularly those involved in logistics, transportation, and ride-sharing businesses, which make use of high-quality tires in order to create effective work cycles and reduce wait times. In such cases, these companies tend to opt for cheap yet durable tires in a bid to lower maintenance costs and enhance the availability of vehicles. Last but not least, some of them are automotive repair shops and tire retailers who work on a wholesale basis, selling the tires to individuals as well as to businesses. The diverse nature of this market is compounded by the attractiveness of the environmentally friendly and fuel-saving tires in response to changing regulations and high fuel prices.

Merger and acquisition

The recent trends in mergers and acquisitions globally within the auto tire market indicate an aggressive approach intended to reposition and grow the players concerned. For instance, JK Tyre & Industries received merging news from Cavendish Industries, and the two revealed plans to combine their automotive tire production and distribution. It’s a merger approved by the board of JK Tyre in September 2024 in an attempt to widen its operational synergies and MKT scope. However, the merger is awaiting regulatory approvals. The arrangement based on the deal includes a share swap in which Kyrgystan extends 92 equity shares for one hundred shares held in shares of Cavendish Industries. This deal may affect the shareholding structure of JK Tyre post-merger. Apart from this large-scale merger, other transactions of interest include Yokohama Rubber’s acquisition of Alliance Tire Group B.V. for a price of USD 1.1 billion, which strengthens its position also in the farm and off-road (OTR) tire segments. In the same way, Cooper Tire & Rubber Co. spent USD 93 million in obtaining a 65 percent share of Qingdao Ge Rui Da Rubber Co. Ltd. This has increased its market share in the manufacture and distribution of radio truck and bus tires. Such actions suggest a growing inclination towards takeovers to enhance market share; in this case, precision finding enhanced competition in the tire market, whereby the companies are trying to exploit the synergies and also increase their umbrella of products.