Australia Car Tyre Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

Australia Car Tyre Market Growth

As per the Federal Chamber of Automotive Industry, electric vehicle sales in Australia reached 87,217 in 2023. This translated into a year-on-year increase of 3.1% while constituting a share of 7.2% in the overall market. The sales of hybrid, plug-in hybrid, and electric vehicles together reached 196,868, constituting a share of 16.2% of the overall market.

The sale of hybrid vehicles surged from 7.6% of the total market in 2022 to 8.1% of the total market in 2023, indicating soaring consumer sentiment for environmentally friendly modes of transport. This is expected to raise the demand for unique tyres that are well-suited for the design and performance of EVs. This includes tyres possessing an optimised footprint shape that have lesser noise emissions. Over the forecast period, lightweight tyres with less rolling resistance are expected to witness a surge in demand, as they maximise battery range and reduce the need for frequent charging.

The increasing demand for technically advanced tyres has prompted tyre manufacturers to rely on new technologies and materials, such as laser carving tools and aramid fibres. This has led to the proliferation of run-flat tyres, such as self-sealing tyres, air-free tyres, and self-inflating tyres, among others, thereby driving the market growth.

Key Trends and Developments

Extensive use of virtual reality systems; increasing use of silica; decreasing use of carbon black; and integration of IoT sensors in tyres are the major trends impacting the Australia car tyre market growth

Sep. 1, 2024

BFGoodrich launched the All-Terrain T/A KO3 car tyre, replacing the KO2 all-terrain tyre. It provides a strong grip on muddy/snowy roads and reduces stopping distances by 4.2 meters as compared to its traditional tyre models.

Apr. 10, 2024

Continental Tyres launched MaxContact MC7, which boasts better wet braking, dry braking, and dry handling capabilities, as well as lower noise emissions and higher fuel efficiency for the Asia Pacific market, including Australia.

Mar. 11, 2022

Pirelli Tyre Australia Pty Ltd. launched a new range of Powergy tyres that offers lower rolling resistance, superior wet-weather performance and fewer noise emissions while being extremely cost-effective.

Feb. 25, 2021

Michelin, a French tyre manufacturer with a significant presence in Australia, aims to produce 100% sustainable tyres by 2050 through innovative manufacturing practices and the use of recycled materials.

Extensive use of virtual reality systems

Digital technologies in car tyre production have enabled manufacturers to optimise tread patterns and tyre profiles while minimising development time and ensuring waste reduction.

Increasing use of silica

The use of silica helps manufacturers enhance the performance of tyres by improving their cut and chip resistance while minimising their rolling resistance.

Decreasing use of carbon black in tyres

The use of carbon black in tyres is decreasing, attributed to the rising industrial commitment to minimise carbon emissions. Lightweight passenger vehicles are comparatively more durable than heavy vehicles, and their tyres require a lesser content of carbon black.

Integration of IoT sensors

The development of autonomous vehicles has necessitated the integration of smart sensors into car tyres to enhance their on-road performance.

Australia Car Tyre Market Trends

Innovations in digital technologies, such as artificial intelligence and machine learning can potentially contribute nearly $315 billion to the Australian economy by 2028. The increasing investments by Australian state governments in the development of digital twin technologies are expected to favour the development of innovative ways of tyre production domestically. The government of New South Wales, Victoria, and Western Australia have invested a cumulative amount of nearly $220 million to encourage increasing research and development of these technologies. This is expected to significantly impact the domestic market for tyre production, thereby driving the market expansion.

Australia Car Tyre Industry Segmentation

Australia Car tyre Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Design

• Radial
• Bias

Market Breakup by Type

• Tube Tyre
• Tubeless Tyre

Market Breakup by Vehicle Type

• Hatchback
• Sedan
• SUV and MPV

Market Breakup by Sales Channel

• Aftermarket
• OEM

Market Breakup by Rim Size

• 13”-15”
• 16”-18”
• 19”-21”
• >21”

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Car Tyre Market Share

Based on region, the market is segmented into New South Wales, Victoria, Queensland, Australian Capital Territory, and Western Australia, among others. Victoria dominated the market, representing 10% of the overall market share in 2023. Over the forecast period of 2024-2032. New South Wales is expected to grow at a CAGR of 4.7% due to the rising adoption of electric vehicles and increasing innovation in material sciences.

Leading Companies in the Australia Car Tyre Market

Major Australian tyre manufacturers are expected to use digital twins and virtual reality systems for developing new prototypes of car tyres, thereby enhancing the durability and performance of new tyre versions, while reducing development time.

• Bridgestone Australia Limited
• Goodyear and Dunlop Tyres (Aus) Pty Ltd.
• Yokohama Tyre Australia Pty Ltd.
• Michelin Australia Pty Ltd.
• Kumho Tyre Australia Pty Ltd.
• Hankook Tyre Australia Pty Ltd.
• Continental Tyre of Australia Pty Ltd.
• Pirelli Tyre Australia Pty Ltd.
• Toyo Tyre and Rubber Australia Limited
• Others

The comprehensive report looks into the macro and micro aspects of the market. The EMR report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.