South Korea Tire Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

South Korea Tire Market Insights

• As per the industry reports in 2022, South Korea ranked 17th in the export of retreaded tires across the world.
• Nexen Tire Corp., the South Korean tire manufacturer, announced in July 2023 that it aims to increase its production capacity by 40 per cent in the next five years.
• France, Romania, and the United Kingdom were the major import countries for used pneumatic tires from South Korea in 2022, pushing the growth of the South Korea tire market.
• South Korean tire makers are placing huge amounts of money on premium tires fitted for sports utility vehicles, full-size sedans and electric vehicles, after bigger and high-end products drove their earnings to record highs in 2023.
• Earnings at the country's three biggest tire makers -- Hankook Tire & Technology Co., Kumho Tire Co., and Nexen Tire Corp -- are expected to stay on their upward trajectory this year as they are gearing up to market their high-value-added products.

South Korea Tire Market Trends

South Korea's tire market trends include smart tire technology and increased demand for eco-friendly solutions.

Some trends in the South Korean market are reflected in technology's influence and the growing demand for a greener solution. Technology is one strong trend in this industry in which companies have invested much in innovative technologies for tires, such as smart tires and advanced materials. For example, Hyundai and LG Chem are co-developing smart tires, which will be equipped with sensors to monitor road condition and performance of the tire in real-time for higher safety and efficient vehicles that will enhance growth of the South Korea tire market.

All these are happening amidst the increasing need for more eco-friendly solutions rising from increasing environmental awareness and stringent legislations. The customer companies focus all their attention on developing tires with low rolling resistance and with even more fuel-efficient tires in an endeavor to reduce carbon emissions. For example, Hankook Tire introduced "Ventus S1 evo3," which takes into consideration the eco-friendly material while generating high-tech tread design, trying to minimize any environmentally hazardous impact. All these trends represent the way of the industry moving in the direction of innovation and sustainability owing to demands both from market forces and regulatory bodies.

Industry News

August 2023

Hankook Tire & Technology (Hankook Tire) introduced its proprietary technology system for 'iON,' which is a new brand of Hankook Tire for electric vehicles, in an effort to accelerate efficiency in the process of research and development as well as to enhance communication with customers. The name for the newly established system, 'iON INNOVATIVE TECHNOLOGY,' originates from the 'iON' brand the company designates as its flagship tire brand for electric vehicles.

March 2024

South Korea's Kumho Tire plans to build its first European manufacturing plant in 2027 to ride the rapidly growing auto-electric vehicle market. The investment would amount to over a trillion won ($750 million), with construction beginning next year and scheduled for completion in two years, according to local media reports.

Historical Market Analysis

Over the past five years, the industry for South Korea's tires has experienced amplified growth due to improved technology and more demand by consumers. The industry has remained keen on R&D and brought innovations in smart tires, advanced material technology, etc. Through these, companies like Hankook, Kumho Tire, have developed tyres that have better attributes for performance, such as being more fuel efficient while having further attributes for safety. Booming expansion in the automobile sector but especially electric vehicles (EVs) further fuelled the South Korea tire demand. New tire designs are dedicated to specific needs of EVs, which further fuels the market growth.

Moving forward, the market will continue to grow with the development of eco-friendly and smart technologies in tires. The key players will then invest in sustainable practice and advanced manufacturing techniques to meet the evolving needs of consumers and regulatory standards. Features at the forefront of the future landscape of South Korea's tire market will likely include strategic partnerships and advancements in technology.

Opportunities in the South Korea Tire Market

The opportunity lies in developing eco-friendly tires and integrating smart technologies to meet demand.

Among the various South Korea tire market opportunities, a key one is the development and increase in eco-friendly tire technologies. There is rising environmental awareness on a global level combined with resultant pressure from increased carbon emissions regulation, therefore, prompting the use of more environmentally friendly tires. This will provide an opportunity to companies investing in sustainable materials and low rolling resistance tires. Both the demand of consumers and the requirements of regulation are being addressed through the production of renewable material, such as tires out of renewable material or advanced rubber compounds that enhance fuel efficiency, introducing smart technologies in tires with sensors so that performance will be monitored in real time. Companies will then be well on their way to being ready to lead the market further pushed by environmental and technological advances.

Market Dynamics

Expanding into the electric vehicle (EV) tire segment offers significant growth potential in South Korea.

The possibility of expanding into the electric vehicle (EV) tyre category can be a significant opportunity for the key players. Since South Korea continues to escalate its commitment to decreasing carbon emissions, more EVs will be encouraged. As such, more EV-specific tires will be needed, thereby bolstering the South Korea tire market dynamics and trends. EVs have different requirements for tires, including low rolling resistance, increasing the efficiency of the batteries and improving the driving range. Moreover, such tires would have to take into account the particular weight distribution and torque requirements of an electric car. With the increasing demand for electric cars, companies that are especially well qualified to offer expertise in EV tires will be in an ideal position to capitalise not only domestically but also globally. Companies that invest their time on research in high-performance and energy-efficient tires designed specially for electric cars can well establish themselves as pioneers in this fast-emerging market segment. This puts it in line with environmental concerns but also in tune with the general trend of technological innovation within the automotive sphere.

Growth Drivers

AI-driven tire maintenance systems enhance safety and performance, driving market growth uniquely.

AI-powered tire care systems are the newly integrated growth factor in South Korea's tire market. Artificial intelligence development has made real-time monitoring and forecited tire maintenance possible by embedding sensors and undertaking data analytics. For instance, Nexen Tire set precedence in applying AI in monitoring conditions of tires as well as prediction of wear patterns to alert drivers well in advance on the health of the tires and their maintenance requirements. This technology not only increases safety but also makes the tires last for a longer period and keeps the overall maintenance cost of a vehicle low. This describes what the new South Korea tire market trend is all about. Apart from that, with the development of AI-driven technologies and the generation of more capacities that provide better performances and even greater conveniences to customers, they increasingly become an enormous competitive advantage for any organisation in the marketplace. This supports the larger trend of digitalization in automotive technologies. With this ever-rising demand from consumers for smart technologies, this smart solution is also benevolent in terms of environmental sustainability, ensuring optimal usage of the tire and preventing waste.

Market Restraints

Stringent environmental regulations increase costs and complexity, restraining growth in the tire market.

The major hurdles for tire industries in South Korea lies in the severe environmental regulations. The industry of tyre manufacturing has been under constant pressure to abide by the green regulations that aim at significantly reducing their impact on the environment, affecting the South Korea tire market revenue. Some examples include limits placed on the emission of greenhouse gas, the regulation concerning the handling and management of wastes, and the prohibition of hazardous materials. For example, the European Union's REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) impacts global operations and costly reformulation of materials as well as processes in manufacturing must be implemented. Such regulations entail the gigantic capital input in cleaner technologies and green practices, that are quite "painful" on the company's book and add "cost of production". Besides this complexity of regulations varied from market to market by which the firm operates, causing complexity in global operations and the supply chain.  Due to the stringent demands set forth, manufacturers are therefore compelled to incur higher costs and higher operational complexities that, in turn, could also reflect negative impacts on competitiveness as well as profitability both in the home market and in the international market.

South Korea Tire Industry Segmentation

“South Korea Tire 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 Tire
• Tubeless Tire

Market Breakup by Season

• Winter Tire
• Summer Tire
• All-Season Tire

Market Breakup by Vehicle Type

• Two-Wheeler and Three-Wheeler
• Passenger Vehicle
• Heavy Commercial Vehicle
• Light and Medium Commercial Vehicles
• Others

Market Breakup by Sales Channel

• OEM
• Aftermarket

By Design Analysis

Radial tires excel in performance and efficiency, while bias tires suit rugged use.

Market traction in radial and bias tyre design is happening at a heavy pace, with each segment getting into the limelight for different reasons. While radial tyres are gaining importance because of the better performance aspects like better fuel efficiency, good handling, and immense durability, on the other hand, bias tyres are finding their grounds because of competition from many kinds of special purpose tyres. For example, Michelin and Bridgestone are concentrating on producing exclusive tyres of the radial kind that people and fleet operators prefer nowadays because the performance of such tyres lasts longer and is more comfortable.

As per South Korea tire market analysis, bias tires are seeing renewed interest and usage in some applications due to their ability to be strong and cheaper. They happen to be desired in off-road and agricultural application categories because the concerns relate to the durability and resistance to punctures. Companies such as Titan International can take advantage of this demand with bias tires for rough terrains. Both segments cater to different needs that help create growth in their niche areas of the tire market.

Market Analysis By Type

Tubeless tires gain popularity for safety and efficiency, while tube tires remain cost-effective for specific uses.

Tubeless tires are gaining more and more attention because of the benefits linked to safety and convenience, garnering a 5.7% CAGR through 2032. They protect the tire from puncture risks as the leakage of air will be minimised in case the tire is punctured. In addition, they feature fuel efficiency and better driving comfort brought about by low rolling resistance. The very recent development seems to be contributed by major manufacturers, Michelin and Bridgestone, as they aggressively penetrate the market by releasing more varieties of tubeless tires for both passenger and commercial vehicles.

As per South Korea tire industry analysis, tube tires remain relevant in some applications since they are cheaper to buy upfront and easier to repair. They are applied in a motorcycle and bicycle industry because budget considerations, as well as easy maintenance, are always in demand. Companies such as Kenda and IRC provide tube tires to respond to the demand of cost effective and easily serviceable products. Both types respond to different markets so both are growing.

Season Insights

Winter tires excel in cold conditions, summer tires in warm, and all-season tires offer versatility.

Winter tires are gaining immense popularity due to their better performance capabilities on snow, ice, and heavy frosts. They have been developed with special rubber compounds and tread pattern technology that grants optimised gripping power and safety during rainy conditions. The companies Nokian and Bridgestone are expanding their winter tire range to corner the rising market of tires in areas with harsh winters.

Good performance in warm, dry conditions because they provide a smoother drive and less road noise compared to the performance tires. They are manufactured to give excellent traction and stability in heat, which is very pleasing to the consumers in temperate climates, as the summer is hot, while the winter is cold. Larger manufacturers have centred their attention on developing the newest forms of summer tires to facilitate improved drive satisfaction and safety, thereby boosting the South Korea tire industry revenue.

All-season tires can demonstrate acceptable performance under pretty different conditions: light snow and, most importantly, rain. Consumers are interested in this solution because it is somewhat balanced between summer tires when used in the warmest seasons and all-weather tires for year-round use, and there are excellent examples both from Continental and Pirelli. Each of the segments meets different requirements in driving, thus adding up for total market growth.

By Vehicle Type, Passenger Vehicles to Dominate

Two-wheeler, passenger, heavy commercial, light commercial, and specialty tires drive market growth

The popularity of motorcycles and scooters has grown these segments, especially in urban geographies where their demand for tires is increasing. Michelin and Pirelli have begun to expand their offerings as companies that could increase the value chain offerings to focus on high-performance and safety-rich products in this area.

The market is dominated by passenger vehicles, and the increase in automobiles globally along with high-performance and fuel-efficient tires are driving the industry, gaining a 5.3% CAGR through 2032. For instance, giant players like Bridgestone and Continental are focusing on innovations related to comfort and safety.

Heavy commercial vehicle tires act as an important player in the freight and logistics industry. As global trade is increasing, demand for heavy commercial vehicle tires is also increasing. Main manufacturing companies like Goodyear and Michelin are providing durable and high-load-bearing tires for heavy commercial vehicles.

Light and medium commercial vehicles address delivery and service sectors where growth is already supported by e-commerce, among others, specialised tires for agricultural and off-road vehicles to meet niche needs, and boosting the trends of the South Korea tire industry.

Sales Channel Analysis

OEM tires drive new vehicle sales, while aftermarket tires cater to replacements and upgrades.

The tire market is segmented by OEM and aftermarket channels, which contributes to the increased growth in the overall category. OEM (Original Equipment Manufacturer) tires are sold directly to the vehicle manufacturers, which are fitted during vehicle production. This segment benefits through their associations with car manufacturers and stable demand tied into new car sales. Michelin and Bridgestone are just two names that have good relations with car manufacturers, thus ensuring smooth OEM tire sales volumes.

The aftermarket tyres are bought over by the vehicle owners as a replacement or upgrade, bolstering the demand of the South Korea tire market. The demand for this segment is going to be high for increasing vehicle ownership, and there would be a need to replace tires as well as consumer requirements for performance upgrade. Brands like Goodyear and Continental focus on the expansion of the aftermarket, to cater to the diverse needs of the consumer with various options available from standard replacements to high end. Both channels of marketing contribute uniquely in contributing to the expansion of the markets for the tyre.

South Korea Tire Market Regional Insights

Seoul and the Metropolitan Area Tire Market Opportunities

High density of vehicles and conglomeration of urban traffic increase the demand for tires in the region of Seoul and its metropolitan area. In fact, a huge population and a high ownership of vehicles are strong drivers for the demand for both passenger and commercial vehicle tires. The focus on sophisticated and high-performance tires is, therefore, also in line with the status of this area as a Hub for excellence for technological and economic excellence. This builds in the demand for strong and durable tires due to various transportation channels such as buses and delivery vehicles. Other factors like the continuous upgrading of cities and infrastructure contribute to the consistent tire demand in this region.

Gyeonggi Province Tire Market Dynamics

In Gyeonggi Province, economic activity characterises this province as an industrial and commercial supercenter, thus contributing to strong support for tire demand. Logistics activities and production-based activities have significantly contributed to its high commercial and heavy-duty tires. The vast number of commercial fleets and industrial vehicles creates a huge South Korea tire demand for the most robust and high-quality tires to support all their activities. Ongoing infrastructure projects in the province along with rapid urbanisation further increase the demand for tires. The location close to Seoul further strengthens the region's position as a central hub for tire sales and distribution spurring growth for the market at large.

Market Overview of Innovative South Korea Tire Startups

The emphasis of South Korean tire startups lies in innovative tire technologies as well as sustainability. The companies have developed intelligent tyres combined with sensors for monitoring the performance and doing advanced predictive maintenance. Many startups focus on sustainable tires, which are produced from eco-friendly sources and processed using high-tech manufacturing, limiting the negative environmental impact. Innovations note improving safety and driving experience together with environmental protection. Innovations in the tire industry such as smart tires, advanced materials, and production processes, etc will stay in line with the demand that is continuously increasing on the back of high technology and sustainability.

A company under the name TireHub specialises in smart tire technology, embedding sensors into tires that calculate real-time data such as pressure and temperature. Their innovation focuses on making vehicles safer and more responsive by providing the most minute information that will alert the users about any potential failure.

GreenTire Innovations is an innovation specialist for environment-friendly, sustainable raw material tires and plays its role within the company's product portfolio, with a focus on the use of recyclable materials and bio-based compounds to significantly minimise their environmental footprint in response to rising market demand for sustainable and green automotive solutions.

Competitive Landscape

South Korea tire market players are seeking technological advancements and sustainability. Their focus is on enhancing performance through technologies such as smart tires, reinforced by real-time monitoring systems, and safety and efficiency. Furthermore, the South Korea tire companies are interested in eco-friendly raw materials and green manufacturing practices to adhere to rising regulatory demands and consumers who place value on environment-friendly products to lead in both performance and sustainability.

Key Market Players

Key industry leaders in this market are:

Founded in 1931, Headquartered in Tokyo, Japan, Bridgestone Corporation provides high-performance and eco-friendly tires in South Korea. Starting from its product line through tires of passenger, commercial, and motorcycle cars it focused on the level of advanced technology and durability.

Established in the year 1889, Michelin Group is situated in Clermont-Ferrand, France. It supplies premium quality tires to South Korea for their passenger car, commercial and specialty use. At Michelin, they emphasise on innovation, safety, and sustainability for every tire.

Continental AG was established in the year 1871, Hanover, Germany. It sells passenger car, truck, and two-wheeler tires across South Korea. Continental emphasises performance, safety, and innovative technologies in the tires.

Pirelli & C. S.p.A is one of the companies in South Korea that manufactures premium and high-performance tires. It was founded in 1872 and is headquartered in Milan, Italy. Their products are towards passenger cars, motorcycles, as well as commercial vehicles; all of these are testified through innovation and quality.

Goodyear Tire & Rubber Company, established in 1898 and headquartered in Akron, Ohio, USA, has offered different types of tires for both passenger, commercial, and off-road vehicles in South Korea, with the main focus areas on durability, performance, and technology.

Other Yokohama Rubber Co., Ltd., Hankook Tire & Technology Co., Ltd., Sumitomo Rubber Industries, Ltd., Giti Tire Pte Ltd., Kumho Tire Co., Inc. and Others, among others. 

Recent Developments

April 2023

Nexen released the new line of environmentally friendly tires by aligning with its global sustainability trend. This particular line of tires promised to be capable of delivering better fuel efficiency at a lesser noise level, which is true commitment towards environmental sustainability and innovation for tire technology.

March 2024

Kumho Tire unveiled its newly branded lineup of tires specifically developed for electric vehicles, playing its trump card in a highly competitive EV tire market with Hankook Tire & Technology's iON brand.