Global Tyre Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2024-2032)

Global Tyre Market Growth

A tyre (which is essentially a thick ring of rubber) is typically inflated and positioned over the outer edge of the vehicle's wheel rim. It serves a crucial role in providing traction, enabling the vehicle to traverse the road with greater ease. Most tyres are composed of natural rubber; however, in recent years, they have increasingly integrated materials such as synthetic rubber, steel wires, fabric and carbon black.

The tyre market demand growth is being driven by the increase in the global production and sales of vehicles. As incomes rise in emerging economies, more people can purchase vehicles, which in turn boosts market growth. Additionally, the expanding middle class in industrializing countries is contributing to higher vehicle ownership, resulting in a greater need for lightweight vehicle tyres.

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Global Tyre Market Analysis

The tyre industry growth is being fuelled by a rise in vehicle production. As economic conditions improve in emerging markets, more individuals are buying vehicles for both personal and commercial purposes. Urbanisation is leading to greater mobility and infrastructure development, which in turn increases the demand for tyres for both passenger and commercial vehicles. This boost in vehicle production directly enhances the need for original equipment (OE) tyres as well as aftermarket replacements.

The shift towards electric vehicles (EVs) is a significant factor influencing the demand of tyre market. EVs have unique performance needs for tyres, including the ability to handle greater torque and maintain low rolling resistance to enhance battery efficiency. With governments globally promoting greener transportation through various incentives and regulations, the adoption of EVs is anticipated to surge, leading to a higher demand for tyres specifically designed for these vehicles.

The tyre market dynamics and trends are significantly influenced by the emergence of smart tyres that come with embedded sensors. These sensors are capable of monitoring tyre pressure, temperature, tread wear, and overall tyre health in real-time. The data collected can be delivered to drivers or fleet operators, enhancing safety, preventing blowouts, and optimising tyre performance. In the commercial sector, smart tyres are becoming crucial for effective fleet management, helping to lower maintenance costs and minimize vehicle downtime.

Tyre Industry Outlook

As per the OICA, the 2022 production statistics show significant growth in vehicle manufacturing across several countries, particularly in emerging markets. Malaysia topped the list with a remarkable 46% increase in total vehicle production, reaching 702,275 units, which included 650,190 cars and 52,085 commercial vehicles. Uzbekistan followed with a 38% growth, producing 333,569 vehicles, predominantly cars (328,118 units). The low output of commercial vehicles (5,451 units) suggests that Uzbekistan is still heavily dependent on passenger vehicle production. Indonesia, one of the largest automotive markets in Southeast Asia, experienced a 31% increase, totalling 1,470,146 vehicles, comprised of 1,214,250 cars and 255,896 commercial vehicles. Argentina's production reached 536,893 vehicles, with 257,505 cars and 279,388 commercial vehicles, reflecting a 24% growth. India also saw a similar 24% increase, producing 5,456,857 vehicles, which included 4,439,039 cars and 1,017,818 commercial vehicles. This substantial output in both segments highlights India's position as a major automotive hub, fuelled by domestic demand and a growing export market. Kazakhstan recorded a 22% increase in total vehicle production, manufacturing 112,540 units, with the majority being cars (103,345 units). The production of commercial vehicles indicates Kazakhstan's developing, albeit still modest, commercial vehicle sector. Romania noted a 21% rise in total production, reaching 509,465 vehicles, focusing exclusively on car manufacturing. Morocco experienced a 15% increase in vehicle production, totalling 464,864 units, which included 404,742 cars and 60,122 commercial vehicles.

Thailand produced 1,883,515 vehicles, marking a 12% increase, showcasing a robust commercial vehicle segment with 1,289,458 units, outpacing its car production of 594,057 units. This trend emphasizes Thailand's role as a key regional hub for commercial vehicles, particularly in truck manufacturing for the ASEAN market. Germany, with a modest 11% growth, produced 3,678,820 vehicles, including 3,480,357 cars and 197,463 commercial vehicles. South Africa produced 555,889 vehicles, with 309,423 cars and 246,466 commercial vehicles, reflecting an 11% growth. Automotive production is driving the tyre industry revenue by creating a continuous demand for original equipment tyres, especially with the rise in vehicle production in emerging markets.

Increasing automotive production, particularly in emerging markets, is driving the tyre market demand.

• Innovations like smart tyres, eco-friendly materials, and EV-optimized tyres drive market expansion.
• The rising need for replacement tyres supports long-term market stability.

Fluctuations in rubber prices can affect profit margins.

• Stricter emissions standards require costly manufacturing changes.
• Continuous innovation demands significant investment in research and development.

The expanding EV market creates opportunities for specialised tyre development, further boosting the tyre industry growth.

• Growing demand for eco-friendly tyres provides new market avenues.
• Increasing use of sensor-equipped tyres can attract tech-savvy consumers and fleet operators.

The presence of numerous global players drives price wars.

• Global recessions could reduce vehicle sales, directly impacting tyre demand.
• Global events like pandemics can cause delays and shortages in production.

Key Players in the Global Tyre Market and Their Key Initiatives

Bridgestone Corporation

• Introduced as part of the Bridgestone 3.0 Journey, the initiative focuses on enhancing sustainability and developing innovative tyre solutions, further boosting demand of tyre market.
• Invested in ENLITEN technology, focusing on creating premium, lightweight tyres with improved fuel efficiency and reduced carbon footprint.

Michelin Group

• Introduced tyres for cars and buses containing 45% and 58% sustainable materials.
• Expanded its all-season tyre portfolio in response to rising demand and regulatory changes.

Continental AG

• Launched as their most sustainable tyre to date, the UltraContact NXT incorporates up to 65% renewable and recycled materials in order to capture the tyre market opportunities. 
• Developed premium tyres for electric vehicles, focusing on low rolling resistance and quiet driving for top EV manufacturers.

Pirelli & C. S.p.A

• Focussed on expanding its Cyber Tire technology, integrating sensors for real-time data on tire performance, enhancing safety and connectivity.
• Enhanced its portfolio of speciality tyres, including those designed specifically for electric vehicles, to meet growing demand in this sector.

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Global Tyre Industry Segmentation

“Global 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 Season

• Winter Tyre
• Summer Tyre
• All Season Tyre

Market Breakup by Vehicle Type

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

Market Breakup by Sales Channel

• OEM
• Aftermarket

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

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Tyre Market Share

The growth of the tyre industry is largely fuelled by the rising demand for two-wheeler and three-wheeler tyres, especially in emerging markets. These vehicles are particularly common in regions such as Asia-Pacific, Latin America, and Africa, where they provide affordable and efficient transportation options in crowded urban areas. The ongoing trend of urbanisation in these regions is leading to an increased need for two- and three-wheeler tyres, outpacing the growth observed in the passenger vehicle market.

The heavy commercial vehicle (HCV) segment is driving demand of the tyre market more significantly than light and medium commercial vehicles (LCVs and MCVs) for several important reasons. Industrialisation and global infrastructure projects are increasing the need for HCVs, which play a vital role in transporting large goods and materials over long distances. These vehicles are heavily utilized in industries such as construction, mining, and logistics, resulting in a greater demand for tyres due to the necessity for frequent replacements in tough operating conditions.

Leading Companies in the Tyre Market

The companies specialise in the production of high-performance tyres for a wide range of vehicles, including passenger cars, commercial vehicles, motorcycles, and speciality vehicles.

• Bridgestone Corporation
• Michelin Group
• Continental AG
• Pirelli & C. S.p.A
• Goodyear Tire & Rubber Company
• Yokohama Rubber Co., Ltd.
• Hankook Tire & Technology Co., Ltd.
• Sumitomo Rubber Industries, Ltd.
• Giti Tire Pte Ltd.
• Toyo Tire Corp.
• Maxxis International
• MRF Ltd.