New Delhi, July 15, 2024 (GLOBE NEWSWIRE) -- The global automotive tire market is projected to hit the market valuation of US$ 728.88 billion by 2032, up from US$ 167.63 billion in 2023 at a CAGR of 17.93% during the forecast period 2024–2032.
The demand for automotive tires in 2024 is expected to rise significantly, driven by robust global automotive sales in 2023 and a thriving aftermarket segment. The year 2023 saw a substantial increase in the number of vehicles sold worldwide, with total sales reaching 90.9 million units. Notably, the electric vehicle (EV) sector accounted for 14.2 million units of this total. The growing popularity of EVs, which require specialized tires to handle their unique performance characteristics, is a crucial factor in driving demand for both original equipment manufacturer (OEM) and aftermarket tires. This trend highlights a shift towards high-quality, durable tires that can meet the specific needs of modern vehicles, especially as manufacturers innovate and expand their EV offerings.
Request Sample Report: https://www.astuteanalytica.com/request-sample/automotive-tire-market
The aftermarket tire segment in the global automotive tire market is also experiencing notable growth due to the aging global automotive fleet. The average vehicle age reached 12 years in 2023, up from 11.8 years in 2022. With more than 1.4 billion vehicles on the road globally, the need for tire replacements is naturally increasing. The global tire market size was valued at $167 billion in 2023, with the aftermarket segment representing over 75% of this total. Investment in tire maintenance and replacements is rising, driven by consumer awareness about safety and performance. Additionally, there has been a notable increase in the demand for high-performance and all-season tires, reflecting consumers' preference for quality and durability.
Online sales are having a profound impact on the overall demand for automotive tire market. In 2023, online tire sales captured 20% of the total tire sales market, reflecting the convenience and accessibility of e-commerce platforms. An estimated 40 million tires were sold online last year, with 65% of tire buyers preferring online purchases due to ease of comparison and home delivery options. E-commerce platforms offer a broader range of products and competitive pricing, driving this shift. Furthermore, innovations such as augmented reality (AR) tools and virtual tire fitting services are enhancing the online shopping experience, making it easier for consumers to make informed decisions. This transition towards online sales is expected to continue growing, further boosting the demand for automotive tires and reshaping the market landscape.
Key Findings in Global Automotive Tire Market
| Market Forecast (2032) | US$ 728.88 Billion |
| CAGR | 17.93% |
| Largest Region (2023) | Asia Pacific (47.36%) |
| By Type | Radial (92.24%) |
| By Vehicle Type | Passenger (65.53%) |
| By Season | All Season Tires (57.35%) |
| By Application | On the Road (93.12%) |
| By Distribution | Aftermarket (75.79%) |
| Top Trends |
|
| Top Drivers |
|
| Top Challenges |
|
Tubeless Tires, a segment of Radial Tires, Poised to Revolutionizing Automotive Tire Market
The automotive tire market is experiencing a significant shift, with tubeless tires gaining unprecedented traction. In 2023, the radial tire segment captured more than 92.24% market share. This surge is driven by a blend of technological advancements, enhanced safety features, and consumer preference for performance and convenience. Tubeless tires, unlike their traditional counterparts, eliminate the need for an inner tube, resulting in numerous benefits that appeal to modern drivers. These tires offer improved fuel efficiency due to reduced rolling resistance, lower maintenance, and enhanced safety features such as better heat dissipation and decreased chances of blowouts. This growth is largely attributed to the rising adoption of tubeless tires, which accounted for over 70% of the market share in 2023.
Several factors are propelling the demand for tubeless tires in the automotive tire market. Wherein, the increasing production of vehicles worldwide, which reached 90.9 million units in 2023, fuels the need for advanced tire solutions. The push towards electric vehicles (EVs), whose global sales surpassed 14 million units in 2023, demands tires that offer better energy efficiency and lower rolling resistance, both hallmarks of tubeless technology. Additionally, the tire replacement market saw a growth of 4% in 2023, with many consumers opting for tubeless variants due to their durability and cost-effectiveness. The off-road vehicle segment, which grew by 6% in 2023, also benefits from the robustness and puncture resistance of tubeless tires. Moreover, the commercial vehicle segment, contributing to 21.76% of the tire market revenue in 2023, increasingly prefers tubeless tires for their load-bearing capacity and longevity. These statistics underscore the pivotal role of tubeless tires in shaping the future of the automotive tire industry, highlighting their integral position in meeting the evolving demands of modern transportation.
Electric Vehicles Emerged as Fastest End Users in Automotive Tire Market, Set to Grow at Highest CAGR of 18.52%
The demand for automotive tires is experiencing an unprecedented surge, particularly in the electric vehicle (EV) segment. This growth is outpacing that of commercial and passenger vehicles. The key drivers of this trend include the rapid adoption of EVs globally, driven by environmental regulations, technological advancements, and consumer preference for sustainable transportation. In 2023, the global EV market saw sales of 14.2 million units, a significant increase from 10 million units in 2022. Major markets such as China, Europe, and the United States accounted for the bulk of these sales. For instance, China alone sold 8.1 million EVs in 2023, while Europe and the U.S. reported sales of 3.2 million and 1.4million units respectively. This surging demand is further supported by government incentives, extensive charging infrastructure, and the declining cost of batteries, making EVs more accessible to a broader audience.
Specific characteristics of EVs drive the increased demand for specialized tires in the automotive tire market. EVs are heavier than traditional vehicles due to battery weight, necessitating tires that can support greater loads and offer lower rolling resistance to maximize battery efficiency. In addition, the instant torque produced by electric motors subjects tires to greater stress, requiring enhanced durability and traction. The global tire industry has responded by innovating and producing tires specifically designed for EVs, which are now a critical component of the overall EV ecosystem.
The Michelin Group, for example, reported a 15% increase in sales of EV-specific tires in 2023. Similarly, Continental AG has expanded its portfolio to include over 50 new tire models optimized for electric vehicles. Moreover, EV manufacturers like Tesla, which sold 1.3 million vehicles in 2023, often recommend specialized tires to their customers, further driving demand. The cumulative effect of these factors is reshaping the automotive tire industry, pushing it towards more advanced, high-performance tire solutions tailored for electric mobility.
Request For Customization: https://www.astuteanalytica.com/ask-for-customization/automotive-tire-market
Global Consumers Favor All-Season Tires, Holding 65.53% Market Share
The consumer behavior behind the preference for all-season tires stems largely from their versatility and convenience in the automotive tire market. These tires are designed to perform adequately in a variety of weather conditions, making them an attractive choice for drivers who experience diverse climates throughout the year. The convenience of not needing to change tires seasonally saves consumers time and money, which is a significant driving factor. Additionally, the cost-effectiveness of all-season tires, which eliminates the need for purchasing and storing a second set of tires, appeals to budget-conscious consumers. Modern advancements in tire technology have also enhanced the performance of all-season tires, making them suitable for most driving conditions, from wet to dry and even light snow scenarios.
Several statistics highlight the dominance of all-season tires in the automotive tire market. Research shows that 80% of new passenger vehicles are equipped with all-season tires as original equipment. In the aftermarket sales, all-season tires account for 70% of total tire sales. Furthermore, the popularity of SUVs and crossovers, which often come with all-season tires, has bolstered their market share. The average lifespan of an all-season tire has reached 60,000 miles, offering consumers better value over time. A survey revealed that 65% of consumers prioritize tire longevity and versatility over specialized performance. The global tire market saw sales of 1.7 billion units, with all-season tires contributing significantly to this volume. Additionally, urbanization has driven demand for all-season tires, suitable for varying urban road conditions. E-commerce platforms report that all-season tires are among the top-selling automotive products. The rise of electric vehicles, which often utilize all-season tires for their efficiency, is another contributing factor. The consumer reviews and recommendations frequently highlight the practicality and reliability of all-season tires, further cementing their dominance in the market.
Highly Consolidated Automotive Tire Market: Top 6 Players Controls Over 52% Market Share
The dominance of the automotive tire industry by a handful of market players such as Michelin, Bridgestone, Goodyear, Continental, Sumitomo, and Pirelli can be attributed to several strategic advantages and investments that these companies have made over the years. These industry giants have established themselves through a combination of extensive R&D, expansive global distribution networks, and robust brand recognition. For instance, Michelin invests approximately $770 million annually in research and development, enabling the company to continuously innovate and maintain high-quality standards. This commitment to R&D allows these companies to stay ahead of technological advancements and meet the evolving needs of the automotive industry.
Furthermore, these automotive tire market leaders have built extensive manufacturing and distribution infrastructures that provide significant economies of scale, reducing production costs and enabling competitive pricing. Bridgestone, for example, operates over 180 manufacturing plants worldwide, ensuring a consistent supply chain and rapid response to market demands. Similarly, Goodyear’s global presence includes 46 facilities in 21 countries, which aids in efficient distribution and customer reach. This widespread infrastructure not only supports massive production capabilities but also strengthens their market presence, making it challenging for smaller players to compete.
Additionally, brand loyalty and strategic partnerships play a crucial role in the dominance of these companies. Pirelli, known for its association with high-performance and luxury vehicles, capitalizes on its strong brand image and collaborations with major automotive manufacturers. Continental, with its focus on integrating advanced technologies such as sensors and connectivity into tires, partners with leading carmakers to offer bespoke solutions. These strategic alliances not only enhance their product offerings but also secure long-term contracts and customer loyalty. As a result, these automotive tire market leaders are able to maintain a significant market share, bolstered by their innovation, expansive operations, and strategic partnerships.
Global Automotive Tire Market Key Players
- Bridgestone Corp.
- Goodyear Tire & Rubber Company
- Continental AG
- Michelin
- Sumitomo Rubber Industries
- Pirelli
- Cooper Tire & Rubber Company
- Hoosier Racing Tire
- Titan Tire Corp.
- Vogue Tyre
- Yokohama Tire Corp.
- Dunlop Tires
- Toyo Tires
- Hankook
- CEAT Specialty
- Apollo Tyres
- Kumho Tires
- Other Prominent Players
Key Segmentation Overview:
By Type
- Radial
- Tube
- Tubeless
- Bias
By Vehicle Type
- Commercial
- Light
- Medium
- Heavy
- Passenger
- Bikes
- Cars
- Buses
- Others
- Electric
By Season Type
- All Season Tires
- Summer Tires
- Winter Tires
- Touring Tires
- Performance Tires
- Rib Tires
- Others
By Application
- On the Road
- Off the Road
By Distribution Channel
- OEM
- Aftermarket
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa (MEA)
- South America
Inquire Before Buying This Research Report: https://www.astuteanalytica.com/inquire-before-purchase/automotive-tire-market
About Astute Analytica
Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.
Contact Us:
Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/
LinkedIn | Twitter | YouTube
