by The global automotive tire market reached US$ 130.5 billion in 2022 and is expanding to US$ 211.6 billion by 2032, growing at a CAGR of 5.00% from 2023 to 2032.
Automotive tires are the most important part of any vehicle, made up of rubber and used to cover the rim of the wheel externally. Its prime function is to protect the rim and provide tractive force between vehicle and road surface.
Get a Sample: https://www.precedenceresearch.com/sample/1031
Automotive Tire Market Growth Factors
Increasing sale of passenger vehicles across the globe propel the market growth of automotive tire. In addition, ever-increasing global population along with rising disposable income of the public triggers the market growth. As per World Population Clock, the growth rate of global population is 1.05% per year. Besides this, the Organization for Economic Co-operation and Development (OECD) report 2018, Southeast Asia, China and India experienced firm growth in GDP in the last few years and expected to grow prominently in the coming years.
However, volatile prices of automotive tire analyzed to hinders the market growth. Petroleum reinforcing materials for example polyester and nylon are used as raw materials to manufacture tire. The prices of these materials fluctuate significantly due to frequent ups and downs in the global economy. Thus, uncertainty in the price of raw material repels the market growth.
Regional Snapshots
The Asia Pacific and Europe are the most prominent regions in the global automotive tire market. The Asia Pacific held significant value share of nearly 40% in the year 2019 and promises an opportunistic growth over the forecast period. The growth of the region is mainly due to the significant investment by major market players for their regional as well as product expansion in the region. The region offers low labor cost and significant consumer base for the manufacturers to tap maximum revenue out here. In addition, China and India are the two most flourishing automotive market that experienced prominent growth rate in the last few years. For instance, in India the automotive tire replace sales growth rate was projected to be 7-8% in the coming years and mainly from the passenger vehicles segment.
Europe garnered a growth rate of nearly 6.5% during the forecast period. The prominent growth of the region is attributed to the increased sales of passenger vehicles in the region especially the advanced vehicles such as electric vehicles and battery-powered vehicles. Furthermore, the European government has imposed stringent norms for the use the gas emission that encourages pubic as well as automotive players to switch to reliable and environment-friendly vehicle; this triggers the growth for automotive tire in the region.
Read More: Automotive 48V System Market Size to Record US$ 54.07 Billion by 2032
Key Players & Strategies
The global automotive tire market has numerous regional and international players however the market is still consolidated in nature. Four major players that are Continental AG, MICHELIN, Bridgestone Corporation, and The Goodyear Tire & Rubber Company capture approximately 50% of the market value. Meanwhile, cheap and low quality tires provided by some of the regional players give tough price competition to these major market players. However, advanced tire technology and excellent driving experience offered by the players propel their growth.
In addition, product development and investment is the key market strategy adopted by various industry players. For instance, in August 2019, The Hankook Tire launched Dynapro AT2 for off & on-road SUVs. These tires offer optimal performance in all driving condition irrespective of the road type. Similarly, in Jan 2020, Bridgestone Corporation launched BATTLECROSS E50 motorcycle tire for motorbike race to test the tire endurance.
Some of the key players operating in the market are Continental corporation, Bridgestone Corporation, Pirelli Tyre C. S.p.A. (China National Chemical Corporation), MICHELIN, Toyo Tire Corporation, Hankook Tire & Technology Co., Ltd., The Goodyear Tire & Rubber Company, The Yokohama Rubber Co., Ltd, Sumitomo Rubber Industries Ltd, and NokianTyres plc among others.
Report Highlights
- The Asia Pacific held a promising market share in the global automotive tire market in 2019. Significant growth in population and low labor cost has made it most attractive site for the automotive tire manufacturers. Some of the manufacturers like Bridgestone Corporation, CEAT, and others invest prominently on their regional expansion to capture the untapped market opportunity.
- Passenger vehicle segment dominated the global automotive tire market in 2019 with prominent revenue share of nearly 40%. Significant sales of passenger vehicles and continued advancements have flourished its growth in the past few years. In addition, introduction to electric vehicles along with integration of advanced drive assistance technologies in the passenger vehicles especially for semi-luxury and luxury vehicles expected to magnificently boost its demand over the coming years.
- However, light commercial vehicles segment among other vehicle types experience the fastest growth during the forecast period. Flourished demand for e-commerce platform and online sales has triggered the logistics & transportation segment that in return propel the market growth for light commercial vehicles.
Automotive Tire Market Segmentation
By Season Tire Type
- Winter
- Summer
- All Season
By Rim Size
- Less than 15
- Between 15 to 20
- Greater than 20
By Vehicle Type
- Commercial Vehicle
- Light Commercial
- Heavy Commercial
- Passenger Car
- Electric Vehicle
By Distribution Channel
- Aftermarket
- OEM
By Regional Outlook
- North America
- U.S.
- Canada
- Europe
- U.K.
- Germany
- France
- Asia Pacific
- China
- India
- Japan
- South Korea
- Rest of the World
You can place an order or ask any questions, please feel free to contact at sales@precedenceresearch.com | +1 9197 992 333
About Us
Precedence Research is a worldwide market research and consulting organization. We give unmatched nature of offering to our customers present all around the globe across industry verticals. Precedence Research has expertise in giving deep-dive market insight along with market intelligence to our customers spread crosswise over various undertakings. We are obliged to serve our different client base present over the enterprises of medicinal services, healthcare, innovation, next-gen technologies, semi-conductors, chemicals, automotive, and aerospace & defense, among different ventures present globally.
