Global tire market is valued at USD 250 billion in 2024, driven primarily by rising vehicle production, increasing demand for electric vehicles, and growing replacement tire needs worldwide. These factors collectively fuel sustained expansion across passenger and commercial tire segments.

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Growth Drivers in the Global tire market

Key factors propelling the global tire market include technological innovations, rising vehicle production, and evolving consumer preferences, driving unprecedented demand and industry transformation:

• 4.5% CAGR: The global tire market is expected to grow at a 4.5% CAGR from 2023 to 2030, reflecting robust demand for passenger and commercial vehicles amid urbanization and rising disposable incomes worldwide.
• Electric vehicle (EV) adoption surge: EV sales grew by over 40% in 2023, increasing demand for specialized tires optimized for EV performance and sustainability, marking a critical shift in tire manufacturing priorities.
• Smart tire technology: Integration of sensors and IoT features in tires is expanding at a 25% annual rate, enhancing safety and maintenance, which is increasingly valued by fleet operators and premium vehicle segments.
• Raw material innovation: Use of sustainable and bio-based materials rose by 15% in tire production, addressing environmental regulations and consumer demand for eco-friendly products in key markets like Europe and North America.
• Rising commercial vehicle fleet size: With global freight transport volumes increasing by 3.7% annually, demand for durable, high-performance truck and bus tires is accelerating, supporting logistics and infrastructure development worldwide.

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Key Trends Driving the Global Tire Market

This section highlights innovation, growth, and strategic trends shaping the global tire industry’s future trajectory.

Rising Demand for Eco-Friendly and Sustainable Tires

The global tire market is witnessing a surge in eco-friendly tires, with over 35% CAGR growth in sustainable material adoption by 2028. Manufacturers are focusing on bio-based rubber and recyclable components to meet stringent environmental regulations and consumer demand.

• 45% of consumers prefer tires with reduced carbon footprint, influencing purchasing decisions.
• Regulatory mandates in Europe and North America drive 20% yearly increase in green tire production capacity.

Technological Advancements in Smart Tires

Smart tires equipped with sensors and IoT technology are expanding rapidly, with a market value projection of $3 billion by 2027. These tires enhance vehicle safety, performance monitoring, and predictive maintenance.

• Integration with connected vehicles is expected to grow by 50% annually through 2026.
• Automakers’ partnerships with tire manufacturers account for 30% of new smart tire deployments.

Growth in Original Equipment Manufacturer (OEM) Partnerships

OEM collaborations now contribute to 60% of global tire sales, reflecting a strategic shift toward integrated supply chains. These partnerships facilitate innovation, cost optimization, and faster market penetration.

• 25% increase in OEM contracts reported in the Asia-Pacific region in 2023.
• OEM-aligned tires typically achieve 15% higher resale value due to quality assurance.

Expansion of Aftermarket Tire Services and Digital Channels

The aftermarket segment is growing at a 12% compound annual growth rate, driven by digital platforms offering convenient tire selection, fitting services, and real-time pricing comparisons.

• Online tire sales now represent 22% of total tire purchases globally, up from 12% in 2020.
• Subscription-based tire services are projected to capture 10% market share by 2025.

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Future Outlook for the Global tire market

The global tire market is projected to reach USD 280 billion by 2030, growing at a CAGR of 5.2%, driven by rising automotive production, sustainability initiatives, and technological advancements.

• Increased demand for electric vehicles boosting specialized tire segments
• Advancements in smart tire technology enhancing safety and performance
• Stringent environmental regulations promoting eco-friendly materials
• Expansion in emerging markets due to urbanization and rising vehicle ownership

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Conclusion What’s Next for the Global tire market?

The Global tire market is poised for steady growth driven by rising demand in electric vehicles, sustainability initiatives, and advanced materials technology. Opportunities abound for manufacturers embracing innovation and regional expansion. Industry stakeholders and investors should closely monitor evolving consumer preferences and regulatory shifts.

People Also Ask

What is the market size of the Global tire market?

The Global tire market was valued at approximately USD 250 billion in 2023, with projections to reach over USD 320 billion by 2030, growing at a CAGR of around 4.5%.

What are the key trends in the Global tire market?

Key trends include the rise of electric vehicle tires, eco-friendly and sustainable materials, smart tire technology, and growing demand in emerging markets.

Who are the major players in the Global tire market?

Leading companies include Bridgestone, Michelin, Goodyear, Continental, and Pirelli, dominating through innovation, wide distribution, and strategic partnerships.