Global Tires Market Outlook (2025–2032)
The global Tires Market was valued at USD 137.61 billion in 2024 and is projected to reach USD 191.25 billion by 2032, expanding at a CAGR of 4.2% during the forecast period (2025–2032). Market growth is supported by rising vehicle production, increasing adoption of electric vehicles, and continuous advancements in tire design, materials, and performance.
Tires Market Overview
Tires are a critical automotive component, forming the sole contact point between a vehicle and the road surface. Their core functions include supporting vehicle load, providing traction and braking efficiency, ensuring directional stability, and enhancing overall driving safety. As global mobility continues to expand, demand for reliable and high-performance tires is increasing across passenger, commercial, and off-road vehicle segments.
Global vehicle sales reached approximately 88.7 million units in 2019 and are expected to grow steadily through the forecast period, directly driving tire demand. The Asia Pacific region dominates global tire production and consumption, supported by strong automotive manufacturing capabilities and cost-efficient production policies. China remains the largest contributor, benefiting from large-scale manufacturing hubs and favorable industrial policies.
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Tires Market Dynamics
Rising Vehicle Production and Sales
Growth in the global tire market is largely fueled by increasing vehicle production across both passenger and commercial segments. Expanding sales of trucks, trailers, and agricultural vehicles are further accelerating demand. Additionally, consumer preference for lightweight, premium, and luxury vehicles is contributing to higher adoption of advanced tire technologies. As automotive ownership rises globally, replacement tire demand is also increasing, strengthening long-term market growth.
Expanding Electric Vehicle Adoption
The rapid growth of the electric vehicle (EV) industry is emerging as a key growth driver for the tire market. Heightened awareness of environmental concerns such as air pollution, noise pollution, and fossil fuel dependency has encouraged governments to implement strict emission regulations. As a result, automakers are accelerating the development of electric vehicles with improved driving range, battery efficiency, and affordability.
EVs require specialized tires with low rolling resistance, enhanced durability, and higher load-bearing capacity, creating new opportunities for tire manufacturers. China leads the global EV market and continues to drive demand for next-generation tire solutions.
Impact of COVID-19 on the Tires Market
The COVID-19 pandemic significantly disrupted the global tire industry, with nearly 44% of unit sales affected due to lockdowns, transportation restrictions, and supply chain disruptions. Temporary shutdowns of manufacturing facilities and reduced export activity led to lower production volumes.
Additionally, raw material costs—accounting for 65–70% of total tire production costs—were highly volatile during the pandemic. Fluctuations in prices of rubber, nylon, and polyester posed major challenges for manufacturers, impacting profitability and operational stability.
Tires Market Segmentation Analysis
By Tire Type
Bias tires continue to be preferred in certain applications due to their lower cost and smoother performance on uneven surfaces. However, radial tires are gaining strong traction, particularly in mining and construction applications, owing to their superior durability, fuel efficiency, and longer lifespan. This trend is expected to support sustained growth of the radial tire segment.
By Vehicle Type
The passenger car tire segment dominated the market in 2024 and is expected to grow at a CAGR of 4.3% over the forecast period. The United States accounts for a significant share of global passenger car tire demand. Rising disposable income, improved living standards, and increasing consumer focus on safety, comfort, and premium vehicle features are driving segment growth.
By Distribution Channel
The OEM segment accounted for over 70% of the market share and is expected to maintain its dominance in the near term, supported by steady vehicle production. Tire manufacturers are increasingly focusing on performance optimization and safety enhancements to meet OEM requirements.
Meanwhile, the aftermarket segment held around 12% share in 2024 and is expected to grow steadily due to increasing vehicle lifespan and rising demand for replacement tires.
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Regional Insights
North America remains a key market, with the U.S. accounting for approximately 28% of global tire demand and expected to grow at a CAGR of 5.4%. Europe also represents a significant market, with Germany leading regional growth. Japan and Canada are expected to witness moderate but stable growth throughout the forecast period.
Asia Pacific Market Outlook
The Asia Pacific region holds nearly 48% of the global tire market and is projected to grow at a CAGR of 5.3%. Passenger car and light truck tires dominate regional demand. In 2023, China, India, and Japan collectively accounted for over 72% of Asia’s tire consumption, highlighting the region’s strong manufacturing and consumption base.
Despite pandemic-related disruptions, the Asia Pacific tire market is expected to recover steadily, supported by expanding automotive production and infrastructure development.
Competitive Landscape
The Tires Market is moderately consolidated, with global players competing on product innovation, pricing strategies, regional expansion, and sustainability initiatives. Leading companies are investing heavily in R&D to develop fuel-efficient, eco-friendly, and EV-compatible tires.
Key players include Michelin, Bridgestone, Goodyear, Continental, Pirelli, Apollo Tyres, MRF, CEAT, Yokohama, Hankook, and Sumitomo, among others. The report evaluates these companies based on product portfolio, financial performance, growth strategies, and regional presence.
Conclusion
The Global Tires Market is poised for steady growth driven by rising vehicle production, increasing electric vehicle penetration, and technological advancements in tire manufacturing. Comprehensive analysis of market dynamics, segmentation, regional performance, and competitive strategies provides stakeholders with actionable insights to navigate future opportunities and challenges effectively.
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