Malaysia Tire Market to Grow with a CAGR of 5.86% through 2030
Rising vehicle ownership, expanding logistics operations, and increasing
demand for tire replacements due to tropical road conditions are the factors
driving the market in the forecast period 2026–2030.
According to TechSci Research report, “Malaysia Tire Market –
Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F”,
The Malaysia Tire Market was valued at USD 1.49 Billion in 2024 and is expected
to reach USD 2.10 Billion by 2030 with a CAGR of 5.86% during the forecast
period.
The Indonesia tire market is evolving rapidly, driven by the expansion
of domestic manufacturing, increasing investments in infrastructure projects,
and supportive government industrialization policies. The country’s position as
a major producer of natural rubber provides tire manufacturers with a raw
material advantage, encouraging both local production and foreign direct
investment in tire plants. Growth in the agriculture, mining, and construction
sectors is accelerating demand for off-the-road (OTR) and specialty tires, as
heavy machinery and commercial fleets become more central to national
development activities. The rising average age of vehicles on Indonesian roads
is also spurring the replacement tire segment, particularly in rural and
secondary urban areas where maintenance intervals are less frequent but
vehicles remain in use for extended periods.
Consumer behavior in Indonesia reflects a growing interest in tire
performance, fuel efficiency, and safety, influenced by increasing disposable
incomes and more educated buying patterns. The gradual shift from bias-ply to
radial tires is one such reflection, with more motorists seeking
longer-lasting, high-performance options for both urban and intercity travel.
Motorcycle tires dominate volume sales due to the significant population of
two-wheelers, especially in densely populated cities where they serve as a
primary mode of transport. The aftermarket sector is being propelled by the
growth of small garages, multi-brand service outlets, and roadside tire
businesses that cater to a broad customer base, especially in semi-urban and
rural locations. This decentralized service ecosystem is enhancing tire
accessibility and driving consumption in less formal channels.
Digitization is emerging as a core element shaping the Indonesia tire
market. Mobile applications, localized e-commerce platforms, and digital
payment integration are improving the customer journey and reducing friction in
tire purchases. Environmental consciousness, though still in early stages, is
beginning to impact product selection as consumers show interest in recyclable
materials, low rolling resistance tires, and brands with green manufacturing
practices. Challenges persist in the form of underdeveloped logistics in remote
regions, variability in tire quality due to informal imports, and relatively
low enforcement of safety certifications. Yet, the market’s momentum remains
strong due to favorable macroeconomic conditions, steady motorization rates,
and a supportive policy environment that incentivizes local value creation
across the tire supply chain. These factors position Indonesia as one of the
most promising tire markets in Southeast Asia over the next decade.
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Malaysia Tire Market Is Segmented by Vehicle
Type, Demand Category, Tire Construction Type, and By Region.
In 2024, the Light
Commercial Vehicle (LCV) segment emerged as the fastest-growing category in the
Malaysian tire market, driven by several key factors. LCVs, which include small
delivery trucks, vans, and other commercial vehicles, have become essential for
the growing e-commerce and logistics sectors. The rise in online shopping has
led to an increased demand for delivery vehicles, making LCVs indispensable for
last-mile deliveries. These vehicles require tires that can withstand the
frequent use and varied road conditions encountered in daily operations,
driving higher sales in the replacement tire market. As e-commerce continues to
thrive, the demand for LCVs is expected to remain strong, thereby fueling tire
consumption.
Furthermore, Malaysia's
continued focus on infrastructure development has significantly contributed to
the growth of the LCV market. Government initiatives, including investments in
road improvements and the construction of new industrial zones, have increased
the demand for small commercial vehicles. These vehicles are often used for
transporting goods, raw materials, and equipment, particularly in sectors such
as manufacturing, construction, and agriculture. As the LCV fleet expands to
meet the needs of these industries, the demand for high-quality tires,
especially those designed for durability and fuel efficiency, has surged. This
trend highlights the vital role that LCVs play in Malaysia’s logistics and
commercial sectors, making them a key driver of tire market growth.
The Eastern Region of
Malaysia has also emerged as the fastest-growing area in the tire market in
2024, contributing significantly to the overall market expansion. This region
is home to several industrial and manufacturing hubs, making it a key area for
commercial vehicle use. As industries in Eastern Malaysia grow, the demand for
commercial vehicles, including LCVs, increases, which in turn drives the need
for tires. The region’s strategic location, with access to major ports and
shipping routes, has boosted its position as a logistics and trade center,
further fueling demand for tires, particularly in the replacement market.
In addition to industrial
growth, infrastructure development in Eastern Malaysia has enhanced
transportation networks, improving connectivity within the region and with
other parts of the country. The construction of new highways and roadways,
coupled with increased investments in transportation infrastructure, has
bolstered the demand for LCVs, which are essential for carrying goods across
these expanded networks. As the region continues to develop and urbanize, the
need for tires that can handle diverse road conditions and provide durability
for frequent use in LCVs will remain high. Consequently, the tire market in
Eastern Malaysia is projected to continue its growth, driven by a robust
industrial base and an ever-increasing demand for commercial transportation.
Major Market Players
Operating in Malaysia Tire Market Are:
- Bridgestone Corporation
- Continental AG
- Goodyear Tire & Rubber Company
- Sumitomo Rubber Industries Ltd
- Michelin Group
- Pirelli & C. S.p.A.
- Yokohama Rubber Company Limited
- Kumho Tire Co. Inc
- BFGoodrich Tyres
- Hankook Tire & Technology Co., Ltd.
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As the tire market in Malaysia continues to grow,
it's clear that demand is being driven by a combination of factors. The rise of
e-commerce and the increasing need for efficient delivery systems are pushing
the demand for Light Commercial Vehicles (LCVs), which, in turn, is boosting
the tire market. The government's focus on infrastructure development and the
growing industrial activity in regions like Eastern Malaysia are also playing a
significant role. With all these factors coming together, the future of
Malaysia's tire market looks very promising, and I'm excited to see how it
evolves in the coming years, said Mr. Karan Chechi, Research Director of
TechSci Research, a research-based global management consulting firm.
The report titled “Malaysia Tire Market – Size,
Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Passenger
Car, Two-Wheelers, Light Commercial Vehicles (LCV), Medium & Heavy
Commercial Vehicles (M&HCV)), By Demand Category (OEM, Aftermarket), By
Tire Construction Type (Radial, Bias), By Region, By Competition, 2020-2030F”,
assesses the market's future growth potential and provides data on market size,
trends, and forecasts. It aims to offer comprehensive market insights, helping
decision-makers make informed investment choices. The report also highlights
emerging trends, key drivers, challenges, and opportunities in the Malaysia Tire
Market.
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