Forecast Period | 2026-2030 |
Market Size (2024) | USD 2.40 Billion |
CAGR (2025-2030) | 4.2% |
Fastest Growing Segment | Online |
Largest Market | Australia Capital Territory & New South Wales |
Market Size (2030) | USD 3.08 Billion |
Market Overview
The Australia Tire Market was valued at USD 2.40 Billion in 2024 and is
expected to reach USD 3.08 Billion by 2030 with a CAGR of 4.2% during the
forecast period. The Australia Tire Market is experiencing robust growth due to a combination
of economic factors and rising consumer demand for high-quality tires. With the
continuous increase in vehicle sales, tire manufacturers are seeing a steady
rise in demand, especially for passenger cars and commercial vehicles. The tire
market in Australia is also benefiting from strong government regulations that
prioritize road safety and environmental sustainability. These regulations
require manufacturers to meet certain standards, pushing the demand for
high-performance and eco-friendly tires.
Furthermore, as the automotive
industry embraces electric vehicles (EVs), the need for tires specifically
designed for EVs is on the rise, contributing to market growth. Manufacturers
are now focusing on developing tires that offer improved durability, lower
rolling resistance, and enhanced performance to meet the growing demand from
the EV segment.
In terms of market opportunities, the increasing trend of
vehicle customization and the demand for premium tires are providing new growth
avenues for tire manufacturers. The Australian government's "Future Made in Australia" policy, introduced in April 2024, aims to promote domestic manufacturing, including the tire industry. This initiative is underpinned by a Y22.7 billion investment over a decade. Such policies are expected to enhance the competitiveness of local tire manufacturers and encourage investment in sustainable production practices. The tire market is thus
poised for steady growth, driven by advancements in tire technology and
evolving consumer demands.
Market
Drivers
Increase in Vehicle Ownership
Australia has witnessed a steady
increase in vehicle ownership in recent years. The growth of the automotive
sector, alongside improved economic conditions and rising disposable incomes,
has led to more Australians purchasing personal vehicles. As the vehicle fleet
expands, the demand for both new and replacement tires continue to rise. Car
ownership is increasingly seen as a necessity, and this trend is expected to
continue, fueling the need for tires in the coming years. Additionally, a
growing urban population and suburban expansion contribute to the rise in
vehicles on the road, further driving tire consumption. Australia's automotive sector experienced robust growth in 2024, with new vehicle sales reaching 1.24 million units, marking a 9% year-on-year increase . This surge in vehicle ownership has directly amplified demand for replacement tires, particularly as the average tire replacement cycle shortens to 3.2 years, down from 3.8 years in 2020.
Government Regulations on Road Safety
Tire safety regulations have played a significant role in the market's
expansion. In Australia, stringent safety standards are enforced to ensure that
tires meet certain performance benchmarks, particularly for wet conditions and
tread depth. These regulations require manufacturers to continually innovate
and produce tires that offer enhanced safety and meet regulatory standards. As
a result, there is a consistent demand for tires that align with these
requirements, helping to maintain public safety on Australian roads. The
increased focus on road safety continues to drive consumer preference toward
high-quality, compliant tires.
Growing Commercial Vehicle Fleet
Australia’s growing commercial vehicle fleet significantly impacts tire
demand, particularly for light commercial vehicles (LCVs), medium and heavy
commercial vehicles (M&HCVs), and off-the-road (OTR) vehicles. The
expansion of e-commerce, logistics, and transportation industries has increased
the need for reliable tires that can withstand the wear and tear associated
with long-haul and heavy-duty use. Companies rely on robust tires to ensure
their fleets are operational and can handle various terrains and loads. The
increasing volume of freight and transport activities has thus stimulated the
demand for specialized commercial tires. Digital platforms are revolutionizing tire procurement in Australia. Online sales now constitute 27% of the aftermarket, with platforms like Tyroola and Tempe Tires leveraging AI-driven fitment tools to match tires to over 35,000 vehicle models . Additionally, services like JAX Tires' same-day mobile fitting in Sydney and Melbourne have boosted online passenger tire sales to 19% of total volume, reflecting a shift towards convenience and digital engagement in the tire retail sector.
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Key
Market Challenges
Intense Competition in the Market
The tire industry in Australia
is highly competitive, with numerous domestic and international players vying
for market share. Established global tire manufacturers, along with local
companies, offer a wide range of products, which makes it challenging for any
single brand to dominate the market. The competition is particularly intense in
the budget tire segment, where consumers are often more price sensitive.
Companies must continuously innovate and find ways to reduce costs while
maintaining product quality in order to stay competitive in a crowded market.
Supply Chain Disruptions
Tire manufacturers in Australia,
like many industries, are vulnerable to disruptions in their supply chains.
Issues such as transportation delays, geopolitical tensions, or labor shortages
can interfere with the timely delivery of raw materials or finished products.
These disruptions not only affect production schedules but also impact the
availability of tires in the market, leading to shortages and delayed
deliveries. The reliance on global supply chains means that Australian
manufacturers are susceptible to external factors that can negatively impact
the overall tire market.
Key
Market Trends
Growing Demand for Eco-Friendly
Tires
The demand for environmentally
friendly tires is growing in Australia as consumers become more conscious of
their environmental impact. Tires made from sustainable materials, such as
natural rubber and bio-based compounds, are becoming increasingly popular. Manufacturers
are responding to this trend by incorporating recycled materials and reducing
the carbon footprint of their production processes. As the market shifts toward
sustainability, companies are focusing on developing tires that are not only
eco-friendly but also maintain high-performance standards, giving
environmentally conscious consumers a viable option without compromising
safety.
Rise of Smart Tires
The integration of smart
technology into tires is another emerging trend in Australia’s tire market.
Smart tires, which feature embedded sensors that track tire pressure,
temperature, wear, and other performance metrics, are gaining traction. These
sensors provide valuable data to drivers and fleet managers, helping them
monitor tire health and prevent issues before they lead to breakdowns. As the
automotive industry moves toward more connected and automated systems, the
demand for smart tires is expected to rise, offering increased safety,
efficiency, and convenience.
Growth in Electric Vehicle (EV)
Tire Segment
The rise of electric vehicles
(EVs) is driving significant changes in the tire market. EVs require tires
designed to accommodate their unique characteristics, such as heavier weight
and different torque distribution. Tires for EVs must provide enhanced durability,
lower rolling resistance, and greater energy efficiency to maximize battery
range. Manufacturers are focusing on producing tires specifically tailored to
the needs of electric vehicles, contributing to the growth of the EV tire
segment. As more Australians adopt EVs, this trend is expected to accelerate. The growing popularity of electric vehicles (EVs), which accounted for 8.4% of total vehicle sales in Q1 2024, has further skewed demand toward premium products, with EV-specific tires experiencing an 18% year-to-date sales increase
Segmental
Insights
Vehicle Type Insights
The Australian tire market is
diverse, catering to different vehicle types, including passenger cars, light
commercial vehicles (LCVs), medium and heavy commercial vehicles (M&HCVs),
off-the-road (OTR) vehicles, and two-wheelers. The demand for passenger car
tires remains high due to the large number of private vehicles in the country.
These tires are primarily designed to offer a balance of performance, safety,
and comfort. The market for light commercial vehicles is growing steadily,
driven by increased commercial activities and transportation needs across the
country. These vehicles require tires that offer durability and performance
under various road conditions, especially for businesses involved in logistics
and transportation. In the medium and heavy
commercial vehicle segment, tires are designed to withstand the high demands of
freight transportation and long-distance travel. These tires need to be
durable, have a longer lifespan, and provide stability under heavy loads. Off-the-road
vehicles, such as those used in mining, agriculture, and construction, require
tires designed for extreme conditions. These tires are built to handle rough
terrains and heavy machinery. Two-wheelers, including motorcycles and scooters,
also represent a significant portion of the tire market in Australia. These
tires are smaller and designed for better maneuverability, fuel efficiency, and
safety in urban environments.
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Regional
Insights
New South Wales
New South Wales, paired with the ACT, remains the largest market for tires in Australia. This dominance stems from the high concentration of population and urban centers such as Sydney and Canberra, which fuel both passenger and commercial vehicle usage. The region’s well-developed road infrastructure supports a vast network of passenger vehicles, trucks, and commercial fleets requiring consistent tire replacements and upgrades. The growing adoption of electric vehicles in urban zones has further stimulated demand for specialized tires designed for improved performance and energy efficiency. In addition to private vehicle use, New South Wales & ACT benefit from government initiatives focused on infrastructure expansion, including road upgrades and public transport projects, which increase the demand for heavy-duty and commercial tires. The combination of dense population and ongoing infrastructure investment has ensured that this region captures a significant share of tire sales and replacement activity in 2024.
Queensland
Queensland has emerged as the second dominant region in the Australian tire market, driven largely by its expansive geographic size and economic activities centered around mining, agriculture, and tourism. The state's commercial and industrial sectors require durable tires suited for heavy machinery and off-road vehicles, creating a strong demand for specialized tire products. Queensland’s tourism industry also contributes to the passenger tire market, with substantial traffic in coastal cities and regional hubs. Urban growth in Brisbane and surrounding areas supports an increase in vehicle ownership, leading to higher tire replacement rates. Queensland’s warm climate conditions influence tire preferences, with consumers often opting for all-season or performance tires suited to local driving environments. Investment in regional road infrastructure and government programs aimed at improving transport connectivity within the state further stimulate tire demand, particularly in rural and mining areas. These economic and demographic factors position Queensland as a vital market, contributing significantly to Australia’s overall tire industry performance in 2024.
Recent
Developments
- In 2023, Bridgestone's Investment in Sustainable Tire Technology
Bridgestone Corporation has committed to a major investment in eco-friendly
tire technologies aimed at reducing the environmental impact of tire
production. The company announced plans to expand the use of sustainable
materials, such as renewable natural rubber and synthetic rubber alternatives,
in its tire manufacturing process. This development is in line with
Bridgestone's long-term sustainability goals and is expected to drive growth in
the eco-friendly tire segment.
- In 2023, Michelin's Strategic Partnership with Tesla Michelin Group
signed a strategic partnership agreement with Tesla in 2023 to supply tires
specifically designed for Tesla's growing electric vehicle fleet. These tires,
designed for performance and energy efficiency, help enhance the range and
safety of Tesla’s electric cars. The collaboration underscores Michelin’s focus
on the expanding electric vehicle market and strengthens its position in the
tire market for EVs.
- October 2023, ROH Wheels, a prominent Australian wheel manufacturer,
announced strategic partnerships with emerging electric vehicle manufacturers
in the region. The move aims to produce custom-designed Tire optimized for EVs,
considering weight, torque, and aerodynamics.
- In 2024, Beaurepaires, a subsidiary of Goodyear and Dunlop Tyres Australia, began rebranding some of its 100 retail locations to Goodyear Auto Service centers as part of a consolidation strategy. Negotiations with Bob Jane T-Marts to acquire the Beaurepaires chain took place in mid-2024 but ended with Bob Jane acquiring only select profitable locations.
Key
Market Players
- Bridgestone Corporation
- Michelin
Group
- Goodyear Tire & Rubber Company
- Continental AG
- Pirelli & C. S.p.A.
- Toyo Tire Corporation
- Hankook Tire & Technology Co., Ltd.
- Cooper Tire & Rubber Company
- Yokohama Rubber Company
- Sumitomo Rubber Industries, Ltd.
|
By Vehicle Type
|
By Tire Construction
|
By Sales
Channel
|
By
Region
|
- Passenger car
- LCV
- M&HCV
- Two-Wheeler
- OTR
|
|
|
- Victoria & Tasmania
- Queensland
- Western Australia
- Northern Territory & Southern Australia
- Australia Capital Territory & New South Wales
|
Report
Scope:
In this
report, the Australia Tire Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
·
Australia Tire Market, By Vehicle Type:
o
Passenger car
o
LCV
o
M&HCV
o
Two-Wheeler
o
OTR
·
Australia Tire Market, By Tire Construction:
o
Radial
o
Bias
·
Australia Tire Market, By Sales Channel:
o
Offline
o
Online
·
Australia Tire Market, By Region:
o
Victoria & Tasmania
o
Queensland
o
Western Australia
o
Northern Territory & Southern Australia
o
Australia Capital Territory & New South Wales
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies presents in the Australia Tire Market.
Available
Customizations:
Australia
Tire Market report with the given market data, Tech Sci Research
offers customizations according to the company’s specific needs. The following
customization options are available for the report:
Company
Information
- Detailed analysis and profiling of additional
market players (up to five).
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Tire Market is an upcoming report to be released soon. If you wish an early
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