Europe & CIS Tyre Market By Tire Construction Type (Radial, Bias), By Vehicle Type (Passenger Car, Commercial Vehicle), By Demand Category (OEM, Replacement), By Country, By Competition, Opportunities and Forecast, 2020-2030F

Market Overview:

Europe & CIS Tyre Market was valued at USD 52.38 Billion in 2024 and is expected to reach USD 66.74 Billion by 2030 with a CAGR of 4.12% during the forecast period. The Europe & CIS tyre market is witnessing sustained growth driven by rising vehicle parc, increasing consumer preference for premium and performance-oriented tyres, and expanding e-commerce platforms that enhance tire accessibility across all vehicle categories. The shift toward advanced tire technologies, such as run-flat, airless, and smart tyres equipped with sensors, is transforming consumer expectations while encouraging manufacturers to invest in innovation. Electrification of mobility is also influencing tire design, with low rolling resistance and noise-reduction features gaining prominence to suit modern vehicle architectures. As sustainability becomes a priority, demand for environmentally friendly and recyclable tire materials is offering new avenues for innovation. The market is further supported by robust aftermarket sales, fueled by frequent replacement needs and growing road freight activities.

Market Drivers

Expansion of Vehicle Fleet Size

The steady increase in the number of passenger and commercial vehicles is a primary factor supporting the tyre market’s growth. As more vehicles hit the roads, the demand for both original equipment manufacturer (OEM) tyres and replacement tyres surges. Higher vehicle ownership leads to more frequent wear and tear, accelerating the tire replacement cycle. Aging vehicles require regular maintenance, and tyres are among the most replaced components. This pattern is evident across passenger cars, light commercial vehicles, and heavy trucks. Fleets operated by logistics companies also drive sustained demand due to the high mileage they cover, requiring tyres with high durability and consistent performance. The cumulative rise in personal mobility, commercial transportation, and shared mobility platforms further contributes to tyre consumption. As the average vehicle age increases, tire replacement becomes more frequent, enhancing aftermarket sales. This constant need for replacement tires throughout the lifespan of vehicles makes fleet size expansion a dependable growth catalyst.

Rising Demand for Premium and Performance Tyres

Consumer preferences are increasingly shifting toward high-performance, premium tyres designed for specific performance attributes such as grip, fuel efficiency, and ride comfort. The demand for these tyres is being fueled by an evolving automotive culture that values driving dynamics and safety. Premium tyres offer superior handling, shorter braking distances, and better wet and dry traction, making them appealing to owners of both sports and luxury vehicles. These products are also integral to high-speed and performance driving applications. High-end electric and hybrid vehicles further require specialized tyres with low rolling resistance and high load-bearing capacity. The replacement segment is also benefiting, as drivers seek to upgrade their tyres for improved aesthetics or performance without changing the vehicle itself. Growing awareness of the benefits of advanced tread designs and specialized rubber compounds is encouraging consumers to opt for quality over price. This trend is also driving innovations in tread patterns, noise reduction, and compound engineering, enhancing the value proposition of premium tyres. For instance, a new SMMT report highlights the strength of the UK’s luxury, high-performance, and niche car manufacturing sector, which exports nearly $6.3 billion worth of high-value vehicles annually, with around 90% of production shipped overseas. Generating approximately $6.9 billion in annual turnover and supporting 15,000 direct jobs along with 60,000 in the local supply chain, the sector features iconic British brands such as Aston Martin, Bentley, LEVC, Lotus, McLaren, and Morgan.

Growth of E-commerce and Digital Distribution Channels

Digital transformation in the tyre industry is significantly altering how tyres are bought and sold. Online platforms are making tyre shopping more convenient and accessible, particularly for consumers seeking price comparisons, product reviews, and doorstep installation services. E-commerce players and digital marketplaces are expanding their offerings to include a wide variety of tyre brands and models, allowing customers to make informed choices. This digital shift is improving the visibility of both premium and economy tyre segments and enabling manufacturers to reach a broader audience without the limitations of physical retail networks. Features such as mobile fitting, doorstep delivery, and integrated maintenance packages are enhancing customer experience and satisfaction. The availability of digital tools for selecting tyres based on vehicle type, driving habits, and seasonal needs is also improving buyer confidence and purchase rates. This convenience factor is especially beneficial to time-sensitive commercial operators who rely on efficient turnaround for tire replacements. The digital channel’s influence is expected to grow as mobile-first strategies, AI-powered recommendations, and subscription-based models become more widespread.

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Key Market Challenges

Volatility in Raw Material Prices

The tyre industry is heavily reliant on raw materials such as natural rubber, synthetic rubber, carbon black, steel, and various chemical additives. Price fluctuations in these inputs pose significant challenges for manufacturers. Factors like weather conditions affecting rubber plantations, geopolitical tensions, or trade policies can impact the supply and cost of raw materials. Since tyres are high-volume, cost-sensitive products, any increase in input costs can squeeze profit margins or lead to higher end-user prices, which could reduce demand. The unpredictability of crude oil prices also affects synthetic rubber production, adding another layer of complexity. These raw material costs are often difficult to pass on to consumers in highly competitive markets, especially in the budget tyre segment.

Rising Pressure from Low-Cost Imports

Low-cost tyre imports are a major competitive threat, particularly in the price-sensitive segments of the market. These tyres, often manufactured in regions with lower labor and regulatory compliance costs, can be offered at significantly lower prices, making them attractive to budget-conscious consumers and fleet operators. However, such products may compromise on key performance indicators such as durability, safety, and fuel efficiency. The influx of these tyres can distort market pricing and erode the market share of established brands, pressuring them to lower prices or invest more in brand differentiation and product quality.

Key Market Trends

Growing Demand for Electric Vehicle Tyres

The rising adoption of electric vehicles is reshaping tyre demand, creating a growing market for EV-specific tyres designed to meet unique performance requirements. Electric vehicles generate instant torque, which causes faster tyre wear, leading to increased replacement cycles and higher demand for tyres with reinforced sidewalls and advanced tread compounds. These tyres are engineered to provide low rolling resistance, enhancing battery efficiency and extending driving range—two critical factors for EV owners. Noise reduction is another priority, as electric vehicles operate more quietly, making traditional tyre noise more noticeable and less acceptable. Tyre manufacturers are responding with innovations such as foam layers and specialized patterns to reduce cabin noise. For instance, up to May 2025 year‑to‑date, new car registrations in the EU slipped by 0.6%, while battery-electric vehicles captured 15.4% of the total market up from 12.1% in the same period of 2024.

Focus on Sustainability and Eco-Friendly Materials

Sustainability is becoming a defining theme in the tyre market, with manufacturers investing in eco-friendly raw materials, recycling initiatives, and low-emission production techniques. Efforts include the use of renewable oils, dandelion-derived rubber alternatives, and biodegradable fillers. Companies are also developing tyres with reduced rolling resistance to improve fuel economy and lower carbon emissions. There is growing interest in closed-loop recycling systems, where old tyres are collected, processed, and reused in new tyre production or other industrial applications. Environmental certification labels and lifecycle assessments are gaining importance as buyers become more conscious of ecological impact. For instance, as of 2024, Continental incorporated an average of 26% renewable and recycled materials into its tire production, with expectations to increase this share by 2–3 percentage points in 2025. The growth is driven by the integration of sustainable components such as synthetic rubber from renewable or circular oil, recycled PET-based polyester, recycled steel, and silica derived from rice husk ash. Continental targets surpassing 40% sustainable material content by 2030, while maintaining safety and performance standards, as part of its broader commitment to sustainable mobility.

Customization and Application-Specific Designs

The growing diversity of vehicle types and usage conditions is encouraging the development of application-specific and customizable tyre solutions. Whether it’s off-road tyres for recreational vehicles, high-speed tyres for sports cars, or load-bearing tyres for commercial fleets, manufacturers are increasingly tailoring products to meet niche requirements. Seasonal variants such as all-weather and winter tyres continue to gain traction among drivers seeking optimized performance in specific climates. Innovations in tread patterns, sidewall reinforcements, and compound engineering allow for fine-tuned products that deliver performance benefits in targeted use cases. Customization is not limited to physical features but also extends to branding, aesthetics, and integration with vehicle software.  

Segmental Insights

Vehicle Type Insights

In 2024, the passenger car segment dominated the Europe & CIS tyre market by vehicle type, driven by a growing vehicle parc, increased consumer mobility, and rising demand for replacement tyres. The expanding ownership of personal vehicles across urban and suburban areas contributed significantly to tyre consumption, as passenger cars undergo more frequent tire changes due to higher annual mileage and diverse driving conditions. The surge in demand for all-season and high-performance tyres also added momentum, particularly among users seeking better traction, handling, and fuel efficiency. The aftermarket segment played a vital role, with car owners prioritizing tire upgrades for comfort, noise reduction, and safety. The rise in vehicle customization trends supported the demand for niche and specialized tyre types, including sport, eco-friendly, and luxury variants. E-commerce platforms made it easier for consumers to compare and purchase passenger car tyres.

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Country Insights

In 2024, Germany led the Europe & CIS tyre market due to high vehicle density, a strong replacement cycle, and consumer demand for performance, winter, and eco-friendly tyres. Seasonal tyre regulations and advanced distribution networks boosted sales, while smart tyre adoption continued rising.

The United Kingdom saw steady growth driven by strong replacement demand, strong OEM demand, changing weather patterns, and a growing used vehicle segment. Consumers prioritized tread life and grip, while online tyre sales gained traction with urban buyers seeking convenience and variety. For instance, in May 2025, the UK new car market grew by 1.6% year-on-year to 150,070 registrations, marking the best May since 2021. Battery electric vehicles (BEVs) saw a 25.8% increase to 32,738 units, capturing 21.8% of the market—up from 17.6% in May 2024. Plug-in hybrids (PHEVs) surged 50.8% to 17,898 units (11.9% share), while hybrids (HEVs) rose 6.8% to 20,351 units (13.6% share). Combined electrified vehicles accounted for 47.3% of registrations, reflecting strong uptake supported by fleet adoption and incentives.

Russia’s market remained strong, fueled by harsh winters, demand for rugged tyres, and widespread use of winter variants. Local production ensured affordability, with durable tyres preferred in both commercial and rural applications across diverse terrain.

Recent Developments

• ​In 2025, Kumho Tyre UK debuted at the Road Transport Expo, showcasing five commercial tire models focused on safety, durability, and fuel efficiency. Highlights included advanced tread technologies and low rolling resistance compounds designed for fleet performance and sustainability.
• In 2025, Goodyear sold the Dunlop tyre brand to Sumitomo Rubber for $701 million. Goodyear will continue producing and distributing select Dunlop tyres in Europe through the end of 2025 under a licensing deal.
• In June 2025, Guizhou Tyre revealed plans to begin trial production of Advance brand car tyres, following expansion in Vietnam. Despite profit and cash flow declines in 2024, the move signals fresh growth potential.
• In 2025, South Korea’s second‑largest tire manufacturer is reportedly evaluating sites in Poland, Serbia, and Portugal for its debut European production facility. The move marks a strategic expansion into Europe, aiming to bolster local supply chain resilience.

Key Market Players

• Bridgestone Corporation
• Michelin Group
• The Goodyear Tire & Rubber Company
• Continental AG
• Pirelli & C. S.p.A.
• Yokohama Rubber Company, Limited
• Hankook Tire & Technology Co., Ltd.
• Kumho Tire Co., Inc.
• Sumitomo Rubber Industries, Ltd.
• Toyo Tire Corporation

Report Scope:

In this report, the Europe & CIS Tyre Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•          Europe & CIS Tyre Market, By Tire Construction Type:

o    Radial

o    Bias

•          Europe & CIS Tyre Market, By Vehicle Type:

o    Passenger Car

o    Commercial Vehicle

•         Europe & CIS Tyre Market, By Demand Category:

o    OEM

o    Replacement

•         Europe & CIS Tyre Market, By Country:

o    Germany

o    Russia

o    France

o    Spain

o    Italy

o    United Kingdom

o    Poland

o    Rest of Europe & CIS

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Europe & CIS Tyre Market.

Available Customizations:

Europe & CIS Tyre Market report with the given market data, TechSci 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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