Europe Tire Market By Vehicle Type (Passenger Car, Light Commercial Vehicle (LCV), Medium & Heavy Commercial Vehicles (M&HCV), Off-the-Road Vehicles (OTR), Two-Wheelers, Three-Wheelers), By Demand Category (OEM vs Replacement), By Tire Construction Type (Radial vs Bias), By Region, Competition, Opportunities & Forecast, 2020-2030F

Market Overview

The Europe Tire Market was valued at USD 50.35 Billion in 2024 and is expected to reach USD 63.13 Billion by 2030 with a CAGR of 3.84% during the forecast period. The Europe tire market is undergoing substantial transformation, influenced by technological advancements and changing mobility preferences. Demand is being shaped by the growing automotive fleet, increased miles driven per year, and consumer focus on safety and fuel economy. Both original equipment (OE) and replacement tire segments are seeing strong demand from passenger cars, commercial vehicles, and off-road segments. Regulatory compliance for tire labeling and environmental standards is further influencing consumer purchase behavior. The growth in online tire retail and services is also altering traditional distribution channels, offering both convenience and price transparency to buyers.

Major growth drivers include increased vehicle parc and the need for frequent tire replacement due to seasonal changes. The surge in electric vehicle (EV) sales is accelerating demand for specially engineered low-noise, durable tires. Rising consumer awareness toward road safety and performance is pushing tire manufacturers to invest in premium products with advanced tread technologies. Smart tire development, which involves integrating sensors for real-time monitoring, is opening up new business opportunities. The growing market for sustainable and recycled tire materials also aligns with the broader European Green Deal and ESG regulations.

Market Drivers

Rising Vehicle Parc Across Segments

The growing number of registered vehicles in Europe is one of the most fundamental drivers of tire demand. As more vehicles are added to the roads each year ranging from passenger cars to light and heavy commercial vehicles there is a proportional rise in both OEM and aftermarket tire consumption.

According to the European Tyre and Rubber Manufacturers’ Association (ETRMA), Europe’s tire market saw mixed trends in 2024. Replacement passenger car tire sales declined by 5%, with 202.1 million units sold compared to 212.3 million in 2023, largely due to inflation and delayed consumer spending. On the other hand, truck and bus tire sales grew by 3%, reaching 12.3 million units, supported by strong freight activity in Eastern Europe. Motorcycle and scooter tires also rose by 4%, with 10.4 million units sold, driven by increasing urban mobility and tourism. However, agricultural tire sales dropped sharply by 12%, reflecting weak demand in the farming sector. ETRMA also highlighted a growing preference for eco-friendly tires, such as low rolling resistance and all-season variants, as consumers respond to EU tire labeling regulations and sustainability goals.

Further, the longevity of vehicles in operation is increasing due to advancements in vehicle design and maintenance practices, which results in frequent tire replacements over the vehicle’s lifetime. This cumulative impact from an expanding and aging vehicle fleet sustains a high volume of recurring demand. The seasonal variation in tire use across Europe, especially in regions where regulations mandate winter tire usage, further amplifies replacement cycles. As ownership models evolve to include subscriptions and leases, fleet operators are also investing in frequent tire maintenance and replacements to ensure safety, regulatory compliance, and performance.

Technological Advancements in Tire Design

Innovation in tire technology is significantly transforming the European market landscape. Manufacturers are focusing on producing tires with improved wet grip, reduced rolling resistance, and enhanced durability using advanced rubber compounds and optimized tread patterns. These technological upgrades are driven by both regulatory mandates and shifting consumer expectations around performance, comfort, and efficiency. The demand for low-rolling-resistance tires, in particular, is growing as fuel economy and CO₂ emissions become priority metrics for both internal combustion engine vehicles and electric vehicles. Noise reduction technologies are also being integrated into tire designs to meet EU noise pollution standards. The inclusion of RFID tags and embedded sensors in smart tires is enabling real-time performance monitoring, particularly for fleet applications, enhancing safety and predictive maintenance. These advanced features are gradually becoming standard, especially in premium and EV segments, reinforcing consumer value propositions and driving higher product turnover.

Electric Vehicle Proliferation

The rapid penetration of electric vehicles in Europe is reshaping tire performance requirements. According to JATO dynamics report 2025, In April 2025, new passenger car registrations in Europe totaled 1,078,521 units, nearly unchanged from April 2024. Year-to-date registrations reached 4.47 million, only slightly higher than the same period last year. Battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) together made up 26% of total car registrations, a new record. BEVs rose to 17% (from 13.4%), and PHEVs increased to 9% (from 6.9%).

EVs, due to their high torque, greater weight from battery packs, and demand for quieter operation, require specially designed tires. These tires often need to be more durable, offer reduced rolling resistance to optimize range, and incorporate noise-dampening materials to ensure cabin comfort. As governments across the region continue to incentivize EV purchases and infrastructure development, tire manufacturers are aligning their R&D efforts with this shift. The transition to electric mobility is fostering the growth of high-performance tire segments and boosting premiumization trends. Moreover, EV-specific tire replacement rates tend to be faster due to unique wear patterns, contributing to increased aftermarket demand. This structural change in vehicle mix is prompting the development of tire technologies that serve both performance and environmental sustainability goals, driving innovation and long-term market expansion.

Sustainability Regulations and Green Mobility Push

Europe’s strong regulatory focus on reducing environmental impact is encouraging a market shift towards sustainable tire production and recycling. Policies supporting the circular economy are leading tire manufacturers to adopt eco-friendly materials, bio-based compounds, and retread technologies. The European Union’s strict tire labeling regulations that assess fuel efficiency, wet grip, and noise levels are guiding consumer choices towards green alternatives. With ESG mandates growing stronger, companies are investing in production methods that reduce carbon emissions and optimize resource usage. In parallel, consumer preference is also shifting toward sustainable brands and products, creating a market environment that rewards innovation in green technologies. The expansion of the EU’s Emissions Trading System and the Fit for 55 legislative package are pushing stakeholders across the tire value chain to enhance environmental compliance. These frameworks are transforming sustainability from a compliance issue to a growth catalyst for the tire industry in the region.

Growth of E-Commerce and Digital Tire Retailing

The emergence of digital platforms is altering how consumers and fleet operators purchase tires in Europe. E-commerce enables a wider selection, transparent pricing, and convenient installation scheduling, reducing dependency on traditional brick-and-mortar outlets. The digitalization of tire retail also improves customer engagement through product comparison tools, customer reviews, and targeted marketing campaigns. This channel shift is especially popular among younger, tech-savvy vehicle owners and urban drivers who prefer digital convenience. It is also streamlining the B2B purchase process for fleet operators and garages. Tire brands and retailers are leveraging data analytics, AI, and CRM tools to personalize offerings and track customer preferences for better inventory and service management. The rising penetration of internet access and smartphone usage across Europe will continue to support the online tire retail boom, enhancing market competitiveness and increasing replacement tire volumes via easy accessibility and higher frequency of purchase.

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Key Market Challenges

Volatility in Raw Material Costs

The tire industry is heavily dependent on key raw materials such as natural rubber, synthetic rubber, carbon black, and petroleum-based products. Price fluctuations in these inputs have a direct impact on production costs and profit margins. In Europe, raw material sourcing is often tied to global commodity markets, making the region vulnerable to external supply shocks, geopolitical tensions, and currency volatility. For example, disruptions in rubber-producing countries or increased energy costs due to regulatory restrictions can lead to significant cost pressures. These unpredictable pricing dynamics force manufacturers to adjust pricing strategies, which can impact competitiveness and consumer demand. The industry also faces increased shipping and logistics costs tied to global supply chain imbalances. Frequent cost adjustments complicate long-term planning and reduce the financial flexibility required for innovation and sustainability investments, posing a long-term challenge for consistent market growth and pricing stability.

Stringent Environmental and Safety Regulations

The European Union has some of the world’s strictest environmental and safety standards for automotive components, including tires. While these regulations are intended to improve road safety, reduce noise pollution, and limit emissions, they impose complex compliance requirements on manufacturers. Tire labeling rules and rolling resistance limits require continuous R&D investment to keep up with evolving benchmarks. Achieving these technical standards increases production complexity and costs, especially for small and mid-sized manufacturers. Moreover, the implementation of new regulations like extended producer responsibility (EPR) for end-of-life tire management requires companies to bear added logistical and recycling responsibilities. Failure to comply with these laws can result in financial penalties and reputational damage. Constantly adapting to regulatory changes diverts resources away from core business growth strategies and delays product rollout timelines, making regulatory compliance a long-term operational and financial hurdle for the industry.

Growing Competition from Low-Cost Imports

Europe’s open trade framework and globalized economy allow easy market access for low-cost tire manufacturers, especially from Asia. These imports often undercut European brands on price, appealing to cost-sensitive customers in the replacement tire market. While they may not always meet the same quality or environmental standards, their affordability makes them highly competitive. The influx of these cheaper alternatives squeezes margins for established players, forcing them to either lower prices or shift focus toward premium segments. This situation creates a tiered market where local manufacturers face difficulty scaling in the value segment. At the same time, ensuring fair competition and enforcing regulatory compliance across imported products remains a challenge for enforcement agencies. The persistent presence of lower-cost imports contributes to pricing pressures, brand dilution, and uneven market growth, particularly in the budget-conscious consumer segments of the tire market.

Shifts in Urban Mobility and Transportation Preferences

Urban transportation in Europe is undergoing a transformation driven by climate policies, infrastructure development, and changing consumer behavior. The increasing popularity of public transportation, shared mobility services, and non-motorized transport modes like cycling is gradually reducing private vehicle usage in metropolitan areas. As cities implement congestion charges, low-emission zones, and car-free initiatives, the frequency of personal vehicle use and by extension tire wear and replacement declines. This trend challenges traditional models of aftermarket tire demand, especially for passenger vehicles. Fleet models for ride-hailing, rental, and delivery services are growing, but they centralize demand among fewer buyers with stronger bargaining power. In parallel, micro-mobility options such as e-scooters and e-bikes do not utilize conventional automotive tires, further shifting the demand structure. Adapting to these mobility shifts requires realignment in distribution, marketing, and product development strategies, creating an operational and strategic challenge for tire manufacturers and retailers.

Key Market Trends

Rise of Smart and Connected Tires

Smart tire technology is gaining traction across Europe, driven by the growing demand for real-time vehicle monitoring, predictive maintenance, and fleet efficiency.

For instance, in 2022, Bridgestone introduced its new connected vehicle platform, Bridgestone Fleetcare, in Europe, combining tire and vehicle maintenance with telematics and data insights to optimize fleet operations. The system offers predictive maintenance, real-time monitoring, and advanced tire management. The launch supports Bridgestone’s strategy to enhance fleet efficiency, safety, and sustainability.

These advanced tires are equipped with sensors that collect data on pressure, temperature, tread depth, and road conditions. This information can be transmitted to onboard systems or cloud platforms for analysis, allowing drivers and fleet managers to take proactive maintenance actions, improving safety and performance. Smart tires are particularly valuable in commercial fleets and electric vehicles where uptime, cost-efficiency, and range optimization are critical. The integration of connected tire systems with telematics platforms and AI-driven analytics enhances vehicle lifecycle management. As vehicle automation advances, smart tires are expected to play a pivotal role in data feedback loops for autonomous driving. This trend is opening up new service-based revenue streams for tire manufacturers and accelerating the shift toward digital ecosystems in the mobility sector.

Expansion of All-Season Tire Adoption

Consumer preference in Europe is shifting toward all-season tires, particularly in urban areas with moderate climates. This trend is driven by the convenience of avoiding seasonal tire swaps and the cost-effectiveness of using a single set of tires year-round. Advancements in rubber compounds and tread designs have improved the performance of all-season tires, making them a viable alternative to dedicated summer and winter tires for a growing segment of the market. While all-season options may not outperform specialized tires in extreme conditions, they provide a balanced compromise that appeals to casual drivers. Regulatory flexibility in some European countries allows their use in lieu of winter tires, adding to their appeal. The increasing market penetration of all-season tires is gradually transforming replacement cycles and reducing the frequency of seasonal demand spikes. This trend supports more stable, predictable demand patterns for both retailers and manufacturers.

Sustainable Materials and Circular Economy Integration

Sustainability is no longer a peripheral concern but a central trend driving innovation in the tire industry. Tire manufacturers across Europe are increasingly investing in bio-based rubber, silica derived from rice husk ash, and recycled carbon black to reduce environmental impact. Incorporating sustainable materials into tire production helps reduce dependence on petroleum-based inputs and aligns with the EU’s circular economy objectives. In parallel, efforts to increase retreading, recycling, and repurposing of tires are gaining momentum through both regulatory pressure and voluntary corporate sustainability goals. Some companies are exploring closed-loop systems where used tires are collected, broken down, and reused in manufacturing. Lifecycle assessments and carbon footprint disclosures are becoming common across product lines, fostering transparency and brand differentiation. This trend is reshaping R&D priorities and marketing strategies, encouraging a systemic shift toward eco-design principles that appeal to environmentally conscious consumers and regulators alike.

Digital Transformation of Tire Retail and Services

Digital transformation is accelerating across the tire value chain, reshaping how tires are marketed, sold, and serviced. Online tire marketplaces, mobile apps, and virtual fitment tools are becoming integral to the consumer buying journey. Retailers and workshops are embracing digital appointment booking, contactless services, and subscription-based tire maintenance plans. AI and data analytics are being used to personalize product recommendations and streamline inventory management. In the B2B segment, digital platforms simplify bulk purchasing and enhance service contracts for fleet operators. This transformation reduces dependence on traditional retail stores and enables direct-to-consumer models that improve profit margins and customer engagement. E-commerce penetration is particularly strong in urban areas where convenience and speed of service are paramount. The adoption of digital tools is also enhancing brand loyalty and operational efficiency, supporting higher sales conversion rates. This trend is expected to define the next growth frontier in Europe’s replacement tire market.

Segmental Insights

Tire Construction Type Insights

The Europe tire market is segmented by type into radial and bias tires, with further differentiation based on vehicle category and usage conditions. Radial tires are widely utilized across most vehicle segments due to their superior performance attributes, including enhanced fuel efficiency, longer tread life, and improved handling. These tires have a flexible sidewall and steel belt construction that allows for better road contact and reduced rolling resistance. They are commonly used in passenger vehicles, commercial vehicles, and certain agricultural and industrial applications, offering improved safety and driving comfort. Their structural advantages make them suitable for high-speed highway use, which aligns with evolving consumer expectations around performance and durability.

Bias tires, while less commonly used in modern on-road applications, continue to hold relevance in specific off-road and specialty vehicle segments. Known for their rigid sidewalls and robust construction, bias tires offer advantages in load-bearing and shock absorption, especially on rough terrains. They are often used in construction, mining, and certain agricultural settings where vehicles are exposed to uneven surfaces, heavy loads, and slow-speed operation. Bias tire demand is typically influenced by durability requirements rather than comfort or fuel efficiency.

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Region Insights

In 2024, two of the most influential regions within the European tire market were Germany and France, each playing a pivotal role due to their industrial bases, vehicle production capacities, and scale of vehicle ownership. Germany’s expansive automotive ecosystem, combined with its strong aftermarket services and high vehicle density, contributed to the widespread demand for both original equipment and replacement tires. The country’s emphasis on engineering excellence and performance vehicles sustains a healthy market for premium and technologically advanced tires. In addition to passenger vehicles, the country supports a high volume of commercial transportation activity, which fuels demand for heavy-duty and long-haul tire segments. Tire preferences in the market are also shaped by autobahn driving conditions, where high-speed stability, tread integrity, and braking performance are critical. Regulations around winter tires and environmental compliance further influence purchasing cycles and product specifications.

France, meanwhile, demonstrates a well-rounded demand profile driven by its diverse mix of urban, suburban, and rural mobility needs. The market exhibits strong demand in the replacement segment across passenger cars and light commercial vehicles due to widespread vehicle ownership and active use. The regulatory environment promoting tire safety, seasonal fitment, and sustainability practices influences consumer behavior and product availability across retail and wholesale channels. Tire sales in France are impacted by changing mobility trends, including the rise of electric vehicles, urban car-sharing, and a growing number of last-mile logistics operators. These shifts have created steady demand for low-resistance, durable, and quiet tires that align with energy efficiency standards. Additionally, the enforcement of tire labeling rules and eco-conscious purchasing habits is encouraging the adoption of sustainable and fuel-saving tire models.

Recent Developments

• In May 2025, PRINX announced its entry into the European OTR market with the launch of its first OTR tire, the ELD12. The new product is designed for loaders and articulated dump trucks and emphasizes durability and traction in harsh environments. This move marks PRINX’s official expansion into Europe’s off-the-road tire segment. The launch reinforces the company’s global growth strategy and product diversification.
• In January 2025, Hankook Tire launched a new sub-brand called Optimo in Europe, aiming to cater to the value segment of the tire market. The Optimo series combines proven quality with competitive pricing and is targeted toward budget-conscious drivers. The initiative supports Hankook’s strategy to expand its market share across various consumer tiers. It also strengthens the brand’s regional product portfolio in passenger car tires.
• In March 2025, Nokian Tyres unveiled a new all-season tire range for the Central European market, featuring a higher proportion of renewable and recycled materials. The range balances year-round safety and environmental performance, supporting the region’s shift toward sustainable mobility. The innovation aligns with Nokian’s goal to reduce carbon footprint across its product lineup. The tires cater to diverse weather conditions and eco-conscious consumers.
• In April 2025, Kumho Tire revealed plans to open its first European tire plant, signaling a major step in its regional manufacturing presence. The new facility is set to improve supply chain efficiency and meet growing local demand. It supports Kumho’s ambition to strengthen its competitiveness in the European replacement and OEM markets. The plant will also help the brand respond quickly to evolving market needs.
• In October 2020, Linglong Tire highlighted its recent technological and production advancements aimed at boosting its European market footprint. The update includes enhancements in R&D, smart manufacturing, and eco-friendly tire solutions. Linglong emphasized its commitment to green development and intelligent mobility. The announcement supports its ongoing localization and sustainability strategy in international markets.

Key Market Players

• Manufacture Française des Pneumatiques Michelin
• Continental AG
• Pirelli & C. S.p.A.
• BRIDGESTONE EUROPE NV
• Goodyear Tyre & Rubber Company
• Kumho Tire Europe GmbH
• Nokian Tyres plc
• Cooper Tire & Rubber Company Europe Limited
• Yokohama Europe GmbH
• Hankook Tire & Technology Co., Ltd.

Report Scope:

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

·         Europe Tire Market, By Vehicle Type:

o    Passenger Car

o    LCV

o    M&HCV

o    OTR

o    Two-Wheeler

o    Three-Wheeler

·         Europe Tire Market, By Demand Category:

o    OEM

o    Aftermarket

·         Europe Tire Market, By Tire Construction Type:

o    Radial

o    Bias

·         Europe Tire Market, By Country:

o    Germany

o    United Kingdom

o    Spain

o    France

o    Italy

o    Rest of Europe

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Europe Tire Market.

Available Customizations:

Europe Tire 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).