Europe Tire Market By Vehicle Type (Passenger Car, Commercial Vehicle, Two-Wheeler), By Demand Category (OEM, Replacement), By Tire Construction Type (Radial, Bias), By Country, Competition, Opportunities and Forecast, 2019-2029F

Market Overview

The Europe Tire market was valued at USD 48.49 Billion in 2023 and is expected to reach USD 60.79 Billion by 2029 with a CAGR of 3.84% during the forecast period. The Europe tire market is expanding, driven by the rise of electric vehicles (EVs), demand for high-performance tires, and advancements in tire technology. As EV adoption grows, manufacturers are developing specialized tires to accommodate the unique needs of electric vehicles, including weight distribution and torque. Environmental concerns are pushing the demand for low rolling resistance and sustainable tires. These trends are boosting both OEM and replacement tire markets.

Technological innovations, such asmprovements in tire durability and efficiency are reshaping the industry. Manufacturers are focusing on creating longer-lasting, eco-friendly tires, responding to the demand for sustainability and fuel efficiency. Smart and green tire solutions are expected to gain momentum as both automakers and consumers prioritize performance and environmental responsibility.

The market faces challenges like fluctuating raw material prices, supply chain disruptions, and intense competition in the aftermarket segment. Rising consumer demand for value-driven, affordable options and the need for advanced digital sales channels add pressure on tire companies. Despite these obstacles, the growth of EVs and the push for eco-friendly, high-performance tires present significant opportunities. These factors will continue to drive the market through the forecast period of 2025-2029.

Market Drivers

Electric Vehicle (EV) Adoption

The growing adoption of electric vehicles is one of the most significant drivers in the Europe tire market. As EVs become more mainstream, the demand for tires specifically designed to accommodate their unique characteristics such as increased weight from batteries, high torque, and longer driving ranges is rising. EV-specific tires offer lower rolling resistance to enhance energy efficiency, improved durability, and reduced wear due to the instant torque produced by electric motors. As European governments continue to incentivize the shift to electric mobility, the need for EV-compatible tires is expected to expand, benefiting both the OEM and replacement tire markets. For instance, In March 2024, Michelin announced a partnership to supply tires for the new Peugeot 3008 and E-3008 models in Europe. Over three years, Michelin engineers developed tire ranges tailored for these vehicles, focusing on high safety standards for wet and dry surfaces, durability, and energy efficiency. According to Michelin's vice president of car and light truck tire development, the rise of electric vehicles is reshaping tire design, particularly due to their increased weight—ranging from dozens to hundreds of kilograms—and the immediate torque from electric motors, which adds stress and accelerates tire wear.

Demand for High-Performance Tires

With increasing consumer interest in premium and performance-oriented vehicles, the demand for high-performance tires has surged in Europe. These tires are designed for better handling, superior grip, and improved safety, especially in challenging driving conditions such as wet or icy roads. Performance tires are also becoming a key choice for high-end vehicles, including sports cars, luxury sedans, and electric vehicles, which require tires that can handle higher speeds, loads, and specific handling characteristics. This demand is expected to continue to grow as consumers prioritize driving performance and safety.

Key Market Challenges

Volatile Raw Material Prices

The fluctuating cost of raw materials such as natural rubber, synthetic rubber, carbon black, and steel remains a key challenge for the Europe tire market. Prices for these materials can be highly volatile, impacted by factors such as supply chain disruptions, geopolitical tensions, and weather conditions in key production areas. Manufacturers face difficulties in maintaining cost efficiency while ensuring tire quality and performance. These price fluctuations can lead to increased production costs, affecting profit margins and the pricing of finished products.

Supply Chain Disruptions

Global supply chain disruptions continue to affect the tire industry, with shortages of key materials, logistical bottlenecks, and delays in transportation. These disruptions have led to longer lead times for tire production and a reduction in the availability of some tire models. Manufacturers are working to mitigate these issues by diversifying supply sources and investing in more localized production, but ongoing supply chain challenges remain a significant barrier to market stability.

Key Market Trends

Integration of Sustainable Materials in Tire Production

There is a growing trend toward using sustainable and recyclable materials in tire manufacturing. Tire manufacturers are incorporating bio-based and synthetic rubbers, plant-based oils, and carbon black alternatives to reduce the environmental impact of tire production. Advances in recycling technology are also making it possible to repurpose worn tires into new products, creating a circular economy in the tire industry. This trend is not only driven by regulatory pressure but also by the increasing consumer demand for eco-friendly products that align with sustainability goals. For instance, in September 2024, Continental launched three new tire models for buses and trucks at the IAA Transportation 2024 event in Hanover, Germany, emphasizing efficient and sustainable solutions for electric vehicles. The new Conti EfficientPro 5 truck tire features a 10% improvement in rolling resistance and an EU tire label Class A rating for energy efficiency and braking. Continental also introduced the Conti Urban NXT, its most sustainable urban tire, made from 59% renewable, recycled, and ISCC PLUS certified materials, ideal for electrified commercial vehicles. Additionally, the Conti EcoPlus HT3+, a new trailer tire designed for electrified drive axles, was showcased.

Larger Rim Sizes and Low-Profile Tires

The trend toward larger rim sizes and low-profile tires is gaining momentum in Europe, especially among consumers of luxury and performance vehicles. Larger rims provide better aesthetics and performance benefits, including improved handling and stability at higher speeds. Low-profile tires are favored for their ability to provide better road grip and response while enhancing the appearance of the vehicle. However, this trend also requires tire manufacturers to design products that can deliver both high performance and durability while accommodating the unique demands of these tire sizes.

Segmental Insights

Vehicle Type Insights

The Europe tire market is being increasingly shaped by the rise of electric vehicles (EVs) across passenger cars, commercial vehicles, and two-wheelers. In the passenger car segment, EVs require tires that can handle their unique characteristics, such as higher weight from batteries and greater torque. Tires for these vehicles are designed for better durability, lower rolling resistance, and enhanced grip to optimize efficiency and performance.

Commercial vehicles, such as trucks and delivery vans, are becoming more common in Europe’s logistics       sector. These vehicles demand heavy-duty tires that support increased loads while maintaining fuel efficiency and extended range. Tires for electric trucks are also engineered to withstand the higher torque and wear associated with EV powertrains.

The electric two-wheeler market, including e-scooters and e-bikes, is growing rapidly in urban areas. These vehicles require specialized tires that handle the higher torque and additional weight of batteries while ensuring safety and maneuverability. As electric two-wheelers continue to gain popularity, tire manufacturers are focused on creating tires optimized for these vehicles’ performance needs.

The rise of electric vehicles across all segments is driving innovation in tire design and materials, with increasing demand for tires tailored to the specific needs of electric mobility.

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Country Insights

In 2023, Germany dominated the Europe tire market, driven by its strong automotive industry and high demand for both passenger and commercial vehicle tires. The country’s push toward electric vehicles (EVs) is boosting the need for specialized tires designed for the unique characteristics of EVs, such as increased weight and torque. As EV adoption grows, the demand for energy-efficient, durable tires continues to rise.

Germany’s extensive road network and high vehicle ownership contribute to strong demand for replacement tires. Consumers increasingly seek high-performance, eco-friendly options, aligning with the country’s focus on sustainability and premium vehicle segments. Additionally, the rise of electric commercial vehicles, including trucks and delivery vans, is driving demand for heavy-duty tires that can handle the specific needs of electric powertrains.

Technological innovation in tire manufacturing, including smart tire technologies and sustainable materials, further strengthens Germany’s position in the market. These trends make Germany a key driver of growth and innovation in the Europe tire market in 2023.

Recent Developments

• In September 2024, ZC Rubber announced a 10-year extension of its strategic alliance with global logistics leader DSV. Under the renewed agreement, DSV Road Holding NV will continue using WESTLAKE tires for its trailer fleets and will equip all new trailers with the brand, actively promoting it among OEM manufacturers in Europe.
• In August 2024, the Korea Tire Manufacturers Association reported that Hankook Tire, Kumho Tire, and Nexen Tire sold 44.52 million tires in domestic and international markets, driven by increased exports and domestic replacement tire sales. Notably, tire exports to Europe surged, with the first half of this year seeing an export value of USD 1.833 billion, a 2.9% increase from last year. Exports to Europe reached USD 884 million, making up 48.2% of total exports, up nearly 10 percentage points from 38.5% in the same period last year.
• In March 2024, Kumho Tire announced it is considering a new manufacturing facility in Europe, as reported by The Korea Economic Daily. The company disclosed this to the Korea Stock Exchange but has not yet finalized the investment amount or timeline.

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   Commercial Vehicle

o   Two-Wheeler

·         Europe Tire Market, By Demand Category:

o   OEM

o   Replacement

·         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 present in the Europe Tire Market.

Available Customizations:

Europe Tire Market report with the given market data, TechSci Research offers customizations according to a 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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