Tire Market – Global Industry Size, Share, Trends, Competition, Opportunity, and Forecast, Segmented By Vehicle Type (Passenger Car, Light Commercial Vehicle, Medium & Heavy Commercial Vehicle, Two-Wheeler, Three-Wheeler and OTR), By Demand Category (OEM and Replacement), By Tire Construction Type (Radial and Bias), By Region, By Country (80 Countries), 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 282.44 Billion
CAGR (2026-2031)	8.34%
Fastest Growing Segment	Passenger Car
Largest Market	Asia Pacific
Market Size (2031)	USD 456.73 Billion

Market Overview

The Global Tire Market will grow from USD 282.44 Billion in 2025 to USD 456.73 Billion by 2031 at a 8.34% CAGR. A tire is a pneumatic or solid ring-shaped component designed to encircle a wheel rim, serving to transfer vehicle load and generate traction on the road surface. The market is fundamentally driven by the consistent expansion of the global automotive fleet and the recurring demand for replacement units resulting from natural product wear. These core drivers ensure sustained revenue streams independent of temporary economic fluctuations, supported further by infrastructure development and rising vehicle ownership rates in emerging economies.

Nevertheless, the industry faces a significant challenge regarding the volatility of raw material prices, particularly for natural rubber and oil derivatives, which can destabilize production costs and profit margins. According to the U.S. Tire Manufacturers Association, in 2024, total tire shipments in the U.S. were projected to reach 338.9 million units, an increase of 2.1 percent compared to the prior year. While this data indicates volume growth, the fluctuating cost of inputs remains a critical impediment to stabilizing long-term market expansion.

Key Market Drivers

The surging adoption of electric vehicles (EVs) is a primary catalyst reshuffling the global tire manufacturing landscape, as these vehicles necessitate specialized tire architecture to handle heavier battery weights and instant torque delivery. Unlike internal combustion engine vehicles, EVs require tires with significantly lower rolling resistance to maximize battery range and reinforced sidewalls to support increased loads without compromising safety or noise reduction. This structural shift is accelerating demand for high-value, premium tire segments designed to withstand faster wear rates. According to the International Energy Agency (IEA), April 2024, in the 'Global EV Outlook 2024', sales of electric cars were projected to reach nearly 17 million units in 2024, representing a robust annual increase that compels manufacturers to dedicate substantial resources toward specialized product lines.

Rising global automotive production and vehicle sales continue to fuel the original equipment manufacturer (OEM) segment, ensuring a steady baseline for tire consumption across passenger and commercial categories. As supply chains stabilize and economic activity resumes, the influx of new vehicles directly correlates with increased orders for initial tire fitments, creating immediate volume growth for producers. According to the European Automobile Manufacturers’ Association (ACEA), January 2024, in the 'New car registrations: +13.9% in 2023' report, the European Union car market expanded by 13.9 percent in 2023 compared to the previous year, totaling 10.5 million units. This volume expansion supports the broader financial health of major tire producers, as evidenced by their revenue stability. According to Bridgestone Corporation, in 2024, the company reported revenue of 4,313.8 billion Yen for the fiscal year 2023, reflecting the sustained monetary value embedded within the global demand for mobility products.

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Key Market Challenges

The volatility of raw material prices, particularly for natural rubber and oil derivatives, constitutes a substantial impediment to the financial stability of the global tire market. Manufacturers depend heavily on these inputs, and erratic price fluctuations can rapidly erode profit margins while disrupting production budgets. When material costs spike unexpectedly, producers often face the difficult choice of absorbing the additional expense or passing it on to consumers. Increasing final product prices can dampen consumer demand, especially in price-sensitive regions, while absorbing costs limits the capital available for operational expansion and research initiatives.

This instability is frequently exacerbated by structural supply deficits that sustain high input costs. According to the Association of Natural Rubber Producing Countries, in 2024, global consumption of natural rubber was projected to grow to 15.82 million tons, creating a noticeable gap between supply and demand. This deficit places continuous upward pressure on procurement expenses. Consequently, the unpredictability of essential input costs complicates long-term planning and hampers the ability of manufacturers to maintain consistent growth, directly affecting the overall momentum of the market.

Key Market Trends

The Integration of Sustainable and Bio-based Manufacturing Materials is fundamentally reshaping production strategies as manufacturers strive to decouple from volatile fossil-fuel supply chains and meet rigorous circular economy targets. This trend involves the systematic replacement of conventional petrochemical derivatives with renewable alternatives such as guayule natural rubber, rice husk silica, and recycled pyrolysis oil. The industry focus has shifted from niche prototypes to the commercial scalability of these inputs, driven by regulatory pressures and original equipment manufacturer net-zero mandates. According to Tyre Trends, May 2025, in the 'Bridgestone Unveils Industry-First Tyre With 70% Recycled Materials' article, Bridgestone Americas debuted a commercial tire featuring 70 percent recycled and renewable content, marking a significant milestone in the mass-market application of sustainable materials.

Simultaneously, the Adoption of Intelligent and Connected Tire Technologies is transforming tires into active data-gathering nodes within the broader vehicle ecosystem. Beyond basic pressure monitoring, modern smart tires utilize embedded sensors and proprietary algorithms to analyze road friction, tread wear, and load dynamics in real-time, directly communicating with vehicle control systems to enhance safety and autonomy. This integration allows for predictive adjustments to braking and stability systems before hazards become critical, effectively merging tire mechanics with software-defined vehicle architectures. According to The Goodyear Tire & Rubber Company, January 2025, in the 'Goodyear and TNO Demonstrate Advanced Vehicle Integration to Mitigate Crashes in Adverse Weather' press release, testing revealed that incorporating real-time tire intelligence data into automatic emergency braking systems could assist in mitigating collision impacts at speeds of up to 80 kph on wet surfaces.

Segmental Insights

The passenger car segment is positioned as the fastest-growing category in the global tire market due to rising private vehicle ownership and urbanization in developing regions. This expansion is further supported by stringent fuel economy standards enforced by regulatory entities like the European Commission, which drive demand for energy-efficient tire technologies. Additionally, the increasing adoption of electric vehicles accelerates market development, as their distinct weight and torque profiles necessitate specialized and frequent tire replacements. Consequently, these factors collectively sustain the rapid progression of the passenger car tire sector.

Regional Insights

Asia Pacific leads the Global Tire Market, driven by its strategic access to raw materials and extensive automotive manufacturing capabilities. The region benefits significantly from abundant natural rubber resources in nations like Thailand and Indonesia, a critical supply advantage supported by data from the Association of Natural Rubber Producing Countries. Furthermore, China and India act as central hubs for vehicle production, creating substantial demand for both original equipment and replacement tires. This combination of localized resource availability, manufacturing scale, and rising domestic vehicle ownership underpins the region's sustained market dominance.

Recent Developments

• In November 2024, Continental AG advanced its sustainability strategy by increasing the use of recycled materials in its tire manufacturing operations. The company converted additional production facilities to utilize polyester fabric derived from recycled polyethylene terephthalate (PET) bottles, effectively raising the recycled content in several tire lines by an average of three percent. Utilizing its proprietary ContiRe.Tex technology, the manufacturer successfully replaced conventional polyester with high-performance fibers spun from waste bottles without using intermediate chemical steps. This development represented a concrete step toward the organization's ambitious goal of incorporating more than 40 percent renewable and recycled materials into its products by 2030.
• In October 2024, Hankook Tire entered into a prestigious collaboration by becoming an official sponsor of the Ballon d’Or, the globally recognized football award ceremony jointly organized by UEFA and Groupe Amaury. Through this partnership, the premium tire manufacturer secured prominent brand placement along the red carpet and in press areas during the event at the Théâtre du Châtelet in Paris. The President of Hankook Tire Europe described the sponsorship as a strategic move to enhance the brand's premium positioning and leverage the massive global reach of football. This agreement marked a logical extension of the company's existing long-term cooperation with UEFA.
• In June 2024, The Goodyear Tire & Rubber Company announced a significant expansion of its premium winter tire line, the UltraGrip Performance 3, throughout the European market. The company introduced more than 40 new stock keeping units to accommodate a wider range of modern vehicles, including specifically optimized sizes for electric models such as the Volkswagen ID.7 Tourer and BMW i5. These tires feature specialized technologies designed to enhance braking and handling on snow and wet surfaces. The expansion aimed to address the market shift toward larger rim sizes and the unique requirements of the latest vehicle platforms, reinforcing the manufacturer's focus on the premium winter segment.
• In May 2024, Michelin solidified a major motorsport collaboration by signing a multi-year agreement to become the exclusive tire supplier and title sponsor for the 24H SERIES, effective from the 2025 season. This strategic partnership with the series promoter, CREVENTIC, positioned the French manufacturer to replace the previous long-term supplier beginning with the 20th edition of the 24H DUBAI. The Director of Customer Racing Europe for the company highlighted that endurance racing remains a core component of their identity, serving as a critical platform for demonstrating tire durability and performance. The deal ensured that all teams in the series would compete on the company's specialized endurance racing tires.

Key Market Players

• The Michelin Group
• Bridgestone Corporation
• Goodyear Tire and Rubber Company
• Continental AG
• Pirelli & C. S.p.A.
• Hankook Tire & Technology Co., Ltd.
• Sumitomo Rubber Industries, Ltd.
• The Yokohama Rubber Co., Ltd.
• Zhongce Rubber Group Co., Ltd.
• Cheng Shin Rubber Industry Co.

By Vehicle Type	By Demand Category	By Tire Construction Type	By Country	By Region
Passenger Car Light Commercial Vehicle Medium & Heavy Commercial Vehicle Two-Wheeler Three-Wheeler and OTR	OEM and Replacement	Radial and Bias	80 Countries	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Tire Market , By Vehicle Type:

• Passenger Car
• Light Commercial Vehicle
• Medium & Heavy Commercial Vehicle
• Two-Wheeler
• Three-Wheeler and OTR

• Tire Market , By Demand Category:

• OEM and Replacement

• Tire Market , By Tire Construction Type:

• Radial and Bias

• Tire Market , By Country:

• 80 Countries

• Tire Market , By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE