South Korea Tire Market – Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Passenger Car, Commercial Vehicle, Two-Wheelers), By Tire Construction Type (Radial, Bias), By Demand Category (OEM, Replacement), By Region & Competition, 2020-2030F

Market Overview:

South Korea Tire Market was valued at USD 3.27 Billion in 2024 and is expected to reach 4.29 Billion by 2030 with a CAGR of 4.66% during the forecast period. The South Korea tire market is driven by increasing vehicle production, rising demand for replacement tires, and growing consumer preference for advanced tire technologies such as run-flat and fuel-efficient tires. Expanding e-commerce platforms and improved distribution networks have enhanced tire availability, supporting both OEM and aftermarket sales. For instance, in 2023, South Korea ranked 4th in global e-commerce and leads with e-commerce contributing 79% of its GDP. Its retail e-commerce market, now 5th largest worldwide, surged from 18.4% of retail sales in 2017 to nearly 30% by 2021, driven by rapid digital growth. Continuous technological advancements, such as smart tires with sensors for performance monitoring, are shaping buyer expectations and fueling market growth. The rising awareness about vehicle safety, combined with stricter government regulations regarding tire performance and labeling, is encouraging manufacturers to focus on quality and innovation.

Market Drivers

Growing Demand for Replacement Tires

The demand for replacement tires remains a primary driver in the South Korea tire market, fueled by the natural wear and tear of tires and the increasing awareness of vehicle maintenance among consumers. As vehicles remain in service for longer periods due to improved engineering and better maintenance practices, the need for regular tire replacement grows. Consumers are showing a heightened interest in performance, safety, and fuel efficiency, prompting them to seek high-quality replacement tires rather than opting for budget options. The rise of personal mobility trends and shared transportation services further contributes to frequent tire replacements, as these vehicles typically experience higher mileage and faster tire wear. Retailers and distributors benefit from this trend by expanding their product offerings and service packages, often bundling tire purchases with installation and maintenance services. Tire manufacturers are also focusing on building strong aftermarket networks and enhancing product availability through both traditional stores and online platforms.

Rising Adoption of Performance and Specialty Tires

The South Korea tire market is witnessing growing demand for performance and specialty tires, driven by consumer preferences for enhanced driving experiences and advanced vehicle capabilities. With increasing focus on vehicle handling, safety, and efficiency, buyers are opting for tires that offer superior grip, durability, and performance under various driving conditions. Specialty segments, such as ultra-high-performance tires, run-flat tires, and fuel-efficient low rolling resistance tires, are seeing expanded adoption across passenger and commercial vehicle categories. The rise in electric vehicles and premium automotive segments has also amplified interest in tires specifically designed for low noise, high load capacity, and optimal energy efficiency. Manufacturers are investing in research and development to introduce innovative compounds, advanced tread designs, and integrated technologies like self-sealing features or real-time pressure monitoring compatibility.

Expansion of Online Tire Sales and Digital Retail Platforms

The expansion of online tire sales channels and digital retail platforms is emerging as a strong driver in the South Korea tire market. With the growing digital literacy among consumers and the widespread availability of internet-based services, purchasing behavior is shifting towards online channels for convenience, better price comparison, and wider product selection. E-commerce platforms specializing in automotive products now offer detailed tire specifications, user reviews, and compatibility tools, making the tire buying process more transparent and accessible. This has opened new avenues for tire manufacturers and retailers to reach customers directly, bypassing traditional intermediaries and dealership networks. Online platforms often provide bundled services such as installation appointments at partner workshops, doorstep delivery, and extended warranty packages, enhancing the customer experience. The digital marketplace also supports dynamic pricing strategies, promotional campaigns, and targeted advertising, allowing brands to engage with a wider audience effectively.

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Key Market Challenges

Fluctuating Raw Material Prices

Fluctuating raw material prices present a persistent challenge for the South Korea tire industry, directly impacting production costs and profit margins. Key inputs like natural rubber, synthetic rubber, carbon black, and various chemical additives experience price volatility due to global supply-demand dynamics, weather conditions affecting raw material harvests, and geopolitical factors influencing trade flows. This unpredictability complicates cost planning for manufacturers, forcing them to either absorb higher expenses or pass them on to consumers, both of which can strain business operations. The situation is further intensified by transportation costs, currency fluctuations, and market speculation, all of which can amplify the instability of input prices. Tire manufacturers operating on thin margins face the risk of reduced profitability, especially in price-sensitive segments where increasing product prices could affect competitiveness.

Growing Competitive Pressure and Market Saturation

The South Korea tire market faces growing competitive pressure and signs of market saturation, particularly in established product categories. With numerous domestic and international brands vying for market share, pricing competition has intensified, reducing margins across both premium and mass-market segments. Established players are under constant pressure to innovate, differentiate their products, and invest in marketing to retain brand loyalty in a crowded marketplace. This competition is not limited to large-scale manufacturers; smaller players and new entrants leveraging low-cost manufacturing or niche product offerings have also entered the fray, further fragmenting the market. The challenge extends to distribution channels, where partnerships with retailers and online platforms have become battlegrounds for visibility and consumer reach. Market saturation in certain segments, such as standard passenger vehicle tires, forces companies to either compete on price or pursue innovation in performance, design, or customer service.

Key Market Trends

Increasing Focus on Sustainable and Eco-Friendly Tire Solutions

The trend toward sustainable and eco-friendly tire solutions is gaining momentum in the South Korea tire market, influenced by global environmental concerns and evolving consumer expectations. Manufacturers are investing in the development of tires made from renewable materials, bio-based rubbers, and recycled components to reduce environmental impact throughout the product lifecycle. This shift is also driven by tightening regulations on carbon emissions, manufacturing processes, and tire disposal, prompting companies to adopt greener practices in production and supply chain management. The growing interest in electric vehicles and low-emission transportation further amplifies demand for tires that enhance energy efficiency, reduce rolling resistance, and deliver optimal performance with minimal environmental footprint. Sustainable product innovations include low rolling resistance tires that contribute to fuel savings and emission reduction, as well as biodegradable materials aimed at minimizing landfill waste.

Rising Popularity of Premium and High-Performance Tires

The rising popularity of premium and high-performance tires reflects a shift in consumer preferences toward enhanced driving dynamics, aesthetic appeal, and superior product quality. Consumers are increasingly willing to invest in tires that offer improved handling, braking performance, and durability, particularly those suited for high-speed driving or specialized vehicle segments like sports cars and SUVs. This trend is supported by advancements in tire engineering, such as innovative tread designs, advanced rubber compounds, and reinforced sidewalls, which deliver a combination of performance and safety benefits. High-performance tires are also designed to provide better grip in varying weather conditions, contributing to their growing appeal among safety-conscious drivers. Manufacturers are leveraging this trend by expanding their premium product lines and highlighting performance features through targeted marketing campaigns. The premium tire segment also benefits from growing demand in the aftermarket, as vehicle owners seek to upgrade from standard offerings for a better driving experience. For instance, In November 2024, Hankook Tire began mass production of tires using ISCC PLUS certified carbon black derived from end-of-life tires, developed through its Tire-to-Tire Circular Economy Model with 12 Korean partners. This initiative aims to reduce reliance on petrochemical materials, lower carbon emissions, and meet global sustainability standards.

Segmental Insights

Vehicle Type Insights

In 2024, the passenger car segment emerged as the dominant category in the South Korea tire market, driven by its large and active vehicle base supported by strong replacement demand. The high volume of passenger vehicles in operation sustained continuous tire consumption, with periodic replacements contributing significantly to market growth. Consumer preferences for improved ride comfort, safety, and fuel efficiency increased the demand for high-quality passenger car tires, including premium and performance-oriented variants. The growing popularity of SUVs and sedans further enhanced this segment’s dominance, as these vehicle types require specific tire categories designed for handling, durability, and diverse driving conditions. The increasing focus on personal mobility and commuting needs sustained the replacement cycle, with many vehicle owners opting for regular tire upgrades or brand switches based on performance requirements. For instance, In 2025, South Korea's vehicle market grew 3.1% year-on-year up to May, reaching 679,050 units, with Hyundai becoming the top brand and Kia leading the EV segment with a 252.5% surge. The EV market rebounded strongly, up 47.3%, capturing 8.3% market share, fueled by new launches and government support.

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Region Insights

In 2024, Gyeonggi led the South Korea tire market due to its large vehicle base, dense population, and active automotive services. High demand for both OEM and replacement tires was supported by strong distribution, frequent intercity travel, and rising interest in premium tires. The region’s retail access and road usage patterns kept tire sales consistently strong. For instance, in 2023, Gyeonggi Province recorded a population of 13.6 million with a density of 1,340 people per km², making it the most densely populated region in South Korea after Seoul, reflecting its significant urban concentration.

South Chungcheong held a key position in the market with stable demand driven by industrial activity and commercial vehicle usage. The region’s role as a logistics hub and its growing aftermarket services supported steady tire replacements, particularly in the commercial segment. Reliable tire options and strong replacement needs fueled market growth.

North Chungcheong contributed with demand linked to transport and trade operations. Its vehicle population and inter-regional logistics boosted tire wear, encouraging frequent replacements by individual owners and fleets. Expanding access to branded and multi-brand outlets helped sustain sales across both urban and suburban areas.

Recent Developments

• ​In 2025, Nexen Tire earned the EcoVadis Gold rating for the second year, ranking in the top 5% globally for sustainability, reflecting its strong ESG performance in environment, ethics, and procurement.
• In 2025, Nexen Tire announced it is supplying original equipment (OE) tires for Hyundai’s next-generation hydrogen SUV, the all-new NEXO. The tires were specifically developed to enhance driving stability, efficiency, and low rolling resistance, supporting the vehicle’s eco-friendly performance.
• In the first half of 2024, South Korea’s top three tire manufacturers Hankook, Kumho, and Nexen sold a combined total of 44.52 million tires, marking a 3.3% year‑on‑year increase and showcasing continued industry growth despite global uncertainties.
• In 2025, Hankook Tire partnered with Solvay to develop circular silica from biosourced and industrial waste, aiming to enhance tire performance, reduce rolling resistance, and advance sustainable manufacturing.

Key Market Players

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

Report Scope:

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

•           South Korea Tire Market, By Vehicle Type:

o    Passenger Car

o    Commercial Vehicle

o    Two-Wheelers

•           South Korea Tire Market, By Tire Construction Type:

o    Radial

o    Bias

•           South Korea Tire Market, By Demand Category:

o    OEM

o    Replacement

•           South Korea Tire Market, By Region:

o    North Chungcheong

o    South Chungcheong

o    Gangwon

o    Gyeonggi

o    Rest of South Korea

Competitive Landscape

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

Available Customizations:

South Korea 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).

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