Tire Material Market – Global Industry Size, Share, Trends, Opportunity, & Forecast, Segmented By Type (Elastomers, Reinforcing Fillers, Plasticizers, Chemicals, Metal Reinforcements, Textile Reinforcements), By End User Type (Passenger Cars, Trucks, Buses, LCV, Others), By Region and Competition 2020-2030F

Market Overview

The Global Tire Material Market, valued at USD 102.22 Billion in 2024, is projected to experience a CAGR of 4.12% to reach USD 130.24 Billion by 2030. The Global Tire Material Market comprises essential raw inputs including natural and synthetic rubbers, carbon black, steel cord, and various chemicals, vital for tire manufacturing across automotive, industrial, and agricultural applications. Market expansion is primarily driven by consistent growth in global vehicle production and increasing demand within the automotive aftermarket. According to the International Organization of Motor Vehicle Manufacturers (OICA), world motor vehicle production totaled 93,546,598 units in 2023. This fundamental demand underpins the consistent need for tire material inputs.

Further growth is supported by sustained economic development in emerging economies, leading to increased vehicle ownership and freight transportation. According to the International Rubber Study Group (IRSG), total rubber demand was forecast to accelerate by 2.8% in 2023. However, a significant challenge impeding market expansion is the inherent volatility of raw material prices, particularly for natural rubber and petrochemical-derived synthetic rubbers, which can impact manufacturing costs and profit margins.

Key Market Drivers

The Global Tire Material Market is significantly shaped by two primary drivers: increasing global vehicle production and sales, and the rising demand for high-performance and specialty tires. The consistent expansion in automotive manufacturing directly translates into a foundational demand for raw materials used in original equipment tires. As new vehicles are produced across various segments, from passenger cars to heavy-duty commercial vehicles, the need for components such as natural and synthetic rubbers, carbon black, and steel cords intensifies. According to the European Automobile Manufacturers' Association, September 4, 2024, in "EU commercial vehicle production - ACEA - European Automobile Manufacturers' Association", 2.7 million commercial vehicles were produced in the EU in 2023, representing a 20.3% increase compared to the previous year, highlighting robust manufacturing activity. Concurrently, the evolving consumer preference for high-performance and specialty tires, including those designed for electric vehicles or specific terrains, drives demand for advanced material formulations. These tires often require specialized synthetic rubbers and other additives that provide enhanced grip, durability, and rolling resistance properties. According to the International Rubber Study Group (IRSG), September 27, 2023, in "EVs, China growth to drive global rubber demand in 2023", synthetic rubber consumption was expected to increase by 2.6% year-on-year in 2023, reflecting this shift towards more technical tire material requirements.

The overall health of the Global Tire Material Market is closely linked to these fundamental automotive sector trends. According to the Japan Automobile Tyre Manufacturers Association, citing IRSG research, in December 2024, "Consumption of Rubber by Tyre and Tyre Products", total rubber consumption by tyre and tyre products of the world was 18.04 million tons in 2024, underscoring the substantial volume of materials required to meet global tire demand.

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Key Market Challenges

The Global Tire Material Market faces a significant challenge from the inherent volatility of raw material prices. This fluctuation, particularly evident in natural and synthetic rubbers, directly impacts manufacturing costs and subsequently erodes profit margins for tire producers. For instance, according to the Association of Natural Rubber Producing Countries (ANRPC), by the end of September 2024, the prices of RSS3 and TSR20 natural rubber increased substantially by 83% and 55% year-on-year, respectively. Such sharp and unpredictable price surges complicate production planning and budgeting for tire manufacturers.

These drastic price movements compel companies to absorb higher input costs or consider passing them on to consumers, potentially affecting demand and market competitiveness. The fundamental requirement for a consistent supply of materials at predictable prices is essential for efficient operational stability. However, when raw material expenses fluctuate significantly, it creates financial instability, hindering long-term investment and strategic capacity expansion within the broader tire material supply chain. This directly constrains the overall growth trajectory of the Global Tire Material Market.

Key Market Trends

The Global Tire Material Market is experiencing a notable shift towards the increased integration of sustainable and recycled materials. This trend is driven by growing environmental awareness, regulatory pressures, and consumer demand for eco-friendly products. Tire manufacturers are actively developing technologies to incorporate a higher percentage of reclaimed and renewable resources into their compounds. The U. S. Tire Manufacturers Association's 2023 End-of-Life Tire Management Report, released in October 2024, indicated that 79 percent of end-of-life tires were consumed by end-use markets in 2023, representing a 10.5 percent increase in overall utilization. This highlights the expanding demand for circular material flows. For example, Toyo Tire Corporation introduced a concept tire in January 2024 that utilized sustainable materials for 90 percent of its raw materials, showcasing advanced capabilities in reducing reliance on virgin resources.

Another significant trend influencing the Global Tire Material Market is the development of lightweighting material innovations specifically for electric vehicles. The unique performance demands of EVs, such as heavier battery packs and the need for extended range, necessitate tire materials that offer reduced rolling resistance and enhanced durability without adding excessive weight. This drives research into advanced polymer compounds and structural designs. According to the U. S. Tire Manufacturers Association's December 2024 forecast, total U. S. tire shipments were projected to reach 338.9 million units in 2024, a 2.1 percent increase from 2023, reflecting market activity that includes the growing EV segment. Manufacturers are responding with specialized products; Bridgestone Americas Inc. introduced the Turanza EV tire in 2023, which was engineered to address specific EV performance characteristics like rolling resistance, benefiting from material lightweighting efforts.

Segmental Insights

The Passenger Cars segment stands out as the fastest-growing in the Global Tire Material Market, primarily due to the continuous expansion of the global passenger vehicle fleet and increasing new vehicle production across various regions. This growth is significantly driven by evolving consumer demand for enhanced performance, safety, and fuel efficiency, which necessitates advanced tire material formulations. Furthermore, stringent environmental regulations, particularly from governmental bodies such as the European Union, are a key factor influencing the market by promoting the development and adoption of sustainable and eco-friendly tire materials. The rapid global adoption of electric vehicles also contributes to this segment's acceleration, requiring specialized tires engineered for unique demands like higher torque, instant acceleration, and optimized rolling resistance.

Regional Insights

Asia Pacific leads the global tire material market due to its robust automotive manufacturing sector, particularly in economies such as China and India. The region experiences significant vehicle production and a continuously expanding fleet size, directly driving substantial demand for tire components. Additionally, increasing urbanization, rising disposable incomes, and a growing middle class contribute to heightened consumer vehicle ownership and a thriving replacement tire market. The presence of numerous global and regional tire manufacturers, coupled with the abundant availability of both natural and synthetic rubber resources within the region, further solidifies Asia Pacific's dominant position. These combined factors create a strong ecosystem for tire material consumption and production.

Recent Developments

• In November 2024, Goodyear unveiled its ElectricDrive Sustainable-Material (EDS) Tire at the 7th China International Import Expo. This new product launch represents a key step in the company's ambition to introduce a 100% sustainable-material tire by 2030. The EDS tire, specifically engineered for electric vehicles, incorporates recycled and bio-based materials, including carbon black derived from end-of-life tires and recycled polyester. It was designed to offer enhanced wet braking, handling, reduced noise, and lower rolling resistance. The tire became available on Tmall in December 2024 and was scheduled for broader availability in other Asia Pacific markets starting in Q1 2025.

• In October 2024, Bridgestone Americas announced it received a USD 9.3 million grant from the U.S. Department of Energy to research a novel method for producing butadiene. This breakthrough research focuses on converting ethanol into butadiene, a critical component in synthetic rubber used for tire manufacturing. The project involves designing, building, and operating a pilot plant to assess the economic and commercial viability, along with the carbon footprint, of this conversion process. This initiative represents a significant step towards Bridgestone's goal of utilizing 100% sustainable raw materials in its tires globally by 2050.

• In September 2024, Evonik announced a breakthrough in tire rubber recycling by developing an improved process that could significantly increase the proportion of recycled rubber used in new tires. Historically, the chemical structure of recycled rubber limited its integration with new tire materials, typically to about 5%. Evonik's research team developed a method involving a special formulation with vinyl silanes that can split the sulfur bonds in recycled rubber, allowing for up to four times more recyclate in rubber blends during trials. This research aims to make a larger quantity of scrap tire material suitable for reuse in new automobile tires.

• In March 2024, LANXESS showcased its pioneering sustainable antidegradant, TMQ, for rubber compounds at the Tire Technology Expo. This innovative material aims to support the tire industry's goal of producing fully sustainable "green" tires. More than 50 percent of the additive's content is based on sustainable raw materials, which received ISCC Plus certification, ensuring transparent and reliable sustainable sourcing. The production facility in Brunsbuettel, where this antidegradant is manufactured, was also certified in 2024. This development allows tire manufacturers to integrate the sustainable TMQ variant without requiring new product approvals.

Key Market Players

• Chevron Corporation
• Cabot Corporation
• JSR Corporation
• Thai Carbon Black PLC
• Lanxess AG
• Bekaert SA
• Orion Engineered Carbon LLC
• Royal Dutch Shell
• Umicore SA
• SIBUR International

Report Scope:

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

• Tire Material Market, By Type:

o   Elastomers

o   Reinforcing Fillers

o   Plasticizers

o   Chemicals

o   Metal Reinforcements

o   Textile Reinforcements

• Tire Material Market, By End User Type:

o   Passenger Cars

o   Trucks

o   Buses

o   LCV

o   Others

• Tire Material Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

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

Available Customizations:

Global Tire Material 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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