Automotive Tires Market Size, Trends, Share, Growth, and Opportunity Forecast, 2025 - 2032 Global Industry Analysis By Type (Radial Tires, Bias Tires), By Rim Size (13–15 Inches, 16–18 Inches, 19–21 Inches, and Above 21 Inches), By Vehicle Type (Passenger Vehicles, Commercial Vehicles, and Two-Wheelers), By End-Use (OEM, Aftermarket), and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

Automotive Tires Market Report Overview

The Global Automotive Tires Market was valued at USD 153.49 Billion in 2024 and is anticipated to reach a value of USD 201.91 Billion by 2032 expanding at a CAGR of 3.6% between 2025 and 2032. The automotive tires market is driven by the rising demand for passenger and commercial cars, growing infrastructure development, and the rapid growth in emerging markets. Technological improvements, such as smart tires and the usage of sustainable materials, are also affecting the market's growth trajectory.

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The automotive tires market plays a key role in maintaining vehicle performance, safety, and efficiency. Tires are crucial for maintaining traction, minimizing rolling resistance, and improving fuel economy. As the automotive industry grows, there is a rising desire for more durable, fuel-efficient, and environmentally friendly tires. With the growing acceptance of electric vehicles (EVs) and the expanding focus on sustainability, manufacturers are developing to create innovative tires that suit these needs. The worldwide automotive tires market is undergoing considerable developments in terms of design, materials, and production processes. In addition to standard materials, sustainable options like natural rubber and recyclable materials are gaining momentum in the market. This move is in reaction to stringent government rules and consumer demand for eco-friendly items.

How AI is Transforming Automotive Tires Market

Artificial Intelligence (AI) is transforming the automotive tires market by boosting tire performance, safety, and overall operational efficiency. One of the important applications of AI in this area is predictive maintenance. AI systems embedded in tires may monitor real-time data on tire pressure, tread wear, and temperature, offering alerts to drivers or fleet managers before concerns emerge. This predictive capacity lowers unexpected tire failures, lowering downtime and maintenance costs.

AI is also revolutionizing tire manufacturing. AI-powered machines are being utilized to optimize the production process, resulting in more efficient utilization of raw resources and minimizing waste. The application of AI in quality control guarantees that faults are spotted early, boosting product reliability. Additionally, AI-driven research of driving patterns and road conditions lets manufacturers create tires that are better suited for certain settings, ultimately enhancing performance and lifetime. As AI continues to improve, its integration in the tire business will significantly enhance sustainability, safety, and consumer happiness.

Automotive Tires Market Major Driving Forces

·         Growing Vehicle Production and Sales: The rise in the production and sales of automobiles, especially in emerging nations, is a significant driver for the worldwide automotive tires industry. The need for both passenger and commercial cars continues to expand, producing a parallel demand for tires across multiple vehicle classes.

·         Technological Advancements: The introduction of smart tires, which can monitor tire problems and transmit real-time data, is a driving factor. These improvements enhance road safety, improve fuel efficiency, and minimize wear and tear, boosting demand in the automobile tires industry.

·         Rise of Electric Vehicles (EVs): The increasing popularity of EVs is leading to a demand for specialty tires that respond to the unique needs of electric cars, such as reduced rolling resistance and better durability. This is driving the global automotive tires market.

·         Increasing Focus on Fuel Efficiency: The increased emphasis on fuel efficiency and the reduction of CO2 emissions has driven demand for eco-friendly tires with reduced rolling resistance. These tires help enhance fuel efficiency and match with worldwide environmental sustainability standards.

Automotive Tires Market Key Opportunities

·         Sustainable Tire Manufacturing: The increased focus on sustainability provides a huge potential in the automobile tires sector. Companies are researching eco-friendly materials such as recycled rubber and natural alternatives to lessen their environmental footprint.

·         Expansion in Emerging Markets: Rapid urbanization and rising vehicle ownership in places such as Asia Pacific and Latin America give major growth potential for tire producers in the automotive tires market.

·         Technological Integration: The integration of AI, IoT, and other modern technologies into tires gives prospects for producing smart, self-monitoring tires that provide real-time data and improve performance.

Automotive Tires Market Key Trends

·         As car technology progresses, there is an increased need for smart tires that can monitor pressure, wear, and road conditions in real time. This trend is changing the automotive tires market by giving greater safety and performance.

·         A key trend in the automotive tires market relates to the need for environmentally friendly tires, constructed from sustainable materials that deliver lower rolling resistance, as consumers and governments focus on lowering carbon footprints.

·         As the global trend towards electric vehicles increases, tire manufacturers are producing specialist tires that respond to the unique performance needs of EVs, such as enhanced traction and lower energy usage.

·         The increasing focus on cost-efficiency and sustainability is driving the popularity of tire retreading. Retreaded tires, which involve replacing the worn-out tread on used tires, offer a more affordable and environmentally friendly option, extending the life cycle of tires while reducing waste. This trend is particularly strong in commercial vehicle segments.

Region-wise Market Insights

Asia Pacific accounted for the largest market share at 42.5% in 2024 moreover, Asia Pacific is expected to register the fastest growth, expanding at a CAGR of 4.0% between 2025 and 2032.

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The Asia Pacific region is the largest market for automobile tires. The region is predicted to exhibit the strongest growth over the projection period, with a CAGR of 4.0% from 2025 to 2032. Rapid industrialization, infrastructure expansion, and expanding car production in countries such as China, India, and Japan are driving this increase.

·         In January 2025, Michelin India outlined its strategy to leverage artificial intelligence (AI) and other technologies to enhance the future of mobility. The company's big bet on AI includes improving tire performance, predictive maintenance, and sustainability, as well as contributing to the larger mobility ecosystem. This approach aligns with Michelin's vision of advancing transportation through smart technologies, with a focus on innovation and safety for both passenger vehicles and commercial fleets.

North America is another significant region in the automotive tires industry, characterized by increasing demand for high-performance and technologically sophisticated tires. The presence of significant automotive manufacturers and a high concentration on research and development contribute to the region's market strength.

Europe is concentrating on sustainability, with a rising emphasis on eco-friendly tire manufacture. Stringent requirements on fuel efficiency and emissions are driving the use of green tires across the region. The Middle East & Africa and South America regions are also predicted to demonstrate stable growth, led by increased car sales and infrastructure development.

Recent Developments

·         In November 2024, Bridgestone announced an $85 million investment to expand premium tire production and research and development in India. The investment aims to meet growing demand in the region, focusing on high-quality tires for both the domestic market and exports. Bridgestone's expansion in India aligns with its global strategy to strengthen its premium product offerings and drive innovation in tire technology.

·         In September 2024, Michelin India announced plans to build a new factory dedicated to manufacturing passenger car tires. This move highlights Michelin's strategy to increase its production capacity and meet growing demand in India’s automotive market. The facility will support the company’s goal of enhancing its presence and expanding its offerings in the region, contributing to the local economy and the automotive sector.

·         In July 2024, Goodyear announced the sale of its Off-the-Road tire business to Yokohama for $905 million. The sale is part of Goodyear's strategy to focus more on its core consumer and commercial tire operations. The transaction will help Yokohama expand its presence in the global Off-the-Road tire market, strengthening its product portfolio and market reach.

Market Competition Landscape

The global automobile tires market is extremely competitive, with a mix of established competitors and rising companies pushing innovation and product development. Major manufacturers including Michelin, Bridgestone Corporation, Continental AG, and Goodyear Tire & Rubber Company lead the industry due to their large global reach, strong brand reputation, and diversified product portfolios. These companies focus on R&D investments to create technologically advanced goods such as smart and eco-friendly tires, catering to the growing demand for safety and sustainability. In addition to global heavyweights, regional firms such as Apollo Tyres, Hankook Tire, and Sumitomo Rubber Industries are gaining headway in emerging countries by delivering cost-effective solutions suited to local preferences. Competitive strategies in the industry include mergers and acquisitions, strategic partnerships, and collaborations to grow market presence. Companies are also improving their distribution networks to acquire market share in quickly emerging countries such as Asia Pacific and Latin America.

Key players in the global automotive tires market implement various organic and inorganic strategies to strengthen and improve their market positioning. Prominent players in the market include:

·         Michelin

·         Bridgestone Corporation

·         Continental AG

·         Goodyear Tire & Rubber Company

·         Pirelli & C. S.p.A.

·         Yokohama Rubber Co.

·         Sumitomo Rubber Industries

·         Hankook Tire

·         Toyo Tire Corporation

·         Kumho Tire

·         Apollo Tyres

·         Cooper Tire & Rubber Company

·         Nokian Tyres

·         Maxxis International