South Korea Tire Market, By Region, By Competition, Opportunities & Forecast, 2020-2030F

The South Korea Tire Market was valued at USD 3.27 Billion in 2024, and is expected to reach USD 4.29 Billion by 2030, rising at a CAGR of 4.66%. 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.

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.

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.

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:

• Passenger Car
• Commercial Vehicle
• Two-Wheelers

South Korea Tire Market, By Tire Construction Type:

• Radial
• Bias

South Korea Tire Market, By Demand Category:

• OEM
• Replacement

South Korea Tire Market, By Region:

• North Chungcheong
• South Chungcheong
• Gangwon
• Gyeonggi
• Rest of South Korea

Competitive Landscape

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

Available Customizations:

With the given market data, the publisher 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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