Tire Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Tire Market is projected to expand from USD 282.44 Billion in 2025 to USD 456.73 Billion by 2031, achieving a CAGR of 8.34%. Defined as a pneumatic or solid ring-shaped component designed to encircle a wheel rim, the tire functions to transfer vehicle load and generate traction on road surfaces. The market is fundamentally driven by the continuous growth of the global automotive fleet and the recurring need for replacement units caused by natural product wear. These core drivers secure sustained revenue streams regardless of temporary economic fluctuations, further supported by infrastructure advancements and rising vehicle ownership rates in emerging economies.

However, the industry encounters a significant challenge regarding the volatility of raw material prices, specifically for natural rubber and oil derivatives, which can disrupt production costs and profit margins. According to the U.S. Tire Manufacturers Association, total tire shipments in the U.S. were expected to reach 338.9 million units in 2024, reflecting a 2.1 percent increase over the previous year. Although this data highlights volume growth, the fluctuating cost of inputs remains a critical obstacle to stabilizing long-term market expansion.

Market Drivers

The rapid adoption of electric vehicles (EVs) acts as a primary catalyst reshaping the global tire manufacturing landscape, as these vehicles require specialized tire architectures to manage heavier battery weights and instant torque delivery. Unlike internal combustion engine vehicles, EVs demand tires with significantly lower rolling resistance to optimize battery range and reinforced sidewalls to support heavier loads without sacrificing safety or noise reduction. This structural shift accelerates demand for high-value, premium tire segments built to endure faster wear rates. As noted by the International Energy Agency (IEA) in the 'Global EV Outlook 2024' from April 2024, sales of electric cars were projected to approach 17 million units in 2024, a robust annual increase that compels manufacturers to allocate substantial resources toward specialized product lines.

Concurrently, rising global automotive production and vehicle sales continue to fuel the original equipment manufacturer (OEM) segment, ensuring a consistent baseline for tire consumption across passenger and commercial categories. As supply chains stabilize and economic activity resumes, the influx of new vehicles correlates directly with increased orders for initial tire fitments, generating immediate volume growth for producers. According to the European Automobile Manufacturers’ Association (ACEA) report 'New car registrations: +13.9% in 2023' from January 2024, the European Union car market grew by 13.9 percent in 2023 compared to the prior year, totaling 10.5 million units. This volume expansion supports the financial health of major tire producers, as demonstrated by Bridgestone Corporation, which reported revenue of 4.31 trillion Yen for the fiscal year 2023 in 2024, reflecting the sustained monetary value embedded within global mobility demand.

Market Challenges

The volatility of raw material prices, particularly for natural rubber and oil derivatives, represents a substantial barrier to the financial stability of the global tire market. Manufacturers rely heavily on these inputs, and erratic price fluctuations can rapidly diminish profit margins while disrupting production budgets. When material costs rise unexpectedly, producers 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, whereas absorbing costs restricts the capital available for operational expansion and research initiatives.

This instability is frequently worsened by structural supply deficits that sustain high input costs. According to the Association of Natural Rubber Producing Countries, global natural rubber consumption was projected to grow to 15.82 million tons in 2024, 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.

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 the 'Bridgestone Unveils Industry-First Tyre With 70% Recycled Materials' article in Tyre Trends from May 2025, 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. As detailed in the 'Goodyear and TNO Demonstrate Advanced Vehicle Integration to Mitigate Crashes in Adverse Weather' press release by The Goodyear Tire & Rubber Company in January 2025, 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.

Key Players Profiled in the Tire Market

• 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.

Report Scope

In this report, the Global Tire Market has been segmented into the following categories:

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
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

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

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.