Automotive Tire Market Report 2026

The automotive tire market size has grown strongly in recent years. It will grow from $143.87 billion in 2025 to $151.82 billion in 2026 at a compound annual growth rate (CAGR) of 5.5%. The growth in the historic period can be attributed to expansion of global vehicle parc, growth of radial tire manufacturing, rising demand for replacement tires, standardization of tire safety regulations, increasing vehicle ownership rates.

The automotive tire market size is expected to see strong growth in the next few years. It will grow to $189.53 billion in 2030 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to increasing penetration of electric vehicles, rising demand for high-performance and specialty tires, expansion of connected vehicle technologies, growing focus on tire sustainability, increasing adoption of smart tire monitoring systems. Major trends in the forecast period include increasing demand for low rolling resistance tires, rising adoption of tires designed for electric vehicles, growing use of sustainable and recycled materials, expansion of smart and sensor-enabled tires, enhanced focus on all-season performance.

The development of electric and hybrid vehicles is expected to propel the growth of the automotive tire market going forward. Electric vehicles are automobiles powered primarily by electric motors using energy stored in batteries, while hybrid vehicles combine electric propulsion with internal combustion engines. The increasing adoption of electric and hybrid vehicles is driven by environmental concerns, fuel efficiency requirements, and supportive government policies. Automotive tires designed for electric and hybrid vehicles play a critical role in improving energy efficiency, extending driving range, and supporting overall vehicle performance, as these vehicles require low rolling resistance, enhanced durability, and improved load-bearing capacity due to battery weight. For instance, in April 2025, according to the International Council on Clean Transportation (ICCT), a US-based independent nonprofit research organization, passenger electric vehicle sales, including battery-electric and plug-in hybrid models, reached approximately 1.56 million units in 2024, accounting for about 10% of all light-duty vehicle sales, up from a lower share in 2023. Therefore, the development of electric and hybrid vehicles is driving the growth of the automotive tire market.

Major companies operating in the automotive tire market are focusing on innovative technologies such as tire pressure sensors to gain a competitive edge. Tire pressure sensors, commonly used in tire pressure monitoring systems (TPMS), are electronic devices installed in vehicle wheels to continuously monitor tire pressure and temperature, helping improve safety, fuel efficiency, and tire lifespan. For instance, in September 2023, Infineon Technologies AG, a Germany-based semiconductor manufacturer, launched the XENSIV SP49 tire pressure monitoring sensor. The sensor integrates pressure and temperature sensing with an application-specific integrated circuit (ASIC) and features a powerful 32-bit Arm M0+ core, enabling advanced functions such as on-tire auto-position sensing, tire inflation assistance, tire blowout detection, and load detection, thereby enhancing overall tire performance and vehicle safety.

In January 2024, Wonderland Tire, a Michigan-based company specializing in tire products and automotive services, acquired Carter Tire & Automotive for an undisclosed amount. Through this acquisition, Wonderland Tire expanded its geographic presence into Indiana, strategically positioning itself between its existing locations in western Michigan and Chicago, Illinois. This expansion enhances customer accessibility and service delivery across the region. Carter Tire & Automotive is an Indiana-based company that provides a wide range of automotive services, with a primary focus on tires and vehicle repair solutions.

Major companies operating in the automotive tire market are Continental AG, Bridgestone Corporation, Michelin Group, Goodyear Tire & Rubber Company, Nankang Rubber Tire Corp. Ltd., Sumitomo Rubber Industries Ltd., Hankook & Company Co. Ltd., Pirelli & C. S.p.A, The Yokohama Rubber Co. Ltd., MRF Limited, Trelleborg AB, Toyo Tire Corporation, Sailun Group Co. Ltd., Cheng Shin Rubber Ind. Co. Ltd., Cheng Shin Rubber Industry Co., Apollo Tyres Ltd., Giti Tire Global Trading Pte. Ltd., Shandong Linglong Group Co. Ltd., Kumho Tire Co. Inc., Linglong Tire Co. Ltd., Cooper Tire & Rubber Company, Nexen Tire Corporation, Nokian Tyres plc, JK Tyre & Industries Ltd., CEAT Limited, Triangle Tyre Co. Ltd., Double Coin Holdings Ltd., Aeolus Tyre Co. Ltd., Salsons Impex Pvt. Ltd., Shinko Tires USA.

Asia-Pacific was the largest region in the automotive tire market in 2025. The regions covered in the automotive tire market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive tire market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive tire market consists of sales of synthetic polymers, natural rubbers, fillers, antioxidants, and antiozonants. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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