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

The Taiwan Tire Market was valued at USD 1.73 Billion in 2024, and is expected to reach USD 2.45 Billion by 2030, rising at a CAGR of 5.97%. The Taiwan tire market is witnessing steady growth driven by rising vehicle ownership, increasing demand for replacement tires, and heightened consumer preference for advanced tire technologies. Expanding automotive production and rising disposable incomes have boosted both passenger and commercial vehicle segments, pushing tire demand forward. For instance, in 2023, Taiwan's average annual household savings reached a record high of approximately USD 8,601, increasing by USD 43 from the previous year. Average disposable income per household rose to USD 35,653, with the median at USD 30,061.

Per capita disposable income averaged USD 12,733, while the median stood at USD 10,923. Despite this, low-income households largely comprising smaller, elderly populations continued dissaving for the 17th straight year, though the deficit narrowed to USD 519, the lowest in 15 years. Growth drivers include technological advancements in tire manufacturing, rising awareness about fuel-efficient tires, and growing demand for premium and performance tires. The market also benefits from increasing export opportunities supported by established manufacturing capabilities and demand from neighboring countries.

Market Drivers

Rising Replacement Tire Demand

The continuous increase in the average vehicle age is directly supporting the demand for replacement tires across both passenger and commercial vehicle segments. As vehicles remain in use longer, the wear and tear on tires naturally lead to heightened replacement needs. This trend is creating sustained demand for both premium and budget-friendly replacement tires. Consumers are becoming more aware of the importance of tire maintenance for safety, fuel efficiency, and performance, leading to more frequent replacement cycles. The aftermarket segment is benefiting from this shift, with tire retailers and service providers experiencing increased customer engagement.

Manufacturers are responding by expanding their product portfolios and offering more options suited for various vehicle types and driving conditions. The growing online availability of tires has also made the replacement process more accessible for consumers, further fueling market growth. As the global vehicle fleet continues to age, this factor is expected to remain a major growth contributor for tire manufacturers. For instance, by the end of May 2024, Taiwan's registered motor vehicles totaled 23,357,381 units, surpassing the national population of 23,355,470, marking a difference of 1,911 vehicles. This increase of 5,200 units from April reflects shifting transportation patterns, with many individuals owning both cars and motorcycles to meet varied commuting and travel needs, highlighting the impact of rising living standards and the absence of restrictions on vehicle ownership per person.

Key Market Challenges

Fluctuating Raw Material Prices

Volatility in the prices of key raw materials such as natural rubber, synthetic rubber, and petroleum-based products presents a significant challenge for tire manufacturers. These materials account for a substantial portion of production costs, making price fluctuations a critical factor impacting profitability. The global commodity market dynamics, influenced by factors like geopolitical tensions, supply chain disruptions, and changing demand patterns, often lead to unpredictable raw material costs.

Manufacturers face the difficult task of managing production expenses while remaining price competitive in the market. Sharp increases in raw material prices can compress margins, especially in the highly price-sensitive aftermarket segment. While some companies attempt to pass on the cost to consumers, this strategy risks eroding market share in competitive environments. Others focus on cost optimization strategies, such as improving production efficiency or sourcing alternative materials, though these measures have their limitations.

Key Market Trends

Rising Electric Vehicle Tire Demand

The increasing adoption of electric vehicles is creating a distinct demand for specialized tires designed to meet the unique performance needs of these vehicles. Electric vehicles require tires that offer low rolling resistance to maximize battery efficiency, enhanced durability to handle higher torque, and reduced road noise to complement quieter drivetrains. Manufacturers are focusing on developing EV-specific tires with advanced tread patterns, reinforced structures, and innovative rubber compounds that balance efficiency, grip, and longevity.

The rise in EV ownership is pushing tire makers to expand their product lines, targeting both the OEM and replacement markets with solutions tailored for electric mobility. Fleet operators of electric commercial vehicles are also seeking durable and efficient tire options to support operational cost savings and extend vehicle range. For instance, Taiwan's electric vehicle market continues to display strong potential despite a modest 1.4% dip in 2025, holding a stable 9% market share. With rapid EV adoption seen between 2022 and 2024, sustained government support, and emerging new models from key players like Mercedes, the segment remains well-positioned for future growth as infrastructure expands and consumer interest in sustainable mobility stays strong.

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 Taiwan Tire Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Taiwan Tire Market, By Vehicle Type:

• Passenger Car
• Commercial Vehicle
• Two-Wheelers

Taiwan Tire Market, By Tire Construction Type:

• Radial
• Bias

Taiwan Tire Market, By Demand Category:

• OEM
• Replacement

Taiwan Tire Market, By Region:

• North
• Middle
• South
• East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Taiwan 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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