Automotive Tire Market Trends and Opportunities

Automotive Tire Industry Overview

The global automotive tire market size was valued at USD 227.7 billion in 2015 and is expected to grow at a compound annual growth rate (CAGR) of 6.6% from 2016 to 2024. Companies in the automotive tire space continuously focus on product differentiation by offering innovative technologies due to the competitive nature of the industry. The technology offers high levels of performance and durability, for example, the tread pattern self-regenerates as it is used, which means it can deliver a high level of grip even when worn.

Gather more insights about the market drivers, restrains and growth of the Automotive Tire Market

Increasing sales for passenger and commercial vehicles across the globe is anticipated to drive the consumption for tires over the future. According to the OICA, the International Organization of Motor Vehicle Manufacturers, over 90 million new passenger and commercial vehicles were manufactured in the year 2015, registering a cumulative growth of over 1.1% over the previous years’ production. In Europe, over 17 million motor vehicles were manufactured, which was around 19% of the overall global production, which has led to an increase in demand for automotive tires.

Tire manufacturers are increasingly interested in developing sustainable tires that are not only cost-effective and meet scrupulous performance standards. For example, Lehigh Technologies offer Micronized Rubber Powder (MRP), which are low-cost, sustainable, customizable and high-performing feedstock for manufacturing that has been used in over 300 million tires.

Increasing adoption of Low Rolling Resistance (LRR) and self-inflating technology by manufacturers owing to the increasing awareness regarding the fuel efficiency is projected to drive the demand. LRR tires reduce wasted energy and decline the required rolling effort. Increasing pressure to improve fuel mileage has forced all of the manufacturers to adopt these tires.

Automotive tire vendors that compete for original equipment fitments are improving Corporate Average Fuel Economy (CAFE) and are trying to achieve the federally mandated target of 54.5 miles per gallon by 2025.

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Automotive Tire Market Segmentation

Grand View Research has segmented the Automotive Tire market on the basis of application, end-use, and region:

Automotive Tire Application Outlook (Revenue, USD Billion, 2014 – 2024)

• Passenger cars
• LCV
• HCV
• Two-wheelers

Automotive Tire Type Outlook (Revenue, USD Billion, 2014 – 2024)

• Radial
• Bias

Automotive Tire Regional Outlook (USD Billion, 2014 – 2024)

• North America
• Europe
• Asia Pacific
• Latin America

Key Companies profiled:

• Continental Group
• Cooper & Rubber Company
• Hankook Co. Ltd.,
• Goodyear & Rubber Company
• Michelin Group,
• Pirelli
• Sumitomo Rubber Industries Ltd.,
• The Bridgestone Group,
• Toyo & Rubber Co Ltd.
• Yokohama Rubber Co. Ltd.

Order a free sample PDF of the Automotive Tire Market Intelligence Study, published by Grand View Research.

Recent Developments

• In June 2023, Continental launched the UltraContact NXT – the company’s most sustainable tire series to provide maximum safety and performance with 65% percent renewable, recycled and mass balance certified materials.

• In June 2023, Pirelli announced product expansion with the launch of the new P Zero AS Plus 3, a newultra-high performance all-season tire designed specifically for premium cars. P Zero provides comfort and durability to meet the needs of North American drivers

• In June 2023, Michelin launched the Air X SkyLight tire for commercial aviation. The tire is lighter than previous generations, with a weight reduction of 10-20% leading to over 15-20% long-term performance and lifespan.

• In May 2023, Hankook Tire & Technology and Kumho Petrochemical Co., Ltd. (KKPC) signed a Memorandum of Understanding (MOU)todevelop eco-friendly tires. They aim to utilize Solution-polymerized Styrene-Butadiene Rubber (Eco-SSBR) as an eco-solution.