Light Commercial Vehicle Tire Market Assessment, By Application [Construction, Mining, Agriculture, Transport, Others], By Vehicle Type [Light Truck, Light Bus, Pickup Trucks and Vans], By Rim Size [Below 20 Inches, Above 20 Inches], By Demand [OEM, Repla

Light Commercial Vehicle Tire Market Assessment, By Application [Construction, Mining, Agriculture, Transport, Others], By Vehicle Type [Light Truck, Light Bus, Pickup Trucks and Vans], By Rim Size [Below 20 Inches, Above 20 Inches], By Demand [OEM, Replacement], By Region, Opportunities and Forecast, 2017-2031F

Global light commercial vehicle tire market is anticipated to observe a CAGR of 5.87% in the forecast period 2024-2031, growing from USD 30.33 billion in 2023 to USD 47.87 billion in 2031. The market has witnessed significant growth during recent years and is estimated to maintain a strong pace of expansion in the coming years due to an increase in production and sales of commercial vehicles, rapid growth of the e-commerce sector, growing demand for convenience, and a rapid trend of personalization. The significant increase in the production of pickup vans, pickup trucks, light buses, and others has led to an increase in demand for light commercial vehicle tires. Also, considerable development and advancement in logistics and high investment by the government in public transportation are driving the growth of the global light commercial vehicle tire market. Due to factors including rapid urbanization, innovations and advancement in e-commerce, expansion in small business activities, and growing strict government regulations, the demand for light commercial vehicle tires is growing significantly in the forecast period.

Economic growth in emerging countries and industrialization have proved to be a key driver in the global light commercial vehicle (LCV) market growth because expansion in economies and businesses demand efficient transportation solutions for moving goods from one place to another, further resulting in a growing demand for LCV tires. Light commercial vehicles are efficient in offering durability, fuel efficiency, and load-carrying capacity; hence, usage of LCVs is rising, further surging the demand for light commercial vehicle tire market. Government regulations and standards on carbon emission drive the demand for light commercial vehicles because these are efficient in emitting less carbon and fuel consumption. The manufacturers in the global light commercial vehicle tire market are introducing tires that are highly efficient for light commercial vehicles.

For instance, in July 2023, Goodyear Tire & Rubber Company announced the expansion of light commercial vehicle tire ranges throughout 2023 that offer durability and reliability. This expansion helps Goodyear grow throughout this decade and allows fleets to accomplish cost savings through reduced downtime.

Growing Logistic Activities and Expanding E-Commerce Services Push Market Growth

The global trend of urbanization has increased the demand for light commercial vehicles to address the rising need for logistics across densely populated locations. As urban locations become more crowded, the requirement for efficient and reliable last-mile delivery services has become predominant. The increase in e-commerce and the rising requirement for fast, effective deliveries have further emphasized the significance of LCVs in urban logistics. These vehicles are important for urban goods transportation and making frequent stops. Since LCVs are important in moving goods from distributor centers to end-users, there is a growing demand for reliable and high-performance tires that are efficient in making frequent stops and starts at different road conditions. The requirement for tires specifically optimized for delivery determinations propels the expansion of the light commercial vehicle tire market. Key participants in the market are launching tires for commercial vehicles that offer longevity and resilience.

For instance, in March 2024, Toyo Tire Corporation announced the launch of the Toyo M655 tire for commercial light trucks that offers all-weather traction under heavy loads on unimproved roads. These tires are manufactured with E-balance technology to aid vehicles that meet extreme on-/off-road conditions.

Growing Demand for Fuel-Efficient LCVs Drive Market Demand

In emerging countries, governments across the globe are introducing different environmental rules and regulations to promote fuel-efficient light commercial vehicles and allow fleet operators to prioritize sustainability and fuel efficiency in their operations. In small business operations, logistics, and last-mile delivery, the demand for fuel-efficient light commercial vehicles rises because they have effective qualities, including durability, responsiveness, and dependable traction in a series of different operating conditions. Due to the growing demand for LCVs from logistics and e-commerce, manufacturers of tires are developing tires with low rolling resistance significantly to contribute to fuel savings coupled with reduced carbon emissions.

For instance, in April 2024, Continental AG announced the launch of the fifth-generation Conti Eco tire line for freight transportation to address the growing demands of consumers in the transport sector and a dynamic regulatory environment.

Strict Regulations Concerning Vehicle Safety Surges Demand for LCV Tires

Governments across the globe are introducing different policies and strict safety regulations concerning less carbon emission, vehicle safety, and passenger safety. These regulations and safety standards are compelling vehicle and tire manufacturers to manufacture cost-effective tires and vehicles by prioritizing safety features in their offerings. Tire manufacturers are investing in different research and development activities to incorporate safety technologies and features in tires, confirming that produced tires comply with strict safety standards to offer a safe driving experience. In addition, governments are introducing new regulations and proposed changes to benefit the customers and ensure their safety.

For instance, in November 2023, the U.S. Environmental Protection Agency (EPA) proposed changes to the National Emission Standards for Hazardous Air Pollutants for Rubber Tire Manufacturing, as mandated by the Clean Air Act. To guarantee that all hazardous air pollutant emissions from sources within this category are regulated, the EPA is introducing emissions standards specifically for the rubber tire manufacturing industry. This subcategory is presently the only unregulated segment within the Rubber Tire Manufacturing source category.

Agriculture Segment Dominates the Global Market by Application

The agriculture segment registers the largest market revenue share in the global light commercial vehicle tires market, more significantly due to rising demand for lightweight agriculture tractors, growing labor costs, and the adoption of agricultural machinery tools for farm operations. In addition, in the agriculture sector, the introduction of internal combustion tractors and engines as power sources brought about a revolution by covering large agricultural fields during a short period, which resulted in increasing the demand for tires in the forecast period. Thereby, manufacturers of tires are launching new and cost-effective tires that offer long tire life and ensure better braking capabilities.

For instance, in May 2023, Yokohama Rubber Co., Ltd. announced the launch of AGRI STAR II R—I, a new and advanced agriculture tire in India, to address the rising demands of today’s tractor owners. This launch offers excellent roadability, superior traction, low soil compaction, better braking capability, and excellent roadability.

Asia-Pacific Registers the Largest Market Share in the Global Market

Asia-Pacific registers the largest market share in the global light commercial vehicle tire market due to a boom in the e-commerce sector, rapid urbanization, and robust economic growth. Emerging countries in Asia-Pacific are seeking advancements in tire technology and creating different growth opportunities in the forecast period. In China, a significant increase in the electrification of commercial vehicles is also estimated to propel the growth of the light commercial vehicle tire market. Also, in Asia-Pacific countries, rapid urbanization is projected to be a key factor in the increase in light commercial vehicles, which resulted in improving the requirement for tires in the forecast period. Manufacturers of tires are announcing the launch of new tires to address the growing number of consumers in Asia-Pacific.

For instance, in April 2023, Continental AG announced the launch of the MaxContact MC7 tire, which is designed for urban landscapes and is personalized to fulfill the requirements of Asia-Pacific drivers. This launch is engineered as a high-performance sporty tire that addresses the requirement of drivers who look at the thrill from their driving daily.

Future Market Scenario (2024 – 2031F)

In emerging countries, rapid urbanization and infrastructure development spurring a parallel increase in LCV tire requirements.

The significant increase in e-commerce and logistics activities is driving the growth of the global light commercial vehicle tire market in the forecast period.

Incorporation of smart technologies into tires to improve performance and safety driving the demand for light commercial vehicle tires.

Government rules and regulations concerning carbon emission and road safety drive the requirement for the light commercial vehicle tire market.

Key Players Landscape and Outlook

Key companies in the global light commercial vehicle tire market are efficiently funding different research and development activities to enhance the functionality and durability of the product. Companies are also working on exploring tire recycling and the usage of renewable resources to decrease the environmental impact on the manufacturing of tires and sustain wider objectives of the automotive industry. In addition, giant market players are adopting different market growth opportunities, including joint ventures, mergers and acquisitions, new product launches, amalgamation, and others to expand their footprint, consumer base, and product portfolio.

In November 2022, Bridgestone Tire Co., Ltd announced the launch of its Bridgestone Duravis van tyre in Ireland to offer maximum efficiency during daily operating conditions and minimize downtime.

In January 2024, TDK Electronics AG announced a collaboration with Goodyear to advance tire intelligence technologies. This collaboration aims to accelerate the development and implementation of integrated intelligent software and hardware into vehicle and tire ecosystems.