Automotive Tire Market Forecasts to 2028 – Global Analysis By Vehicle Type (Electric Vehicle, Commercial Vehicle and Passenger Car), Section Width (<200MM, 200-230MM and >230MM), Tire Structure (Bias, Radial and Other Tire Structures), Material (Natural R

Automotive Tire Market Forecasts to 2028 – Global Analysis By Vehicle Type (Electric Vehicle, Commercial Vehicle and Passenger Car), Section Width (<200MM, 200-230MM and >230MM), Tire Structure (Bias, Radial and Other Tire Structures), Material (Natural Rubber and Synthetic Rubber), Tire Type (Summer Tires, Winter Tires and All-season Tires), Rim Size(Less than 15 inch, 15-20 inch and More than 20 inch), Aspect Ratio (<60, 60-70m and >70), Distribution Channel and By Geography

According to Stratistics MRC, the Global Automotive Tire Market is accounted for $111.40 billion in 2022 and is expected to reach $139.34 billion by 2028 growing at a CAGR of 3.8% during the forecast period. An automotive tire is a cylinder-shaped, rubber-coated vehicle part that surrounds the exterior of the wheel rim. The tire's main job is to keep the wheel rim safe and to function as a tractive force between the car and the ground. It also offers a flexible cushion due to the rubber's composition, reducing the effect of vibrations and absorbing stress from the vehicle. A rubber tire is made up of tread, joint-less cap piles, beads, as well as synthetic rubber, carbon black, and fabric.

According to the Federation of Automobile Dealers Associations (FADA), passenger vehicle sales in November 2020 were 2,91,001 units compared to 2,79,365 units in November 2019, with a 4.17% growth.

Market Dynamics:

Driver:

Stringent vehicle safety norms

Governments have updated progressively stricter safety regulations as a result of rising rates of traffic accidents, which in turn is boosting industry expansion. Monitoring organizations in developed nations are mandating that automobiles have modern automotive tires installed in order to reduce the rising accident rates. Furthermore, rising car production and sales move the industry forward. Worldwide vehicle sales growth is driving up demand for automobile tires.

Restraint:

Raw material shortages

The main reason that is projected to impede the market's growth is the supply-demand imbalance for the raw materials used in tire manufacture. Additionally, both makers of vehicles and parts have commercial and regulatory issues as a result of the obligation to achieve a duty-free procedure. Thus, an increase in the remolding of tires and the volatile price of raw materials are expected to create challenges for the market.

Opportunity:

Growing adoption of green tires

Younger people are growing increasingly interested in green tires since they are environmentally friendly and increase mileage, especially in large automobiles. Low rolling resistance green tires can increase a vehicle's fuel economy by at least 2% in commercial vehicles. Green tires, on the other hand, are costly, but they are estimated to be recouped. High Automotive production & rising demand for green tires are attributed for the expansion of the market. These will provide lucrative opportunities for market growth.

Threat:

Lack of awareness in emerging economies
Consumers are well-aware of the benefits of driving CNG and hybrid cars; nevertheless, there is a lack of understanding regarding the benefits of automobile tires and the role they play in lowering fuel consumption. Consumers in emerging markets like India and Indonesia are less interested in the advantages that car tires may provide. This significantly inhibits the demand for vehicle tires.

Covid-19 Impact

The COVID-19 effect has had a negative influence on the vehicle tire business. The COVID-19 outbreak compelled governments all over the world to enact strict lockdown measures and limit import-export of products used to produce key raw materials for the majority of 2020 and a few months of 2021. This caused the supply of crucial raw materials for the car tire sector to suddenly decline. Additionally, the distribution and production of vehicles are intricately linked to the selling of car tires. Due to decreased global vehicle sales and manufacture, the pandemic has had a substantial effect on the automobile tire industry.

The passenger vehicle segment is expected to be the largest during the forecast period

The passenger vehicle segment is estimated to have a lucrative growth, due to the growing demand for passenger cars from developing countries. Passenger car demand is heavily impacted by economic conditions, which include changes in exchange rates, GDP growth, inflation rates, and government policies. Furthermore, the demand for passenger cars is frequently impacted by changing fuel prices and transportation infrastructure. The demand for passenger vehicles is projected to increase in the future due to the better economic outlook in the United States and the growth of emerging economies like China and India.

The radial segment is expected to have the highest CAGR during the forecast period

The radial segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the accurate steering, improved road contact, low heat created while operating, and flexible side walls. Radial tyres also support the growing need for comfort when operating heavy-duty vehicles since they produce traction quickly. Additionally, radial tires greater resilience to tread-related problems is the primary element boosting category expansion.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period, owing to the increased demand for cars in developing Asian nations. Over the projection period, emerging economies like China and India are anticipated to fuel regional growth. These nations are expected to contribute to future growth in the global economy because of their fast expanding domestic consumption, changing standards, affordable labor, and massive population bases. Due to the increasing demand from the rural sector, India is the nation with the fastest-growing LCV and passenger vehicle markets.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the strong demand from the major markets of the European Union. Automobile manufacturing in Europe is a thriving and competitive sector. This is primarily due to the presence of numerous vehicle OEMs, as many of the top automakers in the world have manufacturing facilities in Europe. The region's automobile tyre OEM industry has grown as a result of the enhanced measures implemented by various governments in the area to minimize carbon emissions. Sales of sport-utility vehicles are still rising across Europe.

Key players in the market

Some of the key players profiled in the Automotive Tire Market include Apollo Tires, Yokohama Rubber Co. Ltd., Bridgestone Corp., Goodyear Tire & Rubber Company, Hankook Tires Group, Pirelli & C SpA, Michelin Tires, Cooper Tire & Rubber Company, Continental Automotive AG, Nokian Tires plc, MRF Ltd., Hangzhou Zhongce Rubber Co., Ltd., Nexen Tire Corporation, Qingdao Fullrun Tire Corp., Ltd.

Key Developments:

In March 2022, Hankook Co, Ltd. announced that the company will be launching iON, specially designed for premium electric vehicles, to deliver high performance and optimize the efficiency of EVs. With the introduction of iON tires, the company is focusing on and considering the growing demand for EVs and the need for appropriate tires in terms of replacement.

In July 2021, The Goodyear developed non-pneumatic tires (NPT)) in collaboration with Local Motors and Jacksonville Transportation Authority (JTA). The wheel assembly will support urban autonomous vehicle transportation.

In July 2021, Pirelli has announced its first high-load index tire for hybrid and electric cars and SUVs markets. The tire is designed and developed to offer heavier vehicles with extra support and deal with integrated batteries' added weight.

In April 2021, The Yokohama Rubber Co. Ltd., developed a technology to detect wear and tear conditions of tires. The feature enables a timely alert to the vehicle owner or fleet manager to replace damaged tires, allowing for more efficient tire maintenance, which provides safety while also increasing tires' service life and lowering costs and environmental effects.

In April 2021, Apollo Tires introduced a new product in cross-ply technology in India for the commercial vehicle (CV) segment.

In March 2021, Nokian Tires PLC announced that it is increasing its production capacity for passenger car tires at the Finnish factory by around 30%.

Vehicle Types Covered:
• Electric Vehicle
• Commercial Vehicle
• Passenger Car

Section Widths Covered:
• <200MM
• 200-230MM
• >230MM

Tire Structures Covered:
• Bias
• Radial
• Tube
• Tubeless

Materials Covered:
• Natural Rubber
• Synthetic Rubber

Tire Types Covered:
• Summer Tires
• Winter Tires
• All-season Tires

Rim Sizes Covered:
• Less than 15 inch
• 15-20 inch
• More than 20 inch

Aspect Ratios Covered:
• <60
• 60-70
• >70

Distribution Channels Covered:
• Original Equipment Manufacturer (OEM)
• Aftermarket

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements