1 Global Tires Market Outlook
The global Tires market is projected to exhibit substantial growth in the coming years, with a CAGR of 6.06% from 2024 to 2033, reaching a total market size of $186281 million USD in 2024. A tire is a ring-shaped component that surrounds a wheel’s rim to transfer a vehicle’s load from the axle through the wheel to the ground and to provide traction on the surface over which the wheel travels. Most tires, such as those for automobiles and bicycles, are pneumatically inflated structures, which also provide a flexible cushion that absorbs shock as the tire rolls over rough features on the surface. Tires provide a footprint, called a contact patch that is designed to match the weight of the vehicle with the bearing strength of the surface that it rolls over by providing a bearing pressure that will not deform the surface excessively.
Figure Global Tires Market Size and Growth Rate (2024-2033)
2 Tires Market Growth Drivers and Constraints
The growth of the global tires market is influenced by a multitude of factors that both drive and limit its expansion. One of the significant driving factors is the increasing global population and urbanization, which leads to higher demand for vehicles and, consequently, tires. The rise in disposable incomes in many regions allows more people to afford vehicles, further boosting the market.
Technological advancements in tire manufacturing are another driving factor. Innovations such as smart tires, which can monitor tire pressure and other parameters, enhance safety and performance, making them more attractive to consumers. Additionally, the growing focus on sustainability has led to the development of eco-friendly tires that are made from recycled materials or designed to reduce environmental impact.
However, there are also limiting factors that pose challenges to the market’s growth. One of the primary constraints is the volatility of raw material prices, particularly natural rubber and synthetic rubber. Fluctuations in these prices can significantly impact the production costs and profitability of tire manufacturers. Moreover, economic downturns can lead to reduced consumer spending on vehicles and replacement tires, thereby affecting the market demand.
Another limiting factor is the increasing competition in the market. With numerous established players and new entrants vying for market share, companies face pressure to innovate and differentiate their products while maintaining cost competitiveness. Additionally, regulatory pressures, such as stringent safety and environmental standards, can increase the complexity and cost of tire production.
3 Tires Market Innovations and M&A Activities
Technological innovation plays a pivotal role in shaping the future of the global tires market. Manufacturers are continuously investing in research and development to introduce new technologies that enhance tire performance, safety, and sustainability. For instance, the development of low rolling resistance tires is gaining traction as they contribute to improved fuel efficiency, aligning with the global push for more environmentally friendly vehicles.
In addition to product innovation, companies are also focusing on improving manufacturing processes to increase efficiency and reduce waste. The adoption of advanced automation and digital technologies, such as the Internet of Things (IoT) and artificial intelligence (AI), is transforming the way tires are produced and managed throughout the supply chain. These technologies enable real-time monitoring and optimization of production processes, leading to better quality control and reduced downtime.
Corporate mergers and acquisitions are another significant aspect of the tires market landscape. These strategic moves allow companies to expand their product portfolios, enter new markets, and gain access to advanced technologies. For example, the acquisition of Cooper Tire & Rubber Company by Goodyear in 2021 was a strategic step to strengthen Goodyear’s position in the North American market and enhance its product offerings.
Mergers and acquisitions also enable companies to achieve economies of scale, reducing production costs and improving their competitive edge. Furthermore, these deals can lead to the consolidation of the market, with larger players gaining a more significant share of the industry. However, they also raise concerns about market concentration and the potential for reduced competition, which could impact innovation and consumer choice.
4 Global Tires Market Analysis by Type
In 2024, the global tires market is expected to see significant contributions from various types of tires, each with its own unique characteristics and applications. Radial tires are projected to have sales of 1541.8 million units, accounting for a substantial market share of 73.57%. This dominance is attributed to their superior performance characteristics, such as enhanced durability, fuel efficiency, and comfort. Radial tires are widely used in passenger cars and commercial vehicles, particularly in developed regions where vehicle owners prioritize performance and longevity.
Bias tires, while less common than radial tires, are also expected to maintain a notable market share of 22.98%, with sales reaching 481.5 million units. These tires are commonly used in off-the-road (OTR) applications and certain types of vehicles like two-wheelers. They are valued for their robustness and ability to handle heavy loads, making them essential in specialized markets.
Non-pneumatic tires, although a smaller segment, are gaining traction due to their innovative design that eliminates the need for air pressure. They are projected to have sales of 72.2 million units, representing a market share of 3.45%. These tires offer advantages such as being puncture-proof and maintenance-free, making them attractive for specific applications like industrial equipment and some consumer vehicles.
Table Global Tires Sales and Sales Market Share by Type in 2024
|
Type |
Sales in 2024 (M Units) |
Sales Market Share in 2024 (%) |
|---|---|---|
|
Radial Tire |
1541.8 |
73.57% |
|
Bias Tire |
481.5 |
22.98% |
|
Non-Pneumatic Tire |
72.2 |
3.45% |
5 Global Tires Market Analysis by Application
In 2024, the global tires market is expected to see significant sales across various applications, reflecting the diverse needs of the automotive and industrial sectors. The automotive sector, which includes passenger cars and commercial vehicles, is anticipated to be the largest consumer of tires, with sales reaching 1730.9 million units and accounting for a substantial market share of 82.59%. This growth is driven by the increasing production and sales of vehicles worldwide, particularly in emerging markets where demand for new cars is on the rise.
The construction industry is another key application area, with sales projected at 74.7 million units, representing a market share of 3.57%. This segment benefits from ongoing infrastructure development projects and the need for durable tires capable of handling heavy loads and rough terrain.
Mining applications, which include both open pit and underground mining, are expected to contribute 29.9 million units to the market, with a share of 1.43%. The demand for specialized mining tires is driven by the need for high-performance tires that can withstand the harsh conditions of mining operations.
Material handling, which encompasses the use of tires in forklifts and other warehouse equipment, is projected to have sales of 30.3 million units, with a market share of 1.45%. This segment is supported by the growth of e-commerce and the increasing need for efficient logistics and warehouse operations.
Lastly, agricultural applications are expected to see sales of 34.4 million units, comprising a market share of 1.64%. The demand for agricultural tires is driven by the need for durable and efficient tires that can handle the demands of modern farming practices and machinery.
Overall, the market is poised for growth due to factors such as increasing vehicle production, expanding industrial activities, and the need for specialized tires in various sectors.
Table Global Tires Sales and Sales Market Share by Application in 2024
|
Application |
Sales in 2024 (M Units) |
Sales Market Share in 2024 (%) |
|---|---|---|
|
Agricultural |
34.4 |
1.64% |
|
General Construction |
74.7 |
3.57% |
|
Mining |
29.9 |
1.43% |
|
Open Pit |
23.2 |
1.11% |
|
Underground |
6.8 |
0.32% |
|
Forestry |
22.9 |
1.09% |
|
Material Handling |
30.3 |
1.45% |
|
Auto |
1730.9 |
82.59% |
|
Others |
142.5 |
8.23% |
6 Global Tires Market Analysis by Region
In 2024, the global tires market is expected to see significant sales across different regions, reflecting the diverse economic and industrial landscapes. The Asia-Pacific region is projected to lead with sales of 1,149.4 million units, accounting for the largest market share of 54.85%. This growth is driven by the region’s rapid industrialization, expanding automotive industry, and increasing demand for both new and replacement tires.
Europe is anticipated to follow with sales of 575.7 million units, representing a market share of 27.47%. The region’s established automotive industry and focus on high-quality, durable tires contribute to its substantial share. North America is expected to have sales of 244.4 million units, with a market share of 11.66%. The demand in this region is driven by a combination of new vehicle production and the need for replacement tires in a large fleet of existing vehicles.
The Middle East and Africa are projected to have sales of 64.5 million units, contributing a market share of 3.08%. This region benefits from growing infrastructure projects and increasing vehicle ownership, particularly in countries like Saudi Arabia and the United Arab Emirates. South America is expected to see sales of 61.7 million units, with a market share of 2.94%. The region’s market is influenced by its developing automotive industry and the need for tires in both urban and rural areas.
Overall, the global tires market in 2024 is poised for growth, driven by factors such as increasing vehicle production, expanding industrial activities, and the need for specialized tires in various sectors.
Figure Global Tires Sales Market Share by Region in 2024
7 Top 3 Companies of Global Tires Market
7.1 Michelin Group
Company Introduction and Business Overview:
Michelin, established in 1889 and based in France, is another major player in the global tires market. The company is known for its pioneering spirit and innovative approach to tire technology. Michelin operates in more than 170 countries and has a strong focus on research and development, aiming to create sustainable and high-performance tires.
Products Offered:
Michelin offers a comprehensive range of tires, including radial tires, bias tires, and specialty tires for various vehicle types. The company is particularly recognized for its advanced tire technologies, such as the Energy Saver line, which improves fuel efficiency and reduces carbon emissions. Michelin also provides tires for racing, agriculture, and mining applications, showcasing its versatility in product offerings.
Sales Revenue in the Latest Year:
In the latest year, Michelin reported sales revenue of $25,447 million USD. This revenue reflects the company’s strong market position and its ability to adapt to changing market dynamics. Despite facing challenges such as fluctuations in the original equipment market and competitive pressures from other tire manufacturers, Michelin has managed to maintain its revenue through strategic initiatives and a focus on high-value market segments. The company’s revenue is also supported by its extensive distribution network and the continued demand for its innovative and high-performance products.
7.2 Bridgestone Corporation
Company Introduction and Business Overview:
Bridgestone Corporation, founded in 1931 and headquartered in Tokyo, Japan, is one of the world’s leading tire manufacturers. The company has a global presence, with operations in over 50 countries. Bridgestone is known for its commitment to innovation and sustainability, focusing on developing high-quality tires that meet the diverse needs of the automotive industry.
Products Offered:
Bridgestone offers a wide range of tire products, including radial tires, bias tires, and specialty tires for various applications such as passenger cars, trucks, buses, motorcycles, and off-the-road vehicles. The company also produces other automotive-related products like air springs and hoses. Bridgestone’s products are renowned for their durability, performance, and fuel efficiency, making them popular among both consumers and commercial fleet operators.
Sales Revenue in the Latest Year:
In the latest year, Bridgestone reported sales revenue of $24,656 million USD. This revenue reflects the company’s strong market position and its ability to adapt to changing market dynamics. Despite facing challenges such as increased competition and fluctuations in raw material prices, Bridgestone has managed to maintain its revenue through strategic initiatives and a focus on high-value market segments.
7.3 Continental AG
Company Introduction and Business Overview:
Continental AG, founded in 1871 and headquartered in Hanover, Germany, is a leading global supplier of tires, automotive components, and systems. The company operates in two main segments: the rubber group, responsible for pneumatic tires and conveyor belts, and the automotive group, responsible for brakes, connectivity, and engines. Continental is known for its commitment to innovation and its ability to provide high-quality products that meet the evolving needs of the automotive industry.
Products Offered:
Continental offers a diverse range of tire products, including radial tires, bias tires, and specialty tires for various applications. The company is particularly recognized for its premium tires, which provide excellent performance, handling, and safety. In addition to tires, Continental produces other automotive components such as brake systems, sensors, and electronic control units.
Sales Revenue in the Latest Year:
In the latest year, Continental reported sales revenue of $13,112 million USD. This revenue reflects the company’s broad product portfolio and strategic focus on innovation and market expansion. Continental’s revenue is driven by its ability to meet the evolving needs of the automotive industry, including the growing demand for electric and autonomous vehicles.