According to the report by Expert Market Research (EMR), the global tyre market is projected to grow at a CAGR of 6.3% between 2024 and 2032. Aided by the increasing vehicle production and sales, rising demand for replacement tyres, and technological advancements in tyre manufacturing, the market is expected to grow significantly by 2032.
Tyres are an essential component of vehicles, impacting the overall performance, safety, and fuel efficiency. They are designed to bear the weight of the vehicle, absorb road shocks, and provide traction for braking and acceleration. The market for tyres has evolved significantly over the years, with manufacturers continually innovating to meet the demands of modern vehicles and consumer preferences.
The growth of the tyre market is primarily driven by the global automotive industry’s expansion. As economies grow and urbanization increases, the demand for passenger vehicles, commercial vehicles, and two-wheelers rises, leading to a higher requirement for tyres. Additionally, the increasing focus on fuel efficiency and reduced carbon emissions has led to the development of eco-friendly and energy-efficient tyres, further propelling market growth.
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Another substantial driver of the tyre market is the rising demand for replacement tyres. With the increasing number of vehicles on the road and the growing awareness of vehicle maintenance, consumers are more inclined to replace worn-out tyres regularly. This trend is supported by the growing availability of tyres through various distribution channels, including online platforms, which offer convenience and a wide range of options to consumers.
Technological advancements in tyre manufacturing have also contributed to market growth. Innovations such as run-flat tyres, smart tyres with sensors, and the use of sustainable materials have enhanced the performance and safety of tyres, attracting more consumers. Additionally, the development of advanced manufacturing processes has enabled the production of high-quality tyres at competitive prices.
The tyre market is also benefiting from the increasing investments in infrastructure development, particularly in emerging economies. As governments focus on improving road networks and transportation facilities, the demand for commercial vehicles and, consequently, tyres is expected to rise. This trend is further supported by the growing logistics and e-commerce sectors, which rely heavily on commercial vehicles for transportation.
Looking ahead, the tyre market is poised for robust growth. However, it is imperative for manufacturers to address environmental concerns proactively. By adopting sustainable practices and developing eco-friendly tyres, brands can cater to the growing segment of environmentally conscious consumers, ensuring long-term success and relevance in the market. Collaborations with automotive manufacturers and technological partnerships can also provide lucrative opportunities for market expansion.
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Market Segmentation
The market can be divided based on type, vehicle type, end-use, distribution channel, and region.
Market Breakup by Type
- Radial Tyres
- Bias Tyres
Market Breakup by Vehicle Type
- Passenger Vehicles
- Commercial Vehicles
- Two-Wheelers
- Off-the-Road (OTR) Vehicles
Market Breakup by End-Use
- OEM (Original Equipment Manufacturer)
- Replacement
Market Breakup by Distribution Channel
- Offline Retail
- Online Retail
Market Breakup by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Competitive Landscape
The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global tyre market. Some of the major players explored in the report by Expert Market Research are as follows:
- Bridgestone Corporation
- Michelin
- Goodyear Tire & Rubber Company
- Continental AG
- Pirelli & C. S.p.A.
- Sumitomo Rubber Industries, Ltd.
- Hankook Tire & Technology Co., Ltd.
- Yokohama Rubber Co., Ltd.
- Apollo Tyres Ltd.
- CEAT Limited
- Others
Market Analysis
Radial Tyres: Dominating the Market
Radial tyres hold a significant share of the tyre market due to their superior performance characteristics compared to bias tyres. Radial tyres offer better fuel efficiency, longer tread life, and improved handling and ride comfort. These advantages make them the preferred choice for passenger vehicles, commercial vehicles, and two-wheelers. The increasing adoption of radial tyres in emerging economies, driven by rising automotive production and sales, further supports market growth.
Passenger Vehicles: Leading Vehicle Segment
The passenger vehicles segment accounts for the largest share of the tyre market. The growing demand for personal transportation, coupled with rising disposable incomes and urbanization, has led to increased passenger vehicle sales, driving the demand for tyres. Additionally, the trend of replacing tyres for improved performance and safety is more prominent among passenger vehicle owners, further boosting market growth.
Replacement Tyres: A Major Revenue Source
The replacement segment is a significant revenue generator for the tyre market. As tyres wear out over time, the need for replacements arises, creating a steady demand for new tyres. The growing awareness of vehicle maintenance and safety has led to more frequent tyre replacements, particularly in developed regions. The increasing availability of replacement tyres through various distribution channels, including online platforms, has also contributed to market growth.
Online Retail: Emerging Distribution Channel
Online retail is emerging as a significant distribution channel for tyres. The convenience of purchasing tyres online, coupled with the availability of a wide range of options and competitive pricing, has attracted many consumers. E-commerce platforms also offer features such as doorstep delivery and installation services, enhancing the overall purchasing experience. The growing penetration of the internet and smartphones in emerging economies is expected to further drive the growth of online tyre retail.
Regional Insights
Asia Pacific: Leading the Market
Asia Pacific dominates the tyre market, accounting for the largest share. The region’s dominance can be attributed to the significant automotive production and sales, particularly in countries like China, India, Japan, and South Korea. The rising disposable incomes and urbanization in these countries have led to increased demand for passenger vehicles, commercial vehicles, and two-wheelers, driving the demand for tyres. Additionally, the presence of major tyre manufacturers and the availability of raw materials in the region support market growth.
North America and Europe: Mature Markets
North America and Europe are mature markets for tyres, characterized by high vehicle ownership rates and well-established automotive industries. The demand for replacement tyres is significant in these regions, driven by the growing awareness of vehicle maintenance and safety. The presence of major tyre manufacturers and the focus on technological advancements and sustainability further support market growth. The increasing demand for eco-friendly and energy-efficient tyres is a notable trend in these regions.
Latin America and Middle East and Africa: Emerging Markets
Latin America and the Middle East and Africa are emerging markets for tyres, offering significant growth opportunities. The rising automotive production and sales, coupled with infrastructure development and urbanization, drive the demand for tyres in these regions. The growing focus on improving transportation facilities and road networks further supports market growth. Additionally, the increasing penetration of international tyre brands and the availability of a wide range of options contribute to market expansion.
Key Trends and Developments
Technological Advancements
Technological advancements in tyre manufacturing are a key trend shaping the market. Innovations such as run-flat tyres, smart tyres with sensors, and the use of sustainable materials are enhancing the performance, safety, and environmental impact of tyres. Run-flat tyres allow vehicles to continue driving even after a puncture, providing added safety and convenience. Smart tyres equipped with sensors can monitor tyre pressure, temperature, and tread wear, providing real-time data to drivers and improving safety and performance.
Sustainability Initiatives
Sustainability is a growing focus in the tyre market, driven by increasing environmental concerns and regulatory pressures. Tyre manufacturers are investing in the development of eco-friendly and energy-efficient tyres, using sustainable materials and advanced manufacturing processes. The use of renewable and biodegradable materials, such as natural rubber and silica, is gaining traction. Additionally, efforts to reduce carbon emissions during production and promote tyre recycling are key sustainability initiatives in the market.
Strategic Collaborations and Partnerships
Strategic collaborations and partnerships are common in the tyre market, as manufacturers seek to expand their product portfolios and enhance their market presence. Collaborations with automotive manufacturers, technology companies, and raw material suppliers enable tyre manufacturers to leverage expertise and resources, driving innovation and growth. Partnerships with e-commerce platforms and retail chains also help expand distribution networks and reach a wider consumer base.
Focus on Safety and Performance
The focus on safety and performance is a critical trend in the tyre market. Consumers are increasingly prioritizing tyre quality, performance, and safety features when purchasing tyres. Tyre manufacturers are investing in research and development to enhance tread patterns, improve grip and traction, and reduce rolling resistance. The development of all-season and high-performance tyres is also a notable trend, catering to diverse consumer needs and driving market growth.
The global tyre market is poised for significant growth between 2024 and 2032, driven by the expanding automotive industry, rising demand for replacement tyres, and technological advancements in tyre manufacturing. The market’s growth is further supported by the increasing investments in infrastructure development and the growing focus on sustainability. As manufacturers continue to innovate and address environmental concerns, the market is expected to witness robust growth, offering lucrative opportunities for market players. Strategic collaborations and partnerships, coupled with the adoption of advanced technologies, will be key to gaining a competitive edge in the evolving tyre market.