Global Tires Market Outlook

The Global Tires Market remains a critical pillar of the automotive and transportation ecosystem, driven by steady vehicle production, evolving mobility trends, and technological advancements in tire manufacturing. Valued at USD 137.61 billion in 2024, the market is projected to grow at a CAGR of 4.2% from 2025 to 2032, reaching nearly USD 191.25 billion by 2032. Despite short-term disruptions caused by global events such as the COVID-19 pandemic, the industry continues to demonstrate resilience and long-term growth potential.

Tires serve as the sole point of contact between vehicles and road surfaces, playing a vital role in load-bearing capacity, traction, braking, steering stability, and overall vehicle safety. With the global vehicle fleet expanding and mobility needs increasing across both developed and emerging economies, the demand for high-performance, durable, and efficient tires remains strong.

Market Overview

The global tires market is closely linked to trends in vehicle production and ownership. In 2019, worldwide vehicle sales stood at approximately 88.7 million units, and this number is expected to rise significantly by 2032, fueling sustained demand for original equipment manufacturer (OEM) tires as well as replacement tires in the aftermarket.

The Asia-Pacific region dominates the global tires market in terms of both production and consumption. China leads the regional landscape due to favorable low-cost manufacturing policies, a large automotive production base, and strong domestic demand. The presence of extensive manufacturing hubs across China, India, Japan, and Southeast Asia has positioned the region as a global tire manufacturing powerhouse.

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Market Dynamics

Rising Vehicle Production and Sales

The primary driver of the global tires market is the continuous increase in vehicle production and sales worldwide. Growth in passenger vehicles, along with expanding commercial vehicle fleets—including trucks, tractors, and trailers—has significantly boosted tire demand. Consumers’ rising preference for lightweight vehicles, premium models, and luxury cars has further accelerated market growth.

As global automobile production expands, every new vehicle creates immediate OEM tire demand and long-term replacement demand, reinforcing the market’s growth trajectory.

Growth of Electric Vehicles

The rapid expansion of the electric vehicle (EV) market is emerging as a major growth catalyst for the tire industry. Increasing environmental awareness related to air pollution, noise pollution, and depletion of fossil fuels has led governments worldwide to impose stricter emission regulations. In response, automakers are investing heavily in electric and hybrid vehicles.

Electric vehicles require specialized tires designed for higher torque, lower rolling resistance, noise reduction, and improved durability. China currently holds the largest share of the global EV market and is expected to reach 3.79 million EV units by 2026, creating significant opportunities for tire manufacturers specializing in EV-compatible products.

Impact of COVID-19 on the Tires Market

The COVID-19 pandemic had a substantial negative impact on the global tires market. More than 44% of unit sales were disrupted due to lockdowns, transportation restrictions, and safety concerns. Manufacturing operations were temporarily halted, global supply chains were disrupted, and tire exports declined sharply.

Raw materials account for 65–70% of total tire production costs, making the industry highly sensitive to price volatility. During the pandemic, fluctuations in the prices of rubber, nylon, and polyester posed significant challenges for manufacturers, further straining profitability and operational stability.

Segmentation Analysis

By Tire Type

Bias tires are known for providing a smoother ride on uneven terrain and are generally more cost-effective than radial tires. However, radial tires are increasingly preferred, especially in mining, construction, and heavy-duty applications, due to their superior durability, fuel efficiency, and heat dissipation. This growing adoption is expected to drive the radial tire segment during the forecast period.

By Vehicle Type

The passenger car tire segment dominated the market in 2024, driven by rising urbanization, improved living standards, and increasing disposable income. The United States accounted for approximately 27% of global passenger car sales, reinforcing its influence on this segment.

Growing consumer demand for safety features, comfort, luxury, and performance vehicles is expected to further boost passenger car tire demand globally.

By Distribution Channel

The OEM segment accounted for over 70% of the market share and is expected to maintain its dominance through 2025. This growth is supported by rising vehicle production and stable output across the automotive industry.

The aftermarket segment, holding around 12% of the market share in 2024, is expected to grow steadily due to increasing vehicle lifespan and the ongoing need for tire replacement. Greater awareness of road safety and tire performance is encouraging consumers to invest in high-quality replacement tires.

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Regional Insights

North America

The United States tire market holds approximately 28% of the global market share and is expected to grow at a CAGR of 5.4% during the forecast period. High vehicle ownership rates, strong replacement demand, and technological advancements support regional growth.

Europe

Europe continues to be a key market, with Germany growing at a CAGR of 3.4%. Strong automotive manufacturing capabilities, along with demand for premium and performance vehicles, are driving tire consumption across the region.

Asia-Pacific

Asia-Pacific leads the global tires market, accounting for 48% of global revenue in 2024. China, India, and Japan together represented 72% of regional tire demand, totaling approximately 1.3 billion tires valued at USD 97.4 billion.

Despite the pandemic-related slowdown, the Asia-Pacific tire market is expected to grow at a CAGR of 5.3%, supported by rising vehicle ownership, infrastructure development, and expanding EV adoption.

Competitive Landscape

The global tires market is highly competitive and fragmented, with both multinational corporations and strong regional players. Key market participants focus on product innovation, capacity expansion, sustainable materials, and strategic partnerships to strengthen their market position.

Major players include Michelin, Bridgestone, Goodyear, Continental AG, Pirelli, Apollo Tyres, MRF, CEAT, Yokohama, Hankook, Kumho, Sailun Group, and Zhongce Rubber Group, among others. Asian manufacturers, in particular, are gaining global traction due to cost competitiveness and expanding production capabilities.

Conclusion

The Global Tires Market is set for stable and sustained growth through 2032, driven by rising vehicle production, expanding electric mobility, and increasing demand for premium and high-performance tires. While challenges such as raw material price volatility and supply chain disruptions persist, ongoing technological advancements and regional expansion—particularly in Asia-Pacific—will continue to shape the market’s future.

With strong fundamentals and evolving mobility trends, the tires industry remains a critical investment opportunity for manufacturers, suppliers, and stakeholders across the global automotive value chain.