Tires Market Size, Share & Trends Analysis Report By Distribution Channel (OEM, Aftermarket), By Vehicle Type (Two-wheelers, Passenger cars), By Region (North America, Asia Pacific, Europe, Central & South America, MEA), And Segment Forecasts, 2025 - 2030

Tires Market Size & Trends

The global tires market size was estimated at USD 143.06 billion in 2024 and is projected to grow at a CAGR of 3.4% from 2025 to 2030. The global tires industry is driven by the rapid expansion of the automotive industry, particularly in emerging economies where rising disposable income and increasing vehicle ownership fuel tire demand. The growth of the electric vehicle (EV) sector has also created a need for specialized tires that offer low rolling resistance, enhanced durability, and improved efficiency, further boosting market expansion. In addition, ongoing urbanization and infrastructure development projects are increasing the demand for commercial vehicle tires, particularly in construction, logistics, and public transportation sectors. The surge in e-commerce has also intensified the need for heavy-duty and light commercial vehicle tires, supporting market growth.

The growth of the fleet management industry, particularly in logistics, ride-hailing, and rental services, is further driving tire demand. Large-scale fleet operators prioritize cost-effective, high-mileage, and retreadable tires, boosting the market for durable and long-lasting commercial vehicle tires. In addition, the expanding agriculture and construction sectors have increased demand for off-the-road (OTR) tires, which are designed for heavy machinery, tractors, and mining vehicles. The rise of autonomous vehicles (AVs) and connected cars has also led to the development of smart tires integrated with IoT sensors that monitor tire pressure, tread wear, and road conditions in real-time, enhancing safety and performance.

Technological advancements in tire manufacturing are reshaping the market, with innovations such as self-sealing tires, airless tires, and smart tires equipped with real-time monitoring sensors improving safety and efficiency. In addition, sustainability initiatives are influencing tire production, with manufacturers focusing on bio-based materials, recycled rubber, and energy-efficient production methods to reduce environmental impact. Government regulations aimed at improving fuel efficiency, reducing emissions, and promoting tire safety standards are further encouraging the development of high-performance, eco-friendly tires. The increasing demand for premium and high-performance tires, particularly in the luxury car segment and motorsports industry, continues to drive market expansion as consumers seek superior traction, handling, and durability.

Market Concentration & Characteristics

The global tires industry is characterized by high market concentration, with a few dominant players such as Bridgestone, Michelin, Goodyear, and Continental holding a significant share. These companies continuously invest in research and development (R&D) to drive innovation, focusing on sustainable materials, self-sealing technology, and airless tires to enhance durability and performance. The integration of smart tire technology, featuring embedded sensors for real-time monitoring of tire pressure, temperature, and tread wear, is revolutionizing the industry. In addition, advancements in synthetic rubber compounds and biodegradable tire materials are gaining traction, aligning with the industry's shift toward eco-friendly solutions.

Regulatory frameworks and environmental policies play a crucial role in shaping the market. Stringent emission regulations, fuel efficiency mandates, and safety standards, particularly in regions like North America and Europe, have led to the adoption of low rolling resistance tires and enhanced tread designs to improve fuel economy. The market also faces competition from service substitutes, such as the rise of shared mobility solutions and advancements in public transportation, which may reduce individual vehicle ownership and impact tire demand. However, strong demand from end users, including passenger vehicles, commercial fleets, and off-road applications in agriculture and construction, ensures steady market growth. The concentration of high-performance tire consumers in developed economies and the rapid expansion of the automotive sector in emerging markets further shape the industry's competitive landscape.

Distribution Channel Insights

Based on distribution channel, the aftermarket segment led the market with the largest revenue share of 63.3% in 2024, driven by rising vehicle parc and increasing replacement demand, as tires wear out over time due to road conditions and driving habits. The growth of e-commerce platforms has also made tire purchasing more convenient, expanding consumer access to a wide range of brands and price points. In addition, technological advancements in tire durability and performance have led to a growing preference for premium and specialized tires in the aftermarket. Lastly, stringent government regulations on road safety and emissions are encouraging timely tire replacements, further boosting demand in this segment.

The OEM segment is expected to grow at a significant CAGR of 3.0% over the forecast period, driven by the rising production of passenger and commercial vehicles, fueled by increasing consumer demand and expanding automotive manufacturing capacities worldwide. Automakers are focusing on equipping vehicles with advanced tires that enhance fuel efficiency, safety, and durability, further boosting OEM tire demand.

Vehicle Type Insights

Based on vehicle type, the passenger cars segment led the market with the largest revenue share of 32.6% in 2024. Growing demand for fuel-efficient and durable tires, coupled with advancements in radial and tubeless tire technology, boosts market growth. In addition, the surge in electric vehicle (EV) adoption has increased the need for specialized low-rolling resistance tires, while expanding aftermarket sales and tire replacement cycles contribute to sustained demand. Stringent safety regulations and consumer preferences for premium, high-performance tires also drive innovation and market expansion in this segment.

The light commercial vehicles segment is expected to grow at a significant CAGR of 3.5% over the forecast period, driven by the growth of e-commerce and last-mile delivery services, increasing demand for efficient and durable tires. Expanding infrastructure and construction activities have also boosted the need for LCVs, requiring specialized tires with enhanced load-bearing capacity. In addition, fleet operators' focus on fuel efficiency and cost reduction has driven demand for low rolling resistance and long-lasting tires. Stricter government regulations on emissions and road safety further encourage the adoption of high-performance and eco-friendly tires in the LCV segment.

Regional Insights

The tires market in the North America is driven by the expanding automotive industry and rising vehicle ownership, particularly in the U.S. and Canada. The increasing demand for passenger vehicles, SUVs, and electric vehicles (EVs) has boosted the need for advanced tires with enhanced durability, fuel efficiency, and performance. In addition, the growing popularity of all-season and high-performance tires among consumers seeking better traction and safety in diverse weather conditions is propelling market growth. The rise of e-commerce platforms has further streamlined tire distribution, making it easier for consumers to access a wide range of products and services

U.S. Tires Market Trends

The tires market in the U.S. is driven by the expanding automotive industry and rising vehicle ownership, particularly in the passenger car and light truck segments. The country’s strong economic growth, coupled with increasing disposable income, has fueled demand for replacement tires as consumers prioritize vehicle maintenance and safety. In addition, the growth of the e-commerce and logistics sectors has led to higher demand for commercial vehicle and fleet tires, particularly for trucks and delivery vans. The increasing popularity of electric vehicles (EVs) is also influencing the market, as manufacturers develop low rolling resistance and high-durability tires to enhance energy efficiency and maximize EV range.

Asia Pacific Tires Market Trends

Asia Pacific dominated the tires market with the largest revenue share of 44.3% in 2024, driven by the rapid expansion of the automotive industry, particularly in China, India, Japan, and Southeast Asia. The rising demand for passenger vehicles, commercial trucks, and two-wheelers due to increasing urbanization, disposable incomes, and infrastructure development has significantly boosted tire consumption. In addition, government initiatives supporting domestic automotive manufacturing, such as China’s "Made in China 2025" and India's "Atmanirbhar Bharat" policies, have encouraged the growth of local tire production. The increasing demand for electric vehicles (EVs) in the region has also spurred innovation in tire technology, with manufacturers focusing on low rolling resistance and energy-efficient tires to enhance EV performance.

The tires market in China is driven by government regulations and sustainability initiatives promoting eco-friendly and fuel-efficient tires. Policies such as China's "Blue Sky Protection Plan" and stringent emission norms are pushing tire manufacturers to develop low-carbon, high-performance, and recyclable tire technologies. The market also benefits from increasing exports of Chinese tires, as domestic manufacturers enhance production capacity, quality standards, and cost-competitive offerings to expand their global footprint. In addition, growth in e-commerce and logistics sectors is fueling demand for commercial and truck tires, further strengthening market expansion.

Europe Tires Market Trends

The tires market in Europe is driven by technological advancements and the increasing adoption of smart tire solutions. With the rise of connected vehicles and autonomous driving technologies, tire manufacturers are developing intelligent tires equipped with embedded sensors that provide real-time data on tire pressure, temperature, tread wear, and road conditions. This trend is particularly relevant in the commercial vehicle segment, where fleet operators prioritize predictive maintenance to reduce downtime and enhance operational efficiency. The integration of AI and IoT in tire monitoring systems is further propelling market demand, especially in logistics, where tire performance directly impacts fuel efficiency and overall costs

The Germany tires market is anticipated to grow at the fastest CAGR during the forecast period. The growth of e-commerce and logistics industries has fueled demand for commercial vehicle tires, particularly in the light and heavy-duty truck segments. As Germany serves as a major European logistics hub, the increasing movement of goods via road transport has created sustained demand for durable, high-mileage tires that can withstand long-distance travel. Furthermore, the rise in winter tire regulations, requiring vehicles to switch to seasonal tires for improved safety, continues to support the replacement tire market. With a strong focus on sustainability and circular economy practices, tire manufacturers are also investing in recyclable and retreadable tire solutions, catering to both environmental concerns and cost-conscious consumers.

Latin America Tires Market Trends

The tires market in Latin America is driven by the expansion of the automotive industry, fueled by rising vehicle ownership rates and increasing demand for commercial transportation. Rapid urbanization and economic development in countries like Brazil, Mexico, and Argentina have led to a surge in passenger car sales and fleet expansion for logistics and e-commerce sectors, directly boosting tire demand. In addition, government initiatives promoting automobile manufacturing and foreign direct investment (FDI) in the automotive sector have attracted global tire manufacturers to set up production facilities in the region, further driving market growth.

Middle East & Africa Tires Market Trends

The tires market in Middle East & Africa is anticipated to grow at a significant CAGR during the forecast period. The expansion of the industrial and agricultural sectors is a critical driving factor. With African nations relying heavily on agriculture and mining, the demand for specialized tires designed for tractors, harvesters, and heavy-duty machinery has surged. The construction industry in the GCC region, driven by mega-projects such as NEOM in Saudi Arabia and Expo-related developments in the UAE, is generating substantial demand for heavy-duty commercial vehicle tires. These industries require robust and reliable tires that can withstand harsh environments, leading to increased adoption of radial and off-the-road (OTR) tires.

Key Tires Company Insights

Some of the key players operating in market include The Michelin Group, Bridgestone Corporation

• Michelin’s product portfolio includes passenger car tires, truck and bus tires, agricultural and industrial tires, motorcycle tires, and specialty tires for aviation and construction vehicles. The company also offers high-performance tires for motorsports, including Formula 1 and endurance racing.

• Bridgestone Corporation produces passenger vehicle tires, commercial truck tires, off-the-road (OTR) tires, and specialty tires for industrial applications. Bridgestone is a leader in run-flat and fuel-efficient tire technologies, with a strong focus on sustainability through initiatives like guayule-based natural rubber production.

Continental AG, Sumitomo Corporation are some of the emerging market participants in global tires market.

• Continental AG offers high-performance and all-season tires for passenger cars, SUVs, commercial trucks, and motorcycles. The company is known for its cutting-edge tire technologies, such as ContiSeal self-sealing tires and ContiSense smart sensor-enabled tires. Continental’s portfolio also includes winter and ultra-high-performance (UHP) tires, designed to enhance safety and fuel efficiency.

• Sumitomo Corporation specializes in passenger car tires, light truck tires, and high-performance tires under brands like Dunlop and Falken. Sumitomo focuses on advanced rubber compounding and fuel-efficient tire designs, catering to the evolving demands of electric vehicles (EVs) and hybrid cars.

Recent Developments

• In December 2023, Sailun Group announced plans to expand its investment in a new tire manufacturing facility in León, located in Guanajuato, Mexico. This initiative is being carried out through a joint venture (JV) with TD International Holding, a Mexico-based company, to bolster Sailun’s production capabilities in North America while optimizing its global supply network. The plant is set to produce various tire types, including those for passenger vehicles, light trucks, and commercial trucks, addressing both regional and international market demands.

Tires Market Report Scope

Global Tires Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global tires market report based on distribution channel, vehicle type, and region:

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • OEM

  • Aftermarket

• Vehicle Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Two-wheelers

  • Passenger cars

  • Light Commercial Vehicles

  • Heavy Commercial Vehicle

  • Aircraft Tires

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia