Global Tires Market Size, Growth Trends, and Forecast 2025–2032
The Global Tires Market is a critical pillar of the automotive ecosystem, serving as the sole point of contact between vehicles and road surfaces. In 2024, the market was valued at USD 137.61 Billion, and it is projected to reach USD 191.25 Billion by 2032, growing at a CAGR of 4.2% during 2025–2032. Rising vehicle production, increasing electric vehicle adoption, and continuous advancements in tire technology are driving sustained demand worldwide.
Tires Market Overview
Tires play a vital role in vehicle safety, performance, load-bearing capacity, traction, and steering stability. As global vehicle ownership rises across passenger cars, commercial vehicles, and off-road vehicles, tire demand continues to expand. The Asia Pacific region dominates global tire production and consumption, led by China’s cost-efficient manufacturing ecosystem and high automotive output.
The growing focus on premium vehicles, fuel efficiency, and safety standards has accelerated innovation in radial, non-pneumatic, and EV-specific tires. Additionally, increasing replacement cycles due to longer vehicle lifespans are strengthening aftermarket demand globally.
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Key Drivers Fueling the Tires Market Growth
Rising Vehicle Production and Sales
Global vehicle sales reached approximately 88.7 million units in 2019, and production volumes continue to recover and expand post-pandemic. Growth in passenger vehicles, commercial trucks, agricultural tractors, and trailers directly translates into higher tire demand. Expanding urbanization, rising disposable incomes, and improved road infrastructure are further supporting vehicle penetration worldwide.
Accelerating Electric Vehicle Adoption
The rapid growth of the electric vehicle (EV) market is reshaping tire design and demand. EVs require specialized tires with lower rolling resistance, enhanced load capacity, and noise reduction features. China leads the global EV market, with EV volumes expected to reach 3.79 million units by 2026, significantly boosting demand for next-generation tire solutions.
Growing Emphasis on Road Safety and Performance
Increasing awareness of road safety and stricter regulatory standards are pushing manufacturers to develop high-performance tires with improved grip, durability, and braking efficiency. Consumers are increasingly prioritizing premium and comfort-oriented vehicles, driving demand for advanced tire technologies.
COVID-19 Impact on the Global Tires Market
The COVID-19 pandemic temporarily disrupted the global tire industry, with over 44% of unit sales impacted due to supply chain disruptions, manufacturing shutdowns, and logistics constraints. Raw material costs, which account for 65–70% of total tire production costs, fluctuated sharply due to volatility in rubber, nylon, and polyester prices.
Despite these challenges, the market demonstrated resilience and is now on a stable growth trajectory, supported by recovering automotive production and increasing replacement demand.
Tires Market Segmentation Analysis
By Tire Type
- Radial Tires dominate the global market due to superior durability, fuel efficiency, and performance at high speeds.
- Bias Tires remain preferred in uneven terrains and cost-sensitive applications due to smoother rides and lower prices.
- Non-Pneumatic Tires are gaining traction in specialized and off-road applications due to durability and low maintenance needs.
By Vehicle Type
The Passenger Car Tires segment held the largest market share in 2024 and is expected to grow at a CAGR of 4.3%. Rising demand for luxury, safety, and comfort features, especially in the U.S., Europe, and Asia, is driving this segment.
Commercial and off-road vehicle tires are also witnessing steady growth, supported by infrastructure development, logistics expansion, and mining activities.
By Distribution Channel
- OEM Segment accounted for over 70% of market share, driven by rising vehicle production.
- Aftermarket Segment, holding 12% share in 2024, is expected to grow steadily due to increasing vehicle lifespan and replacement demand.
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Regional Insights: Global Tires Market
Asia Pacific – Market Leader
Asia Pacific accounted for 48% of the global tires market in 2024 and is expected to grow at a CAGR of 5.3%. China, India, and Japan collectively represented 72% of regional tire demand, supported by large-scale manufacturing hubs and expanding automotive production.
North America
The U.S. tire market holds 28% of global share and is projected to grow at 5.4% CAGR, driven by premium vehicle sales, EV adoption, and a strong replacement market.
Europe
Europe remains a key market, with Germany growing at 3.4% CAGR due to strong automotive exports and technological innovation in tire manufacturing.
Middle East, Africa, and South America
Emerging markets across South America and MEA are witnessing growing demand due to infrastructure expansion, increasing vehicle ownership, and improving logistics networks.
Competitive Landscape of the Tires Market
The global tires market is highly competitive, with major players focusing on capacity expansion, technological innovation, sustainability, and strategic partnerships. Key companies include:
- Michelin
- Bridgestone Corporation
- Goodyear Tire & Rubber Company
- Continental AG
- Pirelli & C. S.p.A
- Apollo Tyres Ltd
- MRF, CEAT, JK Tyre
- Yokohama, Sumitomo, Hankook, Kumho
These players are investing heavily in EV-compatible tires, eco-friendly materials, and digital manufacturing technologies to strengthen their market positions.
Tires Market Outlook 2025–2032
The Global Tires Market is set for steady and sustainable growth, supported by vehicle electrification, rising mobility demand, and innovation in tire materials and design. With increasing focus on performance, safety, and sustainability, the market presents strong opportunities for manufacturers, investors, and technology providers across the automotive value chain.
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