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Automotive Tire Market Revenue Outlook: What CAGR Lies Ahead Through 2030?
The automotive tire market size has experienced significant expansion in recent years. This market is projected to increase from $143.87 billion in 2025 to $151.82 billion in 2026, displaying a compound annual growth rate (CAGR) of 5.5%. Key drivers for its historical growth include the expanding global vehicle parc, the rise of radial tire manufacturing, increasing demand for replacement tires, the standardization of tire safety regulations, and growing vehicle ownership rates.
The automotive tire market size is projected to experience substantial growth in the coming years, with an anticipated rise to $189.53 billion by 2030, demonstrating a compound annual growth rate (CAGR) of 5.7%. This expansion in the forecast period is primarily driven by factors such as the increasing penetration of electric vehicles, a heightened demand for high-performance and specialty tires, the proliferation of connected vehicle technologies, an escalating focus on tire sustainability, and the growing adoption of smart tire monitoring systems. Prominent trends expected during this time include a rising demand for low rolling resistance tires, the increasing acceptance of tires specifically designed for electric vehicles, an expanding utilization of sustainable and recycled materials, the proliferation of smart and sensor-enabled tires, and a sharpened emphasis on all-season performance.
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Automotive Tire Market Growth Drivers: What’s Behind The Acceleration?
The increasing emergence of electric and hybrid vehicles is projected to boost the expansion of the automotive tire market in the future. An electric vehicle operates on electricity, typically utilizing one or more electric motors, in contrast to an internal combustion engine that consumes gasoline or diesel fuel. Hybrid vehicles are automobiles that integrate two or more distinct power sources for propulsion. Tires designed for electric and hybrid vehicles are essential for maximizing energy efficiency, extended range, and overall vehicle performance, meeting the specific demands linked to the unique attributes of their drivetrains. For example, in April 2025, as per the International Council on Clean Transportation (ICCT), a US-based an independent, nonprofit research organization, passenger electric vehicle (battery-electric + plug-in hybrid) sales reached approximately 1.56 million in 2024, with EVs making up 10% of all light-duty vehicle sales, an increase from a smaller proportion in 2023. Consequently, the advancement of electric and hybrid vehicles is stimulating the growth of the automotive tire market.
Automotive Tire Market Segment Breakdown: Which Categories Lead On Revenue?
The automotive tire market covered in this report is segmented –
1) By Rim Size: Less Than 15 Inches, 15 To 20 Inches, More Than 20 Inches
2) By Vehicle Type: Passenger Vehicle, Commercial Vehicle, Electric Vehicle
3) By Manufacturing: Radial Tire, Bias Tire
4) By Distribution Channel: Original Equipment Manufacturer (Oem), Aftermarket
5) By Season Type: Summer, Winter, All Seasons
Subsegments:
1) By Less Than 15 Inches: Passenger Car Tires, Light Truck Tires, Motorcycle Tires, Other Specialty Tires
2) By 15 To 20 Inches: Passenger Car Tires, Sport Utility Vehicle (SUV) Tires, Light Truck Tires, Performance Tires
3) By More Than 20 Inches: Sport Utility Vehicle (SUV) Tires, Light Truck Tires, Performance Tires, Heavy-Duty Truck Tires
Automotive Tire Market Trends: What’s Defining The Industry’s Next Phase?
Key companies operating within the automotive tire market are concentrating on developing innovative solutions, such as the tire pressure sensor, to secure a competitive edge. A tire pressure sensor, also recognized as a TPMS sensor, is a compact electronic device installed in each wheel as part of a vehicle’s tire pressure monitoring system (TPMS). For instance, in September 2023, Infineon Technologies AG, a Germany-based semiconductor manufacturer, launched the XENSIV SP49 tire pressure monitoring sensor. This sensor integrates pressure and temperature sensors along with an application-specific integrated circuit (ASIC) to provide enhanced functionality and performance. It is equipped with a powerful 32-bit Arm M0+ core, which enables advanced tire features like on-tire auto-position sensing, tire inflation assistance, tire blowout detection, and load detection.
Automotive Tire Market Leading Players And Competitive Positioning
Major companies operating in the automotive tire market are Continental AG, Bridgestone Corporation, Michelin Group, Goodyear Tire & Rubber Company, Nankang Rubber Tire Corp. Ltd., Sumitomo Rubber Industries Ltd., Hankook & Company Co. Ltd., Pirelli & C. S.p.A, The Yokohama Rubber Co. Ltd., MRF Limited, Trelleborg AB, Toyo Tire Corporation, Sailun Group Co. Ltd., Cheng Shin Rubber Ind. Co. Ltd., Cheng Shin Rubber Industry Co., Apollo Tyres Ltd., Giti Tire Global Trading Pte. Ltd., Shandong Linglong Group Co. Ltd., Kumho Tire Co. Inc., Linglong Tire Co. Ltd., Cooper Tire & Rubber Company, Nexen Tire Corporation, Nokian Tyres plc, JK Tyre & Industries Ltd., CEAT Limited, Triangle Tyre Co. Ltd., Double Coin Holdings Ltd., Aeolus Tyre Co. Ltd., Salsons Impex Pvt. Ltd., Shinko Tires USA
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Automotive Tire Market Top Region By Revenue And Market Share
Asia-Pacific was the largest region in the automotive tire market in 2025. The regions covered in the automotive tire market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
