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Automotive Tire Market Revenue Outlook: What CAGR Is Expected Through 2030?
The automotive tire market size has shown significant growth in recent years. It is anticipated to expand from $143.87 billion in 2025 to $151.82 billion in 2026, registering a compound annual growth rate (CAGR) of 5.5%. This historical growth can be attributed to several factors, including the expansion of the global vehicle parc, the increase in radial tire manufacturing, a rising demand for replacement tires, the standardization of tire safety regulations, and growing vehicle ownership rates.
The automotive tire market is projected to experience substantial expansion in the coming years, with its size expected to reach $189.53 billion by 2030, demonstrating a compound annual growth rate (CAGR) of 5.7%. This anticipated growth during the forecast period can be attributed to several factors, including the increasing penetration of electric vehicles, a rising demand for high-performance and specialty tires, the expansion of connected vehicle technologies, a growing focus on tire sustainability, and the increasing adoption of smart tire monitoring systems. Furthermore, major trends anticipated within this forecast period encompass a heightened demand for low rolling resistance tires, the rising adoption of tires specifically designed for electric vehicles, a growing use of sustainable and recycled materials, the expansion of smart and sensor-enabled tires, and an enhanced focus on all-season performance.
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Automotive Tire Market Growth Drivers: What Factors Are Accelerating Expansion?
The advancement of electric and hybrid automobiles is anticipated to stimulate future expansion in the automotive tire market. An electric vehicle (EV) is an automobile that operates using electricity, often via one or more electric motors, instead of an internal combustion engine which uses gasoline or diesel. Hybrid vehicles are automobiles that integrate multiple unique power sources for propulsion. Tires designed for electric and hybrid vehicles are essential for maximizing energy efficiency, extending range, and enhancing general performance, as they cater to the particular demands of their unique drivetrains. For example, data from April 2025 by the International Council on Clean Transportation (ICCT), a US-based an independent, nonprofit research organization, indicates that passenger electric vehicle (battery-electric + plug-in hybrid) sales amounted to approximately 1.56 million in 2024, with EVs constituting 10% of all light-duty vehicle sales, an increase from a lower proportion in 2023. Consequently, the ongoing evolution of electric and hybrid vehicles is a primary factor fueling the expansion of the automotive tire market.
Automotive Tire Market Segment Breakdown: Which Categories Generate The Most 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 Is Shaping Future Industry Growth?
Major companies operating in the automotive tire market are focused on developing innovative solutions, such as tire pressure sensors, to gain a competitive edge. A tire pressure sensor, also known as a TPMS sensor, is a compact electronic device installed in each wheel 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 combines pressure and temperature sensors along with an application-specific integrated circuit (ASIC) for enhanced functionality and performance. It is equipped with a powerful 32-bit Arm M0+ core that enables advanced tire features like on-tire auto-position sensing, tire inflation assistance, tire blowout detection, and load detection.
Automotive Tire Market Key Players And Strategic Industry 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 Largest 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.