Global Automotive Tire OEM Market Definition
The rubber-based, circular automotive tire is used to externally cover the rim of the wheel. The tire's primary job is to provide frictional force between the vehicle and the road surface while also protecting the wheel rim. As it is made of rubber, it also offers a flexible cushion, decreasing the impact of vibrations and absorbing vehicle shock. The components of a rubber tire are tread, jointless cap heaps, beads, and other materials including synthetic rubber, carbon black, and fabric. Due to the rise in demand for automobile production to meet the spike in demand for across all segments, the need for tires is increasing exponentially.
Global Automotive Tire OEM Market: Key Insights
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~5% |
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Base Year Market Size (2022) |
~ USD 22 Billion |
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Forecast Year Market Size (2033) |
~ USD 50 Billion |
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Regional Scope |
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Global Automotive Tire OEM Market Size, Forecast, and Trend Highlights Over 2023 - 2033
The global automotive tire OEM market is estimated to garner a revenue of ~USD 50 billion by the end of 2033 by growing at a CAGR of ~5% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 22 billion in the year 2022. The growth of the market can primarily be attributed to the growing trend of automotive OEM tires owing to rising awareness about its longevity amongst automotive users worldwide. For instance, it is projected that OEM tires may last more or less up to 50,000 miles.
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OEM tires commonly known as OE tires are specified by the vehicle manufacturer and are initially fitted to the new vehicle. The car manufacturer works with tire companies to choose a tire that will meet the performance requirements for their brand-new vehicle and selects a tire that balances ride noise, handling, fuel efficiency, and longevity, to achieve the overall features that the vehicle manufacturer believes are important to the end-user. With the development demand for OE tires as well as investment, the demand for OEM tires is on the rise amongst manufacturers, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global automotive tire OEM market during the forecast period. For instance, it is projected that to develop a tire that will adequately accompany new vehicles, car companies invest around USD 1 million.
Global Automotive Tire OEM Market: Growth Drivers and Challenges
Growth Drivers
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Growing Capital Spending – For developing OEM tires that are specifically engineered to give the performance that the car manufacturer intends. The rising capital investment is expected to boost the automotive tire OEM market in the forecasted period. It was found that in 2019, the global tire industry’s capital spending was ~USD 15 billion.
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Increasing Demand for OEM Tires – for instance, in the year 2020, nearly 36 million units of OEM passenger car tires were shipped to the United States.
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Upsurge in the Global Tire Industry – With a rise in the number of vehicles on the road, more tires will be definitely needed to suit the needs. Tire production is estimated to reach ~ 22 million tons of production by 2024.
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Rising Trend of Green Tires – which have low rolling resistance and are capable of increasing the fuel economy of the vehicle by a minimum of 2% in commercial vehicles.
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Growing Sales of Cars – The global automobile industry has been recovering ever since COVID–19 started to recede. Car worldwide sales grew to more than 65 million in 2021.
Challenges
- Requirement of Huge Capital Investment
- Shortage of Raw Material - Because of its ability to dissipate heat and provide UV protection, carbon black, which is used in sidewall and inner liners, helps produce long-lasting tires. For many years, Russian carbon black has been a mainstay of the tire industry. Data shows that in 2018, Russia was the second-largest exporter of carbon black, sending more than 1.7 billion pounds throughout the world. But owing to the ongoing war with Ukraine, carbon black’s supply has been affected.
- Concern about Replacement OEM Tires Quality
The global automotive tire OEM market is segmented and analysed for demand and supply by vehicle type segment into passenger vehicles and commercial vehicles. Amongst these segments, the passenger vehicles segment is anticipated to garner the largest revenue by the end of 2033, backed by the growing demand for passenger vehicles along with the surge in the sales of passenger vehicles worldwide. For instance, in September 2022, about 307,300 passenger vehicles were sold in India.
Global Automotive Tire OEM Market Regional Synopsis
The Asia Pacific automotive tire OEM market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033, backed by the presence of a strong automobile network in the region, a growing number of vehicles, as well as the growing awareness amongst the automobile users for the automotive OEM tire. For instance, globally, China with 300 million motor vehicles, has the largest fleet of motor vehicles in 2022.
Market Segmentation
Our in-depth analysis of the global automotive tire OEM market includes the following segments:
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By Product Type |
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By Design |
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By Vehicle Type |
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Top Featured Companies Dominating the Global Automotive Tire OEM Market
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Goodyear Tire & Rubber Company
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Yokohama Europe GmbH
- Bridgestone Corporation
- Pirelli & C. S.p.A.
- Giti Tire Pte Ltd.
- Continental AG
- Falken Tyre Europe GmbH
- Nitto Denko Corporation
- Toyo Tire Corporation
- JK Tyre & Industries Ltd.
