Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Tire Market size was over USD 207.9 billion in 2024 and is set to reach USD 400 billion by the end of 2037, witnessing around 5.1% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of tire is evaluated at USD 218.4 billion.
The tire market is garnering moderate growth fueled by sustainability requirements, EV proliferation, and the incorporation of digital monitoring technology. In February 2025, Nokian Tyres launched the Surpass AS01, featuring Aramid fiber sidewalls and a 55,000-mile warranty, creating a new durability and puncture-resistance benchmark. Manufacturers are putting recycled compounds and rolling-resistance improvements into the tire features in order to satisfy both EV and regulatory needs. IoT-based tires are the new norm, delivering enhanced diagnostics and reducing downtime. Governments increasingly support circular economy methodologies through retreading incentives, emissions control, and the reuse of materials. Green tire investment is increasingly the focus for fleet operators. The tire market is on its path toward a sustainable, digitally connected, and performance-based model.
Positive capital flows and regulatory mandates influence tire manufacturers' production capacities. In January 2025, Epsilon Carbon introduced Terrablack, a low-emission alternative to carbon black that aligns with ESG criteria. Consequently, manufacturers are integrating environmental considerations across their value chains to achieve carbon-neutral production, ensure ethical sourcing, and facilitate resource recovery. At the same time, novel tire designs manage EV torque and weight, prompting advances in the field of material science. Urban mobility, micro transport, and autonomous shuttle proliferation drive the demand for quiet, sensor-based tires. Sustainability, digital enablement, and stringent compliance characterize market leadership today. Technological development in the field is enabling new partnerships among OEMs and tire innovators.
Supply Chain Dynamics in the Tire Market
The tire market is dealing with substantial supply chain disruptions right now. The root cause lies in the uncertainty in the cost of raw materials, including the 22% year-over-year increase in the price of natural rubber in 2023, combined with the geopolitical upheavals in important producing areas such as Southeast Asia, where the IRSG says 70% of the world's natural rubber is produced. In response, key players such as Michelin and Bridgestone are in the process of investing strategically in synthetic rubber substitutes. At the same time, they are putting blockchain-based systems in place in their supply lines for the sake of ethical procurement practices.
The European Union's Carbon Border Adjustment Mechanism (CBAM) is serving as an impetus for producers to become greener, as 30% of tire plants now use recycled components. Beyond such worldwide trends, local reshoring efforts, represented in the form of Goodyear spending $500 million on the U.S. expansion in 2024, are being supported as businesses aim to reduce imports from China.
Table: Tire Supply Chain Strategies (2024–2030)
|
Initiative |
Metric/Investment |
|
Synthetic rubber adoption |
15% cost reduction by 2026 |
|
Blockchain traceability |
40% of tier-1 suppliers |
|
EU CBAM compliance |
30% recycled material usage |
|
U.S. reshoring investments |
$500 million (Goodyear, 2024) |
Tire Market: Growth Drivers and Challenges
Growth Drivers
- Fleet electrification and EV tire development: Fleet electrification in passenger and commercial markets is the primary tire market driver. In January 2024, Hankook unveiled the iON GT summer tire, utilizing renewable resources and tuned for high EV torque. Structural strength and heat dissipation necessary for EVs are affecting compound formulations. Major players are reshaping R&D lines according to zero-emission vehicle standards. Tires are being engineered for longer EV range, better braking, and energy loss reduction. The trend is intensifying OEM demand for next-generation EV-capable tires. Manufacturers with refined, EV-specialized offerings are entering into long-term supplier contracts.
- Growth in the tire retread industry and lifecycle optimization: Tire retreading and life cycle optimization are on the increase as environmental goals and cost pressures build. For instance, Michelin broadened its MRT technology in 20 new nations in April 2024, providing the same performance as new tires while curbing reliance on landfills. Fleets achieve reduced total ownership costs and greater reusability. Real-time analysis of tire treads and temperatures through digital tracking tools enables the optimization of retread cycles. It maximizes life expectancy and avoids waste. Smart retreading is consolidating sustainability in commercial transport and logistics. Companies are investing in the use of automated facilities for facilitating retread service scale-ups.
- Digitalization of tire management for efficiency: Digitalization is transformative in tire management and operational effectiveness. In February 2023, Continental unveiled ContiConnect Live, a suite of cloud-based analyses providing real-time insights into wear, inflation, and heat. Fleets apply these insights in planning for upcoming service requirements and avoiding unplanned repairs. The tools enhance fuel efficiency and safety while lengthening tire life. As connected vehicle platforms become increasingly popular, the need for smart tire systems is intensifying. Intelligent tire systems are transitioning into core differentiators for commercial fleet operations. Combined platforms are increasingly being relied on in supply chain optimization.
Trends
Sustainable and Circular Tire Production
The growing popularity of circular economy models is propelling the demand for sustainably produced tires, illustrated by the promise made by Pirelli to source 50% of its materials sustainably by 2030. Michelin's BioButterfly program helps drive the shift through the usage of bio-based isoprene from crop waste, reducing the carbon emissions per tire by 35%. In addition, the EU’s End-of-Life Tire (ELT) Directive assists in the effort through the imposition of 90% recyclability in 2025, providing an impetus for the development in the field of rubber recovery through pyrolysis. All the while, the new market dynamic has led to the birth of new entrants such as BlackCycle, specializing in upcycling ELTs into valuable feedstocks and targeting the tire market valuation of $2 billion by 2030.
Table: Sustainable Tire Trends (2024–2030)
|
Factor |
Metric |
|
Sustainable material target |
50% by 2030 |
|
Bio-sourced isoprene adoption |
35% emission reduction |
|
ELT recycling mandate |
90% by 2025 |
|
Circular economy market value |
$2 billion by 2030 |
Intelligent Tire with IoT and AI Incorporation
Smart tires, equipped with IoT sensors and AI technology, are revolutionizing fleet management and increasing road safety. For example, Continental's 2 ContiConnect system utilizes real-time pressure and temperature monitoring for an 8% decrease in fuel consumption and a 20% increase in tire lifespan. In addition, Bridgestone's Tirematics platform provides a 95% accurate prediction for tire wear, leading to 15% less in maintenance costs, says the report. Growth in autonomous cars and the implementation of telematics policies in the European Union and the U.S. is fueling the global smart tire market, expected to register a 12% CAGR from 2024 through 2030.
Table: Smart Tire Trends (2024–2030)
|
Factor |
Metric |
|
Fuel efficiency improvement |
8% reduction |
|
Tread wear prediction accuracy |
95% accuracy |
|
Market growth projection |
12% CAGR |
Challenges
- Lack of skilled workforce for smart tire technology: One of the challenges confronting the industry is the lack of trained technicians for tire diagnostics, IoT installation, and sensor calibration. While smart tire adoption grows, local service hubs currently lack the requisite technical base. Also, many still rely on old equipment in many rural networks. Without skilled technicians, digital tire ecosystems threaten underperformance. Closing the talent gap is essential for realizing the potential in connected tire infrastructure. Upskilling needs to be at the same pace as the technology rollout.
- Effects of supply chain volatility on tire manufacturing: Supply chain uncertainty remains a structural obstacle for the tire market. Climate-associated disruptions and geopolitical tensions similarly tighten access to natural rubber and carbon black. As a response, firms regionalize inputs, diversify their supply base, and invest in recycled substitutes. Governments increasingly encourage local production of raw materials and the use of biomass. All these measures are intended to cushion subsequent shocks and secure continuity in production.
Tire Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
5.1% |
|
Base Year Market Size (2024) |
USD 207.9 billion |
|
Forecast Year Market Size (2037) |
USD 400 billion |
|
Regional Scope |
|
Tire Market Segmentation
Design Type (Radial Tires, Bias Tires)
The radial tires segment in the tire market is set to lead the design category with an 89.1% share during the forecast period. The reliability of radial tires, heat dissipation, and structural properties make them the favored option in all types of applications. In February 2025, Goodyear's EcoReady tire achieved 70% sustainable content, utilizing soybean oil and rice husk silica. Such features improve EV mileage and minimize rolling resistance. Radials uphold longer tread life and uniform road traction, gaining favor among OEMs as well as fleet managers. It applies in light and heavy-duty sectors, solidifying radial design dominance.
Rim Size (13-15 inches, 16-18 inches, 19-21 inches, Above 21 inches)
The 16-18 inches rim segment in the tire market is anticipated to lead the market with 57% share through 2037. The rim size accommodates a spectrum of sedans, SUVs, and crossover utility vehicles. Bridgestone introduced the 17-inch Turanza Prestige for electric vehicles in February 2025, combining ride and low-noise quality. Mid-size wheels find the balance between weight distribution, aerodynamics, and power-saving. The automakers standardized the rim size for high performance and design diversity. Large-scale production of the same size increases availability and cost-effectiveness. Demand among consumers consolidates the leadership in the same category.
Application (On-the-Road, Off-the-Road)
On-road tire usage is projected to dominate with 88.4% of the tire market share in 2037. Urban commuting, freight haulage, and highway transport fuel consistent demand for high-performance treads. Continental launched SmartWay-certified WORK Series tires in February 2025, developed specifically for LTL and regional truck operations. The models prioritize treadlife, retreadability, and low rolling resistance. Growth is further fueled by infrastructure projects and interstate logistical development. On-road tires now come equipped with sensors for real-time data tracking. Their application in connected logistics only grows stronger.
Our in-depth analysis of the tire market includes the following segments:
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Design Type |
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Rim Size |
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Application |
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Vehicle Type |
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Season |
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End use |
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Distribution Channel |
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Customize this ReportTire Industry - Regional Synopsis
APEJ Market Statistics
Asia Pacific excluding Japan (APEJ) is leading tire production with 35.8% tire market share. The growth is propelled by the fast motorization trends in ASEAN nations, India, and South Korea, fueling both replacement and OEM tire demand. In response to the increase in the after-sales tire demand, Continental recently widened its Thailand-based facility in October 2024. Export credits, the availability of labor, and tax advantages remain favorable for expansion in the region. In addition, the urban smart tire infrastructure is increasingly evident in the major metropolitan hubs in APEJ, and the implementation of green certification schemes is propelling the transition towards environmentally friendly tire manufacturing practices.
China has a leading position in tire manufacturing worldwide, with high domestic demand and vigorous export capacity. Supporting this, CEAT broadened its off-highway tire business in January 2025 with the launch of specialist tires tailored for use in China agricultural applications. Domestic tire players are already busy creating EV-compliant tread compounds and applying artificial intelligence in quality monitoring. National policies aimed at encouraging cleaner mobility and the electrification of logistics are also driving large-scale R&D in the tire industry. In addition, export deals are now including ESG compliance obligations, and China's well-developed tiered supplier networks give it cost and velocity advantages worldwide.
India tire market is undergoing a major transformation, characterized by a high focus on achieving self-reliance and embracing smart manufacturing solutions. In April 2024, Maan Aluminium ramped up its extrusion capacity in order to satisfy the rising demand for the casings of EV tires, in response to this ongoing shift. Indigenous tire manufacturers are increasingly using robotics and AI-based technologies to automate their manufacturing units. The Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) program is also seeing an increase in the demand for such tires related to EVs. Moreover, the retreading process for tires is gaining popularity in the countryside for economic reasons, and the government schemes are incentivizing the utilization of green tire material, reflecting that the tire market in India is moving towards greater scale as well as sustainability.
North America Market Analysis
The tire market in North America is anticipated to observe a steady 5.1% CAGR through 2037, driven largely by the growing use of electric vehicles and the digitalization of fleet operations. The trend is emphasized through the Sailun Group's opening in December 2023 of its new Mexican plant, aimed at strengthening its presence in North America and reducing lead times. In addition, climate-based regulatory policies and electric vehicles mandate further fuel demand for efficient, smart tires. As such, firms are placing greater emphasis on local sourcing models and the application of automation in operations. Most notably, U.S. and Canadian original equipment manufacturers (OEMs) now prioritize sustainability metrics, with the region standing as an emerging center for premium and circular tire design.
The U.S. tire market is being driven by public and private investment in green transport projects. One such advancement in February 2025 was the release of the Goodyear RHA 2 SmartWay tire, created for super-regional haulage and equipped with Stone Protector Ledges. The tire not only has longer wear and recyclability, but it is also aligned with fleet efficiency objectives and environmental sustainability. In addition, federal incentives for carbon-neutrality in the movement of goods are fueling demand for sophisticated tire technology. Consequently, fleet digitalization is now an accepted norm in procurement practices, with data-enabled and EV-fit tires playing the leading role in U.S. fleet transformation plans.
Canada is making important inroads in ESG-compliant manufacturing methods and innovations in winter tire technology. Illustrating its commitment, in February 2025, Sumitomo reported a 27% decrease in its Canada plant's COâ‚‚ emissions through the implementation of renewable energy forms and process improvement. Furthermore, tire retreading is increasingly being accepted in all provinces in Canada, backed by logistics companies looking for cost-cutting and sustainable alternatives. Canada is equally dominant in the design and manufacturing process for tires that cater specifically to snowy and all-weather conditions. Incentives from the government are further helping the manufacturers scale up the production of cleaner tires. In contrast, sensor-based tracking equipment for tires is already being tried in commercial vehicle tests.
Companies Dominating the Tire Market
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The tire market is marked by high competition from leading players such as Michelin, Goodyear, Continental, Bridgestone, and Yokohama, who dominate in innovation and production. Players such as CEAT, Giti, Kumho, and Fortune Tires are building niche strengths in the electric vehicle space, off-highway use, and circular economy practices. Tire market share competition is rising through the adoption of smart tire innovations, material circularity, and localization strategies. Exclusive technology alliances and OEM partnerships are hallmarks for the premium tire sectors. Such competition is now being pushed into artificial intelligence, automation, and digital platforms.
The application of internal carbon pricing is no longer the exception, being typical for leading players. In addition, circular economy solutions, such as tire retreading, the use of recycled feedstocks, and advanced waste treatment, are increasingly popular. Tire makers are increasingly basing procurement, design, and end-of-life thinking on Environmental, Social, and Governance (ESG) considerations. Such advances point toward an irreversible shift in the direction of the tire industry, focused on sustainability, resilience, and intelligent technological innovation.
Global Tire Market Manufacturers (2024)
Here are some leading companies in the tire market:
|
Company |
Country |
Market Share (2024) |
|
Bridgestone Corporation |
Japan |
15% |
|
Michelin Group |
France (Europe) |
14% |
|
Goodyear Tire & Rubber Co. |
U.S. |
9.5% |
|
Continental AG |
Germany (Europe) |
8.8% |
|
Sumitomo Rubber Industries |
Japan |
6.7% |
|
Pirelli & C. S.p.A. |
Italy (Europe) |
xx% |
|
Hankook Tire & Technology |
South Korea |
xx% |
|
Yokohama Rubber Company |
Japan |
xx% |
|
Zhongce Rubber Group (ZC Rubber) |
China |
xx% |
|
Toyo Tire Corporation |
Japan |
xx% |
|
Cooper Tire & Rubber Company |
U.S. |
xx% |
|
Apollo Tyres Ltd. |
India |
xx% |
|
Kumho Tire Co., Inc. |
South Korea |
xx% |
|
MRF Limited |
India |
xx% |
|
Linglong Tire |
China |
xx% |
Below are the areas covered for each company under the global tire manufacturers:
In the News
- In March 2025, Bridgestone Americas introduced the R273 Ecopia and Duravis M705 under ENLITEN technology. These tires target regional and last-mile delivery fleets. The tech improves tread life and retreadability while reducing environmental impact. Bridgestone advances low-emission solutions for commercial transport.
- In March 2024, Sumitomo advanced its SMART TYRE CONCEPT for low-rolling resistance and EV efficiency. The platform includes real-time sensor integration and smart tread compounds. A full commercial launch is set for 2030. It aligns with its Driving Our Future 2050 roadmap.
- In February 2024, Goodyear implemented smart manufacturing systems at its Colmar-Berg plant. The Luxembourg facility now runs entirely on renewable electricity. AI-enabled automation enhances productivity and reduces emissions. It serves as Goodyear’s benchmark for sustainable operations.
Author Credits: Saima Khursheed
- Report ID: 7706
- Published Date: May 29, 2025
- Report Format: PDF, PPT
