Global Tires Market to Reach USD 191.25 Billion by 2032, Driven by Rising Vehicle Production and EV Adoption
The global Tires Market was valued at USD 137.61 billion in 2024 and is expected to grow at a CAGR of 4.2% from 2025 to 2032, reaching approximately USD 191.25 billion by 2032.
Tires Market Overview
Tires are a crucial component of vehicles, forming the primary contact point between vehicles and roads. They are essential for load-bearing, traction, steering stability, and overall safety. As global vehicle sales continue to rise, demand for tires has increased proportionally. In 2019, global vehicle sales were around 88.7 million units, and this figure is expected to rise steadily in the coming years.
The Asia-Pacific region dominates tire production and sales, with China leading due to its cost-effective manufacturing capabilities and extensive production infrastructure. Growing automotive industries, rising consumer purchasing power, and increased urbanization have also strengthened demand across other emerging economies.
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Market Dynamics
Growth in Vehicle Production and Sales
The primary driver of the global tire market is the increase in vehicle production and sales worldwide. Passenger cars, commercial vehicles, trucks, and off-road vehicles all contribute to tire demand. Consumer preference for lightweight, premium, and luxury vehicles further supports market growth.
Rising Adoption of Electric Vehicles
The growing popularity of electric vehicles (EVs) is creating new opportunities for tire manufacturers. With EVs, consumers are seeking high-performance, energy-efficient, and environmentally friendly tires. China remains the largest EV market, expected to reach 3.79 million units by 2026, which in turn fuels demand for specialized tires designed for EV performance and durability.
Impact of COVID-19
The COVID-19 pandemic disrupted tire production and supply chains globally, causing a temporary decline in sales. Manufacturing halts, logistical challenges, and raw material cost fluctuations affected overall production. Nylon, polyester, and rubber prices significantly influenced tire costs, creating short-term challenges for the market.
Market Segmentation
By Type
Radial Tires dominate due to durability, performance, and versatility across passenger cars and commercial vehicles.
Bias Tires remain preferred in certain sectors like mining and construction, offering smoother rides on uneven surfaces at a lower cost.
Non-Pneumatic Tires are gaining interest for specific off-road and industrial applications.
By Vehicle Type
Passenger Cars: This segment led the market in 2024 and is expected to grow steadily. Factors such as increasing per capita income, rising safety awareness, and demand for premium vehicles are driving growth. The United States accounts for 27% of global passenger car tire sales.
Commercial Vehicles: Growth is driven by logistics, freight, and construction industries.
Off-Road Vehicles: Specialized tires are in demand for agricultural, construction, and mining applications.
By Distribution Channel
OEM (Original Equipment Manufacturer): Holds more than 70% market share, fueled by steady vehicle production and new car sales.
Aftermarket: Represents replacement and reselling tires. With rising vehicle life expectancy, the aftermarket segment is also expected to grow.
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Regional Insights
Asia-Pacific: Largest market with 48% share in 2024, projected to grow at a CAGR of 5.3%. China, India, and Japan account for nearly 72% of the region’s tire market.
North America: The U.S. holds a 28% share and is expected to grow at a CAGR of 5.4%, supported by advanced vehicle technology adoption and high per capita vehicle ownership.
Europe: Expected to reach 593 billion units by the end of the forecast period, with Germany growing at a CAGR of 3.4%.
Other Regions: Japan, Canada, and South Korea show steady growth at CAGRs of 2.6–3.6%, while the Middle East, Africa, and South America present emerging opportunities due to urbanization and industrialization.
Competitive Landscape
The global tire industry is highly competitive, with established players and emerging regional companies focusing on innovation, sustainability, and performance. Key market participants include:
Cooper Tire & Rubber Company (U.S.)
Goodyear Tire & Rubber Company (U.S.)
Avon Tyres (U.K.)
Continental AG (Germany)
Michelin (France)
Pirelli & C. S.p.A (Italy)
Apollo Tyres Ltd (India)
MRF Ltd (India)
Bridgestone Corporation (Japan)
Yokohama Tire Corporation (Japan)
Zhongce Rubber Group Co., Ltd (China)
Sailun Group Co. Ltd (China)
These companies are focusing on R&D for low-rolling-resistance tires, eco-friendly materials, and EV-specific tires, along with strategic mergers and expansions into emerging markets.
Market Outlook
The global tire market is set to grow steadily, driven by:
Expansion of vehicle production and sales globally.
Rising EV adoption and the demand for specialized high-performance tires.
Increasing consumer awareness of safety, durability, and eco-friendliness.
Technological innovations in tire materials and design, including smart and sustainable tires.
By 2032, the Tires Market will continue to expand, providing opportunities for manufacturers, OEMs, and aftermarket players, while addressing the evolving needs of automotive, commercial, and industrial sectors.
