Tire Market Size, Share, Growth, and Industry Analysis, By Type (Automotive Tires,Bicycle Tire,Motorcycle/ATV Tires,Engineering Tires,Agricultural Tires,Aero Tires,Racing Tires), By Application (Tire segment by Application,OEM,Aftermarket), Regional Insights and Forecast to 2033

Tire Market Overview

Global Tire Market size in 2024 is estimated to be USD 168053.78 million, with projections to grow to USD 229040.05 million by 2033 at a CAGR of 3.5%.

The global tire market in 2024 recorded approximately 2.5 billion tires produced worldwide annually, based on estimates between 2,268 million units in 2021 rising toward 2,665 million by 2027 . In the United States alone, tire shipments reached 335.7 million units in 2024, compared to 331.9 million in 2023 . Asia Pacific accounted for around 41–44 % of global market share in 2023–2024, leading other regions in production and replacement demand . Passenger vehicle tires dominated the application segment, accounting for nearly 47 % of the global market in 2023 , while radial tires held a value of USD 37.95 billion in 2024 .

The commercial tire segment in North America reached USD 12.9 billion in 2025 . Within the United States in 2024, OE shipments for passenger and light truck tires grew by 1.4 % and 2.6 % respectively . Pneumatic tire production spans about 450 factories globally, using bulk raw materials such as rubber and carbon black . These structural figures underline the vast scale, market share, and material-intensive nature of the tire market globally.

Key Findings

Top Driver reason: Expansion of vehicle production in emerging economies, with 2.5 billion tires produced worldwide and 335.7 million units shipped in the U.S. in 2024.

Top Country/Region: Asia Pacific, accounting for approximately 41–44 % of global tire market share in 2023–2024.

Top Segment: Passenger vehicle tires, representing nearly 47 % of the global market share in 2023.

Tire Market Trends

The tire market is experiencing rapid evolution, especially in production volume and regional concentration. In 2024, 2.5 billion units were manufactured globally, with production projected to reach 2.665 billion units by 2027 . U.S. tire shipments rose to 335.7 million units in 2024, surpassing the earlier record of 335.2 million units in 2021 . This reflects a strong trend of steady annual volume growth in both original equipment (OE) and replacement segments.

Geographically, Asia Pacific leads with a 41–44 % market share, driven by mass vehicle adoption in countries such as China, India, and Japan . North America shows consistent shipment volume growth, while Europe, Latin America, and Middle East & Africa each hold smaller regional shares but show steady increases in urban infrastructure and vehicle ownership.

Within tire types, radial designs dominate. The global radial tire market was valued at USD 37.95 billion in 2024 . Passenger vehicle tires hold nearly 47 % of total demand , with highway all-season tires comprising USD 120 billion of the passenger tire segment in 2024, compared to USD 60 billion for all‑season and USD 15 billion for winter tires .

Technological advancement is a defining trend. Over 2.5 billion tires are sold annually, prompting innovations with materials such as nanocarbon and nanosilica in bio-based compounds for EV-specific tires . Rolling resistance reduction could yield a 7 % increase in EV range, translating from 300 to 321 miles . Tire wear particulate and sustainable materials such as guayule and dandelion rubber are increasingly in focus .

Tire Market Dynamics

DRIVER

Expansion of vehicle production and ownership in emerging economies

The vehicle fleet continues expanding worldwide, notably with 2.5 billion tires produced annually, filling both OE and replacement needs . Emerging economies such as India, China, and parts of Latin America have fuelled motorcycle fleets, passenger cars, light trucks, and SUVs. Passenger vehicle tires alone represented 47 % of global tire volume in 2023 . U.S. shipments reached 335.7 million units in 2024, supporting both passenger and commercial vehicle demand . The radial tire market valued at USD 37.95 billion attests to scale in industrial production . Asia Pacific’s command of 41–44 % market share illustrates how automotive proliferation drives the tire market in high-growth regions . This dynamic influences OEM contracts and aftermarket replacements, shaping geo-distribution of factories—counts spanning 450 major tire plants globally .

RESTRAINT

Raw material cost volatility and environmental regulation

Rubber price fluctuations impose significant stress. Natural rubber and carbon black constitute over 50 % of material input volume. Sudden price spikes reduce manufacturing margins. In 2024, rubber input costs soared, influencing unit prices despite flat shipment numbers at 2.5 billion units . Regulations targeting particulate emissions from tire wear are tightening: EV tire particulate outputs generated noticeable scrutiny . Achieving <7 % rolling resistance gains often compromises tread durability or noise, prompting balancing R&D tradeoffs . OEM and aftermarket sectors face distinct constraints: replacement tires must meet legal ratings on traction and wear, while commercial tires must align with DOT standards. These combined pressures drive up R&D costs and complicate compliance.

OPPORTUNITY

Boom in EV adoption and specialized tire demand

Electric vehicle proliferation offers a fresh opportunity. EV-specific tires reduce rolling resistance, extending range by up to 7 %, a potential addition of 21 miles for a 300-mile EV . Manufacturers are experimenting with nanocarbon/nanosilica composites and bio-based rubber alternatives like guayule and dandelion . With 2.5 billion annual tire units, even a small share shift toward EV tires unlocks large volume gains. The radial tire market at USD 37.95 billion presents a core platform to plug in EV variants . EV OEMs increasingly specify low-noise, long-life tires, fueling aftermarket potential. Sustainable compound innovation answers regulatory signals on particulate and raw‑material transparency.

CHALLENGE

Balancing performance, cost, and sustainability targets

Innovating with new compounds and tread designs—e.g., soft rubber that reduces rolling resistance and noise—gets mixed results . Achieving multiple metrics simultaneously (efficiency, longevity, grip) raises manufacturing complexity. Ample R&D expense is needed for EV-specific, high-safety, and eco‑certified tires. Meanwhile, regional regulatory divergence—Europe tightening particulate wear laws while U.S. emphasizes certification compliance—creates fragmented design mandates. Disruptive raw-material costs (natural rubber up to 10–20 % of tire unit cost) threaten pricing stability. At the same time, aftermarket price sensitivity in replacement tire segments limits passing costs onto consumers. And digital sales channels and consumer review platforms drive expectation mismatches in OEM-to-customer branding. Together, these dynamics mean OEMs and tier‑1 suppliers must fine-turn tri-factor engineering: cost, performance, and compliance.

Tire Market Segmentation

The tire market segments by type—including automotive, bicycle, motorcycle/ATV, engineering, agricultural, aero, and racing tires—and by application, covering OEM and aftermarket sectors. These segments are differentiated by material composition, performance characteristics, production volume, and end-user demand. Although total global tire production exceeds 2.5 billion units, specific categories such as bicycle or aero tires represent smaller volume niches but often command specialized engineering and premium pricing. OEM tires are supplied directly to vehicle manufacturers, while the aftermarket supports vehicle maintenance. Despite shared raw materials like rubber and carbon black, segmentation reflects varied yield, usage patterns, and regional distribution.

By Type

• Automotive Tires: Automotive tires—designed for passenger cars, SUVs, light trucks—constitute nearly 47 % of global volume (over 1.175 billion units annually) . Radial designs dominate, with over USD 95 billion in global value in 2024 . Passenger vehicle tires account for 63.4 % of passenger vehicle tire value in 2024 . Asia–Pacific produces approximately 44.3 % of the global tire market . OE and replacement shipments reflect regional vehicle fleets: the U.S. counted 335.7 million units in 2024 . Continuous product innovations focus on rolling resistance, noise reduction, and durability.
• Bicycle Tire: Global bicycle tire consumption was estimated between USD 546 million and USD 2 billion in 2023–2025 . Traditional tubed tires comprised about 57 % of 2023 sales, with tubeless at 43 % . Road segment accounted for 22.9 % of demand in 2024 . The North American market garnered roughly 6 % of global value in 2023 , while Asia Pacific—led by China—represents over 90 % of bicycle tire supply . Specialized types like mountain, hybrid, and tarmac-targeted road tires meet rising commuter and recreational needs with differential tread and compound design.
• Motorcycle/ATV Tires: Motorcycle and ATV tires form a mid‑size global category, supporting annual vehicle populations in Asia and North America. Production volumes reach hundreds of millions per year alongside two‑wheeler fleets estimated at 2 billion+ units worldwide. Demand growth concentrates in India and Southeast Asia, where motorcycle parc expansion fuels radial and bias-ply demand. Premium off‑road ATV tires account for 20–30 % of segment value, reflecting specialized compounds used in recreational, agricultural, and light commercial contexts. OEM supply aligns with motorcycle production figures—India producing 20+ million two‑wheelers annually—with replacement volume matching vehicle age profiles.
• Engineering Tires: Engineering tires—used on heavy machinery, loaders, forklifts—number roughly 50–75 million units annually as the construction and mining equipment stock globally exceeds 3 million machines. Average tire lifespan spans 2,000 hours, and retreading is common, quadrupling lifecycle of units. Radial and bias-ply variants split the market, with radial share growing above 60 % in developed markets. AI-based pressure monitoring is increasingly integrated across fleets. Raw-material-per‑unit cost may reach USD 2,000 per tire in some 63–70‑inch OTR (off-the-road) applications. Infrastructure spending in APAC and Latin America drives consistent replacement cycles.
• Agricultural Tires: Agricultural tires support over ** 5 million tractors** plus nearly25 million implements worldwide. The segment sees 25–30 % radial adoption, growing in advanced economies. Specialty sizes (e.g., 540/65R38) serve heavy-duty tractors, combines, and sprayers. Average unit weight may exceed 150 kg. Total unit shipments may reach 10–15 million annual units. Use of IF/ VF tires reduces soil compaction by 30 %, underlining innovation. OEM supply ties to annual global tractor manufacturing (~450,000 units). Retreading and recycling drive circular-economy dynamics.
• Aero Tires: Aero tires serve a global commercial aircraft fleet of approximately 25,000 jets and about 85 million air transport passengers daily. Four firms—Michelin, Goodyear, Bridgestone, Dunlop—command 80–85 % of the market . A commercial airliner requires 10–12 tires per flight, replaced every 200–400 cycles. Unit prices range from USD 1,000 to USD 3,000. Testing radial for narrow‑body jets is advancing. Asia–Pacific fleets drive demand, with 45 % of deliveries in 2024. OEM contracts tied to fleets, not aftermarket.
• Racing Tires
  Racing tires—used in motorsport categories like F1, LMP1, NASCAR—represent a small volume (<0.1 % of global tire production) but high performance and price. A Formula 1 car may consume100 tires per season, with road cars replaced after 1–2 weekends. Michelin and Pirelli supply top-tier series: Pirelli is F1 supplier since 2011, and Michelin returns in endurance races . Racing grade compounds, tread patterns, and constructions are bespoke: shoulder sliders, wet slick patterns, and soft/hard spec compounds.

By Application

• OEM: OE tires are supplied directly to vehicle manufacturers. In 2024, OEM accounted for approximately 36.7 % of tire market value, with aftermarket covering remaining 63.3 % . Passenger OE shipments in the U.S. totaled X million units, matching production of approximately 17 million new cars/trucks annually. This segment demands compliance with manufacturer specifications, TPMS integration, and standards such as DOT, ECE. OEM radial tire share remains above 80 % globally . Asia‑Pacific OEM dominates, supplying tires for growing manufacturing centers in China, India, Southeast Asia.
• Aftermarket: Aftermarket tire sales make up approximately 63.3 % of global market value in 2024 . With over 2.5 billion tires in service, average life cycles of 35,000 miles (passenger cars) trigger replacements roughly every 4–6 years. Aftermarket shipments in the U.S. were 335.7 million units in 2024 . Distribution channels include retail stores, e-commerce platforms, and workshops. Consumer focus on fuel efficiency and comfort drives demand for premium all‑season and eco-friendly models. Commercial truck tires also contribute significantly, with fleet replacement intervals every 300,000 miles.

Tire Market Regional Outlook 

Regional performance highlights include Asia-Pacific as the largest market with 44.3 % global share in 2024 . North America and Europe account for the next largest portions. The Americas and EMEA show steady OE and replacement growth supported by vehicle usage statistics and infrastructure development. Channels like aftermarket, premium, and commercial tires diversify demand across regions. Infrastructure expansion, EV adoption, and regulatory mandates (on emissions, particulate matter, TPMS, labeling) shape demand. Regional segmentation reflects manufacturing capacity from over 450 tire plants globally, with Asia‑Pacific leading production and Europe focusing on innovation, and North America leaning on replacement market strength.

• North America

North America produced approximately 335.7 million tire units in 2024, split between OE and aftermarket shipments . The U.S. vehicle parc exceeds 280 million registered vehicles, demanding full rotational and replacement purchases every 4–6 years. Passenger car tires hold 32.6 % of market value, followed by light truck and commercial segments . Aftermarket dominates with 63.3 % of regional spend . There are around 100 tire manufacturing or retreading facilities, and production capacity covers both OE supply to U.S./Canadian OEMs and aftermarket demand. EV tire innovations—like low rolling resistance—are sold via both OE and replacement networks. Channel mix includes over 20,000 retail outlets, online networks, and fleet service providers.

• Europe

European production is characterized by premium and specialty tire leadership. Bridgestone and Michelin retain key market shares—Michelin at 15.1 % and Bridgestone at 14.2 % globally . Continental and Pirelli also lead in performance and OE contracts . Europe is advancing regulatory oversight: particulate wear limits and noise regulations drive innovation. Despite global competition from Asia, Europe retains roughly 25–30 % of global value via high-end radial, winter, and smart tires. Infrastructure improvements across EU states stimulate heavy-duty and engineering tire demand. However, Michelin’s planned closure of two French plants—impacting 1,250 jobs by 2026—indicates overcapacity amid shifting global share .

• Asia‑Pacific

Asia‑Pacific dominates with 44.3 % of the tire market’s value in 2024 and approximately 41–44 % market volume . China alone produces over 90 % of global bicycle tires , while automotive OE demand scales with 40 million+ passenger vehicles manufactured annually. The region has over 250 tire plants, supplying radial and motorcycle tires for domestic and export markets. India’s fleet of over 20 million two‑wheelers fuels motorcycle tire demand. Engineering and agricultural tire output expands with rural infrastructure investment. Across Southeast Asia, M&HCV fleet modernization is generating demand for commercial radials and retreading services, reflecting fleet replacement cycles roughly every 500,000 km.

• Middle East & Africa

MEA contributes around 5–7 % to global tire value, with strong performance in commercial, off‑road, and agricultural segments. Off‑road and OTR tires are used in mining, oil, and infrastructure projects—where 80-tonne dump trucks may require multiple tire changes per million operating hours. Agricultural tire demand tracks seasonal planting peaks, with radial uptake increasing in North Africa. Passenger vehicle fleets are expanding in GCC countries, supported by road network growth. Aftermarket channels are dominated by independent workshops and cross-border supply chains, driven by cost considerations. Regional OE demand is modest, yet specialized passenger and SUV model requirements in South Africa and Gulf states support niche OE contracts. Investments in logistics and warehousing drive tire demand for forklifts and terminal trucks in industrial zones.

List of Top Tire Market Companies

Michelin
Bridgestone

Top two companies With Highest Share

Michelin: Holds approximately 15.1 % of the global tire market share, commanding the leading position among top manufacturers .

Bridgestone: Controls around 14.2 % of global market share and ranks as the largest tire manufacturer by unit and value after Michelin .

Investment Analysis and Opportunities

The tire industry saw multibillion-dollar investments in production and technology throughout 2023–2024. Michelin allocated USD 220 million to three plants in Nova Scotia, including a USD 98.3 million first-phase expansion at Bridgewater to be operational by 2025 . Bridgestone invested USD 550 million to expand its Warren County, Tennessee plant by 850,000 sq ft, focusing on TBR tires with RFID integration . Hankook’s Clarksville, Tennessee facility is halfway through construction for consumer tire manufacturing . Continental received Thailand BOI approval for a USD 400 million Thai plant expansion aiming for 7.8 million units annually and adding 600 jobs . Goodyear’s Napanee, Ontario plant is undergoing a C$575 million modernization to include EV tire capability and net-zero emissions by 2040, adding 200 jobs by 2027 . Pirelli is exploring U.S. investment to offset potential tariffs, with North America accounting for 25 % of its sales .

In emerging markets, companies like Zhongce Rubber and Sailun are building new factories in Indonesia and Mexico, including investment in a 12.5 million set capacity semi-steel tire plant in China (1.175 billion yuan investment) . These investments expand production to meet OE vehicle and replacement tire demand in the 44 % Asia-Pacific market share hub.

Investment opportunities now center on EV-specific tire lines. Michelin’s Nova Scotia expansion aligns with demand from North American EV OEMs. Bridgestone’s RFID-enabled TBR tires target fleet management and traceability. Hankook’s plant supports low-rolling-resistance consumer models. Continental’s Thailand project addresses EV and passenger vehicle OE supply in Southeast Asia. Goodyear’s Ontario expansion prepares for EV/all-terrain tire production with sustainability goals.

Technological investments include airless tire research. Michelin, Bridgestone, Hankook, and Goodyear are investing in pneumatic alternatives like UPTIS, Tweel, iFlex, and ElectricDrive .

Overall, investment in both geographic expansion and advanced technology, especially EV, RFID integration, sustainability, and airless applications, shapes a dynamic market offering opportunities across plant modernization, material innovation, and next-gen tire solutions.

New Product Development

Tire manufacturers introduced several innovations in 2023–2024, spanning airless systems, sustainable materials, and digital sensing:

Michelin UPTIS: Prototype airless tire for passenger and light-duty vehicles, to be available in 2024 via a GM collaboration. It integrates a rubber-aluminium hub system. Michelin claims UPTIS reduces scrappage by 20 %, and an earlier Xline Energy Z tire achieved 20 % more mileage and 5 % lower rolling resistance .

Michelin Tweel Expansion: The airless X Tweel, available since 2012 for turf mowers and skid‑steer loaders, now extends to more heavy-duty applications. Tweel helps avoid flats, with replaceable tread and no pressure maintenance .

Bridgestone Air-Free Concept: Tested on a 1-ton shuttle bus at 60 km/h in Japan, featuring rubber-encased spoke structures for puncture-free urban and autonomous vehicle service .

Hankook iFlex: Hankook’s airless prototype combines flexible composite structures without air. Though still in development, iFlex is aimed at consumer and industrial EVs . Goodyear ElectricDrive 2: Demonstrated in May 2024, this tire for EVs uses soybean oil and rice husk compounds, offering a 60,000-mile warranty and adaptation to battery weight . Nokian Surpass AS01: Launched February 2025, features aramid-fiber sidewalls and 55,000-mile warranty, indicating longevity focus .

Five Recent Developments

• Michelin UPTIS Prototype Launch: In 2024, Michelin plans commercial rollout of its airless UPTIS tire, extending tire lifespan by up to 3× and cutting scrappage by 20 %, marking a major shift toward maintenance‑free passenger tires .
• Bridgestone Air-Free Shuttle Trials: In early 2025, Bridgestone tested its air‑free tire on a 1‑tonne autonomous shuttle bus at 60 km/h, signaling readiness for no-flat applications in public transit .
• Continental Thailand Plant Expansion: Approved in October 2024, the USD 400 million plant expansion targets producing 7.8 million tires per year, creating 600 jobs, solidifying Thailand’s OE capacity .
• Goodyear Napanee Plant Modernization: In August 2024, Goodyear pledged C$575 million to upgrade its Ontario plant, adding 200 positions by 2027, enabling EV/all‑terrain tire production, and targeting net‑zero emissions by 2040 .
• Nokian Dayton, Tennessee Plant Hire: The plant, opened in 2019 with 4 million‑unit capacity, expanded production lines and workforce to 150 employees, doubling North American distribution by 2023 .

Report Coverage of Tire Market

Scope: It includes segmentation by tire type, covering seven categories from Automotive to Racing Tires, and application, focusing on OEM and Aftermarket divisions. Automotive Tires dominate with ~1.175 billion units (~47 %), Aero and Racing constitute niche categories with high unit costs (~USD 1,000–3,000 per unit), and Engineering and Agricultural tires support construction and farming sectors. Each application is explored with shipment data (e.g., 335.7 million units in North America) and lifecycle metrics (e.g., 35,000-mile passenger replacements).

Regional Outlook: Provides analysis of four regions with concrete statistics: Asia‑Pacific leads at 41–44 % market volume and 44.3 % market value; North America shipped 335.7 million units via over 100 manufacturing/retreading facilities; Europe holds 25–30 % of value tied to advanced OE and regulatory compliance; MEA’s 5–7 % share serves growing commercial and agricultural needs.

Companies: Rank Michelin (15.1 %) and Bridgestone (14.2 %) via global market share, outlining their production footprint and technological leadership. Expansions include Michelin's Nova Scotia investment and Bridgestone’s advanced Akron racing facility.

Market Dynamics: Identifies drivers (vehicle fleet expansion), restraints (raw material volatility, particulate and noise regulation), opportunities (EV-specific tire demand, airless technologies), and challenges (balancing cost, performance, sustainability). Supported by data—450 global factories, 2.5 billion units produced, North American shipments, regulatory pressures, material costs.

Investment and Innovation: Analyzes major investments—USD 220 million in Nova Scotia, USD 550 million Warren County, USD 400 million Thailand expansion, C$575 million Napanee upgrade—and emerging product innovations like UPTIS, Tweel, RFID integration, and sustainable compounds. Highlights new developments and potential.

 

OE vs Aftermarket: Equips detailed analysis by application, including 36.7 % OEM share vs 63.3 % aftermarket. Includes lifespan and mileage for segments: 35,000-mile passenger cycles, 300,000-mile truck replacement, farm equipment hours. Plant and capacity data: Covers over 450 global tire plants, over 250 in Asia‑Pacific, 100 in North America, Michelin’s 69 global facilities producing 166 million tires annually, Bridgestone’s Akron center investments.

The report presents an integrated view: production/volume data, plant footprint, company competitiveness, product innovation, investment trends, and market segmentation—equipping stakeholders with detailed insights into the current and near-term tire market ecosystem.

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