Pneumatic Tire Market Size, Share and Trends 2024 to 2034

Pneumatic Tire Market Size and Forecast 2024 to 2034

The global pneumatic tire market size is worth around USD 368.99 billion in 2024 and is anticipated to reach around USD 564.31 billion by 2034, growing at a CAGR of 4.34% from 2024 to 2034. The pneumatic tire market growth is attributed to increasing vehicle production and rising consumer demand for fuel-efficient and high-performance tires.

Pneumatic Tire Market Key Takeaways

• Asia Pacific dominated the global market with the largest market share of 42% in 2023.
• North America is expected to witness the fastest growth during the forecast period.
• By product, the radial segment contributed the highest market share of 71% in 2023.
• By product, the cross-ply segment is anticipated to expand at a CAGR of 3.93% from 2024 to 2034. 
• By vehicle, the four-wheelers segment captured the biggest market share of 82% in 2023.
• By vehicle, the two-wheeler is projected to grow at a significant CAGR during the forecast period.  
• By sales, in 2023, the replacement segment generated the major market share in 2023. 
• By sales, the OEM segment segment is anticipated to grow significantly during the forecast period.

Impact of Artificial Intelligence (AI) on the Pneumatic Tire Market 

Predictive analytics within manufacturing plants and premises help the end-user better forecast the pneumatic tire market for goods and make optimum decisions on inventory and production, thus cutting down the costs involved. Sophisticated statistical methods are then used to examine large volumes of data, and the fidelity of the tire designs increases, fuel economy improves, and the general performance of the vehicle improves.

Smart tires are embedded with AI-integrated sensors that regularly record the pressure, temperature, and wear of the tires and present their data to consumers and fleet managers. Furthermore, due to AI-integrated marketing, campaigns are also made more personalized by using buying patterns and preferences, thus increasing brand commitment.

Asia Pacific Pneumatic Tire Market Size and Growth 2024 to 2034

The Asia Pacific pneumatic tire market size is exhibited at USD 154.98 billion in 2024 and is projected to be worth around USD 239.83 billion by 2034, growing at a CAGR of 4.45% from 2024 to 2034.

Asia Pacific held the largest share of the pneumatic tire market in 2023, owing to its stronger vehicle manufacturing, a larger automotive population, and growing urbanization. A report produced by the International Organization of Motor Vehicle Manufacturers (OICA) showed that China continued to dominate as the leading manufacturer and user of tires, manufacturing more than 30 million vehicles yearly. Additionally, the growth in the automotive industry has been observed due to local production and growth in exports, with a subsequent increase in the demand for tires.

North America is projected to host the fastest-growing pneumatic tire market in the coming years due to the growth in vehicle population and shift towards SUVs and light trucks that mostly use a larger and differentiated type of tires. Furthermore, the rising adoption of electric vehicles (EVs) in the region would also support the growth of certain tire technologies that are required for enhancing energy efficiency, safety, and performance.

• The U.S. Bureau of Economic Analysis has estimated that the output of electric cars in the North American region is likely to grow at a CAGR of 35% up to 2025. This is defining a rising market for tires that specifically fit EVs.

Market Overview

The global pneumatic tire market is anticipated to grow rapidly due to rising demand for electric vehicles (EVs) across the globe, especially the clean and sustainable transportation system. Government regulations are to be backed by the higher demand for stricter emissions and growing incentives for EV production and sales. This is further supported by economic recovery and sane consumer demand for vehicles across the world. This further facilitates and creates demand or advances new tire technologies, such as pneumatic tires.

• The worldwide EV sales hit the 1 million units mark in 2023, while VW, Toyota, and Tesla have laid out electrification goals ahead.
• The global electric cars market aimed to be between 42% and 58% of total car sales in 2030.

Pneumatic Tire Market Growth Factors

• Rising automotive production in emerging markets such as India, China, and Brazil is expected to boost tire demand, particularly in the pneumatic tire market.
• Increased adoption of electric vehicles is likely to drive the demand for tires optimized for EV performance, durability, and energy efficiency.
• Technological advancements in tire manufacturing, including the use of smart tires with sensors, are anticipated to create new growth opportunities in the pneumatic tire market.
• The expansion of aftermarket services like tire maintenance and repair services is expected to increase demand for replacement tires in both developed and emerging economies.
• Rising consumer preference for premium tires, which offer better performance, safety, and longevity, is projected to contribute to market growth.
• Strong infrastructure development in emerging economies, leading to better road conditions and more vehicle usage, is likely to drive the demand for both OEM and replacement tires.
• Government regulations focused on fuel efficiency and environmental impact are expected to spur innovation in low-rolling-resistance tires, further supporting market expansion.

Market Scope

Market Dynamics

Driver

Increasing vehicle production and sales

Increasing vehicle production and sales are anticipated to drive significant demand for the pneumatic tire market. New entrants such as India, Thailand, and Indonesia have also reported increased sales of electric vehicles. This growth in the production of vehicles, along with the enlarging demand for long-lasting energy-efficient tires suitable for EVs, also anticipates a new groundbreaking pneumatic tire technological advancement.

The new tread patterns and compounds with low rolling resistance are said to be in harmony with the global prospects of environmental sustainability and fuel conservation. Such development fulfills the requirements of conventional vehicles and also addresses the requirements of new energy vehicles, including energy saving and safety performance.

• In 2022, 10.02 million electric cars were sold in the global auto market, representing 14% of the total new car sales, compared to 9% in 2021. 
• India increased its EV sales by 3 fold in 2022, given support from the USD 3.2 billion incentive program, and Thailand saw its EV market share rate exceed 3% of total sales.

Restraint

Cost-efficiency due to rising raw material prices

Rising raw material prices, particularly for natural and synthetic rubber, are anticipated to hamper cost efficiency in the pneumatic tire market. Volatility in the price of crude oil, which is used in the manufacture of synthetic rubber and tires, raises operating costs and hampers the ability of manufacturers to offer reasonable prices.

The global natural rubber market is impacted by supply limitations for similar reasons, as well as reduced plantation productivity due to climatic shifts, especially in the pneumatic tire market in Thailand and Indonesia. These conditions produce some unreliable supply chain systems and high production costs, limiting market growth and profitability. Furthermore, even transport and trading issues also increase the costs related to material procurement and affect the production system.

Opportunity

Increasing adoption of advanced manufacturing technologies

Increasing adoption of advanced manufacturing technologies is anticipated to create immense opportunities for the players competing in the pneumatic tire market. There is a continuously growing uptake of sophisticated manufacturing technologies, which offers a large and almost untapped ready-made market with massive potential for improving both productivity and product development. Manufacturing industries have been transformed by modern technologies, such as 3D printing, automated production, and manufacturing digital twins.

Bridgestone use of simulation technologies in developing superior tires is one of the highlights of this industry’s technology orientation. Based on the study by the National Institute of Standards and Technology NIST, smart manufacturing is one of the significant components of this transition and is expected to make a huge impact on the efficiency and growth of the industrial sector with support from the government through its White House Critical and Emerging Technologies Report.

Product Insights

The radial segment held a dominant presence in the pneumatic tire market in 2023. Radial tires, which have located cord plies crossing the direction of travel, have considerably lower rolling resistance, tending to increase fuel efficiency and tire durability. They are also great at providing comfort and stability for cars and trucks, and these are mostly appropriate for passenger cars and commercial trucks. Furthermore, the segment is fueled by radial tire advancement in areas such as North America and Europe due to increased government regulations on the use of fuel-efficient products.

• In 2023, as per the data of NHTSA, radial tires were found to conserve fuel by between 10% and 15%, and this conformed to the concept of sustainability.

The cross-ply segment is expected to grow at the fastest rate in the pneumatic tire market during the forecast period of 2024 to 2034, owing to their construction, which offers increased sidewall construction and is hence appropriate for rough terrains and heavy loads.  Furthermore, the construction and mining vehicles that will be funded by government programs in areas such as Africa and parts of South and Central America are expected to contribute to the increased market for cross-ply tires.

• In a June 2024 report by the Food and Agriculture Organization, Global agricultural mechanization reached 18%, and trends were shaping demand for cross-ply tires for farming tools.

Vehicles Insights

The four-wheelers segment accounted for a considerable share of pneumatic tire market market in 2023. Increased purchasing power and increased population density ensure that the company initiates owning automobiles as transport options, including in India and Brazil.  It also owes its strength to the increasing market share of electric vehicles (EVs) as manufacturers develop dedicated tires that improve battery performance. Moreover, the shift towards using bigger cars such as SUVs and premium vehicles in developed countries continues to strengthen the leadership of four-wheeler tires in the tire sector.

• In the view of the U.S. Environmental Protection Agency (EPA) in the year 2023, strong measures to support the improvement of fuel economy standards and decrease greenhouse gas emissions have contributed to the differentiation of the four-wheeler tires technology, particularly regarding durability and rolling resistance.

The two-wheeler segment is anticipated to grow with the highest CAGR in the pneumatic tire market during the studied years. Growing traffic in cities and the need to conserve space and reduce costs pushed for motorcycle and scooter sales.  Furthermore, the rising consumer awareness of the performance and safety features of car tires further boosts the market for pneumatic tires.

• According to the International Energy Agency (IEA), two-wheelers shared a registration of over 70% in Southeast Asia by 2024, and this sector is considered crucial to personal mobility.

Sales Insights

The replacement segment led the global pneumatic tire market due to the growing necessity of tire servicing. It is worn out when in use for long durations, and replacement ensures that the vehicle responds to the driver’s commands and is a safe road. The increase in vehicle aging, coupled with evolving consumer concern with tires’ health, provides the backdrop for this segment’s growth.

• The U.S. Department of Transportation, in its 2023 report, identified new car tire possession rates and estimated that 80% of the tires sold across the U.S. market were replacement tires.

The OEM segment is projected to expand rapidly in the pneumatic tire market in the coming years. The conversion towards battery electric vehicles is expected to further result in the need for tires with efficient battery consumption, low rolling resistance, and overall vehicle performance. The tire makers are adapting their strategies to meet the requirements of several automobile models, especially self-driving vehicles, durable tires of automobiles of self-driving cars, and automobiles. Additionally, governments in Europe and North America have put into practice high fuel efficiency standards that are expected to create demand for better tires, which improve the overall performance of new vehicles.

• In its 2024 global vehicle statistics, the International Organization of Motor Vehicle Manufacturers (OICA) revealed that vehicle production and sales hit new records, more so in EVs, which are predicted to be the future of the automotive industry.

Pneumatic Tire Market Companies

• MICHELIN.
• Continental AG
• Bridgestone Corporation
• The Goodyear Tire & Rubber Company;
• Hankook Tire & Technology.
• THE YOKOHAMA RUBBER CO., LTD.
• KUMHO TIRE CO., INC.

Latest Announcements by Industry Leaders

• October 30, 2024 – Continental AG
• Head of Program Management Private Mobility Tires at Continental - Maria Hanczuch
• Announcement- The European Rubber Journal has recognized Continental's UltraContact NXT by awarding it the Future Tire & Rubber Award in the "Advanced Design: Tires" category. Maria Hanczuch, Head of Program Management for Private Mobility Tires at Continental, expressed her excitement, stating, "We are thrilled to receive this honor from the European Rubber Journal, which highlights our dedicated efforts to make the tire industry and mobility more sustainable. By 2030, we plan for our tires to be made up of over 40 percent renewable and recycled materials. The UltraContact NXT represents a significant milestone in our journey toward achieving these ambitious goals."

Recent Developments

• In January 2024, Michelin unveiled its new X Force Winter tire, designed for severe winter conditions, at Eurosatory 2024. This tire is specifically intended for military vehicles and heavy transport. It improves acceleration on compacted snow by 24% over previous models and features an enhanced grip, which has been verified through extensive testing in Finland. The tire is expected to be available for the 2024-2025 winter season.
• In October 2024, BFGoodrich, a Michelin group company, launched the All-Terrain T/A KO3 tire at Eurosatory 2024. This new product is designed for off-road light vehicles, succeeding the popular T/A KO2. The tire incorporates advanced technology for better durability, snow traction, and resistance to gravel tearing. It will be available in Europe by the start of 2025.
• In September 2024, Bridgestone launched its Potenza Sport tire, catering to high-performance and luxury vehicles. This new product promises improved performance and durability, featuring a high-grip compound and an advanced tread design for superior wet and dry traction. Bridgestone conducted extensive testing to ensure it meets the demands of high-performance drivers and is now available for select vehicle models

Segments Covered in the Report

By Product

• Cross-Ply
• Radial

By Vehicle

• Four-Wheelers
• Two-Wheelers
• Aircraft
• Others

By Sales

• Replacement
• OEM

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa