Automotive Tire Market Size, Share, Growth Analysis, By Type(Radial Tires and Bias Tires), By End-User(Passenger Vehicles and Commercial Vehicles), By Region - Industry Forecast 2024-2031

Global Automotive Tire Market size was valued at USD 310.05 billion in 2022 and is poised to grow from USD 333.92 billion in 2023 to USD 604,47 billion by 2031, growing at a CAGR of 7.7% in the forecast period (2024-2031).

The automotive tire market is highly competitive, prompting companies to prioritize product differentiation through innovative technologies. These technologies provide exceptional performance and durability. One example is a self-regenerating tread pattern that maintains a high level of grip even as the tire wears down. With the global increase in sales of passenger and commercial vehicles, the demand for tires is expected to grow significantly. The International Organization of Motor Vehicle Manufacturers reported the production of over 90 million new vehicles worldwide, marking a growth rate of 1.1% compared to previous years. Europe accounted for approximately 17 million vehicles, representing 19% of global production and contributing to the rising demand for automotive tires. Tire manufacturers are actively involved in developing sustainable tire solutions that are both cost-effective and meet stringent performance standards. Lehigh Technologies, for instance, offers Micronized Rubber Powder (MRP), an environmentally friendly and high-performance material used in the production of over 300 million tires. This low-cost and customizable feedstock supports sustainability efforts in the industry. The adoption of Low Rolling Resistance (LRR) and self-inflating technologies by tire manufacturers is on the rise due to increasing awareness about fuel efficiency. LRR tires reduce energy wastage and minimize rolling effort, aligning with the industry's goal to improve fuel mileage. As a result, all manufacturers are compelled to incorporate these tires to meet the growing pressure for enhanced fuel efficiency. Automotive tire suppliers competing for original equipment fitments are striving to improve Corporate Average Fuel Economy (CAFE) standards. The federal mandate of achieving 54.5 miles per gallon drives their efforts to enhance fuel efficiency.