Automotive Tire Market Business Report by Demand, Size, Share and Future Prospects

The global automotive tire market registered revenue of $155.3 billion in 2018, which is expected to reach $237.2 billion by 2024, growing with a CAGR of 7.7% during 2019–2024. In terms of vehicles, the passenger cars category held the largest share in the market during the historical period.

However, the fastest growth in the automotive tire market is projected to be observed by the medium & heavy commercial vehicles category, during the forecast period. This is attributed to the rising demand for these vehicles in the manufacturing industries across the world. For instance, as per the American Trucking Associations (ATA), the U.S. truck transportation volume grew by 4.2% in 2018, owing to the rebound of the manufacturing industry, along with rising economy, in the U.S.

• The passenger cars category held the largest share in the automotive tire market in 2018, and is expected to continue being the largest category during the forecast period. This can be primarily ascribed to the rising sales of these vehicles in the growing economies, globally, coupled with increasing disposable income of consumers.
• The Radial tires category dominated the automotive tire market in 2018, and is projected to showcase faster growth during the forecast period. This is attributed to the fact that radial tires are more durable than bias tires, due to their unique construction, which consists of perpendicularly placed polyester plies along with crisscrossed steel belts. Moreover, radial tires are widely used in passenger cars as they offer more comfortable riding experience than its counterpart, which results in increasing demand of these tires.
• In the automotive tire market, greater usage of tires is observed in the aftermarket. This is because with the improves lifespan of the vehicles, there is an increase in the number of replacements of the tires, which is causing higher demand for tires in the aftermarket.

Geographical Analysis

Geographically, APAC is expected to continue being the largest market for automotive tires in the coming years. The region comprised over 55% volume share of the market in 2018. The market in the region is primarily driven by increasing automobile production, rising gross domestic product (GDP), and increasing disposable income of people in emerging economies, such as China and India. Further, the North American market is also growing rapidly on account of the growing number of heavy investments (domestic and international) by several manufacturers in recent years.

Competitive Landscape 

The global automotive tire market was consolidated in nature, with four major players holding around 45% of the tire sales, globally, in 2018. The market was led by Compagnie Générale des Établissements Michelin, which was followed Bridgestone Corporation, The Goodyear Tire & Rubber Company, and Continental AG. The dominance of Compagnie Générale des Établissements Michelin in the world is mainly due to heavy investments by the company, as well as the growing presence of large dealer network across the globe.