Tire Business Report - Business Revenue Forecast

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Automotive Tire Market Demand, Industry Scope
and Forecast
From valuing 155.3 billion in 2018, the
automotive tire market is projected to grow to
237.2 billion by 2024, registering a CAGR of
7.7 during the forecast period (20192024).
In the coming years, the Asia-Pacific (APAC)
region would continue being the largest
automotive tire market. It held a volume share
of more than 55.0 in 2018. This growth is mainly
attributed to the increasing gross domestic
product (GDP), rising automobile production, and
improving disposable income of people in
developing nations, such as India and China.
Additionally, the North American market is also
witnessing a rapid increase in its revenue due to
the rising number of investments, by both
domestic and international manufacturers. The
categories of the automotive tire market based on
vehicle, are two-wheelers, light commercial
vehicles, passenger cars, and medium heavy
commercial vehicles. During the historical period
(2014 2018), the largest market share was held
by the passenger cars category. In the forecast
period, the fastest growth is predicted to be
exhibited by the medium heavy commercial
vehicles category. The American Trucking
Association reported that the U.S. truck
transportation volume in 2018 grew by 4.2, due
to the rising economy and flourishing
manufacturing industry in the country. This is
credited to the growing demand for these
vehicles across various industries for
transportation purposes. Request to Get the
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The automotive tire market is witnessing a surge
in demand due to the improvement in the average
lifespan of a vehicle owing to technological
advancements. From 10.5 years in 2010, the
average lifespan of vehicles has increased to 12
years in 2018. Many factors, such as the rising
competition in the market and stricter
government regulations have resulted in the
enhanced durability of vehicles over the years.
Further, it is being observed that customers are
retaining their older vehicles while buying small
crossover vehicles. The retention of old
vehicles is expected to drive the demand for
tires for replacing old and worn-out tires. The
automotive tire market is observing the trend of
next-generation, high-performance tires across
the world. Their popularity in the market is
encouraging key players to invest in the
development of ultra- high-performance tires,
which would allow vehicles to run at higher
speeds. For their development, patented
technologies are being employed along with
specialized silica compounds and unique designs
to keep up with changing demands of consumers and
also deliver desired performance. Additionally,
all- season, high-performance tires are also
being developed by manufacturers to offer riders
a smooth riding experience. The major share of
the automotive tire market is cumulatively held
by four major players that accounted for more
than 45.0 of global tires sales in 2018. The
leading market player was Générale des
Établissements Michelin, followed by Bridgestone
Corporation. The third largest player in the
market was The Goodyear Tire Rubber Company,
with the fourth one being Continental AG.