Automotive Tire OEM Market to Increase Gradually with a CAGR of 6.9%, Increasing Vehicle Production and High Demand for Passenger Cars to Drive Market Growth

The global automotive tire OEM market size is estimated to display strong growth by reaching USD 70.79 billion by 2030. Fortune Business Insights™ in its report titled “Automotive Tire OEM Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Passenger Car, Light Commercial Vehicle, and Heavy Commercial Vehicle), By Rim Size (13”-15”, 16”-18”, 19”-21”, and Above 21”), By Design (Radial and Bias), By Tire Type (Tubeless and Tube), and Regional Forecast, 2023– 2030” observes that the market size in 2022 stood at USD 41.55 billion and is expected to reach USD 44.40 billion in 2023. The market is expected to witness a strong CAGR of 6.9% during 2023-2030. Increasing vehicle production and high demand for passenger cars are anticipated to boost market growth. Technological innovations to develop safer, quieter, and improved passenger car and light truck radial tires with improved eco-friendliness and cutting-edge technology are also set to pose market with numerous market opportunities.

Hankook Tire Launched First Truck and Bus Radial Tire Called Smart Ion AU06+

In October 2022, Hankook Tire launched the first Truck and Bus Radial tire called Smart iON AU06+. The new product will be included in its “iON product portfolio for premium EVs for the Korean market. The Smart iON AU06+ is the newest addition to its iON product portfolio, which includes winter and summer tires for passenger EVs. This is new product launch is set to geographically expand the market growth.

Decline in Demand for Tires During Pandemic Affected the Market Growth

The COVID-19 impacted affected the world unprecedentedly, with many countries being forced to shut down all non-essential businesses. Decline in the demand for tires during pandemic affected the market growth. However, the global market recovered during the third quarter of 2020 with ease in restrictions and as economic activities resumed. The automotive tire OEM industry is predicted to witness significant growth, owing to growing sales of vehicles globally. The revenue of Bridgestone experienced a dip in the revenue by 15%, which accounted for USD 4,954 million compared to previous fiscal year, USD 28,933 million. 

Growing Demand for Airless and Non-Pneumatic Tires to Propel Market Development

Growing demand for airless and non-pneumatic tires is predicted to drive the automotive tire OEM market growth. The demand for high performance tires is increasing due to concerns related with customers using conventional tires. This is encouraging OEMS toward top-end technological development and production of high-caliber products. With continuous technological developments, market players have been developing safer, quieter, and improved passenger cars and light truck radial tires with improved eco-friendliness and cutting-edge technology.

However, high development cost for specific tires is expected to hinder market growth. Development of tires, which meets specific requirements of automakers can be expensive.

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https://www.fortunebusinessinsights.com/industry-reports/automotive-tire-market-101594

Various Business Strategies by Key Market Players to Improve the Product Portfolio

The companies are focusing on cost-reduction strategies, strategic partnerships, mergers, and acquisitions to enhance their product offerings. They are highly focused on using sustainable raw materials to create new tires, reduce their carbon footprint, and strengthen their global market position.

Notable Industry Development

• June 2021: The Goodyear Tire & Rubber Company completed the acquisition of Cooper Tire & Rubber Company to offer a wide range of options across the value spectrum to strengthen its customer base.

List of Key Companies Profiled in the Report:

• Bridgestone Corporation (Japan)


• Michelin (France)


• Continental AG (Germany)


• Goodyear Tire and Rubber Company (U.S.)


• Sumitomo Rubber Industries (Japan)


• Hankook (South Korea)


• Pirelli (Italy)


• Yokohama Rubber Company (Japan)


• Toyo Tires (Japan)


• Giti Tire (Singapore)


• Maxxis (Taiwan)


• ZC Rubber (China)


• MRF Tires (India)


• Apollo Tyres (India)

Further Report Findings

• The market in Asia Pacific dominated the market share due to increasing consumption, cheap labor, raw materials, and large population. The market stood at USD 22.21 billion in 2022 with rise of the middle-class group that pushed automobile demand to an all-time high. China is the leading country in the region due to huge sales of advanced tires such as airless tires, 3D print tires, and puncture-proof tires.


• North America is set to grow prominently at a CAGR of 6.7% due to demand for passenger cars and light-duty vehicles. Major market players such GoodYear, Cooper Tire, Michelin, Continental, and Michelin have contributed to the regional market growth.


• Based on vehicle type, the segment is divided into passenger car and commercial vehicle. Passenger car segment dominated in 2022 due to demand from various countries such as India, China, and Indonesia.  

Table of Segmentation