Automotive Tire Market Projected to Achieve USD 471.7 Billion by 2035, Powered by a 6.3% CAGR | FMI Reports
Future Market Insights Global and Consulting Pvt. Ltd.
Future Market Insights Global and Consulting Pvt. Ltd.

The automotive tire industry is driven by increasing vehicle production, rising demand for electric and high-performance tires, and advancements in tire technology. Growth is supported by factors like urbanization, the shift to eco-friendly and durable tire materials, and the expansion of e-commerce. However, manufacturers face challenges in meeting diverse regional regulations, ensuring environmental sustainability, and adapting to the growing need for specialized tires, especially for electric vehicles. The market is expected to continue expanding with innovations and improvements in tire performance and safety.

NEWARK, Del, Jan. 22, 2025 (GLOBE NEWSWIRE) -- The global automotive tire sales amounted to USD 240.9 billion in 2024. The market is anticipated to grow at a year-over-year rate of 5.9% in 2025, reaching USD 256.1 billion by the end of the year. With a projected compound annual growth rate (CAGR) of 6.3% from 2025 to 2035, the demand for automotive tires is expected to soar, reaching a valuation of USD 471.7 billion by 2035.

The surge in demand for automotive tires can be attributed to the rising production of passenger and commercial vehicles, particularly in developing regions, alongside rapid urbanization and the expansion of e-commerce activities. Enhanced features such as durability, fuel efficiency, and safety driven by evolving consumer preferences and regulatory requirements have further bolstered the market. Additionally, the growing adoption of electric and specialty vehicles continues to propel the industry's expansion.

Key Industry Highlights for the Automotive Tire Industry

  • Market Valuation and Growth:

    • In 2024, global automotive tire sales were valued at USD 240.9 billion.

    • The market is projected to grow by 5.9% year-over-year in 2025, reaching USD 256.1 billion.

    • From 2025 to 2035, the market is expected to expand at a CAGR of 6.3%, achieving a valuation of USD 471.7 billion by 2035.

  • Driving Factors:

    • Increased production of passenger and commercial vehicles, particularly in developing regions.

    • Rising urbanization and the rapid growth of e-commerce activities.

    • Growing demand for electric vehicles and specialty vehicles.

  • Consumer Preferences and Innovations:

    • Enhanced focus on tire features like durability, fuel efficiency, and safety performance.

    • Continuous advancements driven by consumer expectations and regulatory standards.

  • Regional Growth:

    • Developing regions are key contributors to market expansion due to their rising vehicle production and increasing urban population.

  • Future Outlook:

    • Strong demand for automotive tires is anticipated, driven by technological innovations and the increasing adoption of sustainable and high-performance tires