Automotive Tire OEM Market Size & Share - By Vehicle Type, Rim Size, Regional Forecast, Industry Players, Growth Statistics 2023-2030

Market Outlook:

Automotive Tire OEM Market size surpassed USD 25.73 Billion in 2022 and is poised to reach USD 51.39 Billion, growing at over 8.2% CAGR between 2023 and 2030. With increasing automobile production, growing preference for advanced vehicles, and rising demand for fuel-efficient and safer tires, the market is projected to expand at a robust rate.

• Base Year Value (2022): USD 25.73 Billion
• CAGR (2023-2030): 8.2%
• Forecast Year Value (2030): USD 51.39 Billion
• Historical Data Period: 2018-2021
• Largest Region: North America
• Forecast Period: 2023-2030

Market Dynamics:

Growth Drivers & Opportunities:

1. Expanding Automotive Industry: The steady growth of the global automotive industry, particularly in emerging economies, has fueled the demand for automotive tires. Rising disposable incomes, urbanization, and changing lifestyles have led to increased vehicle ownership, thus propelling the market.

2. Technological Advancements: Continuous advancements in tire materials, manufacturing processes, and designs have resulted in the development of high-performance and durable tires. The introduction of advanced features, such as smart tires embedded with sensors, has further boosted the market's growth.

3. Increasing Safety Concerns: Growing awareness regarding road safety has prompted the importance of using reliable and high-quality tires. Automakers and tire manufacturers are investing heavily in research and development to produce tires that offer superior grip, enhanced braking performance, and improved handling, thereby driving market growth.

4. Environmental Sustainability: The rising focus on reducing carbon emissions and promoting eco-friendly transportation has pushed the automotive industry to adopt tire technologies that enhance fuel efficiency. The demand for fuel-efficient tires has surged due to stringent government regulations and consumer preferences for environmentally friendly products.

Report Scope

Report Coverage	Details
Segments Covered	Vehicle Type, Rim Size, Design, Tyre Type
Regions Covered	•North America (United States, Canada, Mexico), • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe), • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC), • Latin America (Argentina, Brazil, Rest of South America), • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	BridgestoneCorporation, Michelin, ContinentalAG, Goodyear Tire and Rubber Company, Sumitomo Rubber Industries, Hankook, Pirelli, Yokohama Rubber Company, Toyo Tires, Giti Tire, Maxxis, ZC Rubber, MRF Tires, Apollo Tyres

 

Industry Restraints & Challenges:

1. Volatile Raw Material Prices: Fluctuations in the prices of key raw materials, such as natural rubber and petroleum derivatives, pose a significant challenge for tire manufacturers. High input costs directly impact the pricing of automotive tires, potentially hindering market growth.

2. Intense Competition: The automotive tire OEM market is highly competitive, with numerous global and regional players vying for market share. Intense competition often leads to price wars and profit margin erosion, challenging the growth prospects of market participants.

3. Economic Uncertainty: Economic downturns and uncertain market conditions can dampen consumer spending on automobiles, affecting the demand for automotive tires. As the automotive sector heavily influences the tire OEM market, any slowdown in the industry can pose challenges for market growth.

4. Stringent Regulations: The industry is subject to several regulations related to tire performance, safety standards, and environmental norms. Compliance with these regulations can increase manufacturing costs and require substantial investments in research and development, which may pose challenges for smaller players in the market.

In conclusion, the automotive tire OEM market is poised for significant growth due to factors such as the expanding automotive industry, technological advancements, increasing safety concerns, and environmental sustainability efforts. However, challenges related to volatile raw material prices, intense competition, economic uncertainty, and stringent regulations need to be addressed to sustain and maximize market growth opportunities.

Regional Forecast:

The global automotive tire original equipment manufacturer (OEM) market is expected to witness significant growth in North America, Asia Pacific, and Europe regions.

North America:

In North America, the demand for automotive tires is driven by the presence of a large automotive industry. The region is home to major automakers, such as General Motors, Ford, and Fiat Chrysler, which contribute to the growth of the OEM market. Additionally, the increasing preference for SUVs and trucks, along with favorable government regulations regarding fuel economy, is expected to drive the demand for automotive tires in this region.

Asia Pacific:

The Asia Pacific region is anticipated to dominate the automotive tire OEM market globally. Countries like China, Japan, and India are the major contributors to the growth of this market. The increasing production of passenger vehicles and the rapid urbanization in these countries are driving the demand for automotive tires. Moreover, the presence of leading tire manufacturers, such as Bridgestone, Michelin, and Yokohama, coupled with favorable government initiatives to promote the automotive industry, are expected to boost the market in this region.

Europe:

Europe is another prominent region in the automotive tire OEM market. Countries like Germany, France, and the UK are major contributors to the market growth. The region is known for its robust automotive sector and the presence of leading luxury car manufacturers like BMW, Mercedes-Benz, and Audi. The demand for high-performance tires for luxury vehicles is expected to drive the market in Europe. Additionally, stringent regulations related to vehicle safety and emission control are also expected to create opportunities for tire manufacturers in this region.

Segmentation Analysis:

1. Passenger Vehicles Sub-Segment in the OEM Market:

Passenger vehicles represent a significant segment in the automotive tire OEM market. With the increasing disposable income of consumers and changing lifestyle preferences, the demand for passenger vehicles is on the rise globally. This, in turn, directly impacts the demand for automotive tires. The growing need for fuel-efficient tires, greater safety features, and improved traction control systems has become crucial in the passenger vehicle segment. Tire manufacturers are focusing on developing advanced tire technologies with better grip, reduced rolling resistance, and enhanced performance, catering to the specific requirements of passenger vehicles.

Competitive Landscape:

The competitive landscape of the automotive tire OEM market consists of several major players that strive to maintain their market share and actively participate in product development, partnerships, and acquisitions. Some of the key players operating in this market include:

1. Bridgestone Corporation

2. Michelin Group

3. Continental AG

4. Goodyear Tire & Rubber Company

5. Pirelli & C. S.p.A.

6. Sumitomo Rubber Industries Ltd.

7. Yokohama Rubber Co., Ltd.

The market players focus on expanding their product portfolios through research and development activities and collaborate with automotive manufacturers to develop customized tire solutions. They also invest heavily in marketing and promotional activities to create brand awareness and maintain their market presence. These market players play a crucial role in driving innovation and setting new benchmarks in the automotive tire OEM market.