Automotive Tire Market Report 2026

Automotive Tire Market Overview

• Automotive Tire market size has reached to $143.87 billion in 2025 • Expected to grow to $189.53 billion in 2030 at a compound annual growth rate (CAGR) of 5.7% • Growth Driver: Electric And Hybrid Vehicles Drive Growth In The Automotive Tire Market • Market Trend: Automotive Tire Market Witnesses Emphasis On Tire Pressure Sensor Technology • Asia-Pacific was the largest region in 2025.

What Is Covered Under Automotive Tire Market?

An automotive tire refers to an element consisting of a rubber ring around the rim of an automobile wheel. Automotive tires are used in automobiles to support the weight of the vehicle, absorb road shocks, transmit traction, torque, and braking forces to the road surface and maintain and change the direction of travel. Tires are mounted on rims and pressurized air is pumped into them. The main rim types of automotive tires include less than 15 inches, 15 to 20 inches, and more than 20 inches. Less than 15 inches refers to automotive tires for vehicles with rim sizes less than 15 inches. The various vehicle types include passenger vehicles, commercial vehicles, and electric vehicles. The automotive tires manufacturing types include radial tires and bias tires. The different distribution channel of automotive tires includes original equipment manufacturer (OEM) and aftermarket for season types such as summer, winter and all-seasons.

What Is The Automotive Tire Market Growth Forecast?

The automotive tire market size is expected to see strong growth in the next few years. It will grow to $189.53 billion in 2030 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to increasing penetration of electric vehicles, rising demand for high-performance and specialty tires, expansion of connected vehicle technologies, growing focus on tire sustainability, increasing adoption of smart tire monitoring systems. Major trends in the forecast period include increasing demand for low rolling resistance tires, rising adoption of tires designed for electric vehicles, growing use of sustainable and recycled materials, expansion of smart and sensor-enabled tires, enhanced focus on all-season performance.

What Is The Driver Of The Automotive Tire Market?

The development of electric and hybrid vehicles is expected to propel the growth of the automotive tire market going forward. An electric vehicle is a type of automobile that is powered by electricity, typically through one or more electric motors, rather than an internal combustion engine that relies on gasoline or diesel fuel. Hybrid vehicles a re a type of automobile that combines two or more distinct power sources to propel the vehicle. Automotive tires in electric and hybrid vehicles play a crucial role in optimizing energy efficiency, range, and overall performance, addressing specific requirements associated with the distinct characteristics of electric and hybrid drivetrains. For instance, in April 2025, according to the International Council on Clean Transportation (ICCT), a US-based an independent, nonprofit research organization, passenger electric vehicle (battery-electric + plug-in hybrid) sales reached about 1.56 million in 2024, and EVs accounted for 10% of all light-duty vehicle sales up from a lower percentage in 2023. Therefore, the development of electric and hybrid vehicles is driving the growth of the automotive tire industry.

Key Players In The Global Automotive Tire Market

Major companies operating in the automotive tire market are Continental AG, Bridgestone Corporation, Michelin Group, Goodyear Tire & Rubber Company, Nankang Rubber Tire Corp. Ltd., Sumitomo Rubber Industries Ltd., Hankook & Company Co. Ltd., Pirelli & C. S.p.A, The Yokohama Rubber Co. Ltd., MRF Limited, Trelleborg AB, Toyo Tire Corporation, Sailun Group Co. Ltd., Cheng Shin Rubber Ind. Co. Ltd., Cheng Shin Rubber Industry Co., Apollo Tyres Ltd., Giti Tire Global Trading Pte. Ltd., Shandong Linglong Group Co. Ltd., Kumho Tire Co. Inc., Linglong Tire Co. Ltd., Cooper Tire & Rubber Company, Nexen Tire Corporation, Nokian Tyres plc, JK Tyre & Industries Ltd., CEAT Limited, Triangle Tyre Co. Ltd., Double Coin Holdings Ltd., Aeolus Tyre Co. Ltd., Salsons Impex Pvt. Ltd., Shinko Tires USA

Global Automotive Tire Market Trends and Insights

Major companies operating in the automotive tire market are focused on developing innovative solutions, such as tire pressure sensor, to gain a competitive edge in the market. A tire pressure sensor, also known as a TPMS sensor, is a small electronic device installed in each wheel of a vehicle's tire pressure monitoring system (TPMS). For instance, in September 2023, Infineon Technologies AG, a Germany-based semiconductor manufacturer, launched XENSIV SP49 tire pressure monitoring sensor. It combines pressure and temperature sensors along with an application-specific integrated circuit (ASIC) for enhanced functionality and performance. It is equipped with powerful 32-bit Arm M0+ core that enables advanced tire features like on-tire auto-position sensing, tire inflation assistance, tire blowout detection, and load detection.

What Are Latest Mergers And Acquisitions In The Automotive Tire Market?

In January 2024, Wonderland Tire, a Michigan-based company, specializes in providing a range of tire services and products, acquired Carter Tire & Automotive for an undisclosed amount. the acquisition allows Wonderland Tire to expand its geographical footprint into a new market area located between its existing stores in western Michigan and Chicago, Illinois. This location is strategically advantageous for increasing accessibility to customers and enhancing service delivery in the region. Carter Tire & Automotive, an Indiana-based company, provides a comprehensive range of services and products in the automotive sector, primarily focusing on tires and auto repair.

What Defines the Automotive Tire Market?

The automotive tire market consists of sales of synthetic polymers, natural rubbers, fillers, antioxidants, and antiozonants. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Automotive Tire Market Report 2026?

The automotive tire market research report is one of a series of new reports from The Business Research Company that provides market statistics, including Market Report 2026?global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the automotive tire Market Report 2026? The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the Market Report 2026?