What factors are driving growth in the tyre market?

[Kanhaiya Gupta]

The global tyre market is witnessing steady growth due to several key factors shaping the industry. According to Expert Market Research, the market was valued at approximately USD 237.50 billion in 2024 and is projected to grow at a CAGR of 5.40% between 2025 and 2034, reaching an estimated USD 401.86 billion by 2034.

Key Growth Drivers:

Rising Vehicle Production:
Increasing automobile manufacturing globally, especially in emerging markets like China, India, and Southeast Asia, fuels demand for original equipment tyres.

Replacement Tyre Demand:
Growing vehicle fleets and the need for regular tyre replacement support the aftermarket segment, which is a significant revenue contributor.

Urbanization and Infrastructure Development:
Expansion of road networks, highways, and urban mobility projects increases tyre consumption for both passenger and commercial vehicles.

Technological Advancements:
Innovations such as fuel-efficient tyres, run-flat tyres, and smart tyres with sensors improve vehicle performance and safety, driving consumer preference.

Electric Vehicles (EVs) Adoption:
The rising penetration of EVs creates demand for specialized tyres designed for lower rolling resistance, durability, and noise reduction.

Sustainability Trends:
Growing focus on eco-friendly tyres made from sustainable materials attracts environmentally conscious consumers and supports regulatory compliance.

E-commerce and Distribution Expansion:
Online platforms for tyre sales and doorstep delivery services are making replacement tyres more accessible, particularly in urban areas.

Expert Market Insight:

According to market research, the combination of increasing vehicle sales, rapid urbanization, and innovations in tyre technology are expected to remain the primary drivers for market expansion over the next decade. Emerging markets offer untapped potential, while developed markets are increasingly shifting towards high-performance and eco-friendly tyres.