The Global Automotive Tire Market was valued at US$ 112.18 billion in 2020, and it is expected to reach USD 154.42 billion by 2027, with a CAGR of 4.1, during the forecast period (2021-2027).
Increasing average life and concern towards maintenance and safety has fostered the growth for Global Automotive Tire Industry
Automotive tire is a vehicle component usually made up of rubber whose main function is to protect the wheel rim. Owing to this, tire has wide applications in two wheelers, commercial vehicles, passenger vehicles and others. The automotive tire market is witnessing growth due to the increasing concern towards maintenance and safety. Governing bodies in various countries have updated their safety regulations progressively in response to rising road accident rates, which is further driving the global automotive tire market growth. To reduce escalating accident rates, many countries are mandating the installation of advanced automotive tires in automobiles. For instance, in February 2021, the UK Government passed a new law which states tires that are more than 10 years old cannot be used on the front steered axles of buses, HGVs and all single wheels fitted to a minibus to improve the road safety in the country.
The emerging use of advanced technology in the manufacturing process, such as use of bio-oils in the manufacturing process of tires that promotes ecological tire manufacturing process further helps in propelling the market. Various other factors such as surge in automotive production & sales across different vehicle segments and increase in competition among tire manufacturers are also responsible for fuelling the growth of global automotive tire market. Moreover, the increased average life of vehicles, growing miles driven per year also trigger the global tire sales. The United States Department of Transportation Federal Highway Administration states that Americans drive an average of 13,476 miles per year. Since the tires needs to be optimally changed after 25000 miles, there is a need in U.S. for tires to be changed at approximately every 1.8 years. In addition, rising adoption of Low Rolling Resistance (LRR) and self-inflating technology by the automotive tire manufacturers owing to the rising awareness about the fuel efficiency is expected to propel the market demand in the coming years. LRR tires helps in reducing the wasted energy and reduces the required rolling effort, with the growing pressure to enhance and improve the fuel mileage has enforced all the automotive tire manufacturers to adopt these tires.