Tire industry statistics 2024

Tire industry statistics

The U.S. and global tire industry is dominated by tires manufactured for passenger vehicles. As of 2022, replacement and OE passenger tires dominated the U.S. market, with 216.1 million units and 41.5 million units shipped, respectively. Light trucks also account for a noteworthy portion of the market, with 37 million replacement units and 6.2 million OE units shipped. However, this is still significantly lower than the number of passenger tires shipped.

How large is the tire industry?

As of 2024, the global tire industry is valued at $142.7 billion. With a CAGR of 5% between 2023 and 2032, that valuation is expected to reach $211.6 billion by 2032.

Passenger vehicles and their increasing global sales are the main contributors to this growth. Between 2020 and 2023, global unit sales increased from 56.63 million to 69.72 million. As of 2024, passenger vehicles accounted for 46.3% of the market’s total revenue share. In addition, the ever-increasing global population, combined with rising disposable income, stimulates market growth.

Historical tire market size

In the decade between 2014 and 2024, the global tire industry grew at a CAGR of 6.6%. While growth is expected to slow down between 2023 and 2032, the industry is forecasting a healthy growth rate. Between 2022 and 2024, the industry grew by 9.3%, from $130.5 billion to $142.7 billion.

Who are the key players in the tire industry?

Michelin was the largest company in the tire industry by sales in 2022, with a global market share of 15.1%. Bridgestone was the second largest firm, with a market share of 14.2%. However, in 2021, Bridgestone was the largest company based on revenue, at $29.54 billion, while Michelin’s revenue trailed slightly at $28.15 billion.

Additional key players by revenue in the global tire industry include Goodyear ($17.47 billion) and Continental ($13.04 billion). Other major companies include:

• Pirelli Tyre C. S.p.A. (China National Chemical Corporation)
• Toyo Tire Group Global
• Hankook Tire & Technology
• The Yokohama Rubber Co., Ltd.
• Sumitomo Rubber Industries, Ltd.
• Nokian Tyres plc.

Europe is the most prominent region for automobile and automotive parts sales. Strong demand from larger markets will likely drive the sales of new cars on the continent. Michelin, one of the largest players in the industry, is based in Clermont-Ferrand, France. Furthermore, Europe is famous for car racing and other tire-reliant sports activities, propelling the demand for advanced and intelligent tires.

Tire industry by region

The Asia-Pacific region is the fastest-growing tire market, accounting for over 40% of the industry in 2015, with a CAGR of more than 6% from 2016 to 2024. The largest tire market in the world is still China, however, it has been shrinking for the past three years. In 2020, China-based sales plunged over 6% to 19.29 million passenger vehicles. Japan also experienced a dip in auto tire sales in 2020, partially due to COVID-19, with the market falling by 17% (36,439,000 units). However, unlike China, demand recovered in Japan in the second half of 2020 with strong new vehicle production.

India, on the other hand, has a massive Asia-Pacific tire market that has been consistently growing. Passenger vehicle sales rose after Q3 2020, with October 2020 sales jumping 14.19% year-over-year (3,10,294 units) compared to October 2019. November 2020 continued positive growth (4.17%).

How much do tires cost?

The average cost of tires varies based on region, brand, size, type and quality. However, the average U.S. costs are as follows:

• Inexpensive tires: These tires will generally be in the range of $50 to $150 each. They offer basic functionality for car owners on a tight budget or those only planning to keep their vehicle for a short time.
• Moderately priced tires: With an average cost between $100 and $300 each, these tires balance performance with cost. Used for a wide range of driving conditions, these tires typically offer better quality and longevity than their more inexpensive counterparts.
• High-end tires: Ultra-high performance or specialty off-road tires can cost anywhere from $300 to $1,000 each. These tires are designed for specific conditions and driving styles, offering superior performance, durability and safety features.

When considering the cost of tires, remember that they play a crucial role in vehicle safety. Though more expensive, high-end tires can offer better traction, braking power and resistance to hydroplaning, along with a longer life span and mileage warranty. Such an investment can provide a more reliable and enjoyable driving experience.

However, cheaper tires can be a viable option when you plan to sell your vehicle or lack the budget for high-end options. Just keep in mind that the decision may come with trade-offs in performance and safety.

References

1. “Automotive Tire Market.” Precedence Research. Evaluated May 20, 2024.Link Here
2. “Passenger Cars - Worldwide.” Statista. Evaluated May 24, 2024.Link Here
3. “Automotive Tire Market Size, Share & Trends Analysis Report By Type.” Grand View Research. Evaluated May 27, 2024.Link Here
4. “Selected tire manufacturers' share of the global tire market in 2022.” Statista. Evaluated May 27, 2024.Link Here
5. “The world's largest tire producers in FY 2021, based on tire-related revenue.” Statista. Evaluated May 27, 2024.Link Here
6. “Automotive Tire Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029).” Mordor Intelligence. Evaluated May 28, 2024.Link Here
7. “Understanding The Total Price Of Tires.” Tirebuyer. Evaluated May 28, 2024.Link Here
8. “Economy.” U.S. Tire Manufacturers Association. Evaluated May 28, 2024.Link Here
9. “USTMA February 2024 forecast predicts higher 2024 tire shipments for U.S. tire market.” U.S. Tire Manufacturers Association. Evaluated May 28, 2024.Link Here
10. “Shipments of U.S. tires in 2022, by category.” Statista. Evaluated May 28, 2024.Link Here