by The electric vehicle tire market has witnessed significant growth over the past decade, supported by the rising adoption of electric vehicles globally. Electric vehicles offer zero-emissions and lower operating costs compared to conventional gasoline variants. The growing awareness regarding the environmental hazards of vehicular pollution has further encouraged the shift towards electric mobility. Electric vehicle tires are specifically engineered to withstand the higher weight and performance requirements of electric vehicles. They are designed to effectively dissipate the heat generated during driving as electric vehicles produce more heat than gasoline ones. The electric vehicle tires also feature technologies such as noise cancellation and low rolling resistance to enhance mileage.
The Global Electric Vehicle Tire Market is estimated to be valued at US$ 3.42 Bn in 2024 and is expected to reach US$ 13.71 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 21.9% from 2024 to 2031.
Key Takeaways
Key players operating in the electric vehicle tire are Apollo Tyres, Bridgestone Corporation, Continental AG, Falken Tire, Goodyear Tire and Rubber Company, Hankook Tire and Technology Co., Ltd., Michelin, Nokian Tyres plc, Pirelli & C. S.p.A., Sumitomo Rubber Industries, Ltd., The Cooper Tire & Rubber Company, Toyo Tire Corporation, Trelleborg AB, Yokohama Rubber Co., Ltd., and Zhongce Rubber Group Company Limited. Key players are investing heavily in the research & development of advanced technologies to manufacture durable and high-performance electric vehicle tires.
The Electric Vehicles Tire Market Demand has surged in recent years due to stricter emission norms, rising environmental consciousness, and favourable government policies promoting clean mobility. As electric vehicles are expected to account for over 30% of new car sales globally by 2030, the demand for specialized electric vehicle tires is projected to increase substantially over the coming years.
Leading tire manufacturers are focusing on expanding their global footprint to tap the growing demand for electric vehicle tires worldwide. For instance, Bridgestone plans to set up a new electric vehicle tire plant in Japan by 2024. Meanwhile, brands like Michelin and Continental are enhancing their R&D and manufacturing capabilities across key markets like China, Europe and North America.
Market Key Trends
One of the key trends gaining traction in the Electric Vehicle Tire Market Size and Trends is the increasing demand for self-inflating tires. Traditional pneumatic tires are prone to punctures and require routine maintenance like refilling. In contrast, self-inflating tires contain sealed compartments of non-compressible fluid or foam instead of air. This eliminates the risks of tire deflation and also reduces rolling resistance, thereby improving fuel efficiency of electric vehicles. Leading manufacturers like Michelin and BASF are collaborating to develop sustainable self-inflating tires using advanced materials. Such innovations are expected to define the future evolution of the electric vehicle tire industry.
Porter’s Analysis
Threat of new entrants: The electric vehicle tire industry requires high level of research and development and manufacturing facilities which requires large investment. This creates barrier for new companies.
Bargaining power of buyers: Large vehicle manufacturers have strong bargaining power which affects pricing and supply terms for tire manufacturers.
Bargaining power of suppliers: Tire manufacturers source raw materials like rubber from limited number of suppliers globally which gives them bargaining power.
Threat of new substitutes: There are no close substitutes for tires currently. However, 3D printing technology may pose threat in future.
Competitive rivalry: Being an essential component, electric vehicle tire industry sees intense competition among existing major manufacturers.
Geographical Regions
Currently, Asia Pacific region accounts for the largest share in electric vehicle tire market in terms of value due to presence of large EV manufacturers and increasing sales of electric vehicles in China.
The electric vehicle tire market in Europe is expected to witness fastest growth during the forecast period. This is attributed to favorable government policies and regulations supporting adoption of electric vehicles for achieving carbon neutral goals in countries like Germany, France, Norway etc. Growing concern over pollution is also driving the EV tire market in Europe.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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