Electric Vehicle Tires Market

Market Perspective

The global Electric Vehicle Tires Market was valued at USD 45.82 billion in 2023 and is projected to reach USD 133.13 billion by 2031, growing at a CAGR of 14.49% from 2024 to 2031.

The electric vehicle (EV) tires market is witnessing robust growth globally, driven by several factors including the increasing adoption of electric vehicles, advancements in tire technology, and growing environmental consciousness among consumers. As governments worldwide continue to implement stricter emission regulations and incentives to promote electric vehicle adoption, the demand for EV tires is expected to surge. Furthermore, tire manufacturers are investing heavily in research and development to innovate new tire technologies tailored specifically for electric vehicles, focusing on factors such as rolling resistance, noise reduction, and longevity. With the EV market poised to observe exponential growth in the coming years, the EV tires market outlook remains highly positive, presenting lucrative opportunities for tire manufacturers to capitalize on this expanding market.

Analyst’s Review on Electric Vehicle Tires Market

Rising adoption of the Internet of Things (IoT) in EVs is poised to significantly boost the growth of the electric vehicle (EV) tires market in the forecast years. IoT technology enables real-time monitoring of tire conditions, including tire pressure, temperature, and tread wear, offering enhanced safety, efficiency, and performance of electric vehicles. This technology allows for predictive maintenance, where potential tire issues can be identified and addressed proactively, reducing the risk of accidents and downtime. As the automotive industry increasingly integrates IoT solutions into electric vehicles, the demand for smart tires equipped with IoT sensors is expected to surge, driving the growth of the EV tires market in the foreseeable future.

Market Definition

Electric vehicle tires are specialized tires designed to meet the unique requirements of electric vehicles. These tires are engineered to accommodate the instant torque delivery and heavier weight characteristic of electric vehicles, offering enhanced safety, efficiency, and performance. Key applications of electric vehicle tires include passenger cars, commercial vehicles, and electric buses. In terms of regulations, governments worldwide are implementing stricter emission standards and fuel efficiency regulations, which are influencing tire design and manufacturing processes. Regulations aimed at reducing carbon emissions are driving the adoption of eco-friendly tire materials and designs in the electric vehicle segment, further shaping the regulatory landscape for electric vehicle tires.

Market Dynamics

The increasing demand for electric vehicles (EVs) is expected to significantly augment the growth of the electric vehicle tires market in the coming years. Factors driving this demand include growing environmental concerns, government incentives, and technological advancements in battery technology, leading to improved range and performance of electric vehicles. As consumers increasingly shift toward electric vehicles as a more sustainable transportation option, the demand for specialized tires tailored for electric vehicles is poised to surge. This growing demand presents lucrative opportunities for tire manufacturers to capitalize on the expanding electric vehicle market and cater to the specific tire requirements of these vehicles.

The lower lifespan and higher cost of EV tires could potentially restrict electric vehicle tires market growth. Electric vehicle tires are subjected to unique challenges compared to traditional internal combustion engine vehicle tires, including higher torque loads, increased weight, and specific performance requirements. These factors can lead to accelerated tire wear and reduced lifespan, resulting in more frequent tire replacements for electric vehicles. Additionally, the specialized design and materials required for EV tires can contribute to higher manufacturing costs, which may deter some consumers from adopting electric vehicles. Addressing these challenges through technological advancements and cost-effective manufacturing processes will be crucial for overcoming this restraint and unlocking the full potential of the electric vehicle tires market.

Segmentation Analysis

The global electric vehicle tires market is segmented based on vehicle type, technology, tire size, propulsion, and geography.

Based on vehicle type, the electric vehicle tires market is categorized into passenger vehicles, commercial vehicles, and buses & trucks. The passenger vehicles segment dominated the market with a share of 44.52% in 2023 owing to the significant increase in the adoption of electric passenger cars worldwide. As consumers increasingly prioritize sustainability and seek alternatives to traditional internal combustion engine vehicles, the demand for electric passenger cars has been on the rise. Electric passenger cars require specialized tires designed to meet their unique requirements, including factors such as instant torque delivery, reduced rolling resistance, and enhanced longevity. This trend has propelled the growth of the passenger vehicles segment within the EV tires market, positioning it as the leading segment in terms of market share.

Based on technology, the market is bifurcated into radial and bias. The radial segment is anticipated to witness the fastest growth at a 14.82% CAGR over the forecast period owing to the numerous advantages offered by radial tires, including superior performance, efficiency, and durability. Radial tires feature a radial ply construction that allows for better heat dissipation, improved fuel efficiency, and enhanced traction compared to bias-ply tires. As electric vehicles continue to gain traction globally, the demand for radial tires specifically designed for electric vehicles is expected to surge, driving the growth of the radial segment within the EV tires market at a rapid pace.

By propulsion, the market is categorized into up to 14”, 15-18”, and above 18”. The 15-18” segment garnered the highest valuation of USD 20.03 billion in 2023 owing to the increasing adoption of electric vehicles (EVs) equipped with larger wheel sizes worldwide. Electric vehicles often feature larger wheel sizes ranging from 15 to 18 inches to accommodate their unique design requirements and performance characteristics. These larger wheel sizes offer improved handling, stability, and aesthetics for electric vehicles, driving the demand for tires in the 15-18” segment. Additionally, consumers often opt for larger wheel sizes to enhance the overall appearance and performance of their electric vehicles, further contributing to the higher valuation of the 15-18” segment within the EV tires market.

Geographical Analysis

Based on region, the global electric vehicle tires market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

Asia Pacific dominated the electric vehicle tires market in 2023 with the highest valuation of USD 13.12 billion, accounting for a significant share of the global market revenue. The dominance of Asia Pacific in the EV tires market can be attributed to several factors, including the rapid adoption of electric vehicles in countries viz., China, Japan, and South Korea, supported by government incentives and initiatives to promote clean transportation solutions. Furthermore, the presence of leading tire manufacturers in the region, coupled with investments in research and development to innovate new tire technologies tailored for electric vehicles, has further bolstered the growth of the electric vehicle tires market in Asia Pacific. With the Asia Pacific poised to continue leading the electric vehicle market in the coming years, the outlook for the regional electric vehicle tires market remains highly promising.

Competitive Landscape

The global electric vehicle tires market report will provide valuable insight with an emphasis on the fragmented nature of the sector. Prominent players are focusing on several key business strategies, such as partnerships, mergers and acquisitions, innovations in vehicles, and joint ventures to expand their technology portfolio, and increase their respective market shares across different regions. Expansion & investments are the major strategic initiatives adopted by companies in this sector. Industry players are investing heavily/extensively in R&D activities, building new manufacturing facilities, and supply chain optimization. 

The major manufacturers in the Electric Vehicle Tires Market are:

• Sumitomo Rubber Industries, Ltd.
• Michelin
• Pirelli & C. S.p.A.
• Nokian Tyres plc
• Apollo Tyres Ltd
• Bridgestone Corporation
• The Goodyear Tire & Rubber Company
• Sailun Tire
• Hankook Tire & Technology
• Continental AG
• THE YOKOHAMA RUBBER CO., LTD.

Key Developments

• January 2024 (Launch): Goodyear Tire & Rubber Company introduced the newest addition to its ElectricDrive lineup, Goodyear ElectricDrive 2. This all-season EV tire features sustainable materials, reduced rolling resistance, and extended tread life, promising optimal EV performance.
• July 2023 (Launch): Yokohama Rubber Co., Ltd unveiled the ADVAN Sport EV, an ultra-high performance summer tire for electric vehicles (EVs), in international markets, including Europe, offering it in 16 different sizes.
• February 2023 (Launch): The Goodyear Tire & Rubber Company launched RangeMax RSD EV, marking Goodyear's debut in electric vehicle-ready tires. These tires are compatible with both EVs and traditional gas or diesel-powered vehicles.

The global Electric Vehicle Tires Market is segmented as:

By Vehicle Type

• Passenger Vehicles
• Commercial Vehicles
• Buses & Trucks

By Technology

• Radial
• Bias

By Tire Size

• Up to 14”
• 15-18”
• Above 18”

By Propulsion

• BEV
• HEV
• PHEV
• FCEV

By Distribution Channel

• OEM
• Aftermarket

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America.