Automotive and Transportation

Electric Vehicle Tires Market is Expected to Reach USD 133.13 Billion by 2031

Mar 2024

Automotive and Transportation

As per the report published by Kings Research, 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 escalating demand for electric vehicles is poised to significantly bolster the growth trajectory of the electric vehicle tires market. As consumers and businesses increasingly prioritize sustainability and environmental consciousness, the adoption of EVs continues to surge globally. This burgeoning demand for EVs underscores the critical importance of specialized tires tailored to meet the unique performance requirements of electric vehicles. With EVs becoming increasingly mainstream and governments worldwide promoting clean energy initiatives, the electric vehicle tires market is primed for substantial expansion. This trend signifies lucrative opportunities for tire manufacturers to capitalize on the burgeoning EV market and cater to evolving consumer preferences. Key drivers fueling the demand for EV tires include the increasing adoption of electric vehicles worldwide, government incentives and regulations promoting clean transportation solutions, and advancements in tire technology to meet the evolving needs of electric vehicles.

Key Insights

  • Based on vehicle type, the passenger vehicles segment is anticipated to depict the highest CAGR of 16.16% over the forecast period
  • Based on technology, the radial segment is expected to generate the highest revenue of USD 101.86 billion by 2031
  • Based on tire size, the above 18” segment is expected to grow at a robust CAGR of 16.80% between 2024 and 2031
  • Based on propulsion, the FCEV segment is likely to grow at the robust CAGR of 16.88% through the forecast period
  • Based on distribution channel, the OEM segment garnered the highest revenue of USD 35.20 billion in 2023
  • On the basis of region, North America is expected to witness the highest CAGR of 17.08% through the projected period

Pirelli Collaborates with Porsche to Solidify the Expansion of Electric Vehicle Tires

January 2024: Pirelli was selected as the original equipment manufacturer for the new Porsche Cayenne. This latest collaboration between Pirelli and Porsche further solidified their partnership, with P Zero range offerings available for all Cayenne wheel sizes, marking a significant milestone in their ongoing joint development efforts.

Increasing Demand for Replacement Tires to Create Potential Growth Opportunities

The increasing demand for replacement tires, driven by the growing adoption of electric vehicles and the need for specialized electric vehicle (EV) tires, is expected to present lucrative growth opportunities in the market. As electric vehicles become more prevalent on the roads, the need for replacement tires tailored for electric vehicles is likely to rise. This presents an opportunity for tire manufacturers to capitalize on the aftermarket segment by offering a wide range of replacement EV tires designed to meet the specific requirements of electric vehicles. Additionally, as electric vehicle owners seek high-quality tires to optimize the performance and longevity of their vehicles, there is a growing demand for premium replacement EV tires, further expanding the market opportunities for the market.

Lack of Awareness Regarding the Benefits of Electric Vehicle Tires to Hamper Market Development

The lack of awareness among consumers regarding the benefits of electric vehicle (EV) tires presents a significant challenge for market expansion. While EV tires offer various advantages, including improved safety, efficiency, and performance compared to traditional tires, numerous consumers may not be aware of these benefits. This lack of awareness could hinder the adoption of EV tires, especially among consumers transitioning from conventional internal combustion engine vehicles to electric vehicles. Additionally, the perception of higher initial costs associated with EV tires compared to traditional tires may deter consumers from considering EV tires. Addressing this challenge requires tire manufacturers to educate consumers about the advantages of EV tires through targeted marketing campaigns, highlighting their long-term benefits and cost savings.

North America to Experience the Highest CAGR of 17.08% Over the Forecast Period

Based on region, the global advanced materials for electric vehicle tires market is classified into North America, Europe, Asia Pacific, MEA, and Latin America. North America is expected to emerge as the fastest-growing region in the foreseeable future. This notable growth can be attributed to several factors, including the increasing adoption of electric vehicles in the region, supported by government incentives, favorable regulatory policies, and growing environmental consciousness among consumers. Additionally, leading EV manufacturers and tire companies are investing heavily in research and development to innovate new EV tire technologies, thereby contributing to the anticipated market growth in North America. The region's well-established automotive industry and infrastructure for electric vehicles, including charging networks, further position it for significant growth in the EV tires market. As electric vehicles continue to gain traction in North America, the demand for specialized EV tires is expected to surge, thereby driving the regional market growth.

Surging Focus of Market Players on Product Launches to Drive Market Development

The global electric vehicle tires market is fragmented with key players such as 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. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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