Pneumatic Tire - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, the pneumatic tire market size is projected to expand from USD 417.34 billion in 2025 and USD 437.04 billion in 2025 to USD 550.39 billion by 2030, registering a CAGR of 4.72% between 2025 to 2030.

This report is Segmented by Tire Type (Radial Tires and Bias Tires), Distribution Channel (OEM and Aftermarket), Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, Two-Wheelers, and Off-The-Road Vehicles), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

Global Pneumatic Tire Market Trends and Insights

Rising Demand for Fuel-Efficient and High-Performance Tires

Fleet operators are focusing on reducing rolling resistance to comply with the Corporate Average Fuel Economy (CAFE) standards, which will become stricter starting with model-year 2027. This has led to the use of silica-rich tread compounds and bio-based oils that lower hysteresis without affecting wet grip, as noted by the National Highway Traffic Safety Administration (NHTSA). Products such as Continental EcoContact and Michelin e.Primacy, which holds A-ratings for European Union (EU) fuel-efficiency labels, demonstrates that high performance can align with safety requirements. Additionally, the increased torque of electric vehicles (EVs) raises tire wear rates by approximately 20%, prompting original equipment manufacturers (OEMs) to require reinforced sidewalls and optimized tread patterns to extend tire service life. These advancements enable suppliers to maintain price premiums in the pneumatic tire market. Technological innovation continues to drive growth in high-performance tire segments, outpacing overall replacement market growth.

Expansion of E-Commerce and Logistics Fleets

The United States Postal Service (USPS) plans to deploy 106,000 next-generation delivery vehicles by 2028, with 66,000 of these being battery-electric vehicles. This shift highlights the increasing urban delivery mileage. Goodyear's USD 320 million upgrade to its Lawton facility aims to expand production capacity for low-noise tires with reinforced sidewalls, specifically designed for residential delivery routes. In markets like India and Indonesia, the rapid growth of online shopping is driving light-commercial fleets to transition from bias-ply to radial tires, which are better suited for managing heat during frequent stop-start cycles. As parcel volumes increase, fleet managers are adopting data-enabled tires that integrate with telematics systems, thereby increasing switching costs. These trends collectively contribute to incremental revenue growth in the pneumatic tire market.

Tighter Environmental Rules on Disposal and Micro-Plastics

Euro 7 regulations introduce stricter particulate limits, with further tightening expected by 2032. Additionally, 24 United States (U.S.) states have implemented Extended Producer Responsibility (EPR) laws, transferring disposal costs to manufacturers. The use of harder tread compounds, while addressing durability, can affect wet-grip performance, necessitating new investments in silica dispersion and polymer cross-linking technologies to maintain safety standards. According to the Pew Charitable Trusts, tire and brake wear is projected to account for 90% of road-transport particulates by 2050, leading to increased regulatory scrutiny. Compliance with these regulations is estimated to raise unit costs by 2%-4%, impacting price competitiveness, particularly for low-margin suppliers in the pneumatic tire market.

Other drivers and restraints analyzed in the detailed report include:

1. Accelerated Aftermarket Demand from Ageing Vehicle Parc
2. Stringent Tire-Efficiency and Labeling Regulations
3. Counterfeit and Low-Quality Tire Influx in Developing Markets

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Radial tires accounted for 77.12% of market value in 2025, driven by regulatory emphasis on fuel efficiency and high-speed safety. Bias tires are projected to grow at a compound annual growth rate (CAGR) of 5.15% through 2031, surpassing the overall pneumatic tire market CAGR. In India, with a two-wheeler base exceeding 220 million units, bias tires remain popular due to their puncture resistance and affordability, particularly among rural users. Similarly, in Sub-Saharan Africa, bias tires are preferred for light trucks and three-wheelers operating on unpaved roads. Radial tires continue to dominate revenue generation, especially in electric vehicles. Bridgestone's JPY 27 billion (USD 0.17 billion) investment in Japan has expanded capacity for high-rigidity radial tires designed for heavier electric vehicle (EV) battery packs.

Bias tire manufacturers are also modernizing. Companies like Zhongce Rubber and Triangle Tire are enhancing their engineering tire lines to cater to the mining and construction sectors, where radial advantages are less pronounced. Meanwhile, Continental's plant in Thailand focuses on motorcycle and EV radial tires, which improve ride quality and torque management. As manufacturers aim to balance performance and sustainability, they are diversifying their product portfolios to address varied use cases across the pneumatic tire market.

Geography Analysis

Asia-Pacific accounted for 44.15% of the market value in 2025 and is projected to grow at a compound annual growth rate (CAGR) of 5.49% through 2031. This growth is supported by China's annual output of 840 million units, India's transition to radial tires, and the expansion of commercial vehicle markets in ASEAN (Association of Southeast Asian Nations) countries. Linglong's USD 750 million Anhui plant adds 14 million units to its capacity, while ZC Rubber's 5G-enabled Hangzhou facility doubles its output to 20 million passenger radials. These developments address regional demand and enhance export capabilities, reinforcing Asia-Pacific's role in the pneumatic tire market.

North America shows slower volume growth but benefits from higher per-unit values due to the increasing adoption of premium electric vehicle (EV) tires. The United States Tire Manufacturers Association (USTMA) projects 340.4 million shipments in 2025, reflecting a modest 0.9% volume growth. However, an improved price mix is expected to drive revenue. Goodyear's USD 320 million expansion in Lawton and a CAD 575 million (USD 415.16 million) modernization project in Canada focus on producing sensor-ready, low-noise EV tires. Meanwhile, Europe faces cost challenges, with German production declining by 4.3% in 2024. Additionally, Continental closed its Malaysian Alor Setar plant to reduce high-cost capacity.

South America and the Middle East & Africa remain smaller markets but hold strategic importance. Linglong's joint venture in Brazil circumvents anti-dumping tariffs and supplies tires to Mercosur assemblers. In the Middle East, infrastructure development in Saudi Arabia and the United Arab Emirates (UAE) drives demand, although currency volatility dampens investment enthusiasm. In Africa, counterfeit products account for up to 40% of replacement tire sales, posing challenges for legitimate players in the pneumatic tire market.

1. Apollo Tyres Ltd
2. Bridgestone
3. Continental AG
4. Giti Tire
5. Hankook Tire & Technology
6. Kumho Tire Co., Inc.
7. Linglong Tire
8. Maxxis International
9. Michelin
10. MRF Tyres
11. Nokian Tyres plc
12. Pirelli & C. S.p.A.
13. Sailun Group Co., Ltd
14. Sumitomo Rubber Industries, Ltd
15. The Goodyear Tire & Rubber Company
16. The Yokohama Rubber Co., Ltd
17. Toyo Tire Corporation
18. Zhongce Rubber Group Co., Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support