The Electric Vehicle Tire Market caters to the rising demand for wheels and tires in electric vehicles. Electric vehicle tires are optimized for battery powered cars and have features like lower rolling resistance to improve driving range while reducing noise levels and vibrations. Made from advanced rubber compounds, electric vehicle tires are designed to effectively distribute weight and provide braking support over long distances.
The Global Electric Vehicle Tire Market is estimated to be valued at US$ 3.42 Bn in 2024 and is expected to exhibit a CAGR of 21.9% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the electric vehicle tire are Michelin, Bridgestone, Continental, Goodyear, Pirelli and Sumitomo Rubber Industries. These tire manufacturers are ramping up production capacities and introducing new EV tire models optimized for different vehicle segments.
Growing demand for electric mobility is a major driver for the Electric Vehicle Tire Market Growth. With many countries planning to ban new ICE vehicle sales between 2025 to 2035, electric car sales are projected to rise exponentially over the coming decade. This will translate to a huge demand for replacement tires from the growing electric vehicle parc.
The Electric Vehicle Tire Market is seeing increased globalization with major players setting up new plants in countries with strong EV adoption. Both Chinese and European tire makers are expanding manufacturing footprints in key EV markets like the US, Japan and major European nations to cater to the burgeoning local demand.
Market key trends
One of the key trends in the Electric Vehicle Tire Market is the development of tires optimized for performance EVs and SUVs. As automakers introduce high-powered electric sports cars and luxury SUVs, tire makers are coming up with larger wide tires featuring reinforced sidewalls and advanced tread compounds for enhanced grip and braking in these heavy battery powered vehicles. Another trend is the emergence of smart tires integrated with sensors to monitor pressure, temperature and wear. These connected tires provide real-time data to automakers and users on tire health and performance.
Threat of new entrants: The massive investments required for manufacturing electric vehicle tires pose high entry barriers for new players in this growing market.
Bargaining power of buyers: The presence of many established tire brands gives buyers more options and bargaining power to negotiate lower prices for electric vehicle tires.
Bargaining power of suppliers: Raw material suppliers hold some bargaining power over tire manufacturers due to supply constraints of certain specialty compounds used in electric vehicle tires.
Threat of new substitutes: No close substitute exists for tires in the electric vehicle market currently, lowering the threat from new substitutes for tire makers.
Competitive rivalry: Leading tire brands are investing heavily in R&D to develop advanced silent tires customized for performance electric vehicles, intensifying competition.
Geographical Regions
Asia Pacific region currently holds the largest share of the global Electric Vehicle Tire Market value mainly due to high electric vehicle adoption in countries like China.
North America region is projected to witness the fastest growth in the Electric Vehicle Tire Market during the forecast period. This can be attributed to supportive government policies and huge investments by auto manufacturers to boost electric vehicle production and sales in the US and Canada.
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