Growth Outlook: Australia Tire Market Forecast Through 2030

The Australian tire market is undergoing a transformative phase, driven by technological advancements, evolving consumer preferences, and a heightened focus on sustainability. As the automotive landscape shifts towards electric vehicles (EVs) and digital commerce, the tire industry is poised to capitalize on these changes, ensuring robust growth in the coming years.

Industry Key Highlights

• Market Valuation: In 2024, the Australian tire market was valued at approximately USD 2.40 billion and is projected to reach USD 3.08 billion by 2030, growing at a CAGR of 4.2% during the forecast period.

• Dominant Segments: Passenger car tires continue to dominate the market, accounting for over 69% of the total share, driven by the increasing sales and fleet size of passenger vehicles.

• Construction Type: Radial tires hold a significant market share, comprising nearly 75% of the total, owing to their widespread use in passenger cars and the growing fleet of such vehicles.

• Sales Channels: While offline sales remain predominant, online sales are witnessing rapid growth due to the convenience and competitive pricing offered by e-commerce platforms.

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Market Drivers

1. Rising Vehicle Ownership

Australia has experienced a consistent increase in vehicle ownership, with annual vehicle sales exceeding 1.24 million units in 2024, marking a 6.8% year-over-year growth. This surge is primarily led by SUVs and light commercial vehicles, which together constitute a significant portion of new vehicle sales. 

2. Expansion of the Automotive Aftermarket

The aging vehicle fleet and the increasing average age of vehicles have bolstered the demand for replacement tires. The automotive aftermarket sector in Australia is experiencing robust growth, driven by the need for maintenance and replacement parts, including tires.

3. Technological Advancements in Tire Manufacturing

Innovations in tire technology, such as the development of eco-friendly materials and designs optimized for fuel efficiency, are attracting consumers seeking sustainable and cost-effective solutions. Manufacturers are focusing on producing tires that cater to the specific needs of electric vehicles, which require tires with lower rolling resistance and enhanced durability.

4. Growth of Electric Vehicles (EVs)

The adoption of electric vehicles in Australia is on the rise, with EVs accounting for 9.5% of all new car sales in 2024, up from 8.4% in 2023. This trend is expected to continue, driven by government incentives and the introduction of new vehicle efficiency standards.

Emerging Trends

1. Shift Towards Online Tire Sales

The convenience of online shopping has led to a significant increase in online tire sales, which surged by 35% in 2024. Platforms like Tyroola and Beaurepaires are leveraging AI-driven fitment tools to enhance the customer experience, making it easier for consumers to select and purchase the right tires for their vehicles.

2. Integration of Sustainable Practices

Environmental concerns are prompting manufacturers to adopt sustainable practices, such as using eco-friendly materials and implementing recycling programs. These initiatives not only reduce the environmental impact but also appeal to environmentally conscious consumers.

3. Development of EV-Specific Tires

The unique requirements of electric vehicles, including higher torque and weight, necessitate the development of specialized tires. Manufacturers are focusing on creating tires that offer improved durability, reduced rolling resistance, and enhanced performance to meet the demands of EVs.

Competitive Analysis

The Australian tire market is characterized by the presence of several key players who are actively engaged in product innovation, strategic partnerships, and expansion initiatives. Notable companies include:

• Bridgestone Corporation: A leading player known for its extensive product portfolio and commitment to sustainability.

• Michelin Group: Renowned for its focus on innovation and the development of high-performance tires.

• Goodyear Tire & Rubber Company: Offers a wide range of tires catering to various vehicle types and driving conditions.

• Continental AG: Emphasizes technological advancements and safety features in its tire offerings.

• Pirelli & C. S.p.A.: Specializes in premium tires, particularly for high-performance vehicles.

These companies are investing in research and development to introduce innovative products that meet the evolving needs of consumers and comply with regulatory standards.

Future Outlook

The Australian tire market is poised for steady growth through 2030, driven by increasing vehicle ownership, advancements in tire technology, and the rising adoption of electric vehicles. The integration of sustainable practices and the expansion of online sales channels are expected to further propel the market. Manufacturers focusing on innovation and customer-centric strategies will be well-positioned to capitalize on emerging opportunities in this dynamic landscape.

10 Benefits of the Research Report

1. Comprehensive Market Analysis: Provides an in-depth understanding of market dynamics, trends, and forecasts.

2. Segmentation Insights: Offers detailed insights into market segments based on vehicle type, tire construction, sales channel, and region.

3. Competitive Landscape: Analyzes key players, their strategies, and market positioning.

4. Emerging Trends Identification: Highlights upcoming trends and technological advancements shaping the market.

5. Regulatory Framework Overview: Examines the impact of government policies and regulations on the market.

6. Consumer Behavior Analysis: Explores changing consumer preferences and purchasing patterns.

7. Investment Opportunities: Identifies potential areas for investment and growth within the market.

8. Risk Assessment: Evaluates potential challenges and risks affecting market growth.

9. Strategic Recommendations: Provides actionable insights for stakeholders to formulate effective strategies.

10. Data-Driven Forecasting: Utilizes robust data analytics to project market growth and trends accurately.

Conclusion

The Australian tire market is on a trajectory of sustained growth, underpinned by technological innovation, evolving consumer preferences, and a commitment to sustainability. As the automotive industry continues to evolve, stakeholders who embrace these changes and adapt their strategies accordingly will be best positioned to thrive in this dynamic market.

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