Global tire market projected to reach $365.5 billion by 2032

The global four-wheeler tire market is projected to grow from $187.5 billion in 2023 to $365.5 billion by 2032, representing a compound annual growth rate (CAGR) of 7.7%, according to research from Astute Analytica.

Growth is being driven by the rapid expansion of the electric vehicle (EV) market, increasing urbanization, and rising demand for commercial vehicles. EVs require specialized tires capable of handling higher vehicle weights and instant torque, leading to increased demand for low-rolling-resistance and high-durability products. Additionally, the development of smart tires equipped with sensors for real-time monitoring of pressure, temperature, and wear is becoming a key technological trend.

In Japan, the market is expected to see even more rapid growth, expanding from $14.78 billion in 2023 to $33.59 billion by 2032, a CAGR of 9.74%. This surge is attributed to the acceleration of electrification, smart mobility, and the demand for high-performance, environmentally friendly tires within the Japanese automotive sector.