The global electric vehicle (EV) tire market is projected to surge significantly, reaching an estimated value of $13.71 billion by 2031, according to a report by Coherent Market Insights. The market, valued at $3.42 billion in 2024, is anticipated to grow at a compound annual growth rate (CAGR) of 21.9% during the forecast period, driven by rising EV sales and technological innovations in tire manufacturing.
Market Growth and Drivers
The rapid increase in global EV adoption has led to heightened demand for specialized tires designed to support EV-specific needs, such as heavier battery loads and frequent replacements. According to the International Energy Agency, EV sales rose by 4% between 2020 and 2023, a trend expected to continue due to government incentives and policies aimed at promoting zero-emission vehicles.
The need for durable, fuel-efficient tires to optimize battery performance has prompted manufacturers to explore innovative solutions, such as self-inflating and intelligent tires. In March 2016, Michelin introduced its Energy XM2+ self-inflating tire technology, which enhances tire longevity by adjusting pressure based on road conditions. Similarly, in September 2024, Continental launched its ContiConnect fleet management solution, enabling real-time monitoring of tire pressure and temperature for fleet operators, thereby boosting operational efficiency and safety.
Market Segmentation and Regional Insights
The market is segmented by vehicle type, tire size, and geography:
- Vehicle Type: Battery electric vehicles (BEVs) are expected to dominate, holding around 65% of the market share due to increasing global demand for zero-emission vehicles.
- Tire Size: The 16 to 20 inches tire size segment, widely used in electric passenger vehicles, represents about 54.1% of the market in 2024 and is projected to maintain a leading position through the forecast period.
- Regional Dominance: North America leads in EV tire market share, bolstered by major EV manufacturers and favorable government policies supporting EV adoption.
Challenges and Opportunities
While high initial costs and limited availability of specialized EV tires present challenges, opportunities are emerging for growth through advancements in tire technology and government incentives. Key players are investing in R&D to create durable, efficient tires that meet EV performance demands.
Competitive Landscape
Prominent companies, including Apollo Tyres, Bridgestone Corporation, Continental AG, Goodyear, and Michelin, are focusing on R&D and strategic partnerships to capitalize on market growth. In October 2023, Pirelli & C. SpA, in partnership with Saudi Arabia’s Public Investment Fund, announced plans to establish a tire manufacturing facility in Saudi Arabia, marking a significant expansion in the region.
Sumitomo Rubber Industries recently introduced the Aklimate, an all-weather touring tire, to enhance traction and durability, catering to a diverse range of EV needs.
The global EV tire market, driven by surging EV adoption and advancements in tire technology, presents promising opportunities for industry players. As the sector evolves, innovations in tire durability, efficiency, and connectivity are expected to further accelerate market growth and reshape the landscape of EV mobility.
