Global Advanced Tires Market, By Technology (On-Highway) (Self-Inflating, Chip-Embedded, All-In-One, Multi-Chamber, Self-Sealing), Niche Technology (On-Highway) (3D-Printed Tires, Autonomous Vehicle Advanced Tires), Type (On-Highway) (Pneumatic, Airless, Run-Flat), Material Type (On-Highway) (Elastomers, Fillers, Steel), Vehicle Type (On-Highway) (Light-Duty Vehicles, Heavy-Duty Vehicles (, Type (Electric and Hybrid Vehicles) (Pneumatic, Run-Flat, Airless), Vehicle Type (Electric and Hybrid Vehicles) (Battery Electric Vehicles, Plug-in Hybrid Electric Vehicles, Fuel Cell Electric Vehicles), Technology (Off-Highway) (Self-Inflating, Chip-Embedded, Multi-Chamber), Vehicle Type (Off-Highway) (Industrial Vehicles, Construction and Mining Equipment, Agricultural Tractors), and Region — Industry Analysis and Forecast to 2030
The global advanced tires market is expected to grow from USD 1.25 billion in 2023 to USD 3.02 billion by 2030 at a CAGR of 13.4%. The market is propelled by escalating demand for fuel-efficient and eco-friendly solutions, driven by stringent environmental regulations. Innovations in tire technology, including self-healing materials and smart sensors, enhance safety and performance. Additionally, rising interest in electric vehicles stimulates the need for specialized tires, fostering growth in this dynamic market.
Figure 1: Global Advanced Tires Market Size, 2023-2030 (USD Billion)
Source: Secondary Research, Expert Interviews, and MAARECO Analysis
Advanced tires refer to cutting-edge technologies and innovative designs incorporated into tire manufacturing, surpassing traditional models in performance, safety, and environmental impact. These tires often integrate features like self-healing materials, smart sensors for real-time monitoring, and enhanced durability, contributing to improved fuel efficiency. With a focus on sustainability, advanced tires align with stringent environmental regulations and cater to the growing market for electric vehicles. Their evolution signifies a shift from conventional rubber compounds to advanced materials, optimizing traction, handling, and overall driving experience while addressing the evolving needs of modern vehicles in terms of efficiency, safety, and environmental impact.
Advanced Tires Market Drivers
Environmental Regulations and Sustainability
One significant driver propelling the advanced tires market is the increasing focus on environmental regulations and sustainability. Governments worldwide are imposing stringent emission standards and advocating for eco-friendly transportation solutions. Advanced tires, designed with sustainable materials and technologies, play a pivotal role in meeting these regulations. For instance, the European Union has set ambitious targets to reduce carbon emissions from vehicles. The EU’s Tire Labeling Regulation aims to promote fuel efficiency and reduce CO2 emissions by encouraging the use of advanced tires. According to the European Tyre and Rubber Manufacturers’ Association (ETRMA), the tire industry has made substantial progress in improving fuel efficiency, with a 15% reduction in rolling resistance achieved from 2009 to 2019.
Electric Vehicle Adoption
The rapid growth in the electric vehicle (EV) market is another key driver for advanced tires. As the automotive industry shifts towards electrification to reduce dependence on traditional fossil fuels, there’s a rising demand for specialized tires that can meet the unique requirements of electric vehicles. EVs often have different weight distributions and torque characteristics, necessitating tires with enhanced durability and efficiency. According to the International Energy Agency (IEA), the global electric car stock surpassed 10 million in 2020, marking a significant milestone. The EV trend is expected to escalate, further boosting the demand for advanced tires tailored to the specific needs of electric vehicles, including reduced rolling resistance and increased range. This shift aligns with the overarching goal of mitigating environmental impact and fostering sustainable mobility solutions.
Advanced Tires Market Restraints
Cost Implications
A major restraint in the advanced tires market is the cost associated with developing and manufacturing innovative tire technologies. The incorporation of advanced materials, such as self-healing compounds and smart sensors, often results in higher production costs. This, in turn, can lead to elevated prices for consumers, impacting the widespread adoption of these advanced tires. According to data from the United States Bureau of Labor Statistics, the average price of tires in the U.S. increased by 21.1% from 2011 to 2021. The integration of sophisticated features contributes to this price hike, posing a challenge for market penetration, especially in regions with price-sensitive consumers.
Limited Infrastructure and Technical Expertise
The advanced tires market faces constraints related to the limited infrastructure for manufacturing and servicing these specialized tires, along with a shortage of technical expertise. Manufacturing facilities must be equipped with state-of-the-art technology to produce advanced tires efficiently. However, the global distribution of such facilities remains uneven. In developing economies, where the automotive industry is burgeoning, there is often a lack of the necessary infrastructure and skilled workforce. This impedes the seamless integration of advanced tire technologies into the market. Governments and industry associations need to invest in infrastructure development and training programs to address these challenges. For example, data from the International Organization of Motor Vehicle Manufacturers (OICA) highlights the disparities in automotive manufacturing capacities globally, emphasizing the need for targeted investments in infrastructure to support the advanced tires market’s growth in diverse regions.
Advanced Tires Market Opportunities
Urbanization and Smart Cities
The advancing trend of urbanization and the development of smart cities present a significant opportunity for the advanced tires market. As urban areas grow, there is an increasing demand for intelligent transportation solutions to address challenges such as traffic congestion and pollution. Advanced tires, equipped with smart sensors and communication technologies, can contribute to the development of connected and autonomous vehicles, enhancing overall traffic management and safety. The International Data Corporation (IDC) forecasts that spending on smart city technologies will reach $327 billion globally by 2025. This represents a substantial opportunity for advanced tire manufacturers to collaborate with smart city initiatives, providing solutions that align with the evolving mobility needs of urban environments.
Adoption of 5G Technology
The widespread adoption of 5G technology opens up new opportunities for the advanced tires market. 5G connectivity enables real-time communication between vehicles, infrastructure, and other devices, fostering the development of intelligent transportation systems. Advanced tires equipped with sensors and communication modules can benefit from 5G networks to transmit data instantly, enhancing vehicle safety and performance. The International Telecommunication Union (ITU) estimates that by 2025, half of the world’s population will have access to 5G networks. This widespread connectivity creates a conducive environment for the integration of advanced tire technologies into the broader ecosystem of connected vehicles. As 5G becomes more pervasive, the opportunities for advanced tires to contribute to safer and more efficient transportation systems continue to expand, driving innovation in the automotive industry.
Advanced Tires Market Challenges
Infrastructure for Electric Vehicle Charging
A significant challenge for the advanced tires market lies in the inadequate infrastructure for electric vehicle (EV) charging. While the demand for EVs is increasing, the lack of a comprehensive charging network limits their widespread adoption. Advanced tires designed specifically for electric vehicles need to align with the unique characteristics and requirements of these vehicles, such as weight distribution and torque. However, the limited availability of charging stations hinders the full realization of the benefits of advanced tires for electric vehicles. The International Energy Agency (IEA) reports that, as of 2020, there were approximately 7.3 million electric vehicle chargers globally, with a concentration in specific regions. To overcome this challenge, collaborative efforts between tire manufacturers, automotive companies, and governments are essential to invest in and expand the EV charging infrastructure, ensuring that the potential of advanced tires in the electric vehicle segment can be fully realized.
Consumer Awareness and Education
A challenge faced by the advanced tires market is the need for increased consumer awareness and education regarding the benefits and proper usage of these specialized tires. Many consumers may not fully understand the advantages of features such as self-healing compounds or smart sensors, leading to reluctance in adopting advanced tire technologies. The lack of awareness can impede market growth, as potential customers may opt for traditional tires due to familiarity. Initiatives aimed at educating consumers about the long-term cost savings, safety enhancements, and environmental benefits of advanced tires are crucial. Government agencies and industry associations can play a pivotal role in disseminating information. According to surveys conducted by various automotive associations, a significant percentage of consumers remain unfamiliar with the advancements in tire technology. Addressing this challenge requires collaborative efforts to implement educational campaigns and ensure that consumers make informed choices when selecting tires, fostering the wider acceptance of advanced tire technologies.
Regional Trends
North America: In North America, the trends in the advanced tires market were likely influenced by a growing emphasis on sustainable and eco-friendly transportation. Initiatives promoting electric vehicles and stricter emissions standards were likely driving the demand for specialized tires, especially those designed for electric and hybrid vehicles. Government incentives and a strong focus on innovation in the automotive industry could be contributing to the adoption of advanced tire technologies.
Europe: Europe has traditionally been at the forefront of adopting stringent environmental regulations. The advanced tires market in Europe was likely witnessing trends aligning with the region’s commitment to reducing carbon emissions. The European market may have seen increased adoption of smart tire technologies, driven by a combination of regulatory pressures and a strong consumer awareness of environmental issues.
Asia Pacific: The Asia Pacific region, home to major automotive markets, was likely experiencing a surge in demand for advanced tires. The trends might be influenced by the rapid expansion of the electric vehicle market, especially in countries like China. Government initiatives, coupled with the increasing consumer preference for high-performance and innovative automotive technologies, could be driving the growth of the advanced tires market in the Asia Pacific.
Middle East and Africa: In the Middle East and Africa, the advanced tires market might have been influenced by factors such as infrastructure development, economic growth, and increasing awareness of sustainable practices. The region’s focus on modernizing transportation infrastructure and growing interest in electric and hybrid vehicles may have contributed to the adoption of advanced tire technologies.
Latin America: Latin America’s advanced tires market could be shaped by factors like economic conditions, government policies, and the regional automotive landscape. Increased awareness of environmental issues and efforts to improve fuel efficiency might drive the adoption of advanced tires. Economic factors and consumer preferences for high-performance vehicles could also play a role in shaping market trends.
Key Players
Key players operating in the global advanced tires market are Continental AG, Bridgestone Corporation, Goodyear Tyre and Rubber Company, MICHELIN, Sumitomo Rubber Industries, Ltd., Pirelli & C. S.p.A., Yokohama Tire Corporation, Nokian Tyres PLC, Toyo Tire Corporation, Hankook Tire & Technology Co., Ltd., Petlas Tires, Falken Tires, Kumho Tire, Jk Tyre & Industries Ltd., Titan International, Inc., Zhongce Rubber Group Co., Ltd., Maxxis Tyres, and MRF Tyres.
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