Automotive Premium Tires Market Size - By Tire, By Tire Construction, By Rim Size, By Vehicle, By Technology, By Sales Channel, Growth Forecast, 2025 - 2034

Automotive Premium Tires Market Size

The global automotive premium tires market size was valued at USD 34.7 billion in 2024 and is estimated to register a CAGR of 6.1% between 2025 and 2034. The increasing consumer demand for luxury and high-performance cars is heavily fueling the market. High-performance trucks market was valued at USD 127 billion in 2023 and is projected to record a CAGR of 5% from 2024 to 2032.
 

Premium automobile manufacturers such as BMW, Mercedes-Benz, and Audi also equip their vehicles with premium tires to ensure comfort, handling, and safety. While demand for performance automobiles keeps rising, demand for technologically advanced tires with improved grip, longer tread life, and noise reduction will further fuel market growth.
 

Governments worldwide are enacting stringent fuel efficiency and carbon emission regulations, compelling automakers and consumers to switch to energy-efficient options. For instance, in March 2024, the U.S. Environmental Protection Agency (EPA) set new emissions standards for passenger cars, light-duty trucks, and medium-duty vehicles for model years 2027 to 2032 and beyond. These are some of the most stringent requirements to date, aiming to reduce CO? emissions in light-duty vehicles to 85 grams per mile by 2032 and for medium-duty trucks to 247 grams per mile in 2032.
 

Low-rolling-resistance premium tires contribute to fuel efficiency along with reducing CO? emissions. The growing regulatory requirements for manufacturers to lower the emissions in their effort to achieve sustainability goals is driving the demand for premium tires.
 

Consumers are more concerned with the cost of ownership, including fuel efficiency, tire life, and maintenance. Premium tires, though higher in initial cost, pay off in the long run through improved durability, fuel efficiency, and longer tread life. This shift in customer thinking towards long-term value as opposed to upfront cost is driving premium tire usage.
 

Automotive Premium Tires Market Trends

• The increasing demand for crossovers and SUVs is contributing heavily to the premium tires industry. The size of the SUV Market was USD 869.6 billion in 2023 and is anticipated to have a CAGR of more than 6% during 2024-2032. SUVs need larger and more heavy-duty tires with sophisticated tread patterns to enhance their capability on various types of roads. While the number of clients continued to migrate towards SUVs from conventional sedans remains on the rise, tire producers are devoting all their resources to producing high-quality all-terrain and performance tires to cater to this escalating demand.
   
• Customers are focusing on safety functionalities in cars, and this has boosted demand for upscale tires that come with high-end technology. These functionalities include run-flat capability, low rolling resistance, and high wet grip, which are now becoming selling points. Upscale tires are engineered to give better traction, enhanced braking, and less chance of hydroplaning, thus making them desirable among safe drivers.
   
• Tire makers are heavily investing to build up their production capacity for high-end passenger car tires. For example, in November 2024, Bridgestone India Private Ltd. (BSID), a subsidiary of Bridgestone Corporation, announced an USD 85 million investment to augment its Pune and Indore manufacturing plants in India. Beginning early 2025, the expansion will boost the Pune plant's production of tires by 1.1 million units per year by 2029 and boost premium tire manufacturing capacity at the Indore plant, bolstering the company's premium-mass strategy.
   
• Moreover, the growing accessibility of high-end tires via online stores and brand-specific dealerships has facilitated consumers' access to superior products. Online channels are offering competitive prices, in-depth product comparisons, and doorstep delivery, which is making premium tires more accessible than ever before. This change in sales strategies is driving market growth at a faster pace by reaching a larger consumer base.
   

Automotive Premium Tires Market Analysis

Based on tire construction, the automotive premium tires market is divided into radial and Bias. In 2024, the radial segment held a market share of over 80% and is expected to cross USD 50 billion by 2034.
 

• Radial tires dominate the high-end market with their improved flexibility, improved traction, and longer tread life. Steel-belted construction minimizes heat generation, providing improved fuel economy and tread life, and is hence the first choice for luxury and high-performance cars.
   
• Manufacturers of tires are introducing advanced radial tires both for passenger cars as well as commercial vehicles. For example, in January 2025, Continental Tires introduced its PremiumContact 6 tires for passenger cars with cutting-edge technologies such as Macroblock Technology for improved control and silica compounds for enhanced grip in various weather conditions. The company also launched ContiSeal self-sealing technology for increased safety and added new Gen3 Truck Radial tire sizes to its commercial vehicle range.
   
• Growing need for sports cars and luxury sedans, buyers are choosing radial tires due to their stability at high speeds. Their ability to maintain their shape even in adverse conditions makes them ideal for high-performance applications, driving market expansion.
   
• While controlled by radial tires, bias tires are still valid where price-sensitive markets are found where tolerance to rugged terrain and economy become greater than other factors. They are appropriate for abusive service conditions due to puncture resistance and ability to support heavy loads.

Based on tire, the automotive premium tires market is segmented into summer tires, winter tires, all-season tires, all terrain tires and others. The summer tires segment dominated the market with a market share of 37% in 2024.
 

• High-performance summer tires offer greater traction and braking capability during warmer months. They feature tread compounds and proprietary formulations that minimize rolling resistance, maximizing fuel economy and vehicle responsiveness.
   
• Summer tires are needed in luxury sedans and high-performance sports cars to maintain best-in-class cornering capability and handling performance at high speed. The record sales history of record luxury vehicle sales during moderate-to-hot climate countries drives demand for high-end summer tires.
   
• The boom in crossover and SUV sales has driven demand for all-terrain tires with more traction on different road conditions. Car manufacturers are equipping their luxury SUVs with best-of-breed all-terrain tires to suit the needs of adventure-seeking consumers.
   
• Luxury all-terrain tires combine the best of on-road comfort and off-road ruggedness. With a heavy-duty sidewall and aggressive tread design, they satisfy customers requiring durability without compromising highway performance.
   

Based on rim size, the automotive premium tires market is segmented into below 15 inches, 15-20 inches and above 20 inches. The 15-20 inches segment held a market share of around 50% in 2024.
 

• Automakers are equipping premium sedans, coupes, and SUVs with 15–20 inches wheels increasingly. Customers want larger wheels for appearance, improved handling, and road show, and that requires premium tires for this market.
   
• These tires offer a compromise between ride comfort and high-speed stability. With the addition of state-of-the-art rubber compounds and stronger sidewall reinforcement, they offer improved traction while keeping road noise and vibration to a minimum.
   
• Luxury sport utilities, high-performance sports cars, and custom-modified vehicles require larger rims to enhance handling and appearance. Premium tire manufacturers are focusing on innovation to address the growing demand for ultra-high-performance tires in this vehicle segment.
   
• As more attention is paid to high-end tire technologies such as self-sealing and noise reduction technologies, high-end tires over 20 inches are in ever-growing demand. People are more than willing to pay for niche tires with improved performance and safety.
   

Based on vehicle, the automotive premium tires market is categorized into passenger cars and commercial vehicles. The passenger cars segment is expected to reach over USD 40 billion by 2034.
 

• The increasing demand for premium sedans and electric vehicles (EVs) has played a major role in the demand for high-quality tires. EV makers are focusing on low rolling resistance tires to optimize battery efficiency while ensuring superior grip and handling.
   
• High-end tires are packed with advanced noise-reduction technology and enhanced braking systems. As drivers continue to focus more on driving safety and comfort, the sales of high-performance tires with enhanced cornering stability and improved wet and dry traction keep rising.
   
• Executive cars, luxury shuttle services, and high-value logistics companies need top-of-the-range tires that are long-lasting and provide excellent performance. Top-of-the-range tires are the choice of fleet operators because they are fuel-efficient, durable, and can withstand long-distance travel.
   
• More expensive end commercial truck tires are less costly per mile in their greater tread life and fuel efficiency. The reason is the reduced number of stops and its related downtime, making it an optimal investment for the fleet owner dedicated to maximizing profit.

Asia Pacific dominated the global automotive premium tires market with a major share of over 40% in 2024 and the China leads the market in the region.
 

• The growing disposable income and rapid urbanization in countries like India, Japan, and South Korea are driving demand for high-end sedans, SUVs, and sports cars. This has resulted in a boom in the use of high-quality, durable, and high-performance tires, prompting manufacturers to increase their premium tire offerings.
   
• Asia Pacific dominates EV adoption across the globe and is led by China, Japan, and South Korea. The two most vital elements to maximizing EV efficiency are low rolling resistance and premium high-durability tires, both of which are the first port of call among manufacturers and users.
   
• The Chinese government has launched several measures to promote premium and electric vehicle adoption, which has created huge demand for high-performance tires. With luxury car sales in China rising robustly, tire companies are focusing more on expanding their premium tire offerings.
   
• Top Chinese tire makers like Sailun and Linglong are also spending heavily in R&D to take on world premium brands. They are investing in developing top-end tire technology to capitalize on the growing demand for luxury cars and enhance international market competitiveness.
   

The automotive premium tires market in the U.S. is expected to experience significant and promising growth from 2025 to 2034.
 

• The U.S. and Canada have seen a serious move towards crossovers and SUVs that demand premium-quality, all-terrain, performance-oriented tires. This trend compelled tire companies to launch innovative, efficient, and long-lasting tire models suited to the tastes of the population in the region.
   
• The increased demand for self-sealing, sound-reducing, and smart tires with onboard sensors that provide real-time monitoring is boosting premium tire uptake in the U.S. The automobile manufacturers and fleets are giving high priority to technology-driven tires to improve the performance and safety of the vehicle.
   
• With an increasing motorsports culture and performance car followers, ultra-high-performance tires demand in the United States is accelerating. People are increasingly preferring tires that provide higher grip, cornering stability, and braking capability, particularly in luxury and sports car categories.
   
• The U.S. aftermarket market is strong with consumers often replacing their car tires for better performance and looks. Growing demand for larger wheel sizes and customized premium tire solutions is driving sales in the replacement tire market.
   

The automotive premium tires market in Germany is expected to expand significantly from 2025 to 2034.
 

• The European Union has stringent tire labeling rules that focus on rolling resistance, wet grip, and noise levels. These rules compel automakers and consumers towards high-performance and safety-oriented premium tires, consolidating the market.
   
• Germany, which is home to major automobile manufacturers like BMW, Mercedes-Benz, and Audi, has strong demand for premium tires. They require high-performance tires with strict handling, durability, and speed stability requirements. Germany is therefore a significant market for premium tire manufacturers.
   
• Germany is leading tire technology, and firms such as Continental are pioneering smart tire systems, self-healing tires, and performance-maximized rubber formulas. The high R&D inclination of the nation is fueling innovations that promote the durability and efficiency of top-end tires and further propel the market growth.
   

Automotive Premium Tires Market Share

• The top 5 companies of the automotive premium tires industry are Michelin, Bridgestone, Goodyear Tire & Rubber, Continental, and Pirelli. They collectively hold a market share of around 30% in the market.
   
• Michelin is focusing on green innovation with manufacturing green and fuel-efficient high-performance tires. It spends considerable money on R&D to design tires that are manufactured from renewable and recyclable material and has an objective to achieve 100% sustainable tires by 2050. It will also reduce the rolling resistance for improved fuel economy and electric vehicle range and entrench itself further in the leadership of the green tire category.
   
• Bridgestone is riding the wave of digitalization with the help of intelligent tire technology and mobility solutions. Bridgestone introduced sensor-enabled tires with real-time monitoring to enhance vehicle performance and safety. Predictive maintenance and fleet management solutions are provided through its Bridgestone Mobility Solutions business as a response to increasing demands for smart and data-driven tire solutions.
   
• Goodyear is positioning itself aggressively in the EV segment through experience-based premium tires for EVs. Goodyear introduced ultra-low rolling resistance tires with enhanced battery efficiency and longevity, which were specifically designed to meet the unique requirements of electric vehicles. It also partners with EV companies to supply leading-edge tire technology, firmly establishing its position in the expanding EV market.
   
• Continental is focusing on the development of high-performance and ultra-high-performance (UHP) tires for luxury and sports cars. It spends on advanced tread pattern and high-strength materials to improve grip, handling, and endurance at high speeds. Having a clear motorsport and premium automobile brand focus, Continental is extending its family of high-end performance tires for aggressive driving conditions.
   

Automotive Premium Tires Market Companies

Major players operating in the automotive premium tires industry include:

• Bridgestone
• Continental
• Cooper Tire & Rubber
• Goodyear Tire & Rubber
• Hankook
• Michelin
• Pirelli
• Sumitomo Rubber Industries
• Toyo Tire
• Yokohama Rubber Company
   

The automotive premium tire market is intensely competitive with a mix of multinational tire companies and regional specialist players catering to high-performance, luxury, and electric vehicles. Large tire companies own the market position as far as major R&D investments, robust distribution networks, and large-scale production capacity are concerned, which enables them to secure long-term agreements with automakers and dealerships. These players want to create ultra-high-performance (UHP) and green tires with increased toughness, fuel efficiency, and higher-order tread technology to conserve their market positions.
 

The automotive premium tires market is also witnessing increasing opportunities for specialty producers who sell tires that are specifically aimed at specific uses such as all-season, off-road, and racing cars. Such niche intensifies competition because niche players leverage highly technical tires for specific purposes and demands of drivers.
 

Firms are also investing heavily in after-sales solutions, including tire replacement programs, predictive maintenance solutions, and intelligent tire solutions, to enhance customer loyalty and market position. With the need for smart and green tire solutions growing, manufacturers are employing digital marketing, branding activities, and collaborative alliances with automobile companies and tech firms to become premium tire brands.
 

Automotive Premium Tires Industry News

• In March 2025, India's top premium tire maker CEAT introduced three cutting-edge tires in its SportDrive series, India's first Run-Flat tires and 21-inch ZR-rated tires with CALM Technology, that can handle over 300 KMPH speeds. German-tested for optimum performance and safety, the tires will be available in April in top cities such as Delhi NCR, Mumbai, Bangalore, and others.
   
• Yokohama India introduced the 'Easy Drive' offer in March 2025, a zero-interest EMI facility, seeking to make superior tire upgradation accessible to everybody. Under cooperation with Bajaj Finance, the firm introduces a no-interest EMI feature of 6 months on the purchase of tires with 17-inch and bigger sizes for an installment amounting to Rs 1,807 per month. The promotion is applicable on Yokohama's premium tire offerings such as ADVAN, Geolander, and BluEarth and can be availed from Yokohama Club Network retailers and a selection of retail partners in India.
   
• Bridgestone Americas unveiled the Bridgestone R273 Ecopia regional tire for steer positions and Bridgestone Duravis M705 for mixed fleet vehicles, like pick-up and last-mile delivery fleets, in March 2025 during the 2025 Technology & Maintenance Council (TMC) Annual Meeting & Transportation Technology Exhibition. Both models combine innovative ENLITEN technology that purportedly boosts performance while supporting the realization of sustainability goals.
   
• Hankook, a high-end tyre maker, will introduce its new Optimo sub-brand in Europe in January 2025 to consolidate its market position and respond to increasing customer demands with a diversified product portfolio. Intended to supplement its current premium and associate brands for passenger car tyres, Optimo provides key products to satisfy increasing demand in a strategic market segment. Motivated by one of Hankook's successful past all-season tyres, the Optimo brand focuses on reliability and offers a streamlined product portfolio that meets all seasons and varied customer needs.
   

The automotive premium tires market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) and shipment (Units) from 2021 to 2034, for the following segments:

Click here to Buy Section of this Report

Market, By Tire

• Summer tires
• Winter tires
• All-season tires
• All terrain tires
• Others

Market, By Tire Construction

• Radial
• Bias

Market, By Technology

• Run-flat technology
• Self-sealing tires
• Eco-friendly tires
• Noise reduction technology
• Others

Market, By Rim Size

• Below 15 inches
• 15-20 inches
• Above 20 inches

Market, By Vehicle

• Passenger cars
  • SUV
  • Sedan
  • Hatchback
• Commercial vehicles
  • Light Commercial Vehicles (LCV)
  • Medium Commercial Vehicles (MCV)
  • Heavy Commercial Vehicles (HCV)

Market, By Sales Channel

• OEM
• Aftermarket

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa