Electric Vehicle Tires Market Size - By Propulsion Type (Battery Electric Vehicles, Plug-in Hybrid Electric Vehicles, Hydrogen Fuel Cell Electric Vehicles, Extended Range Electric Vehicles), Vehicle Type, Rim Size, Load Index & Forecast, 2024 - 2032

Electric Vehicle Tires Market Size

Electric Vehicle Tires Market size was valued at USD 15.4 billion in 2023 and is estimated to register a CAGR of over 9% between 2024 and 2032. The International Energy Agency (IEA) projects a robust continuation of electric car sales until 2023. The first quarter recorded the sale of over 2.3 million electric cars, marking a 25% increase compared to the same period last year. Anticipating a sustained momentum, the IEA forecasts a total of 14 million electric car sales by the close of 2023, reflecting a substantial 35% year-on-year growth. The acceleration in new purchases is expected to gain momentum, particularly in the latter half of this year.
 

The growing popularity and adoption of electric vehicles play a significant role in driving the demand for specialized tires designed for electric vehicles. As more consumers and businesses transition to electric vehicles to reduce carbon emissions and dependence on traditional fuels, there is a corresponding increase in demand for tires optimized for the unique performance characteristics of electric vehicles.
 

Advances in tire technology, materials, and design are playing a crucial role in the electric vehicle tires market. Tire manufacturers are investing in research and development to create tires that are not only energy-efficient but also provide optimal performance, safety, and durability for electric vehicles. This includes innovations in tread patterns, tire compounds, and construction materials to meet the specific requirements of electric vehicles.
 

For instance, in November 2023, Goodyear unveiled the launch of its latest initiative, the Goodyear EV-Ready logo. Set to debut on the sidewalls of all new replacement tires from 2024 onwards this cutting-edge label indicates the tire's compatibility not only with electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) but also with conventional internal combustion engine (ICE) vehicles.
 

However, electric vehicles often involve a higher upfront cost than traditional internal combustion engine vehicles. This cost factor extends to the tires as well. Specialized EV tires may be priced higher than conventional tires due to the advanced technology and materials used in their construction. The higher overall cost of electric vehicles, coupled with the additional expense of specialized tires, can be a deterrent for some consumers, potentially impacting the widespread adoption of EV tires.
 

COVID-19 Impact

The COVID-19 pandemic had both direct and indirect effects on the EV tires market. Supply chain disruptions and manufacturing slowdowns led to delays in production and distribution, affecting the availability of EV tires. Additionally, economic uncertainties and reduced consumer spending during the pandemic influenced the overall automotive market, impacting EV sales and subsequently affecting the demand for EV tires. Despite challenges, the industry showed resilience, adapting to changing market conditions as economies gradually recovered.
 

Electric Vehicle Tires Market Trends

Increased emphasis on sustainability could be a prominent EV tires industry trend over 2024-2032. With a growing focus on sustainability, there could be an increasing trend toward eco-friendly tire materials and manufacturing processes in the market. Tire manufacturers are exploring innovative, sustainable materials and production methods to align with the environmental goals of electric vehicle users.
 

For an instance, in December 2023, amidst the COP28 climate conference in Dubai, UAE, Enso urged leaders to eliminate fossil fuels and advocated for the full decarbonization of the global tire industry. On Transport Day at COP28, Enso committed to phasing out fossil fuels in the sector by achieving a complete decarbonization of its supply chain by 2030—asserting that this target is "two decades ahead of mainstream tire manufacturers.
 

Electric Vehicle Tires Market Analysis

Based on propulsion type, the battery electric vehicles (BEVs) segment held 32% of the market share in 2023, due to the escalating popularity of electric vehicles. BEVs have distinctive performance requirements, and specialized tires are essential to maximize efficiency and range. The unique features of BEV tires, such as reduced rolling resistance and enhanced energy efficiency, cater to the specific needs of electric vehicles. As the automotive industry undergoes a transition toward electrification, the surge in BEV sales contributes directly to the increased demand for tires designed to optimize the performance and sustainability of electric vehicles.
 

Based on vehicle type, the passenger cars segment recorded around 45% of the electric vehicle tires market share in 2023. As more consumers embrace the shift to electric mobility for environmental reasons and reduced fuel costs, the need for tires optimized for electric vehicle performance increases. EV tires are engineered to meet specific requirements, such as low rolling resistance, contributing to improved energy efficiency and extended driving range. As the global automotive landscape continues to transition toward electric propulsion, the demand for EV tires in passenger vehicles is driven by the pursuit of sustainable and energy-efficient transportation solutions.
 

Asia Pacific electric vehicle tires market accounted for 30% of the revenue share in 2023, with a surge in electric vehicle adoption, particularly in countries like China and Japan, there is a growing demand for specialized tires tailored to EV performance requirements. Government initiatives promoting sustainable transportation and stringent emission regulations are accelerating the shift towards electric mobility. Additionally, Asia Pacific hosts several key players in the tire manufacturing sector, fostering innovation and technology advancements. The region's robust automotive industry, in line with a focus on environmental sustainability, positions Asia Pacific as a thriving hub for the flourishing market.
 

Electric Vehicle Tires Market Share

Michelin group holds the largest market share, cutting-edge advancements such as the radial tire, which revolutionized the industry with its improved performance and fuel efficiency. The company's emphasis on research and development has enabled it to deliver products that meet the evolving needs of consumers and vehicle manufacturers. The brand's focus on sustainability and eco-friendly initiatives has also resonated well with environmentally conscious consumers.
 

Electric Vehicle Tires Market Companies

Major companies operating in the electric vehicle tires industry are:

• Bridlestone Corporation
• Continental AG
• Goodyear Tire and Rubber Company
• Hankook Tire & Technology Co Ltd
• Michelin
• Pirelli & C. SPA
• Sumitomo Rubber Industries Ltd
   

Electric Vehicle Tires Industry News

• In June 2023, Hankook Tire, a prominent global tire manufacturer, introduced the iON evo and iON evo SUV, the newest additions to the iON series tailored for electric vehicles (EVs). These cutting-edge tires, designed with iON technology, prioritize tread wear, noise reduction, and exceptional grip performance specifically crafted for high-performance EVs during summer conditions. The iON evo and iON evo SUV aim to deliver uncompromised performance, addressing the unique needs of electric vehicles in the evolving automotive landscape.
   

The electric vehicle tires market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) and shipment (units) from 2018 to 2032, for the following segments:

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Market, By Propulsion Type

• Battery Electric Vehicles (BEVs)
• Plug-in Hybrid Electric Vehicles (PHEVs)
• Hydrogen Fuel Cell Electric Vehicles (FCEVs)
• Extended Range Electric Vehicles (EREVs)

Market, By Vehicle Type

• Two-Wheelers
• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles

Market, By Rim Size

• 13-15"
• 16-18"
• 19-21"
• above 21"

Market, By Load Index

• 70 - 100
• 101-120
• 121 - 140
• more than 140

The above information has been provided for the following regions and countries:

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