Report

Global passenger electric vehicle tires market is projected to witness a CAGR of 10.32% during the forecast period 2025-2032, growing from USD 27.36 billion in 2024 to USD 60.02 billion in 2032. The market has experienced significant growth in recent years and is expected to continue expanding owing to the increasing adoption of passenger electric vehicles globally, government incentives, and advancements in tire technology. The shift towards passenger electric vehicles is the primary factor for the tire demand as more consumers and businesses have switched toward EVs. In addition, support through government incentives and regulations for promoting electric mobility through different means, such as reserves for taxes and rigorous emission standards to facilitate the acquisition of EVs. Furthermore, tire technology advancements in performance characteristics comprising low rolling resistance, better grip, and durability are essential to optimize energy efficiency and expand the travel distance of electric vehicles.
Moreover, the automotive industry emphasizes sustainability by developing environmentally friendly tires made with renewable and recyclable materials that suit environmental goals. Electric vehicles pose unique tire requirements due to their peculiar characteristics, such as carrying heavier batteries and producing higher torque outputs. This necessitates tires capable of handling increased weight and providing better traction, thus calling for specialized tire solutions. Furthermore, the global expansion of EV charger infrastructures also helps to boost consumer adoption of electric mobility, reflecting increased demand for EV tires. Therefore, as consumers prioritize performance features like safety, durability, and low maintenance costs associated with EV tires, manufacturers invest in research and development to create high-performance options tailored specifically for electric vehicles.
For instance, in October 2023, Toyo Tire Corporation introduced the new Open Country A/T III EV, an all-terrain replacement tire specifically designed for electric vehicles, catering to the rapidly expanding EV trucks and SUVs market.
Increased Adoption of Passenger Electric Vehicle Production is Expanding the Market Demand
The increased adoption of passenger electric vehicle (EV) production significantly increases the demand for global electric vehicle tires. Several factors are surging the adoption of passenger EVs, comprising empowered government financing, government pressure for emissions exhausts, and consumer preference towards sustainable mobility. By 2030, it is anticipated that electric vehicles could represent 66% of total car sales, depending on whether current policies or more ambitious targets are met. Rapid-scale production of EVs necessitates specialized tires designed to meet the unique performance requirements of electric vehicles, including handling increased weight from batteries and providing better traction due to higher torque outputs. Technology is also widening this development by involving manufacturers in producing tires that improve energy efficiency and range driving. The worldwide push for decarbonization and sustainability has further spurred investments in EV infrastructure, adding to consumer confidence in adopting electric vehicles. The combination of growing sales figures, supportive policies, and technological innovations positions the passenger electric vehicle tire market for robust growth in the coming years.
For instance, in March 2023, Sumitomo Rubber Industries, Ltd. introduced the FALKEN e. ZIEX, a new range of replacement tires specifically designed for electric vehicles (EV) in Europe, a market that is experiencing rapid growth.
Technological Advancements Propelling the Global Passenger Electric Vehicle Tires Market Growth
Technological advancements are a significant driving force for developing the global passenger electric vehicle tires market. Growing demand for electric vehicles (EVs) leads tire manufacturers to invest in research and development activities to produce new tire technologies exclusively for EV applications. These advancements focus on critical factors such as rolling resistance, noise reduction, and longevity, which are essential for optimizing the performance of passenger electric vehicles. For instance, low rolling resistance tires improve energy efficiency and allow EVs to travel further on a single charge, improving the battery's life and reducing the number of recharges. Innovation in technology includes the Internet of Things (IoT), allowing real-time monitoring of tire conditions such as pressure, temperature, and tread wear. This smart technology facilitates predictive maintenance, identifying potential tire issues proactively, thus improving safety and performance. Automotive manufacturers are increasingly adopting IoT solutions, and the demand for smart tires equipped with sensors is expected to rise, improving the market capitalization. Lastly, advances in material sciences have led to the design of better-wear-resistant tires, even under low rolling resistance conditions.
For instance, in January 2024, The Goodyear Tire & Rubber Company introduced a new addition to the ElectricDrive family at CES (Consumer Electronics Show) 2024: the Goodyear ElectricDrive 2. This all-season tire for electric vehicles (EVs) features sustainable materials, enhanced rolling resistance, and durable tread life, all designed to optimize EV performance for drivers.
Dominance of Battery Electric Vehicles in Global Passenger Electric Vehicle Tires Market
The dominance of battery electric vehicles in the global passenger electric vehicle (EV) tires market is a significant trend driven by various factors, including a strong consumer shift towards electric vehicles, environmental concerns, and government incentives promoting electric mobility. The increasing adoption of electric passenger vehicles is primarily attributed to favorable policies and rising disposable incomes, which encourage private vehicle ownership for daily commutes. This trend has led to an escalating fleet size of EVs worldwide, thereby flourishing the battery electric vehicle tire market for passenger cars. As consumers prioritize sustainability, the demand for specialized tires designed to meet the unique requirements of electric passenger vehicles has surged. Moreover, the ongoing development of advanced tire technologies is crucial for accommodating the specific needs of electric passenger vehicles. As a result, tire manufacturers are increasingly investing in research and development to create high-performance tires that meet the evolving needs of battery electric vehicles, solidifying their dominance in the global passenger EV tire market.
For instance, in November 2024, Yokohama Rubber Co., Ltd. announced that it would supply its 507U rib-lug tires for low-floor buses to Isuzu Motors Limited. These tires will be used as standard equipment on Isuzu's ERGA EV, a battery electric vehicle (BEV) designed for flat-floor routes, which was launched in May 2024.
North America Dominates Global Passenger Electric Vehicle Tires Market Share
North America is poised to dominate the global passenger electric vehicle (EV) tires market. The growth is largely fueled by the rapid adoption of electric vehicles across the region, supported by favorable government policies and a robust presence of major automakers and tire manufacturers. The United States and Canada are at the forefront of this expansion, with stringent regulations aimed at reducing carbon emissions driving the growth of the EV fleet. These regulations incentivize consumers to switch from internal combustion engine vehicles to electric alternatives, thereby increasing demand for specialized EV tires designed to meet the unique performance requirements of electric vehicles. Technological advancements in tire manufacturing are addressing the specific needs of EVs, such as handling heavier battery loads and providing enhanced durability and efficiency. The presence of significant tire manufacturers in North America further bolsters market growth as these companies invest in developing innovative tire technologies tailored for electric vehicles. In addition, strategic partnerships between tire manufacturers and automotive companies are creating new opportunities for growth within the region.
For instance, in October 2024, Uber Technologies Inc. formed a strategic partnership with ENSO, a finalist in The Earthshot Prize, to introduce their range-extending and low-emission electric vehicle (EV) tires in the United Kingdom and the United States.
Future Market Scenario (2025-2032F)
� Technological advancements and strategic collaborations between tire manufacturers and automotive companies will enhance the development of specialized tires tailored for electric vehicles.
� With stringent regulations on carbon emissions and a robust automotive industry shift towards electrification, the demand for specialized EV tires will likely grow exponentially.
� The shift in consumer preferences toward sustainable transportation options will play a crucial role.
Key Players Landscape and Outlook
The global passenger electric vehicle (EV) tires market landscape is characterized by several key players and a promising outlook driven by increasing demand for electric vehicles. This growth is fueled by the increasing adoption of electric vehicles worldwide, necessitating specialized tires designed for enhanced durability and reduced rolling resistance to maximize range. Technological advancements are also a major driver, with developments in low rolling resistance compounds and aerodynamically optimized tread designs enhancing energy efficiency and extending battery life in EVs. As the market evolves, the emphasis on innovation, acquisition, merger, and collaboration between tire manufacturers and EV producers will create opportunities for differentiation and advancement in tire technology. Overall, the outlook for the global electric vehicle tires market remains robust, with significant growth anticipated as the automotive industry continues its shift toward electrification.
For instance, in October 2023, Bridgestone Corporation and TATA Power Distribution Limited partnered to set up EV chargers for four-wheelers at Bridgestone dealerships across India. Tata Power is installing DC fast chargers with a capacity of 25/30 kWh, which can charge a four-wheeler in about an hour, enabling the charging of 20 to 24 vehicles each day.