Advanced Tires Market Size, Share & Industry Analysis, By Vehicle Type (Hatchback/Sedan, SUV, Light Duty Vehicle, and Heavy Duty Vehicle), By Propulsion Type (ICE, EV, and HV), By Sales Channel (OEM and Aftermarket), By Size (Up to 17”, 18

The global advanced tires market size was valued at USD 67.36 billion in 2024. The market is expected to grow from USD 70.43 billion in 2025 to USD 124.03 billion by 2032, exhibiting a CAGR of 8.4% during the forecast period. Asia Pacific dominated the advanced tires market with a market share of 48.71% in 2024.

The advanced tires market encompasses developing, producing, and applying innovative tire technologies designed to enhance vehicle performance, safety, and sustainability. This market is characterized by the integration of smart features, eco-friendly materials, and specialized tire designs tailored to meet the evolving demands of modern/futuristic vehicles, including electric and autonomous vehicles.

Advanced high-performance tires often include embedded sensors that monitor tire pressure, tread wear, temperature, and overall performance in real time. This data permits drivers and vehicles to maintain optimal tire conditions, enhancing safety and performance.

The advanced tires market focuses on improving grip, handling, and longevity. Tires are designed to deliver better traction in diverse weather conditions, significantly improving vehicle performance. This includes the development of specialized tires for electric vehicles (EVs) to enhance range and energy efficiency, making the rising adoption of electric vehicles a key driver for the market.

The advanced tires market is competitive, with several leading companies driving innovation and market growth. Some of the prominent players are Michelin, Bridgestone, and Goodyear.

• Michelin: Focuses on sustainability, aiming for 100% sustainable tires by 2050. Invests in eco-friendly raw materials and smart tire technologies.
• Bridgestone: The company focuses on integrating IoT technologies into tires, the tires offer real-time monitoring and predictive maintenance solutions.
• Goodyear: The company develops ultra-low rolling tires for EVs and collaborates with automakers to supply advanced tire technologies.

Advanced Tires Market Trends

Adoption of Smart Tire and IoT Integration is Fueling Market Growth

Integrating sensors and connectivity into tires is improving vehicle safety and maintenance. Smart tires monitor and provide real-time parameters such as pressure, temperature, and wear, transmitting this data to the vehicle's system. This technology enables predictive maintenance, enhancing safety and reducing downtime. Goodyear's SightLine platform offers advanced monitoring in extreme conditions and integrates with autonomous vehicle systems.

Smart tires synchronously work with Advanced Driver Assistance Systems (ADAS) and vehicle telematics to improve driving dynamics. For instance, the Pirelli Cyber Tire system provides real-time data to the vehicle’s ECU, allowing systems such as Electronic Stability Control (ESC) to instantly adapt to changes in tire load and grip. These technological developments are key drivers of growth in the market.

Market Impact

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MARKET DYNAMICS

Market Drivers

Increasing Adoption of Advanced Tires in Electric Vehicles Drive market Growth

The global shift toward electrification in the automotive industry is driving the advanced tires market growth. Sales of electric vehicles are increasing due to stringent emissions regulations, government incentives and subsidies, and consumer preference for eco-friendly alternatives. According to the International Energy Agency (IEA), EV sales exceeded 18 million units in 2024, up from 6.6 million in 2021.

Electric Vehicles require advanced tires due to their heavier battery packs, instant torque delivery, and the need for maximum energy efficiency. These tires are designed with higher load capacity, specialized compounds for improved traction, and low rolling resistance materials to enhance battery range.

Electric Vehicle Advanced Tire

Market Restraints

Limited Infrastructure for Smart Tire Ecosystem May Hamper Market Growth

One of the major restraints on the growth of the market, particularly smart tires, is the lack of supporting infrastructure for connectivity and digital integration. Smart tires depend on IoT, cloud computing, and wireless networks (4G/5G) to transmit real-time data such as pressure, temperature, tread wear, and location. However, the required digital infrastructure remains underdeveloped in many developing countries and rural regions. For instance, according to the GSMA Mobile Economy Report 2024, over 45% of the global population lacks access to stable mobile broadband, and 5G adoption rates in the Asia Pacific and Sub-Saharan Africa remain below 25%.

Market Challenges

Integration Complexity of Advanced Tire System Significantly Challenges Market Growth

A smart tire consists of embedded sensors that monitor pressure, temperature, wear, load, and other parameters. This data must be accurately processed and communicated via the vehicle’s CAN bus, ECU, or cloud-based telematics systems. Additionally, each vehicle brand or model may require unique/specific calibration, increasing development cost and time for tire manufacturers. Thus, the complexity of integrating advanced tire systems represents a significant challenge to market growth.

Market Opportunities

Growing Demand for Smart Mobility & Predictive Maintenance is a Key Opportunity for Market Growth

The growing demand for smart mobility & predictive maintenance represents a key opportunity for the advanced tires market.  Smart mobility ecosystems demand real-time data from all vehicle components, including tires, for use such as ADAS (Advanced Driver Assistance Systems), fleet management, and predictive maintenance.  Smart tires equipped with sensors continuously relay data on road conditions, tread wear, and load, enabling more efficient maintenance schedules and reducing downtime. This capability is especially valuable for commercial fleets (light duty vehicles) and ride-sharing services. By adopting a predictive approach, companies can reduce tire-related accidents and operating costs, driving adoption in both OEM and aftermarket segments.

Segmentation Analysis

By Vehicle Type

SUV Segment Led the Market due to Rising Urbanization and Personal Mobility Demand

By vehicle type, the market is classified into hatchback/sedan, SUV, light duty vehicle, and heavy duty vehicle.

The SUV segment held the largest advanced tires market share in 2024. The growth is attributed to increasing urbanization and personal mobility requirements. Factors such as rising disposable income, improving road infrastructure, and growing urban populations have fueled SUV sales, particularly in emerging markets.  This trend contributes to a continuous increase in new vehicle registration, especially in developing nations such as Japan, India, Korea, and Southeast Asia, driving segment growth during the forecast period.

The hatchback/Sedan segment held the second-largest market share in 2024, attributed to the large and growing aftermarket base. The aftermarket sector is highly active for hatchback and sedan passenger vehicles, with frequent tire changes throughout the vehicle lifecycle.

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By Propulsion Type

ICE Segment Dominated due to their Affordability

Based on propulsion type, the market is classified into ICE, EV, and HEV.  

The ICE propulsion type segment held the largest share in 2024. Despite the growth of electric vehicles, ICE vehicles still account for the vast majority of vehicles on the road. Emerging markets such as India, Southeast Asia, Latin America, and Africa continue to depend on ICE vehicles due to their affordability, fuel efficiency, and existing infrastructure. With millions of ICE vehicles sold annually, this sustained demand supports growth in the advanced tires market.

EV (electric vehicle) segment held the second-largest share and is the fastest-growing segment during the forecast period. According to the IEA, global EV sales exceeded 18 million units in 2024, up from 14 million in 2023—a Y-o-Y growth of over 28%. This surge is driving demand for specialized EV tires designed to meet unique EV requirements such as increased load capacity, instant torque handling, longer range, and noise reduction.

By Sales Channel

High Replacement Rate of Tires Boosted Aftermarket Segment growth

Based on sales channel, the market is classified into OEM and aftermarket.         

The aftermarket segment held the largest share of the market in 2024. The growth is attributed to the high global vehicle parc (vehicles in operation), especially ICE vehicles that still dominate the roads. Tires are wear-and-tear components that require frequent replacement, typically every 3 to 5 years, depending on usage, road conditions, and climate. The high replacement rate of tires in the segment is a key factor supporting segment growth.

The OEM segment held a significant market share in 2024. The growth of the segment is attributed to new vehicle production, as OEM tires are installed in new vehicles during manufacturing, and the volume is directly tied to new vehicle production.

By Tire Type

Radial Tire Segment Dominates due to Higher Adoption in Passenger Vehicle

Based on tire type, the market is classified into radial and bias tire.

The radial tire segment held the largest share in 2024. The radial tire structure, which features cords arranged perpendicular to the direction of travel, provides superior performance, including better fuel efficiency, improved traction and handling, longer tread life, and enhanced ride comfort. These characteristics are suitable for both passenger and commercial vehicles. Thus, the increasing adoption of radial tires for passenger cars drives the market growth.

The bias tire segment held a significant share in 2024 due to the rising adoption of heavy duty vehicles. Bias tires have strong sidewalls due to their layered, crisscrossing construction, making them ideal for heavy-load conditions, shock absorption, and rough terrain.

By Size

18” to 21” Segment Dominated due to Rising Global Demand for SUVs

Based on size, the market is classified into Up to 17”, 18" to 21," and above 21"

The 18” to 21” segment held the largest share in 2024, attributed to rising global demand for SUVs, crossovers, and premium sedans, which commonly use tires within this size range. These vehicle types are increasingly popular due to their comfort, cargo space, ground clearance, and perceived safety advantages. Many manufacturers are focused on the SUV segment; for instance, in September 2024, Tata Motors introduced Tata Curvv, the SUV Coupe, available in three engine options and equipped with an advanced dual clutch automatic transmission.

The above 21” segment held a significant share in 2024, attributed to the rising penetration of ultra-premium SUVs, high-performance electric vehicles, and customized or sport-tuned vehicles.

Advanced Tire Market Regional Outlook

By region, the market is studied across Europe, Asia Pacific, North America, and the rest of the world.

Asia Pacific

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The Asia Pacific region held the largest advanced tires market share, driven by rising automotive production in countries such as China, Japan, and India. Additionally, the increasing focus on vehicle safety and performance is a significant factor driving market growth.

North America

North America is experiencing steady growth, attributed to a robust automotive industry and high consumer awareness of technologically advanced tires. The U.S. and Canada are the leading markets, with significant contributions from automotive manufacturers focusing on innovation.

Europe

Europe held a significant market share in the advanced tires market. The rise of autonomous vehicles is driving investments in tires designed for safety and performance under varied driving conditions. Companies are increasingly integrating Artificial Intelligence (AI) to optimize tire performance. Major tire manufacturers in Europe are heavily investing in R&D to develop innovative product lines, with a particular focus on reducing carbon footprints, further driving market growth.

Rest of the World

The rest of the world holds a notable market share. Countries such as the UAE, Saudi Arabia, and Qatar benefit from high disposable incomes, increasing premium vehicle sales, and demand for advanced tires. The Gulf Cooperation Council (GCC) countries dominate the MEA market, while South Africa and Nigeria show potential due to urbanization and industrialization, which drive market growth.

Competitive Landscape

KEY INDUSTRY PLAYERS

Key Players Focus on Innovation to Meet Evolving Industry Needs 

Key players in this market continuously innovate to meet evolving industry demands, expand their product offerings, and strengthen their market presence through strategic collaborations and acquisitions.

Several prominent companies dominate the market by leveraging advanced technologies, extensive distribution networks, and strong brand recognition. The major players in the market include Bridgestone Corporation, Michelin Group, and Bridgestone Corporation.

List of Key Advanced Tire Companies Profiled

• Bridgestone Corporation (Japan)
• Continental AG (Germany)
• Hankook Tire & Technology Group (South Korea)
• Michelin Group (France)
• NIRA Dynamics AB (Sweden)
• Nokian Tyres plc (Finland)
• Pirelli & C. S.p.A. (Italy)
• Sumitomo Rubber Industries, Ltd. (Japan)
• The Goodyear Tire & Rubber Company (U.S.)
• Toyo Tire Corporation (Japan)

KEY INDUSTRY DEVELOPMENTS

• In May 2025, Michelin India signed a partnership with Global Tyres to open its first Michelin Tyres & Services Store in Kochi. This new store, located in Palarivattom, Ernakulam, was launched in partnership with Global Tyres, a trusted name in Kerala’s automotive service landscape. Spanning approximately 5500 sq. ft., the store is equipped with state-of-the-art infrastructure to offer a comprehensive range of tire-related services under one roof.
• In June 2024, The Goodyear Tire & Rubber Company announced the launch of a worry-free, tires-as-a-service offering. This subscription-based solution combines the company’s premium tires, proven predictive insights, and industry-leading service footprint in one integrated package.
• In November 2023, MICHELIN launched its latest innovation, MICHELIN Connected Mobility, a comprehensive and advanced solution designed to address the diverse needs of fleet managers. This offering represents a unique integration of cutting-edge tires and digital services, centered around four key pillars: delivering high-performance, technology-driven tires, enabling real-time monitoring and optimization of tire performance, providing fleet management capabilities through MICHELIN Connected Fleet, which leverages vehicle data and driver behavior insights, and offering automated, predictive maintenance alerts through the MICHELIN Smart Predictive Tire system.
• In July 2023, U.S.-based developer Doran Manufacturing announced its partnership with Samsara to provide customers with the ability to track tire pressure and temperature data through the Samsara dashboard. The integration aims to increase vehicle safety and increase the operational uptime of vehicle equipment.
• In May 2023, Aperia Technologies Inc., one of the leading market suppliers of automotive management technologies, announced its “Halo Connect” platform, which focuses on predictive maintenance, including tire predictive maintenance for heavy, medium, and light-duty commercial vehicles.

REPORT COVERAGE

The advanced tires market research report provides a detailed market analysis and focuses on key aspects such as leading market participants, competitive landscape, and type. Besides this, it includes insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth in recent years.

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REPORT SCOPE & SEGMENTATION