Electric Vehicle Tires Market Size, Share & Analysis

[262 Pages Report] The global electric vehicle tires market size is projected to grow from USD 2.8 Billion in 2023 to USD 11.2 Billion by 2030, at a CAGR of 21.7%. Increasing focus toward range efficient tires and increasing penetration of electric vehicles, paired with strong government push to reduce greenhouse gas emissions are anticipated to increase the demand for electric vehice tires all over the world.

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Electric Vehicle Tires Market:

Driver: Growing demand for better fuel efficiency

Rolling resistance is the force that opposes the forward motion of a tire as it rolls over a surface. It is caused by a combination of factors, including tire deformation, air resistance, and friction with the road. The higher the rolling resistance, the more energy is required to overcome it, which means that tires with high rolling resistance will reduce fuel efficiency and increase emissions. Tire rolling resistance significantly impacts fuel consumption, especially for electric vehicles. According to Michelin, a 30% increase in rolling resistance can reduce the range of an electric vehicle by up to 5%. Michelin also states that the Michelin e.Primacy tires can increase the range of an electric vehicle by up to 7%. The lower the rolling resistance, the less energy the tire needs to move, which can lead to improved fuel efficiency. In the long run, the use of electric vehicle tires turns out cost-effective, as the extra cost paid for the electric vehicle tires is recovered by savings made on fuel expenses. Many governments around the world are implementing stricter fuel efficiency and emissions regulations. This drives the demand for low-rolling resistance tires for all types of vehicles, including electric vehicles. The increasing stringency of fuel efficiency regulations, such as the National Highway Traffic Safety Administration (NHTSA), has increased the demand for low-rolling resistance tires.

Restraint: Lack of awareness of electric vehicle tire benefits in emerging economies

Consumers are well aware of the benefits of using electric vehicles. However, there is a lack of awareness regarding the benefits of electric vehicle tires and their role in reducing fuel consumption. In emerging economies, such as India and Indonesia, the general consumer is less focused on the benefits offered by electric vehicle tires. In several countries, electric vehicle tires are not as widely available as traditional tires. They are often more expensive than traditional tires. Many people are not familiar with the benefits of electric vehicle tires. Multiple strategies exist to increase awareness regarding EV tires. Enhancing availability and educating individuals about their advantages are pivotal. Achieving this through advertising, public relations, and educational materials forms an effective approach.

Opportunity: Increasing demand for replacement tires

The demand for electric vehicle tires is increasing among various automotive manufacturers, i.e., at the Original Equipment (OE) level. The replacement tires market is expected to provide opportunities for manufacturers in the future. The demand for replacement tires is expected to rise during the forecast period due to the higher vehicle utilization against the backdrop of an increase in cab-sharing facilities globally. The logistics industry is a major consumer of fuel. As the industry grows, there is a high demand for fuel-efficient vehicles and electric commercial vehicles. Electric vehicle tires can help improve the fuel efficiency of vehicles, reducing the environmental impact of the logistics industry. As disposable incomes rise, consumers are more likely to replace their tires before they wear out. New tire technologies that offer improved fuel efficiency, performance, and safety are also being developed, driving the demand for electric vehicle replacement tires. The replacement EV tires market is driven by the increasing availability of EV tires. In the past, EV tires were difficult to find and expensive. However, as the EV market has grown, more tire manufacturers have begun to produce EV tires. This has made EV tires more affordable and accessible, driving the growth of the replacement EV tires market.

Challenge: Higher cost and limited availability of electric vehicle tires

Electric vehicle tires are typically more expensive than conventional ones because they are designed to reduce rolling resistance, improve traction and handling, and extend tread life. The higher cost of electric vehicle tires could deter some consumers from purchasing them. Electric vehicle sales are not yet on the same level as gasoline-powered vehicles, as electric vehicles are generally more expensive than their ICE counterparts. With fewer electric vehicle options to purchase at higher prices, the specific tires made for them will be even less. Electric vehicle tires are still a relatively new product category and are not as widely available as traditional gas-powered vehicle tires. The electric vehicle tires market is poised for growth, driven by the increasing popularity of EVs and their environmental benefits. However, the limited availability of EV tires can hinder this growth and pose several challenges. Fewer EV tire options can restrict consumer choice, making it difficult to find tires that meet specific needs and preferences. Supply chain disruptions due to scarcity can cause stockouts and price fluctuations, making it challenging to obtain the tires needed. Higher production costs associated with lower production volumes can translate into higher consumer prices, further deterring adoption. These challenges can delay the overall growth of the EV tire market, especially in emerging economies such as India, where the EV options are limited, which results in the unavailability of electric vehicle tires for such vehicle’s needs.

Electric Vehicle Tires Market: Ecosystem

The ecosystem analysis highlights various tire market players, which are primarily represented by raw material suppliers, component manufacturers, Electric Vehicle tire manufacturers, and end users. The electric vehicle tire market comprises a huge ecosystem with several key players and aftermarket tire providers working together to deliver secure and reliable solutions for customers. The electric vehicle tires market ecosystem mainly comprises components/stakeholders. Each component interacts directly or indirectly with other components in the market to facilitate the effective development of electric vehicle tires. Prominent companies in this market include Michelin (France), Bridgestone Corporation (Japan), The Goodyear Tire & Rubber Company (US), Continental AG (Germany), and Pirelli & C. SpA (Italy), among others.

Heavy Commercial Vehicles segment is estimated to exhibit the fastest growth in global electric vehicle tires market

The heavy commercial vehicles (HCVs) is expected to be the fastest growing segment in electric vehicle tires market during the forecast period. Heavy commercial vehicles are used to transport heavy goods and include heavy-duty trucks, trailers, and towing trucks. The weight-carrying capacity of heavy trucks is more than that of LCVs. Heavy trucks have more than four tires. Government policies are focusing on reducing emissions from heavy commercial vehicles and pushing the OEMs to create electric HCVs, which will cater to the sustainable transport of goods. Electric vehicle tires offer more fuel efficiency, better traction on wet and icy surfaces, and a longer lifespan than traditional tires. This can save money on replacement costs, especially for vehicles used for hauling. Many manufacturers, such as Volvo and Mercedes-Benz Trucks, have released electric heavy commercial vehicles. For instance, Volvo (Sweden) released FH Electric, FM Electric, and FMX Electric in 2023 and already have other electric offerings in their catalog, while Mercedes-Benz Trucks (Germany) will be releasing the battery electric long-haul HCV, eActros 600 in October 2023. US and Europe have stringent regulations and standards for vehicle safety, including tire quality and maintenance. These regulations encourage the use of higher-quality tires designed to be more durable and efficient, which will drive the market. The environmental regulations for the reduction of CO2 emissions across the globe are expected to drive the demand for electric vehicle tires in heavy trucks.

On-road application segment is expected to have significant growth opportunities in electric vehicle tires market during the forecast period

The on-road segment will be the largest market during the forecast period. The high sales volume of passenger cars, such as the Telsa Model S, Mercedes-Benz EQS, and more, use Michelin Pilot Sport S 5 and Pirelli P Zero (PZ4) tires, respectively. Many governments, such as Finland and Norway, are focusing on reducing the emissions in city centers caused by public transport. This is one of the major driving factors of sales of electric buses around the globe, and tire manufacturers are releasing products for such use cases. In India, CEAT Ltd. launched WINENERGY X3-R CV tires for electric buses in August 2022. All these developments indicate the increasing on-road segment. New releases of electric trucks and SUVs, such as Ford F-150 Lightning, Jeep Wrangler 4xe, and more, which use tires such as Michelin Defender LTX M/S 2 and BFGoodrich All Terrain KO2, respectively, will boost the demand for electric vehicle tires in the off-road applications worldwide.

Fuel Cell Electric Vehicles (FCEV) segment is expected to be the fastest growing in electric vehicle tires market during the forecast period

The FCEV uses fuel cells to generate electricity for powering the vehicle. Fuel cells in a vehicle generate electricity from the oxygen in the air and compressed hydrogen. FCEVs are completely emission-free as they emit water or heat. FCEVs have been introduced in US, majorly in California. Many renowned truck manufacturers have already developed fuel-cell electric trucks. In September 2022, Toyota Motor Corporation (Japan) and Kenworth (US) designed heavy-duty Class 8 FCEVs. In January 2023, Adani Group (India) signed an agreement with Ashok Leyland (India) and Ballard Power (Canada) to launch a pilot project for a hydrogen fuel cell electric truck in India. The Toyota-Kenworth FCEV T680 is expected to arrive with tires developed by Bridgestone Corporation. The FCEV market is currently leading in the Asia Pacific, in countries such as Japan, China, and South Korea. In October 2023, Honda (Japan) announced the launch of CR-V, a 5-seater SUV FCEV in 2024. BMW (Germany) released its iX5 Hydrogen Pilot Fleet in February 2023. Two of the best-selling FCEVs from 2022 are Hyundai Nexo and Toyota Mirai, which use Bridgestone Alenza AS Ultra tire and Michelin Pilot Sport 4S tire, respectively. FCEVs are gaining demand due to their higher range, faster refueling compared to other EVs, and government policies, and some of the countries supporting these vehicles with incentives and favorable policies. With more adoption of FECVs, the need for specially designed tires will also grow, boosting the electric vehicle tires market

“The North America electric vehicle tires market is projected to the fastest growth by 2030.”

North America is estimated to be the fastest growing electric vehicle tires market by 2030. US is home to the big three vehicle manufacturers, including Ford (US), General Motors (US), and Tesla (US). The growing demand for electric passenger cars and luxury SUVs, and the increasing adoption of electrification in the logistics and transport sector are boosting the market in the US. Government subsidies, policies, and tax rebates are driving the sales of electric vehicles, which will increase demand for electric vehicle tires. Telsa Model Y was the highest-selling electric vehicle in the US in 2022. Various tire manufacturers focus on production expansions to cater to the increasing demand for electric vehicle tires. In August 2022, Bridgestone Corporation announced an investment of USD 550 million to increase tire production capacity at the Warren County facility in the US. Similarly, in September 2022, The Goodyear Tire & Rubber Company announced an investment of USD 125 million to expand the manufacturing unit in Kansas, US. All these developments indicate the strong growth of the market in North America.

Key Market Players

The global electric vehicle tires market is dominated by major players such as Michelin, Bridgestone Corporation, The Goodyear Tire & Rubber Company, Continental AG, Pirelli & C. SpA, and Sumitomo Rubber Industries, Ltd., among others.

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Scope of the Report

This research report categorizes the electric vehicle tires market based on propulsion, vehicle type, load index, application, rim size, sales channel, and region

Electric Vehicle Tires Market, By Propulsion Type:

• Battery Electric Vehicle (BEV)
• Plug-In Hybrid Electric Vehicle (PHEV)
• Hybrid Electric Vehicle (HEV)
• Fuel Cell Electric Vehicle (FCEV)

Electric Vehicle Tires Market, By Vehicle Type:

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Buses

Electric Vehicle Tires Market, By Load Index:

• Less Than 100
• Above 100

Electric Vehicle Tires Market, By Application:

• On-road
• Off-road

Electric Vehicle Tires Market, By Rim Size:

• 13-15”
• 16-18”
• 19-21”
• >21”

Electric Vehicle Tires Market, By Sales Channel:

• OEM
• Aftermarket

Electric Vehicle Tires Market, By Region

• Asia Pacific
• Europe
• North America

Recent Developments

• In October 2023, Pirelli & C. SpA. started a joint venture with Saudi Arabia PIF (Public Investment Fund) to build a tire manufacturing facility In Saudi Arabia. The plant is expected to start in 2026, with the manufacturing of high-quality tires for passenger cars.
• In September 2023, Sumitomo Rubber Industries, Ltd. announced an all-weather touring tire called Aklimate. The tire features 4D Nano Design technology for better wet handling and snow traction.
• In August 2023, Continental AG announced that Alfa Romeo will be factory-fitting EcoContact 6 to the new compact SUV Tonale, which especially will be beneficial for the hybrid variant of the vehicle.
• In June 2023, Michelin announced an investment of USD 27.8 million to expand car tire production capacity at its Shenyang, China factory by 1.3 million tires.
• In June 2023, The Goodyear Tire & Rubber Company released the Urban Max BSA tires. The tire features lower rolling resistance compared to conventional transit tires from the company.
• In February 2023, Bridgestone Corporation announced an investment of USD 72.4 million by 2025 to expand production capacity and upgrade technology at its Pune-based plant. It will improve the plant’s capability in terms of technologies and capacities for the manufacture of tires for the passenger car segment.

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