by Electric vehicles are gaining popularity due to their environmental friendliness and lower costs of ownership compared to conventional vehicles. The electric vehicle drivetrain is simpler than the internal combustion engine as it comprises fewer moving parts and needs less maintenance. Electric vehicles also lead to lower transportation costs per mile for both private and commercial fleet owners. As the electric mobility revolution gains momentum globally, demand for electric vehicle tires is also expected to grow significantly.
The Global Electric Vehicle Tire Market is estimated to be valued at US$ 3.42 Bn in 2024 and is expected to reach US$ 13.71 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 21.9% from 2024 to 2031.
Key Takeaways
Key players operating in the electric vehicle tire market are Apollo Tyres, Bridgestone Corporation, Continental AG, Falken Tire, Goodyear Tire and Rubber Company, Hankook Tire and Technology Co., Ltd., Michelin, Nokian Tyres plc, Pirelli & C. S.p.A., Sumitomo Rubber Industries, Ltd., The Cooper Tire & Rubber Company, Toyo Tire Corporation, Trelleborg AB, Yokohama Rubber Co., Ltd., and Zhongce Rubber Group Company Limited.
The growing demand for electric vehicles and government support in the form of subsidies for EVs as well as EV charging infrastructure development provide lucrative opportunities for electric vehicle tire manufacturers. Advances in tire material technology are expanding the driving range of EVs further and making electric mobility more viable.
Major tire manufacturers are expanding their presence globally to capitalize on the booming Electric Vehicles Tire Market Growth . For example, Michelin aims to double its electric vehicle tire sales by 2025 through deeper partnerships with automakers and expanding manufacturing capacity. Continental AG plans to open three new EV tire plants in China by 2024.
Market Drivers
Stringent emission regulations imposed by governments worldwide are nudging automakers to accelerate electric vehicle development and commercialization. As EVs gain widespread acceptance, demand for specialized EV tires with advanced silica and polymer compounds to deliver long range and efficient rolling will increase substantially over the coming years.
PEST Analysis
Political: Government subsidies and tax rebates are encouraging adoption of Electric Vehicle Tire Market Size and Trends. New emission norms are incentivizing automakers to accelerate EV development.
Economic: Increasing fuel costs and lower maintenance of EVs is improving their TCO. Falling battery prices are making EVs more affordable.
Social: Rising environmental concerns are increasing preferences for greener mobility solutions. New technologies are enhancing driving range and experience.
Technological: Advancements in battery chemistry, drivetrain design and charging infrastructure are improving EV performance. Falling costs of renewable energy is supporting widespread electrification.
In terms of value, the Electric Vehicle Tire market is concentrated in Europe and North America currently. Strict emission regulations and higher consumer spending power in these regions are driving early adoption of electric mobility.
Meanwhile, the market in Asia Pacific region is growing the fastest currently due to rising vehicle production and sales in China, India and Southeast Asian countries. Government plans to electrify public transport fleets and two-wheeler segments are accelerating EV demand growth in Asia.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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