Advanced Tires Market by Type (Pneumatic, Run-Flat, Airless), Technology (Self-Inflating, Chip-Embedded, Multi-chamber, All-in-one, Self-Sealing), Vehicle (ICE, Electric, Hybrid, Off-highway), Niche Technology, Material & Region - Global Forecast to 2030
[297 Pages Report] The advanced tires market is projected to reach USD 3.2 billion by 2030 from an estimated USD 1.3 billion in 2023, at a CAGR of 14.4% from 2023 to 2030. The growth of the advanced tires market is influenced by factors such as growing consumer priority towards safety and performance in their vehicle. Advanced tires offer improved traction, handling, and braking capabilities on all-terrain roads. Further, Rapid advancements in tire technology have led to the development of advanced features such as intelligent sensors, RFID tags, self-sealing, and self-inflating capabilities. In addition, Further, low rolling resistance tires require low fuel, increasing the vehicle's overall fuel efficiency and reducing carbon emissions.
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Market Dynamics
DRIVER: Increased focus on reduction of Carbon Dioxide (CO2) and Nitrogen Oxide (NOx)
Natural rubber, synthetic rubber, sulfur, elastomers, and other carbon compounds are the main materials used to make automotive tires. These raw materials are responsible for the carbon emissions during tire manufacturing. Owing to stringent emission regulations, the uses of these raw materials need to be reduced. Apart from carbon emissions during manufacturing, OEMs are also focusing on reducing vehicle weight to achieve rigorous tailpipe emission standards. As a result, all major players are launching advanced tires by considering solutions like lowering tire weight, utilizing more eco-friendly materials, and implementing new raw material production technologies.
According to the International Energy Agency (IEA), adopting low-rolling-resistance tires may lead to a potential reduction of up to 7% and 6% in fuel consumption and CO2 emissions, respectively, from passenger cars. Nonetheless, the degree of emission reductions may vary depending on multiple factors, such as the type of vehicle, driving conditions, and maintenance of the tires.
Recycling tires is a key trend for tire manufacturers in recent years. According to Recycled Rubber Facts, recycling tires not just reduces the cost of raw materials and energy used in manufacturing but also brings down the carbon footprint of the tire manufacturing industry by 20%.
Further, green materials are increasingly used in advanced tires to curb overall carbon emissions. Tire companies are trying to use materials such as silica instead of carbon black and plant-derived materials such as sunflower oil instead of petroleum oil and flora-derived latex instead of rubber in advanced tires. Some companies are also replacing toxic materials used in the tire manufacturing process with oil derived from orange seeds and other organic materials. All these developments have laid the foundation for advanced eco-friendly tires. Hence, tire manufacturers are looking to optimize the usage of raw materials and make them more environmentally friendly. This drives the demand for advanced tires made of durable, fully-recycled materials.
DRIVER: Rising focus on convenience and driver assistance feature
Advanced tire technologies have improved convenience and driver assistance through various means. For instance, smart tires that incorporate sensors can provide real-time information on tire performance and road conditions, which the vehicle's computer system can utilize to enhance safety and convenience for the driver. Additionally, the development of run-flat tires has allowed drivers to continue driving on a punctured tire, saving time and providing more convenience. High-performance tires provide better traction and grip in harsh weather conditions, while low-rolling-resistance tires help to increase fuel efficiency and reduce emissions. Moreover, tire manufacturers are developing adaptive tires that adjust their tread patterns and rubber compounds to changing road conditions, providing optimal grip and handling, further improving driver safety and convenience.
RESTRAINT: High initial investment, high cost, and difficulty in mass production
The tire manufacturing industry faces disruption due to changes in the automotive industry. Tire manufacturers must make substantial investments to keep up with these changes because tires are a crucial component of automobiles. In addition, to adjust to the evolving needs of the automotive industry, tires must undergo significant modifications in areas such as shape, raw materials, and manufacturing processes. These changes require substantial investment, and the resulting high initial costs will likely be reflected in the prices of advanced tires.
There have been no significant changes to the tires' shape, material, or overall structure. Despite the emergence of innovative tire designs such as 3D printed, spherical, oxygen, moss, and shape-shifting tires, they are currently impractical for commercial use. Companies are developing these tires to explore their potential applications and possibilities. However, to make these advanced tire designs commercially viable, a complete ecosystem of raw material manufacturers, tire manufacturers, and OEMs must collaborate. Due to the low commercial viability of advanced tires, many OEMs and raw material manufacturers may not be enthusiastic about investing their time and resources into such projects. As a result, the concerns about the commercialization of advanced tires will impede the market's growth.
OPPORTUNITY: Increased Demand for Industrial equipment and warehouse automation
Industrial vehicles used in warehouses require tires resistant to failures and inefficiencies. This has spurred the development of non-pneumatic and chip-enabled tires that can transmit real-time information about their condition to the vehicle. This innovative technology is expected to enhance efficiency, reduce costs, and minimize downtime by enabling constant monitoring of tire health and lowering failure rates. Industrial vehicles, such as forklifts, pallet jacks, and terminal tractors, are critical industry components and do not face the same budgetary constraints as other vehicles, further highlighting the importance of these advanced tire solutions in the coming years.
Additionally, autonomous vehicles must have advanced tires as tire pressure monitoring will be an important tracking aspect. This data will help the vehicle understand multiple information related to the overall vehicle environment. This information includes the applicable speed limit on a particular terrain, tire pressure monitoring, tire alignment data, and other crucial data which can be gathered using advanced tires in autonomous vehicles.
CHALLENGE: Real-life implementation and lower customer acceptance for advanced tires
Several cutting-edge tire designs are currently in their early stages. One example is the Goodyear Eagle 360 Urban tire, which will be produced using 3D printing technology. Another innovation by Goodyear is an airless tire at center mass. These tires and several others from top industry players have been introduced as concepts. The main obstacle facing manufacturers is figuring out how to mass-produce these advanced tires and address other concerns, such as their shape and longevity.
Moreover, this tire's overall load-carrying capacity will be low as eco-friendly raw materials do not provide the strength and flexibility that rubber and other petroleum compounds do. This will be a challenge because the lack of mass production capacity will increase the cost and time required to produce such tires for passenger or commercial vehicles.
Elastomer material accounted for the largest market in the on-highway advanced tires market from 2020 to 2030.
Elastomers hold the largest share of the advanced tire market based on material type as elastomers consist of a maximum share (around 40-45%) of total tire weight. They are used in various components throughout the tire, including the tread, sidewalls, and inner liner. With growing concern for environmental sustainability and waste reduction, there are growing trends for using organically produced or recyclable natural and synthetic rubber. Using sustainable material helps in economic advantages, enhanced traction, durability, and rolling resistance. Furthermore, most tire manufacturing companies are focusing on developing advanced elastomers for advanced tires. For instance, in 2021, Bridgestone and Versalis collaborated to develop new types of elastomer grades, including Styrene Butadiene Rubber (SBR) for high-performance tires. Thus, newly developed elastomers used in producing advanced tires are specifically tailored for the premium consumer market segment, aiming to deliver superior performance and sheer comfort.
The chip-Embedded technology segment for on-highway vehicles accounted for the largest market share during the forecast period.
For ICE vehicles, chip-embedded tires hold the largest market by technology segment. These tires are installed with advanced sensors, microchips, RFID tags, and other connectivity features, enabling real-time tire conditions and performance monitoring. For instance, some chip-based tires can measure tire pressure, temperature, and tread wear, providing accurate data for optimal tire management. Further, these tires enhance safety by alerting drivers to potential tire issues, such as low pressure or tread wear, preventing accidents, and improving road safety. Lastly, chip-based advanced tires offer convenience and efficiency by enabling remote tire monitoring and providing tire-related data to connected vehicles or fleet management systems. These technological advancements enhance the driving experience, reduce maintenance costs, and contribute to sustainable mobility in the evolving automotive industry. Michelin, a major player in the advanced tires market, has a prominent range of tires fitted with chip-embedded tires and is expected to increase its market share in the coming years.
Additionally, OEMs are focusing on developing chip-embedded tires for HDVs; for instance, in 2023, Continental introduced generation 5 truck tires equipped with Gen II sensors and RFID tags to track and maintain transparency for fleet managers. Similarly, Bridgestone announced in 2022 to launch Truck and Bus tires by 2024 and plans to use these new tires entirely by 2030. Thus, a rising focus on safety and convenience features and OEM's effort towards developing chip-embedded tires with real-time monitoring of the dynamics of vehicle tires will drive the demand for this technology in the future.
North America hold the largest market share in the advanced tires market in 2030.
North America accounted for the largest share of the advanced tires market with ~40% of the global market in 2023. The growth of advanced tires in North America can be attributed to factors such as the growing preference of consumers towards safety and convenience features, the government supports, and regulations related to the adoption of advanced tires. For instance, European Union has introduced a labeling scheme for consumers to choose the best tires in terms of fuel efficiency, noise, and wet grip. Further, Euro 7 has also proposed emission regulations for tires to reduce air pollution from tire wear and tear. In addition to this, the OEMs from this region are focusing on collaborations with tire manufacturing companies to develop advanced tires. For instance, General Motors (US), and Michelin (France) teamed up to develop airless tires and these airless tires have been tested on Chevrolet Bolt EV. The tested airless tires will be rolled out in the market by 2024. Further, the growing adoption of connected and autonomous vehicles witnessing significant growth for chip-embedded tires in this region.
Key Market Players & Startups
The advanced tire market is dominated by players such as Bridgestone Corporation (Japan), Michelin (France), Continental AG (Germany), Pirelli & C. S.p.A (Italy), The Goodyear Tyre and Rubber Company (US), Sumitomo Rubber Industries Ltd (Japan), Yokohama Tire Corporation (Japan), Hankook Tire & Technology Co., Ltd., (South Korea), and Nokian Tyres plc (Finland). These companies offer advanced tires and have strong distribution networks at the global level. These companies have adopted comprehensive expansion strategies; and undertaken collaborations, partnerships, and mergers & acquisitions to gain traction in the growing market for advanced tires market.
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Report Metric |
Details |
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Market size available for years |
2020–2030 |
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Base year considered |
2022 |
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Forecast period |
2023–2030 |
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Forecast volume |
Units |
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Forecast value |
USD Million/Billion |
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Segments Covered |
On-Highway By Technology, Vehicle Type, Type, material type, By Niche Technology, Electric & Hybrid Vehicle By Type, EV type, Off-Highway Vehicle By Technology, Equipment Type, and Region |
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Geographies Covered |
Asia Pacific, Europe, North America, and the Rest of the World |
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Companies Covered |
Bridgestone Corporation (Japan), Michelin (France), Continental AG (Germany), Pirelli & C. S.p.A (Italy), The Goodyear Tyre and Rubber Company (US), Sumitomo Rubber Industries Ltd (Japan), Yokohama Tire Corporation (Japan), Hankook Tire & Technology Co., Ltd., (South Korea), and Nokian Tyres plc (Finland). (Total of 23 companies) |
The study categorizes the advanced tires market based on the on-highway vehicle, by technology, type, vehicle type, material type, niche technology, electric & hybrid by type, EV Type, Off-Highway Vehicle by technology, and Equipment Type, by regional and global levels.
On-Highway Vehicle, By Type
- Pneumatic
- Run-Flat
- Airless
On-Highway Vehicle, By Technology
- Self-Inflating
- Chip-Embedded
- Multichamber
- All-In-One
- Self-Sealing
On-Highway Vehicle, By Material Type
- Elastomer
- Fillers
- Steel
- Others
On-Highway Vehicle, By Niche Technology
- 3D Printed Tires
- Autonomous Vehicle Advanced Tires
On-Highway Vehicle, By Vehicle Type
- LDV
- HDV
Electric and Hybrid Vehicle, By Type
- Pneumatic
- Run-Flat
- Airless
Electric and Hybrid Vehicle, By EV Type
- BEV
- PHEV
- FCEV
Off-Highway Vehicle, By Technology
- Self-Inflating
- Chip-Embedded
- Multichamber
Off-Highway Vehicle, By Equipment Type
- Agricultural Tractors
- Industrial Vehicle
- Construction and Mining
By Region
- Asia Pacific
- Europe
- North America
- Rest of the World
Recent Developments
- In March 2023, Continental AG announced the introduction of its intelligent tires in the Indian market. This tire is focused especially on commercial vehicles and can be useful in tubeless tires. Additionally, this company will focus on upgrading its existing offerings in the Indian market.
- In March 2023, The Goodyear Tire & Rubber Company announced the launch of its next addition to the purpose-driven Fuel Max lineup. The Fuel Max 1 AD is developed for single-axle drive tractors capable of handling super regional, less than truckload, or LTD applications. The tire is made to provide the traction capabilities, mileage, and fuel efficiency that today's fleets demand.
- In February 2023, The Goodyear Tire & Rubber Company unveiled the RangeMax RSD EV, the first Goodyear tire ready for electric vehicles compatible with regional work vehicles powered by gas or diesel.
- In October 2022, Continental launched Premiumcontact 7 tires, the 7th generation of its premium tires. Depending on the vehicle's weight, dimensions, and driving system, the PremiumContact 7 is specifically designed for various vehicle designs. The PremiumContact 7's parameters have been modified for each vehicle class because big vehicles require different tire solutions than light passenger cars. The PremiumContact 7 offers strong grip and short stopping distances for vehicles with various drives.
- In September 2022, Bridgestone launched Firehawk AS V2, an All-season Ultra-High-performance tire designed to deliver sporty and high performance. The tire delivers faster lap durations even during wet conditions. Large outboard tread blocks and interlocking lugs ensure secure wet handling and hydroplaning resistance. The 3D full-depth sipes allow the Firehawk AS V2 to excel in snow throughout the tire's life. Its INDYCAR-inspired tread pattern also gives the Firehawk AS V2 the signature sport grip and responsive handling.
- In September 2022, Designed for passenger cars and Cinturato weather, active tires perform in all weather conditions despite snow, rain, or scorching heat. The tire is backed by the Three Peak Mountain Snowflake rating (3PMSF), meaning it can work even under severe snow conditions owing to its superior grip. Cinturato Weather's active tire features make it an ideal touring choice.
- In May 2022, Bridgestone launched radial tires specially designed for electric buses. The R192E offers ultra-low rolling resistance, high load capacity, increased daily ranges, and maximum operation on a single charge while remaining compatible with all bus types. The tire comes with multiple gripping edges, cross rib sipes, and wide grooves to maintain a solid grip on the road; groove fence to aid handling and grip in wet conditions while reducing noise for a quieter ride, Groove fence to aid handling and grip in wet conditions while reducing noise for a quieter ride: thick tread gauges and an advanced base tread compound for enhanced re-treadability. All-steel casing, belts, and reinforced sidewalls minimize tire damage and promote long original life.
- In April 2022, Bridgestone Corporation launched a drive guard plus premium tire with run-flat technology. These tires allow vehicles to drive up to 50 miles at a speed of 50 miles per hour, even after a puncture.
- In March 2022, Michelin launched its 5th generation sport tires designed to amplify sports performance and comes with high precision steering, maximized grip, and braking on wet and dry roads. With Max touch construction Pilot Sport 5 evenly distributes forces of acceleration and longer tread life without compromising performance.
- In February 2022, Pirelli & CSPA launched scorpion tires designed for SUVs with excellent traction and wear resistance. Scorpion tires perform well in both off-road and on-road conditions. Scorpion tires come with innovative tire construction technology that enables continued use without air pressure loss, even when a foreign item has punctured the tire. Being an all-seasoned tire, it can work well under all weather conditions.
- In September 2021, Michelin conducted a test on its airless tire UPTIS. This tire was fitted to the e-mini at the Munich motor show. The result of the test conducted was positive for the performance of tires.
Frequently Asked Questions (FAQ):
What is the current size of the global advanced tires market?
The current global advanced tires market size is USD 1.3 billion in 2023.
Which adjacent market will be impacted due to the advanced tire market?
Sensor Manufacturers, Hardware and software developers, IoT platform providers, and Chip Manufacturers.
Who are the winners in the global advanced tires market?
The advanced tires market is dominated by global players such as Michelin (France), Continental AG (Germany), The Goodyear Tire and Rubber Company (US), Bridgestone Corporation (Japan), and Pirelli & C. S.p.A (Italy). Other than these players, regional-level players such as MRF, Guizhou Tyre Co. Ltd., Nokian Tyres, and Yokohama Rubbers are playing a significant role in the advanced tire market
What are the future revenue shift for conventional tires during the forecast period?
Smart tires, connected tires, self-Inflating tires, and Multi-chamber tires would be the future revenue shift for companies operating in the advanced tires segment.
What are the key applications of advanced tires?
Light duty vehicles such as Passenger cars, light duty vehicles inclusive of passenger cars and light commercial vehicles, heavy-duty trucks, buses, off-highway vehicles like agricultural tractors, industrial vehicles, and construction and mining equipment.
Self-inflating tire technology and advanced tires are expected to change the market dynamics. How will this transform the overall market?
Self-inflating tire technology will eliminate the manual tire pressure check and inflation of tires. Further, the self-inflating tire technology will improve the overall safety of the vehicle as properly inflated tires with the help of self-inflating tire technology will help in enhancing vehicle stability, handling, and braking capabilities. It will also help in increasing fuel efficiency. .
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The study involved four major activities in estimating the current size of the advanced tires market. Exhaustive secondary research was carried out to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with the industry experts across value chains through primary research. The bottom-up and top-down approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation processes were used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources were used to identify and collect information for this study on the advanced tires market. Secondary sources included annual reports, press releases, and investor presentations of companies; whitepapers, certified publications, and articles from recognized authors; directories; databases; and articles from recognized associations and government publishing sources.
Primary Research
Extensive primary research was conducted after acquiring an understanding of the advanced tires market scenario through secondary research. Several primary interviews were conducted with market experts from both the demand (OEMs) and supply (tire manufacturers) sides across major regions, namely, North America, Europe, and Asia Pacific. Approximately 20% and 80% of primary interviews were conducted from the demand and supply sides, respectively. Primary data was collected through questionnaires, emails, and telephonic interviews.
In the canvassing of primaries, various departments within organizations, such as sales, operations, and marketing, were covered to provide a holistic viewpoint in the report. After interacting with industry experts, brief sessions were conducted with highly experienced independent consultants to reinforce the findings from primaries. This, along with the in-house subject matter experts’ opinions, led to the findings described in the remainder of this report.
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Market Size Estimation
The bottom-up approach was used to estimate and validate the size of the advanced tires market by type, technology, vehicle type (on-highway and off-highway), and niche technology and region. Whereas the top-down approach was used to derive market size by material. To determine the country-level advanced tires market size by technology in terms of volume, country-level vehicle production (Passenger cars, light commercial vehicles, heavy trucks, and buses) is multiplied by (%) penetration rate of each technology considered (Self Inflating, Chip-Embedded, Multi-chamber, All-in-one, and Self-sealing). Further, this country-level market, by technology is multiplied by the country-level OE price of different advanced tire technologies considered to get the country-level advanced tire market, by technology in terms of value (USD Million). Further summation of the country-level market will provide regional-level and global Advanced tire market, by technology in terms of volume (Thousand Units), and Value (USD Million). A similar approach is followed to analyze the market sizing and forecast of other segments – type (pneumatic, run-flat, and airless), vehicle type (on-highway (LDV, HDV), Electric and Hybrid vehicle by EV Type (BEV, PHEV, and FCEV), and off-highway (construction & mining equipment, agricultural tractors, and industrial vehicles), and niche technology (3D printing and autonomous vehicles).
Advanced Tires Market: Bottom-Up Approach
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Advanced Tires Market: Top-Down Approach
The top-down approach was followed to determine the market size of advanced tires by material type, in terms of volume and value. The regional-level advanced tires market, by type in terms of volume, is considered and it has been multiplied with identified average weight of advanced tires considered (in Kg), by vehicle type (LDV, HDV) and percentage (%) share of different materials considered (elastomers, fillers, steel, and other materials). This provided a regional-level market, by material (elastomers, fillers, steel, and other materials) in terms of volume (Thousand KG). Further, the volume market is multiplied by the average selling OE Price of different materials considered which is derived from secondary sources and validated by industry experts at the regional level to get the regional-level market, by material (elastomers, fillers, steel, and other materials) in terms of value (USD Million/Billion).
Data Triangulation
All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All parameters that are expected to affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data was consolidated, supplemented with detailed inputs and analysis from MarketsandMarkets, and presented in the report.
Market Definition:
Advanced tires are tire designs that utilize state-of-the-art technologies and innovative features to improve performance, safety, and efficiency. Developed with cutting-edge materials, these tires offer enhanced traction, handling, durability, and fuel efficiency when compared to conventional tires.
Key Stakeholders:
- Sales Head
- Marketing Head
- OEM Purchase Head
- Design Manager
- R&D Head
- R&D Manager
Report Objectives
- To define, describe, and forecast the advanced tires market in terms of value (USD million) and volume (thousand units) based on the following segments:
- To segment the market and forecast its size, by volume and value, based on region (Asia Pacific, Europe, North America, and Rest of the World)
- To segment and forecast the market for on-highway vehicles based on vehicle type (Light Duty Vehicle, and Heavy-Duty Vehicle)
- To segment and forecast the market for on-highway vehicles based on material type (elastomers, steels, synthetic rubbers, natural rubber, and others)
- To segment and forecast the market for on-highway vehicles based on technology (Chip-embedded Tires, Self-inflating tires, multi-chamber tires, and all-in-one tires)
- To segment and forecast the market for on-highway vehicles based on type (Pneumatic tires, run-flat tires, and airless tires)
- To segment and forecast the market based on niche technology (3D printed tires, and autonomous vehicle)
- To segment and forecast the market for electric & hybrid vehicles based on EV type (BEV, PHEV, and FCEV)
- To segment and forecast the market for electric & hybrid vehicles based on type (Pneumatic tires, run-flat tires, and airless tires)
- To segment and forecast the market for off-highway vehicles based on vehicle type (Agricultural Tractors, Construction & Mining Equipment, Industrial Vehicle)
- To segment and forecast the market for off-highway vehicles based on technology type (Chip-embedded Tires, Self-inflating tires, multi-chamber tires, and all-in-one tires)
Available Customizations
Along with the market data, MarketsandMarkets offers customizations per company-specific needs.
The following customization options are available for the report:
Advanced Tires Market, By Type & Country
- Pneumatic
- Run-Flat
- Airless
Note: The market will be provided for countries considered by region (Asia-Pacific, Europe, North America, RoW) under on-highway vehicles.
Off-Highway Advanced Tires Market, By Material Type
- Elastomers
- Fillers
- Steel
- Others
Note: The market will be provided at a regional level - Asia-Pacific, Europe, North America, and RoW. No further split at the country level will be provided.
Growth opportunities and latent adjacency in Advanced Tires Market
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