Market Report
The Future of Global Tires to 2030
Infographic: Market Outlook for Global Tires
Even with the uncertainty of US tariff policy and global business patterns, a new report from Smithers, The Future of Global Tires to 2030, estimates the global tire market to be worth $282 billion in 2025, reaching $367 billion in 2030. A 5.4% compound annual growth is also estimated, reflecting advancing technology and added value in and around the tire. In volume terms, this growth corresponds to 2.6 billion units in 2025 and over 3.1 billion in 2030, for average annual growth of 4.0%, according to Smithers data.
The turbulence of tariffs
The recent and ongoing tariff turbulence and uncertainty is dampening and shifting normal patterns and demand – the automotive sector, a dominant tire customer, faces the same situation. Many new vehicle and replacement tire decisions are being deferred, and in some markets, average consumers are currently opting for lower-tier (and less expensive) tires than they might otherwise buy; although premium segments continue to do well.
Raw materials more critical
The tire industry’s raw material procurement and consumption is becoming more critical considering the ever-increasing demands being placed on tires. In addition, the emphasis on sustainability that dominates economies and transportation technology is increasingly also a feature of the tire industry. Due to these elements, the volume of raw materials used by the tire industry will grow at a CAGR of 3.3% from 57.2 million tonnes in 2025 to 67.4 million tonnes in 2030.
Technology and sustainability trends
Despite instances of respite, innovation and sustainability imperatives have not gone away. The accelerating development and deployment of mobility- and manufacturing-advancing AI is becoming ever more relevant through the industry and economy in general.
AI and autonomous driving (AD) are accelerating faster than previously anticipated, with global political and business competition to develop and deploy AI in automotive and other applications, and with a deregulatory approach to AI and AD in the US. AI is affecting both tire design and manufacture as well as how tires are used.
Sustainability trends have accelerated, though not so unexpectedly, with greater attention to recycled and bio-based materials, and tire wear particles.
Among automakers, the current political situation in the US has granted a reprieve to the dominance of ICE vehicles, especially larger ones, while affordable Chinese EVs are emerging and positioned for major global impact.
Check out the new Smithers infographic Market Outlook on Global Tires to learn more about the trends and opportunities in the tire industry.
