Electric Vehicle Tires Market

According to Stratistics MRC, the Global Electric Vehicle Tires Market is accounted for $52.03 billion in 2022 and is expected to reach $251.94 billion by 2028 growing at a CAGR of 30.1% during the forecast period. Vehicles fitted with electric vehicle tires have a variety of forms that are different from regular tires. It helps to reduce roll resistance and increase range when tires are both higher and narrower. The sound-absorbing foam in the tires of electric vehicles makes them substantially quieter than those of internal combustion engines. Additionally, tires have a major impact on an electric vehicle's overall performance.

According to the National Highway Traffic Safety Administration (NHTSA), nearly 11,000 car crashes occur due to tire malfunction. With IoT-powered TPMS, the accuracy of tire condition information is greatly increased by replacing the traditional monitoring method with a direct network signal between a tire's embedded sensor and the vehicle's central computing system.



Market Dynamics:

Driver:

Rising demand for electric vehicles

During the forecast period, increased sales and expanding demand for electric vehicles are certain to accelerate market expansion. The majority of modern electric vehicles have connected or smart tires. the growing demand for solutions that provide constant connectivity in vehicles for better monitoring, safety, and comfort. One of the main elements influencing the adoption of an electric vehicle and further influencing market growth is the automaker's focus on the early development of electric mobility to offer cheap operation costs, less maintenance, produce very low sounds, etc.

Restraint:

Lower lifespan of EV Tires

The performance of a vehicle is significantly affected by the tire. High-performance tires help electric vehicles operate more effectively. Vehicles using internal combustion engines and electric motors have various tires. In addition, because of the batteries, electric vehicles are heavier than ICE vehicles even though they produce greater power. Due to the acceleration that electric vehicles produce, their tires degrade around 20% more rapidly than those of vehicles powered by internal combustion engines. As a result, tires are subjected to more pressure and have a shorter lifespan due to the increased weight and torque of electric vehicles. As a result, the shorter life of EV tires hinders market expansion.

Opportunity:

Adoption of the internet of things

One of the key trends that continues to exist in this market is the use of smart devices that are Internet of Things (IoT) enabled. The creation and uptake of EV smart tires are being accelerated by IoT's growing connection and its penetration into the world's automobile industry. In order to provide higher efficiency, increased safety, and longer tire life, top tire manufacturers are also developing the capabilities of "smart tires" that rely on IoT connectivity. Automakers can use smart Tire Pressure Monitoring Systems (TPMS) provided by IoT-enabled connected tires to boost the accuracy of tire monitoring owing to the IoT shift.

Threat:

High costs

Due to the unique requirements, the average price of tires for electric vehicles is greater than for ICE tires. For instance, EVs frequently accelerate quickly, requiring a variety of rubber compounds to minimize potential slippage. Therefore, the market's expansion is constrained by the higher price of EV tires.

Covid-19 Impact:

Due to the less transportation facilities available, the covid-19 pandemic epidemic had delayed the production of tires for electric vehicles. The rate of expansion of the market for electric vehicle tires had been hampered by the strict lockdowns imposed by the various governments. The raw ingredients needed to make the tires for electric vehicles were in low supply due to poor transportation infrastructure and services. Furthermore, there had been a significant disruption in the tire supply and demand chain. Huge orders were canceled as a result of a delay in the provision of the needed products, which harmed the industries' overall income return.

The passenger vehicles segment is expected to be the largest during the forecast period

The passenger vehicles segment is expected to boost the market over the forecast period. The market has been attracted to electric vehicles as a result of a recent government initiative emphasizing the advantages of acquiring one. Instead of fuel-powered automobiles, private vehicle owners prefer to travel by electric vehicles. However, the number of people choosing to take work outside of their home communities is rising, as is the number of people who possess private vehicles. This expands the market's supply of passenger cars.

The battery electric vehicle segment is expected to have the highest CAGR during the forecast period

Due to the significant benefits of an electric car that BEVs provide, it is projected that the battery electric vehicle segment would expand during the projection period. The expansion is associated with tire OEMs' increasing investment in the development of electric vehicles. For instance, in August 2022, CEAT introduced a new line of EV tires specifically created for electric buses. According to the company, the new tire offers a 30% increase in mileage over standard tires. As a result of the company's decision to provide the CEAT Winenergy X3-R tires in two different sizes—95/80 R22.5 and 255/70 R22.5—the EV tire market is expected to rise over the course of the forecast year.

Region with largest share:

Owing to the significant demand for electric vehicles in Japan, China, and South Korea, the Asia Pacific region holds a dominant position on the global market for tires for electric vehicles over the anticipated period. Due to expanding disposable income and spending on sustainable automobiles, these nations provide the lucrative potential for industry players. Government initiatives and investments in the nations supporting the use of passenger and commercial EVs are also credited with the increase, which has accelerated the market's expansion. India is anticipated to have a rapidly rate of growth in the Asia Pacific area, while China is anticipated to be the leading market.

Region with highest CAGR:

Asia Pacific region is poised to have lucrative CAGR over the extrapolation period due to its rapid change away from internal combustion engine automobiles and approaching electric models. An important factor in the market's growth has been increased awareness among consumers. Furthermore, the electric vehicle tire market has outstanding possibilities in China and Japan as well, which aids in achieving the objective over the projection period. However, the market for tires for electric vehicles has been driven by the rising trend toward environmentally friendly technology and innovations.



Key players in the market

Some of the key players in Electric Vehicle Tires market include Continental AG , Goodyear Tyres, Michelin, Toyo Tyres, Bridgestone Corporation, Sumitomo Rubber Industries, Trelleborg AB, PIRELLI TYRE S.P.A., Hankook Tire & Technology and Nokian Tires.

Key Developments:

In March 2023, Sumitomo Rubber Industries announced that the company would launch FALKEN e. ZIEX is a new line of replacement tires for electric vehicles (EVs) in Europe. The tire delivers the highest fuel (energy) efficiency of any tire that the company has offered to date, e. ZIEX is Sumitomo’s second line of replacement tires designed for EVs, joining the DUNLOP e. SPORT MAXX launched in China last year.

In February 2023, The Goodyear Tire & Rubber Company launched RangeMax RSD EV, Goodyear's first electric vehicle-ready tire compatible with EV and gas- or diesel-powered regional work vehicles. The RangeMax RSDEV is Goodyear's best regional drive tire for energy efficiency. They are equipped to handle the higher load capacities of EVs.

In September 2022, Goodyear Tire & Rubber Company introduced the all-new Electric Drive all-season tire, two new sizes for the Goodyear Electric Drive GT, and the addition of four new sizes to its EV tire. The Electric Drive provides 60,000-mile tread life limited warranty. This all-season tire is built for commuters touring sedans and CUVs.

In August 2022, CEAT launched a new range of EV tires specially designed for electric buses. The Company claimed that the new tire provides 30 percent higher mileage than regular tires. The Company has presented the CEAT Winenergy X3-R tires in two different size options, such as 95/80 R22.5 and 255/70 R22.5.

In June 2022, Michelin signed an agreement with Hyundai Motor Group to develop advanced-generation tires optimized for battery electric vehicles (EVs). The agreement will focus on developing eco-friendly tires, significantly improving the use of sustainable materials. This agreement is to develop a tire monitoring system by analyzing tire wear and diverse road environment data. Next-generation tires will find their way into future premium EV models of the Hyundai Motor Group.

Products Covered:
• Composite Tires
• Bias Tires
• Radial Tires
• Other Products

Tire Sizes Covered:
• 15" - 18"
• Upto 14"
• Above 18"

Propulsions Covered:
• Plug-In Hybrid Electric Vehicle (PHEV)
• Hybrid Electric Vehicle (HEV)
• Battery Electric Vehicle (BEV)

Vehicle Types Covered:
• Commercial Vehicles
• Passenger Vehicles
• Two Wheelers
• Other Vehicle Types

Sales Channels Covered:
• Original Equipment Manufacturer (OEM)
• Aftermarket
• Tire Dealers
• E Commerce Platforms
• Other Sales Channels

Applications Covered:
• Composite
• Bias
• Radial
• Off Road
• Car
• Bus
• Motorcycle
• Truck
• Other Applications

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

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- Market share assessments for the regional and country-level segments
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- Company profiling with detailed strategies, financials, and recent developments
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