The Electric Vehicle Tire Market has witnessed significant growth over the past few years owing to the rising adoption of electric vehicles across the world. Electric vehicle tires are specifically designed for electric vehicles and have stronger sidewalls to support the heavy weight of batteries installed in EVs. These tires also have advanced tread compounds that offer low rolling resistance without compromising on traction and safety performance. Low rolling resistance helps electric vehicles run longer on a single charge.
The Global Electric Vehicle Tire Market is estimated to be valued at US$ 3.42 Bn in 2024 and is expected to exhibit a CAGR of 21.9% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the Electric Vehicle Tire Market are Michelin, Bridgestone, Goodyear, Continental, Pirelli, Yokohama, Kleber, Hankook, Nokian, and Kumho.
The rising penetration of electric vehicles across major regions and governments providing subsidies and tax rebates on electric vehicles and batteries are some key opportunities in the Electric Vehicle Tire Market Growth.
Technological advancements like self-inflating and self-sealing electric vehicle tires with advanced sensors are being developed to improve safety, performance and efficiency. Advancements are also being made in rubber compounds and tire designs to reduce friction and improve mileage.
Market Drivers
Stringent emission norms worldwide are fueling the adoption of zero-emission electric vehicles. Most countries and cities have announced plans to phase out combustion engine vehicles in the coming years, which is expected to significantly boost electric vehicle and tire sales.
Continuous reduction in battery prices is improving the affordability and driving range of electric vehicles. Lower total cost of ownership as compared to gasoline vehicles is also driving more consumers towards electric vehicles.
Current challenges in Electric Vehicle Tire Market:
The Electric Vehicle Tire Market is currently facing several key challenges that are limiting its growth. One of the major issues is the lack of standardization in tire sizes and designs across different electric vehicle models. With new players entering the market regularly with diverse vehicle specifications, it becomes difficult for tire manufacturers to develop universal products. Secondly, the costs of developing and manufacturing tires suited for electric vehicles is significantly higher compared to conventional car tires. This is increasing pressure on companies' margins. Range anxiety among consumers is another hindrance as people fear running out of charge while on long trips with limited charging options available. Tire lifespan is relatively shorter as well due to heavy weight of batteries and demands of high-performance. Close collaboration between automakers and tire brands will be important to address standardization and cost challenges in the coming years.
SWOT Analysis
Strength: Electric vehicle tires have improved traction and braking abilities due to their intricate tread patterns and softer rubber mixes made to handle high torques of EVs. They also tend to have lower rolling resistance to enhance efficiency.
Weakness: Initial costs of electric vehicle tires are substantially higher than normal car tires. Their production also requires expensive specialized machinery. Constraints in raw material supplies can negatively impact tire manufacturers.
Opportunity: With more countries promoting electric mobility to achieve sustainability goals, demand for EV tires is forecast to multiply at a rapid pace over the next decade. New markets are opening up globally.
Threats: Stiff competition from existing as well as new entrants can squeeze margins for tire brands. Delays in development of widespread public charging infrastructure can undermine consumer confidence in electric vehicles.
Geographical regions
In terms of value, the Electric Vehicle Tire Market is currently concentrated in Asia Pacific, led by China. The region accounted for over 50% share of the global market last year due to the large available market and advancements in EV technology in countries like China, Japan, and South Korea.
The fastest growing regional market for electric vehicle tires is expected to be Europe over the forecast period. Several European nations have announced plans to phase out combustion engine vehicles by 2030 or earlier, which is increasing replacement demand as well as demand from new electric vehicles being sold annually. Developments in charging infrastructure here are also quite robust versus other regions.
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