Global Tire Material Market to Grow at 5.8% CAGR Through 2029
The global market for tire materials is projected to expand significantly over the next few years, with an anticipated compound annual growth rate (CAGR) of around 5.8% through 2029, driven by rising vehicle production, advances in material technology, and the push for eco-friendly compounds.
According to a recent analysis, the industry was valued at approximately USD 89.28 billion in 2024 and is expected to reach around USD 116.61 billion by 2029. Several key factors are cited as growth drivers: the growing global vehicle fleet, the shift toward electric and hybrid vehicles (which demand specialised materials), evolving tyre performance requirements (such as lighter weight, better rolling resistance and durability), and increasing adoption of circular-economy practices in tyre production and recycling. thebusinessresearchcompany.com
Material-specific trends are also important. For example, demand for synthetic rubbers, silica, and carbon-black alternatives is rising, as tyre makers pursue lower weight and higher performance. Advances in nanotechnology and the use of recycled materials are also gaining ground. Regionally, the Asia-Pacific region is expected to hold the largest share and show the fastest growth, reflecting rapid automotive production gains in India, China, and Southeast Asia.
For stakeholders in the tyre value chain, from raw-material suppliers to tyre makers and recyclers, this forecast signals a robust backdrop for investment, innovation, and supply-chain alignment over the coming years.
Editor’s View
This forecast emphasises that tire material market growth is not just about more tyres, it’s about smarter tyres built from smarter materials. With the market predicted to grow at about 5.8% per year through 2029, tyre manufacturers and suppliers must prioritise innovation: lighter compounds, recycled feedstocks, and materials optimised for electric vehicles and changing regulatory landscapes.
For the Indian tyre industry, which is already grappling with raw-material volatility and sustainability demands, this signal suggests that aligning with global material-technology trends will be critical to compete. Staying ahead means not just making tyres, but mastering the materials that make those tyres better.
