South Korea Tire Manufacturing Equipment Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

South Korea Tire Manufacturing Equipment Market Trends and Insights

EV-Led Capacity Expansion for Advanced Tires

Electric-vehicle uptake is reshaping equipment requirements as manufacturers adopt silica-rich compounds and low-rolling-resistance designs that demand upgraded mixing and curing lines. Producers have earmarked new plants and retrofits around Hyundai’s dedicated EV facility in Ulsan, slated for launchv by 2026. Suppliers offering energy-efficient mixers and synchronized curing presses are therefore logging multi-year order books.

Shift to Above 18-Inch Rims Driving Precision Machinery Demand

As the automotive industry shifts towards larger rim sizes, there's a surging demand for advanced tire building and curing equipment. These machines must adeptly manage intricate geometries and stringent tolerances. To meet the challenge of tighter dimensional tolerances in bead winding and strip application, manufacturers are turning to AI-driven building drums and machine-vision inspections. These technologies significantly cut defect rates and minimize scrap.

Government Incentives for Smart and Automated Factories

The South Korean government is poised to bring the number of smart factories in the country up to 30,000 by 2025, with plans to train 40,000 skilled workers in preparation for the ever-expanding fourth industrial revolution. The government is also pumping 215.4 billion won into research and development projects for smart factories, as part of an initiative to implement ‘smart’ technology in the local manufacturing industry. Tire makers leverage these grants to deploy IIoT sensors, MES software, and autonomous guided vehicles that trim downtime and energy use.^{[2]Korea Bizwire in AI & Big Data, "South Korean Government Plans to Establish 30,000 Smart Factories by 2025", koreabizwire.com}

Localization Push Amid China-Related Supply-Chain Risk

Supply chain diversification has emerged as a strategic imperative for Korean tire manufacturers, driving substantial investments in domestic equipment suppliers and alternative sourcing strategies. Trade uncertainty is steering procurement toward domestic equipment vendors that can guarantee delivery and parts availability. Leading Korean suppliers have boosted capacity for mixers and curing presses, capitalizing on reshoring incentives and buyers’ preference for proximate support.

Mature Domestic Replacement-Tire Demand Caps New Lines

South Korea's domestic replacement tire market has matured, limiting demand for new production lines as manufacturers focus on optimizing existing capacity. The saturation stems from a stable vehicle base and predictable replacement cycles, curbing growth opportunities. Korean tire makers are shifting focus to exports and premium segments, reducing the need for large-scale equipment investments. Aftermarket demand dominates at 81.73%, highlighting a preference for efficiency over expansion. Competition from imported tires in the passenger car segment further discourages premium equipment upgrades.

Rubber Price Volatility Tightening Capex Budgets

Natural rubber price volatility is tightening capital expenditure budgets for Korean tire manufacturers, as fluctuating input costs impact profitability and cash flow. Projected growth in Thailand’s rubber industry, driven by demand from China and the US, suggests continued price pressures. Manufacturers are deferring non-essential equipment investments to manage raw material costs. Supply-side risks like labor shortages and disease outbreaks add further uncertainty. Smaller equipment suppliers are especially affected, lacking financial flexibility to support manufacturers during volatile periods.

Segment Analysis

By Equipment Type: Smart Vision Systems Drive Innovation

The South Korea tire manufacturing machinery market size for upstream machines captured a 31.04% slice of the 2024 revenue. Predictive-maintenance modules and closed-loop temperature control have become default specifications as producers seek batch repeatability. Conversely, curing and inspection lines integrated with machine-vision sensors represent the fastest-growing niche, predicted to post an 8.39% CAGR. Capital budgets favor these systems because they lift first-pass yield and minimize warranty claims, especially critical for export-bound EV tires. 

Suppliers bundling AI analytics with hardware capture disproportionate value as customers demand single-source integration. Second-tier segments such as building-area machines register steady, mid-single-digit expansion centered on upgrades for larger tire diameters. Extrusion and calendaring units gain incremental orders from compound innovations that require tighter gauge control. Auxiliary equipment, coolers, handling robots, and bead winders benefit from the holistic automation trend but command a smaller share of the South Korea tire manufacturing machinery market.

Note: Segment shares of all individual segments available upon report purchase

By Tire Design: Radial Dominance Reinforces Equipment Specialization

Radial construction accounted for 97.24% of the South Korea tire manufacturing machinery market share in 2024. Equipment is therefore optimized for steel-belt placement precision, uniform sidewall geometry, and high-speed bead seating. Growth at a 4.67% CAGR is fueled by premium radial designs for EVs and SUVs, necessitating finer cord tension control in building drums. 

Bias-ply machines serve a sliding 2.76% niche focused on off-road and agricultural applications; investments here remain limited to maintenance rather than new capacity. Radial standardization lets vendors scale component manufacturing, lowering unit costs and freeing R&D budgets for smart-factory modules. Export regulations demanding enhanced wet-grip and low-noise characteristics intensify demand for next-generation radial machinery.

By Vehicle Type: Passenger Car Focus Drives Premium Equipment Demand

Passenger-car lines commanded 46.55% of equipment spending in 2024, and are projected to surge at a 9.62% CAGR. Growth is anchored in high-margin, large-rim EV and SUV tires that require sophisticated compound mixing and precise carcass profiling. Light commercial and delivery vehicle demand rises in tandem with e-commerce growth, albeit off a smaller base. Two- and three-wheeler equipment remains stable, driven by Southeast Asian export orders but constrained by cost-sensitive buyers. 

Medium and heavy commercial vehicle lines face cyclical fleet replacement, limiting spending to incremental productivity upgrades. OEM-aligned passenger-car projects receive priority funding when automakers specify low-rolling-resistance tires for vehicle efficiency credits, amplifying machinery opportunities tied to advanced compounding and inspection.

By Rim Size: Large Diameter Trend Reshapes Manufacturing Requirements

Tires above 18 inches generated 41.38% of revenue in 2024, translating to USD 130.3 million of the South Korea tire manufacturing machinery market size. Their 7.68% CAGR compels manufacturers to recalibrate mold presses for higher cavity pressures and redesign building machines for greater drum diameter. The 12 to 18-inch bracket, at roughly 35% share, still represents the industry’s workhorse volume; investment here focuses on lifecycle upgrades. 

Rims up to 12 inches continue to decline as entry-level vehicle sales stagnate. For large-diameter tires, bead winding stations with laser alignment and high-torque servomotors ensure concentricity, while smart vision inspects sidewall logos. Large-diameter tires, priced 30-50% above standard sizes, drive significant investments in equipment. This, in turn, fuels technological advancements and market growth, favoring specialized equipment suppliers.

Note: Segment shares of all individual segments available upon report purchase

By End-User: Aftermarket Dominance Shifts Toward OEM Growth

Aftermarket customers generated 81.73% of 2024 equipment sales, leveraging predictable replacement cycles to fund modernization that raises throughput without expanding footprint. Nonetheless, OEM demand is now the faster mover, rising at 6.14% CAGR through 2030 as automakers push EV localization. OEM projects often bundle customized MES software and traceability protocols to satisfy vehicle-platform specifications, placing higher requirements on machine-data integration.

The aftermarket segment's stability provides equipment suppliers with predictable revenue streams, though growth opportunities are limited by market maturity. As environmental regulations and quality standards tighten, compliance factors are increasingly shaping equipment selection and upgrade cycles, especially in facilities catering to export markets with stringent certification mandates. 

Geography Analysis

Ulsan anchors the South Korea tire manufacturing machinery market, benefiting from the nation’s largest automotive cluster and a forthcoming dedicated EV plant slated to launch mass production in late 2025. Home to more than 300 automotive-related firms, the city generates over USD 38 billion in output. It hosts an eco-industrial park where waste-heat reuse and material-exchange schemes push factories toward energy-efficient mixers and smart-curing chambers. Machine suppliers have established service hubs nearby to satisfy rapid-response maintenance contracts demanded by 24-hour tire operations^{[3]Invest Korea, “Korea’s Future Car Industry, Continual Growth by Actively Responding to Domestic and Global Changes,” investkorea.org}.

Gyeonggi Province ranks second, leveraging proximity to Seoul and the Banwol-Sihwa Smart Green Industrial Complex, which offers integrated logistics, cloud-based ERP, and pilot lines for autonomous guided vehicles. Companies here capitalize on government grants to retrofit legacy lines with IIoT sensors while maintaining export links via Incheon port. Equipment vendors often stage factory-acceptance tests in Gyeonggi, shortening commissioning cycles for regional buyers.

Busan and its hinterland form the third pole of activity. The port facilitates the import of specialty steel cords and the export of finished equipment, encouraging precision-machinery workshops to cluster nearby. Local authorities market Busan’s mechatronics skill base to support high-precision mold machining and servo-drive assembly. Although smaller, Daegu-Gyeongbuk Free Economic Zone aspires to become a knowledge-industry hub, courting supply-chain partners for smart-factory projects. Tighter VOC limits enforce press upgrades nationwide, driving uniform demand across regions for closed-loop exhaust systems.