Tire Material Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Global Tire Material Market Trends and Insights

Global Ramp-Up of EV and Hybrid Vehicle Production

Electric trucks sold 54,000 units in 2023, 35% higher than in 2022, marking the first time the category outpaced electric buses. Battery packs weighing 300–500 kg place additional load on tire contact patches, cutting traditional compound life in half. Tire makers now test synthetic blends, such as liquid farnesene rubber, to meet lower rolling-resistance targets without increasing heat buildup. The International Rubber Study Group expects natural-rubber demand to hit 16.9 million tons by 2030, yet EV platforms are decoupling volume growth from historical elastomer ratios. Suppliers Kuraray and JSR are racing to commercialize bio-based polymers that match the performance of solution S-SBR at a lower carbon intensity, reinforcing why the tire material market is shifting toward specialty elastomers.

OEM Shift Toward Low Rolling Resistance Compounds

Euro 7 rules, effective mid-2026, cap tire abrasion at 7 mg/km for passenger cars and 11 mg/km for light commercial vehicles, which limits the use of high-carbon-black compounds^{[1].Thailand Board of Investment, “Automotive Investment Approvals 2024,” boi.go.th} OEMs now specify silica–silane systems that cut rolling resistance by up to 20% while meeting wet-grip targets. Evonik’s ULTRASIL 9100 GR, produced from bio-ethanol, delivers a 60% CO₂ reduction without compromising surface-area requirements. PPG’s AGILON silica attains similar traction benefits but emphasizes lower mixing energy, a priority as European electricity costs rise. North American truck OEMs still prefer carbon-black-rich recipes that resist heat above 80 °C, fragmenting filler demand and obliging suppliers to maintain dual production lines.

Surge in E-Commerce Activities and Replacement Tire Miles

U.S. replacement-tire shipments reached 337.4 million units in 2024, with commercial-truck replacements up 8.9% year on year. Delivery fleets operate with nearly continuous duty cycles, which triple wear rates and reward compounds that extend casing life for multiple retreads. Sailun’s liquid-gold compound, introduced in 2021, reduces energy consumption in EVs by 12% and extends tread life by up to 30%, demonstrating how direct fleet purchasing can circumvent lengthy OEM validation periods. Rising congestion pricing in urban corridors also accelerates hybrid and EV adoption, shortening product life cycles and heightening research and development intensity in the tire material market.

Re-Industrialization of Southeast Asia Creating New Local Tire Plants

Thailand’s Board of Investment has approved 41 tire projects worth more than THB 112 billion since 2020, including Michelin’s EUR 300 million expansion, scheduled for 2024^{[2]European Commission, “Euro 7 Vehicle Emissions 2026,” eur-lex.europa.eu}. Continental, Kumho, and others are expanding capacity across the ASEAN region to capitalize on labor costs that are 15–25% lower than in China, as well as duty-free EU market access under GSP+ schemes. Hyosung operates the world’s largest integrated tire-cord site in Vietnam, using vertical integration to compress lead times. ASEAN vehicle fleets grow 6–8% annually, and replacement penetration remains under 40%, offering the tire material market a decade-long runway independent of developed-market cycles.

Volatile Crude Oil and Carbon-Black Pricing

European carbon-black prices rose 18% in June 2024, following the ban on imports from Russia, which forced tire makers to source higher-priced material from Turkey and Egypt. Feedstocks, such as FCC tar, track Brent crude with a three-month lag, resulting in margin compression when oil rallies outpace contract renegotiations. Cabot’s Q4 2024 reinforcement volumes fell 7% as customers delayed restocking amid price uncertainty. Natural-rubber futures also remain volatile, dropping 2.1% week-over-week in March 2025 as Thai and Indonesian output expanded, prompting tire makers to hold 60–90 days of safety stock, which ties up working capital.

Looming EU PFAS Ban Limiting Fluorinated Additives

The European Chemicals Agency expects PFAS restrictions to take effect in 2026, targeting fluorinated processing aids essential for silica dispersion. Removing these aids lengthens the mixing time by 5–8% and increases energy costs. Solvay’s Highly Dispersible Silica 185 GR offers a PFAS-free path but requires 10% more silane coupling agent to reach equivalent performance. Regulatory arbitrage may prompt tire makers to shift production to Turkey and Southeast Asia, adding complexity to supply chains in the tire material market.

Segment Analysis

By Material Type: Elastomers Gain Share as EV Platforms Proliferate

Elastomers accounted for 42.88% of the tire material market size in 2025 and will expand at a 5.43% CAGR through 2031 as synthetic blends displace pure natural rubber in EV applications. Natural rubber still dominates passenger tires due to its superior tear strength, yet low-rolling-resistance mandates are accelerating the switch to solution S-SBR, polybutadiene, and bio-based liquid farnesene rubber. Kuraray reports lifecycle CO₂ cuts of 30% and a 10% reduction in rolling resistance in Michelin pilot programs, illustrating how premium OEM specifications reward novel polymers. Reinforcing fillers, which occupy approximately one-third of the total compound volume, are witnessing a rise in silica’s share as Euro 7 abrasion limits force higher-silica tread recipes. Bio-ethanol silica grades from Evonik and PPG are closing the historical cost gap with carbon black, a shift that further diversifies supplier bases within the tire material market.

Lightweight plasticizers face stricter REACH limits on aromatic content, prompting a shift toward treated distillate extracts and tall-oil derivatives, even though they add USD 0.10–0.15 per kilogram to compound cost. Nano-zinc-oxide grades cut heavy-metal loading by 40%, easing recycling, while Bekaert steel cord with 50% scrap content lowers compound CO₂ by half. These incremental advances position material suppliers for premium pricing as OEMs chase cradle-to-grave sustainability metrics.

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

By Vehicle Type: Heavy Trucks Accelerate on Freight Electrification

Passenger cars contributed 32.74% of the tire material market size in 2025, yet their volume share is eroding as electric freight platforms and last-mile delivery vans scale at a faster rate. Heavy trucks are projected to rise at a 5.95% CAGR through 2031, driven by autonomous freight pilots and Class 8 EV rollouts that impose higher torque and thermal loads on compounds. New tread recipes blend high-structure carbon black with silica to balance heat dissipation and abrasion resistance under regenerative braking. Fleets prioritize retreadable casings, prompting suppliers to increase tensile strength by 20% through the use of higher-cis polybutadiene and optimized vulcanization packages. Light commercial vehicles grow at a rate of 4–5% annually, with tire-as-a-service contracts favoring compounds that deliver three to four retreads to minimize downtime. Electric buses, especially in China and major European cities, require materials rated for 12–18-ton curb weights and 300 kWh battery packs, which has spurred the development of hybrid bead wire and high-modulus rubber sidewalls.

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

Geography Analysis

Asia-Pacific held 52.05% of the tire material market share in 2025, underpinned by China’s 30.5-million-unit light-vehicle output and the region’s 62% share of global natural-rubber supply. Chinese tire makers, such as Sailun and Linglong, reported net profit growth exceeding 70% in 2024 and are expanding capacity both domestically and internationally, indicating sustained demand for upstream materials. Japan’s Bridgestone, Sumitomo, and Yokohama raised their combined capital expenditure by 10.6% for FY 2025, directing funds toward high-value EV components and overseas plants. Southeast Asia’s cost advantage and access to raw rubber encourage new entrants, while EU-aligned tire labeling standards prompt local producers to adopt low-rolling-resistance recipes, creating export-ready demand for advanced fillers.

The Middle East and Africa region is the fastest-growing geography, registering a 5.82% CAGR through 2031, as Saudi Arabia and the UAE deploy industrial diversification strategies. Projects such as the USD 550 million Pirelli-PIF plant and Egypt’s USD 1.8 billion capacity pipeline promise to build a self-sufficient cluster that will need local carbon black, silica, and synthetic rubber supply. Europe and North America remain innovation hubs because regulatory pressure accelerates the adoption of bio-based silica, recovered carbon black, and stringent traceability standards, lessons that later cascade to emerging markets. South America's growth is at 3–4%, tempered by currency volatility and slower capacity additions; however, Brazil’s 70 million vehicle parc offers a resilient aftermarket base that still imports specialty fillers.