ELECTRIC VEHICLE TIRE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Electric Vehicle Tire Market Size and Trends

The global electric vehicle tire market is estimated to be valued at US$ 3.42 Bn in 2024 and is expected to reach US$ 13.71 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 21.9% from 2024 to 2031.

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Various factors such as rising demand for electric vehicles due to stringent emission norms and growing environmental concerns are fueling the demand for electric vehicle tires.

Market Driver - Technological advancements in tire manufacturing for EVs

Rapid technological advancements in tire manufacturing is a key driver behind the growth of the electric vehicle tire market. With increasing popularity of EVs across the world, tire manufacturers are focusing on developing specialized tires specifically designed for electric vehicles. As compared to conventional vehicles, electric vehicles are heavier due to large batteries. They also require different gripping ability due to heavy torque generated by electric motors.

To cater to these unique requirements of EVs, tire makers are investing heavily in research and development. New silica and rubber compounds are being experimented to provide better traction and handling abilities in all driving conditions. Silica improves the silica reinforcement of the tires giving a superior handling balance. Meanwhile, advanced rubber compounds help in reducing the rolling resistance of tires which directly impacts the mileage of electric vehicles. Lower rolling resistance enables electric vehicles to run longer on single charge.

Furthermore, continuous tread designs and different tread patterns are optimized to dissipate heat generated in tires more efficiently. Unlike fuel-powered vehicles, braking system in electric vehicles relies more on regeneration which produces significant heat. Advanced tire designs ensure effective heat removal without compromising on other performance aspects. Some tire manufacturers have also started using green, renewable materials in tire manufacturing which align well with the sustainability aspect of electric mobility.

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Rising Demand for Long-Lasting and Fuel-Efficient Tires for EVs

With growing concerns over rising fuel costs and emissions from gasoline vehicles, many consumers as well as fleet operators are switching to electric vehicles. As EVs are becoming popular for their lower running costs compared to internal combustion engine vehicles, users expect their tires to offer high mileage and fuel efficiency as well. This rising demand for durable and efficient tires is acting as another key driver for electric vehicle tire market.

EV owners want their tires to last long in order to avoid frequent replacements which otherwise adds to the total cost of ownership. Hence, many are willing to pay more for tires that offer higher tread life. This is encouraging tire manufacturers to focus on developing long-lasting tread compounds and robust tire construction. Advanced silica and polymer additives are making tires more durable from inside. Similarly, optimized tread patterns are improving outer toughness of tires.

At the same time, low rolling resistance of tires retains importance for electric vehicle drivers trying to extract maximum range from each battery charge. Efficient tires help save energy and extend driving range. This factor has spurred innovations around low-heat, enhanced grip and hydroplaning resistant tires. Overall, demand for value and sustainability is fostering continuous product differentiation in the EV tire segment. The new specialized tires are catering to varied performance as well as cost-saving needs of electric vehicle owners.