Tire Industry News & Insights 2025

Tire Industry Trends 2025-2030: Green Transition and Global Market Restructuring

The global tire industry is entering a critical period of structural adjustment, driven by environmental regulations, technological innovation, and shifting trade dynamics. With a market size reaching $280 billion in 2024 and a compound annual growth rate (CAGR) of approximately 3.2%, the industry is witnessing profound changes in supply and demand patterns, competitive landscapes, and technological directions.

Market Trends: Structural Growth Driven by New Energy and Replacement Demand

EV Tire Boom: The global sales of new energy vehicles (NEVs) hit 40 million units in 2024, directly fueling a 38.3% surge in demand for NEV-specific tires. These tires require low rolling resistance, high temperature resistance, and enhanced load-bearing capacity, becoming a key growth driver for the industry. By 2030, the penetration rate of low rolling resistance tires is expected to exceed 65%, with the EV tire market growing at a CAGR of 18%.

Replacement Market Dominance: The replacement tire segment accounts for over 70% of global sales, supported by the expanding global vehicle parc, which is projected to reach 3.5 billion units by 2025. Emerging markets in Southeast Asia and Africa are leading the growth with a double-digit annual increase, driven by rising middle-class populations and increasing vehicle ownership.

Regional Restructuring: Asia-Pacific is set to maintain its position as the largest market, with a share exceeding 35% by 2030. Southeast Asia's production capacity is expected to rise to 45% as manufacturers relocate to avoid trade barriers, while Africa and Latin America are emerging as high-growth regions with annual growth rates of over 10%.

Competitive Landscape: Polarization Between High-End and Cost-Effective Segments

Concentration of Profits: The top five to six leading enterprises capture over 70% of the industry's profits with just one-third of the total sales revenue, highlighting the growing polarization between large and small players. Small and medium-sized enterprises are struggling with overcapacity and low profit margins, leading to accelerated market exit.

Capacity Distribution Imbalance: While global tire capacity, dominated by manufacturers from major producing countries (920 million units in 2024), faces underutilization (75% on average), high-end segments such as aviation tires and mining giant tires suffer from insufficient local production, with a localization rate of less than 30% in major markets.

Technological Competition: The industry is shifting from price competition to technological innovation. Key focus areas include breaking the "devil's triangle" of tire performance (balancing rolling resistance, wet grip, and wear resistance), developing smart tires with sensor technology, and advancing circular economy solutions.

Industry Pain Points: Cost Pressures and Trade Barriers

Raw Material Volatility: Natural rubber, which accounts for 45-50% of tire production costs, saw prices soar to $2,000 per ton in 2024, coupled with rising carbon black prices, compressing the industry's average gross profit margin from 20.5% to 18.5%.

Overcapacity in Low-End Segments: Low-end bias tires face severe overcapacity with a 45-day inventory cycle, while regional production clusters in some countries suffer from capacity utilization rates below 60% due to short-sighted investment.

Intensified Trade Frictions: Anti-dumping duties and carbon tariffs have disrupted traditional trade routes. Major markets' anti-dumping measures have reduced tire exports from key producing nations by 7 percentage points in total exports, prompting manufacturers to shift production to Southeast Asia and Mexico to bypass trade barriers.

2. Global Tire Import & Export Policy Updates 2025: Compliance Requirements and Trade Route Adjustments

International tire trade is undergoing significant changes in 2025, with new regulations on product certification, origin verification, and environmental standards reshaping global supply chains. Understanding these policy dynamics is crucial for enterprises to navigate compliance challenges and optimize trade strategies.

Mandatory Certification and Safety Standards

Compulsory Certification Upgrade in Major Asian Markets: Since January 1, 2025, imported passenger car tires must obtain mandatory certification in accordance with the revised regulation (CNCA-C12-01:2024). The new standard aligns with GB 9743-2024, imposing stricter requirements on rolling resistance, wet grip performance, and safety indicators such as strength and durability. Uncertified products are prohibited from domestic sales.

EU REACH Regulation Strengthening: The EU has tightened restrictions on harmful substances in tires, requiring a 20% reduction in rolling resistance by 2025. Green tire penetration in Europe has reached 45%, and the upcoming carbon border tax will further raise the threshold for market access, making environmental certification a key prerequisite for exports.

Global Safety Standard Alignment: Major markets are increasingly adopting unified safety criteria, including mandatory testing for high-speed performance, bead unseating resistance, and durability. Tires for special purposes (e.g., snow tires marked with "M+S" or snowflake icon, run-flat tires labeled "RF") must meet additional performance standards.

International Trade Regulation Changes

U.S. Origin Verification System: The United States officially launched a stricter origin verification system in April 2025, targeting tire transshipment through third countries. Goods deemed to be transshipped via certain Southeast Asian nations may face a 40% tariff, while those from other regions are subject to a 19% base tariff plus additional duties if found to be transshipped.

Southeast Asia Transshipment Crackdown: Key Southeast Asian manufacturing hubs have intensified supervision over transshipment trade. One major hub requires a 30% local value-added rate for "local-made" certification and conducts joint inspections with U.S. authorities on raw material sources and export documents. Another hub has expanded its monitoring list to include OTR tires, with severe penalties for forged certificates of origin.

Regional Trade Agreement Impacts: Major regional trade pacts have boosted tire trade among member states, with ASEAN's market share rising to 28%. Manufacturers are leveraging regional preferential policies to establish production bases in Southeast Asia, optimizing supply chains to reduce tariff costs.

Compliance Guidelines for Exporters

Certification Preparation: Ensure full compliance with destination market certification requirements, including CCC for Asian markets, ECE for Europe, and DOT for the United States. Maintain updated documentation for automatic verification by customs systems.

Origin Management: Strengthen supply chain traceability to meet local value-added requirements in overseas production bases. Keep detailed records of raw material procurement and production processes to avoid origin disputes.

Policy Monitoring: Closely track changes in anti-dumping duties and carbon tax policies in major markets. Proactively adjust trade routes and production layouts to mitigate risks from trade friction.

3. Tire Technology & FAQ: Materials, Manufacturing, and Practical Usage Guide

Tire performance and safety are closely linked to advanced manufacturing processes, innovative materials, and proper usage. This article demystifies key tire technologies and addresses common questions to help consumers make informed decisions.

Core Tire Manufacturing Technologies

Dynamic Balancing Technology: Critical for reducing vibration and noise in high-speed operation, dynamic balancing corrects mass imbalances in rotating components. Unlike static balancing (for thin-disc rotors), dynamic balancing addresses imbalances in multi-segment rotors, requiring precision detection and correction to minimize centrifugal forces that cause equipment wear and failure.

Intelligent Manufacturing: Industry 4.0 technologies, including modular production systems and industrial internet platforms, have transformed tire manufacturing. These advancements reduce defect rates by up to 80%, improve production efficiency by 68%, and shorten order delivery cycles by 35% through data-driven process optimization.

Modular Design: Modern tires adopt modular structures, allowing customization of tread patterns, sidewall materials, and internal reinforcement layers to meet specific application needs, from passenger cars to heavy-duty mining vehicles.

Innovative Materials Shaping Tire Performance

Sustainable Materials: The industry is accelerating the adoption of bio-based and recycled materials. Leading solutions include bio-based rubber derived from corn cobs and plant-based ethanol, recycled carbon black from tire pyrolysis, and silica extracted from rice husks. Some tires now contain over 70% sustainable materials, meeting strict environmental standards.

High-Performance Reinforcements: Advanced skeleton materials such as aramid fibers and ultra-high-strength steel cords enhance tire durability and reduce weight. Aramid-reinforced tires offer lower rolling resistance and improved high-speed stability, while specialized steel cords increase load-bearing capacity for NEV trucks and mining vehicles.

Eco-Friendly Compounds: Solvent-free adhesive systems and low-emission rubber compounds are gaining traction, reducing environmental impact during production. Thermal cracking technology enables 92% recycling of waste tires, lowering material costs by 40%.

Application Scenarios & Matching Guidelines

NEV-Specific Tires: Designed with low rolling resistance (≤5.5N/kN) and heat resistance, these tires optimize energy efficiency and extend driving range. They feature reinforced sidewalls to support battery weight and improved wet grip for electric vehicle safety.

Special Climate Tires: Snow tires with "M+S" certification provide enhanced traction on icy surfaces, while all-terrain tires use deep grooves and rigid tread blocks for off-road performance. Tropical region tires prioritize heat dissipation and puncture resistance.

Commercial Vehicle Tires: OTR (Off-The-Road) tires for construction and mining feature thickened treads and anti-cut compounds, while long-haul truck tires focus on fuel efficiency and long mileage, reducing total cost of ownership (TCO) for fleets.

Common Tire FAQs

When to replace tires? Replace tires when tread depth wears down to the wear indicator (1.6mm), or if there are signs of cracking, bulging, or uneven wear. Most tires have a service life of 4-6 years regardless of tread depth.

How often to check tire pressure? Inspect tire pressure (including the spare) at least monthly and before long trips, when tires are cold (parked for ≥3 hours). Follow the vehicle manufacturer’s recommended pressure, not the maximum pressure marked on the tire sidewall.

Can I mix tire types? Avoid mixing directional and non-directional tires on the same axle. If replacing one tire, match the size, speed rating, and tread pattern to the existing tires to ensure stability.

What do speed ratings mean? Speed ratings (e.g., T=190km/h, V=240km/h, Y=300km/h) indicate the maximum safe speed for tires under specified loads. Always use tires with a speed rating equal to or higher than the vehicle’s maximum speed capability.