Automotive Tire OEM Market Size

Automotive Tire Original Equipment Manufacturer (OEM) Market size was over USD 23.03 Billion in 2023 and is set to cross USD 41.85 Billion by the end of 2036, growing at more than 4.7% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of automotive tire original equipment manufacturer (OEM) is estimated at USD 24 Billion. The growth of the market can primarily be attributed to the growing trend of automotive OEM tires owing to rising awareness about its longevity amongst automotive users worldwide. For instance, it is projected that OEM tires may last more or less up to 50,000 miles.

OEM tires commonly known as OE tires are specified by the vehicle manufacturer and are initially fitted to the new vehicle. The car manufacturer works with tire companies to choose a tire that will meet the performance requirements for their brand-new vehicle and selects a tire that balances ride noise, handling, fuel efficiency, and longevity, to achieve the overall features that the vehicle manufacturer believes are important to the end-user. With the development demand for OE tires as well as investment, the demand for OEM tires is on the rise amongst manufacturers, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global automotive tire OEM market during the forecast period. For instance, it is projected that to develop a tire that will adequately accompany new vehicles, car companies invest around USD 1 million.