The tire market size in North America was valued at USD 421.70 billion in 2024. The North American tire market size is forecasted to be worth USD 544.0 billion by 2033 from USD 533.80 billion in 2025 and is estimated to grow at a CAGR of 5.9% from 2025 to 2033.
The tire is a wide range of products designed for various vehicles, including passenger cars, light trucks, and commercial vehicles. This market is driven by factors such as technological advancements by changing consumer preferences, and regulatory developments. According to the Rubber Manufacturers Association, approximately 300 million tires are sold annually in the United States alone by reflecting the robust demand for tire products. The increasing focus on safety, fuel efficiency, and environmental sustainability is also shaping the market, as consumers seek tires that enhance vehicle performance while minimizing their ecological footprint.
The rising vehicle sales and fleet expansion serve as a primary driver for the North America tire market. According to the Automotive Industry Association, new vehicle sales in the United States reached approximately 15 million units in 2021 by marking a significant rebound from the pandemic-induced decline. This surge in vehicle sales directly correlates with increased demand for tires, as each new vehicle requires a set of tires for operation. Additionally, the expansion of commercial fleets in the e-commerce and logistics sectors, has further fueled tire demand. The combination of rising vehicle sales and fleet expansion underscores the critical role that tires play in the automotive ecosystem, driving market growth and innovation.
Technological advancements in tire manufacturing represent another significant driver of the North America tire market. Innovations in materials, design, and production processes have led to the development of high-performance tires that offer improved safety, durability, and fuel efficiency. For instance, the introduction of advanced rubber compounds and tread designs has enhanced tire grip and reduced rolling resistance, contributing to better fuel economy. According to a study by the National Highway Traffic Safety Administration, properly inflated and well-maintained tires can improve fuel efficiency by up to 3%. Furthermore, the rise of smart tire technology, which incorporates sensors to monitor tire pressure and temperature is gaining traction among consumers seeking enhanced safety and performance.
Fluctuating raw material prices pose a significant restraint on the North America tire market. The production of tires relies heavily on natural and synthetic rubber, along with other materials such as steel and carbon black. According to the International Rubber Study Group, the price of natural rubber has experienced considerable volatility, with prices reaching as high as $2.50 per kilogram in 2021, significantly impacting production costs for tire manufacturers. This volatility can lead to increased tire prices, which may deter consumers from purchasing new tires or opting for premium products. Additionally, the rising costs of synthetic rubber and other materials due to supply chain disruptions further exacerbate this challenge. Manufacturers may struggle to maintain profit margins while balancing the need to offer competitive pricing to consumers.
Regulatory challenges and environmental concerns represent another significant restraint on the North America tire market. Increasingly stringent regulations regarding tire performance, safety standards, and environmental impact are shaping the marketplace landscape. For instance, the U.S. Environmental Protection Agency has implemented regulations aimed at reducing tire rolling resistance to improve fuel efficiency and lower greenhouse gas emissions. While these regulations promote sustainability, they also impose additional compliance costs on manufacturers. According to the Tire Industry Association, the cost of compliance with environmental regulations can account for up to 10% of total production costs. Furthermore, growing consumer awareness of environmental issues is prompting a shift towards eco-friendly tire options, which may require manufacturers to invest in sustainable materials and production processes.
The growth of electric vehicles (EVs) presents a significant opportunity for the North America tire market. The demand for specialized tires designed for electric vehicles is expected to rise as the automotive industry shifts towards electrification. Electric vehicles often require tires that can accommodate their unique performance characteristics, such as increased torque and weight. Manufacturers are responding to this demand by developing tires specifically engineered for EVs, which offer lower rolling resistance and enhanced durability. The growing emphasis on sustainability and reduced carbon footprints further supports the adoption of electric vehicles by creating a favorable environment for tire manufacturers to innovate and expand their product offerings.
The rising demand for sustainable tire solutions represents another promising opportunity for the North America tire market. As consumers become more environmentally conscious, there is a growing interest in eco-friendly tire options that minimize environmental impact. According to a survey conducted by the Tire Industry Association, over 60% of consumers expressed a preference for tires made from sustainable materials. Manufacturers are responding to this trend by investing in research and development to create tires that utilize renewable resources, such as bio-based rubber and recycled materials. Additionally, the development of tires with lower rolling resistance contributes to improved fuel efficiency, aligning with consumer preferences for sustainability.
Intense competition and price pressure pose significant challenges to the North America tire market. The tire market is characterized by a large number of players by ranging from established multinational corporations to smaller regional manufacturers. This competitive landscape often leads to aggressive pricing strategies, which can erode profit margins for manufacturers. According to a report by IBISWorld, the tire manufacturing companies in the United States is expected to experience a decline in profit margins due to increased competition and rising production costs. Additionally, the proliferation of online tire retailers has intensified price competition, as consumers have greater access to price comparisons and discounts. Manufacturers must navigate this challenging environment by differentiating their products through innovation, quality, and customer service. The addressing the challenges posed by intense competition and price pressure will be crucial for sustaining profitability and market share.
Supply chain disruptions represent another significant challenge for the North America tire market. The COVID-19 pandemic has exposed vulnerabilities in global supply chains is leading to shortages of critical components and materials required for tire production. According to the Rubber Manufacturers Association, the tire market faced significant disruptions in 2021 by resulting in production delays and increased lead times for manufacturers. These disruptions can hinder the ability of tire manufacturers to meet consumer demand during peak seasons when tire sales typically surge. Furthermore, the reliance on global supply chains for raw materials, such as rubber and steel, raises concerns about sustainability and ethical sourcing. Addressing supply chain challenges will be crucial for ensuring the timely production and delivery of tire products as the demand for tires continues to rise.
The replacement segment dominated the North America Market share in 2024. This dominance is primarily driven by the ongoing need for tire replacements due to wear and tear, as well as the increasing average age of vehicles on the road. According to the Bureau of Transportation Statistics, the average age of light vehicles in the United States reached 12.1 years in 2021 is leading to a higher demand for replacement tires. Additionally, the growing awareness of tire maintenance and safety is prompting consumers to invest in high-quality replacement tires that enhance vehicle performance and safety.
The original equipment manufacturer (OEM) segment is more likely to witness a fastest CAGR of 6.5% from 2025 to 2033. This growth can be attributed to the increasing production of vehicles, driven by rising consumer demand and the recovery of the automotive industry post-pandemic. According to the Automotive Industry Association, new vehicle production in the United States is expected to reach 16 million units by 2025 by creating a corresponding demand for OEM tires. Additionally, the trend towards electric and hybrid vehicles is further fueling the growth of the OEM market, as manufacturers seek to provide specialized tires that meet the unique performance requirements of these vehicles. The OEM market's growth is also supported by partnerships between tire manufacturers and automakers is leading to the development of innovative tire solutions tailored to specific vehicle models.
The passenger car and light truck tires segment was the largest and held 60.5% of the North America tire market share in 2024. This dominance is primarily driven by the high volume of passenger vehicles on the road, with the U.S. Department of Transportation reporting over 270 million registered vehicles in the United States. The demand for passenger car and light truck tires is further supported by the increasing consumer preference for personal vehicles in the wake of the COVID-19 pandemic, which has led to a shift away from public transportation. According to the Tire Industry Association, sales of passenger car and light truck tires reached approximately 200 million units in 2021 by reflecting a robust demand for these products.
The commercial tires segment is expected to witness a fastest CAGR of 8.5% from 2025 to 2033. This growth can be attributed to the increasing demand for off-highway vehicles in sectors such as construction, mining, and agriculture. According to the Association of Equipment Manufacturers, the construction equipment market in the U.S. is expected to grow significantly due to driven by infrastructure investments and urban development projects. The demand for specialized off-highway tires that can withstand rugged terrains and heavy loads is on the rise. Additionally, advancements in tire technology, such as improved tread designs and materials that are enhancing the performance and durability of off-highway tires, making them more appealing to consumers. The growing emphasis on efficiency and productivity in commercial operations further supports the adoption of high-quality off-highway tires.
The United States tire market was accounted in holding the dominant share of 85.4% in 2024. A robust automotive industry, significant vehicle ownership, and a well-established tire manufacturing sector drive this dominance. The extensive network of distribution channels and retail outlets further supports the growth of the tire market in the U.S. Additionally, the increasing focus on safety, performance, and sustainability is prompting consumers to invest in high-quality tires, driving demand for innovative tire solutions.
Canada tire market is swiftly emerging with an estimated CAGR of 10.4% during the forecast period. The Canadian tire market has experienced steady growth, driven by a strong commitment to vehicle safety and environmental sustainability. According to the Tire and Rubber Association of Canada, tire sales in Canada reached approximately 30 million units in 2021, reflecting a growing consumer preference for high-quality tires. The Canadian government has implemented various initiatives to promote tire recycling and the use of eco-friendly materials, further supporting market growth. Additionally, the increasing average age of vehicles on the road is contributing to the demand for replacement tires.
This research report on the North American tire market is segmented and sub-segmented based on the following categories.
By Segment
By Application
By Country
Frequently Asked Questions
The market is expected to grow steadily, influenced by trends like the rise of EVs, fuel efficiency, and technological advancements. However, supply chain issues and raw material costs may pose challenges.
The tire market faces challenges such as fluctuating raw material costs, supply chain disruptions, and the need for continuous innovation. Manufacturers must adapt to changing regulations and consumer preferences.
Tire prices vary based on factors like brand, tire type, raw material costs, and manufacturing location. Premium brands and specialized tires tend to be more expensive.
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