Electric Vehicle Tires Market Size

Electric Vehicle Tires Market Size

Electric Vehicle Tires Market size was valued at USD 15.4 billion in 2023 and is estimated to register a CAGR of over 9% between 2024 and 2032. The International Energy Agency (IEA) projects a robust continuation of electric car sales until 2023. The first quarter recorded the sale of over 2.3 million electric cars, marking a 25% increase compared to the same period last year. Anticipating a sustained momentum, the IEA forecasts a total of 14 million electric car sales by the close of 2023, reflecting a substantial 35% year-on-year growth. The acceleration in new purchases is expected to gain momentum, particularly in the latter half of this year.

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The growing popularity and adoption of electric vehicles play a significant role in driving the demand for specialized tires designed for electric vehicles. As more consumers and businesses transition to electric vehicles to reduce carbon emissions and dependence on traditional fuels, there is a corresponding increase in demand for tires optimized for the unique performance characteristics of electric vehicles.
 

Advances in tire technology, materials, and design are playing a crucial role in the electric vehicle tires market. Tire manufacturers are investing in research and development to create tires that are not only energy-efficient but also provide optimal performance, safety, and durability for electric vehicles. This includes innovations in tread patterns, tire compounds, and construction materials to meet the specific requirements of electric vehicles.
 

For instance, in November 2023, Goodyear unveiled the launch of its latest initiative, the Goodyear EV-Ready logo. Set to debut on the sidewalls of all new replacement tires from 2024 onwards this cutting-edge label indicates the tire's compatibility not only with electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) but also with conventional internal combustion engine (ICE) vehicles.
 

However, electric vehicles often involve a higher upfront cost than traditional internal combustion engine vehicles. This cost factor extends to the tires as well. Specialized EV tires may be priced higher than conventional tires due to the advanced technology and materials used in their construction. The higher overall cost of electric vehicles, coupled with the additional expense of specialized tires, can be a deterrent for some consumers, potentially impacting the widespread adoption of EV tires.