Low Rolling Resistance Tire Market Trends and Strategic Recommendations

Low Rolling Resistance Tire Market Competitive Landscape & Future Outlook

The low resistance tire market is forecasted to expand from USD 25.12 billion in 2025 to USD 65.52 billion by 2034, growing at a CAGR of 11.24% from 2025 to 2034.

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Introduction

The low rolling resistance tire market is a crucial segment of the tires industry. This industry deals in developing high-quality tires that helps in enhancing fuel efficiency. These tires are manufactured using graphene for minimizing the rolling effect. There are several types of tires manufactured in this sector consisting of on-road tires and off-road tires. It finds applications in various types of vehicles consisting of two-wheelers, passenger cars, light commercial vehicles, heavy commercial vehicles and some others. These tires are available in a distribution channel comprising of online and offline. The growing demand for passenger vehicles in different parts of the world has contributed to the industrial expansion. This market is expected to rise significantly with the growth of the automotive industry across the globe.

• According to the OICA, around 6551141 passenger vehicles were sold in North America during 2022 that increased to 6953212 in 2023.

Highlights of the Low Rolling Resistance Tire Market

• Asia Pacific held the dominant share of the low rolling resistance tire market due to the rising demand for electric vehicles in this region.
• North America is expected to grow with a significant CAGR due to the presence of tire manufacturing brands in this region.
• The on-road segment dominated the market due to the rising sales of SUVs around the world.
• The passenger car segment led the market due to the growing sales and production of hatchbacks across the globe.

Low Rolling Resistance Tire: Stats and Figures

• According to the U.S. Tire Manufacturers Association, the U.S. tire manufacturing has an annual economic footprint of US$170.6 billion.
• According to the India Brand Equity Foundation, the Indian tire demand is expected to rise by 6-8% during 2023-24.
• According to the ATMA, around 2173.52 lakhs tires were manufactured in India during 2022-23.

Industry Leader Announcement

In September 2024, Philipp Ostbomk, the Vice President B2B Europe North announced that,” With the new tyres, Michelin is once again demonstrating its technological lead in terms of manufacturing tyres with an ultra-low rolling resistance, and a reduced environmental footprint. Both products can also be regrooved and retreaded, ensuring fleets can extract the maximum performance from each new Michelin casing. This helps our customers reduce their operating costs in a highly competitive market and contribute to more sustainable mobility.”

Regional Insights

Asia Pacific dominated the low rolling resistance tire market. The market in this region is generally driven by the growing demand for electric vehicles. Also, the presence of several automotive manufacturers along with rapid investment by public and private sector entities for developing superior grade tires has driven the industrial expansion.

In Asia Pacific, China and Japan are the major contributors of this market. In China, the market is generally driven by the growing sales of automotives. In Japan, the market is boosted due to the presence of various tire manufacturing brands such as Sumitomo Rubber Industries, Yokohama Rubber Co., and Toyo Tire & Rubber Co.

Competitive Landscape

The low rolling resistance tire market is a highly competitive industry with the presence of numerous dominant players. Some of the prominent companies in this industry comprises of Madras Rubber Factory, Continental AG, Michelin, The Goodyear Tire & Rubber Company and some others. These market players are constantly engaged in developing high-quality tires and adopting various strategies to maintain their dominant position in this industry.

• According to the annual report of Michelin, North America contributed 39% to the overall revenue followed by 36% and RoW (25%).

Market Segmentations

By Application Type

• On-Road
• Off-Road

By Vehicle Type

• PC
• LCV
• HCV

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa