The global light truck tyre market is undergoing rapid transformation, driven by increasing demand for light trucks, sustainability initiatives, and technological advancements. While AI and automation have yet to directly impact market size, they are revolutionising tyre manufacturing, quality control, and supply chain efficiency.
This article explores the current role of AI and automation, the market’s growth trajectory, and opportunities for manufacturers, retailers, and logistics companies.
AI and Automation: Transforming the Tyre Industry
Although AI and automation have not significantly altered the overall market dynamics of light truck tyres, they are playing an essential role in optimising production, enhancing efficiency, and improving sustainability.
Key Applications of AI in Tyre Manufacturing
- Production optimisation: AI is improving workflow efficiency, production scheduling, and machine control. This leads to increased output without added costs, benefiting tyre manufacturers seeking to scale operations.
- Compound mixing: Automated AI-driven systems help optimise rubber compound formulations, reducing stoppages and improving consistency—crucial for maintaining product quality.
- Virtual prototyping: Companies like Pirelli are using AI-powered virtual simulations to accelerate tyre development, reducing reliance on physical prototypes and shortening time-to-market for new tyre models.
- Design and development: Tyre brands such as Hankook utilise digital twin technology, which enables real-time simulation of tyre performance, durability, and adaptability to different road conditions.
- Research and development: AI is streamlining R&D processes by analysing large datasets to improve grip, rolling resistance, and fuel efficiency—ultimately leading to more sustainable and longer-lasting tyres.
- Quality control: AI-powered inspection systems help detect manufacturing defects and inconsistencies, improving production standards and reducing waste.
AI’s Impact on Consumer Preferences, Supply Chains, and Sustainability
- Consumer demand: AI-driven smart tyres with built-in sensors for real-time monitoring are influencing purchasing decisions.
- Supply chain management: AI enhances logistics efficiency by predicting demand, optimising inventory, and reducing delays.
- Sustainability: AI is helping manufacturers develop low-rolling-resistance tyres, reducing carbon footprints while improving fuel efficiency.
While these advancements increase efficiency and product quality, they have not yet influenced the market size— which remains driven by vehicle production growth and logistics expansion.
Key Market Players
The global light truck tyre market is dominated by well-established manufacturers, including:
- Michelin
- Goodyear
- Continental
- Pirelli
- Hankook
- Sumitomo
- Yokohama
- Maxxis
- Zhongce
- GITI Tire
These companies invest heavily in AI-driven manufacturing, sustainability initiatives, and premium tyre solutions to remain competitive.
Market Trends and Growth Projections
Current Trends Driving the Market
- Rising demand for light trucks: The expansion of e-commerce logistics is boosting demand for light truck tyres, especially for last-mile delivery. Emerging markets, such as India and Southeast Asia, are seeing a rise in light truck ownership.
- Technological innovations: Advancements in tread design, rubber compounds, and AI-based tyre development are improving performance. The integration of smart tyre technology is becoming more prevalent.
- OEM expansion: Increasing light truck production has led to a higher demand for original equipment manufacturer (OEM) tyres.
- Sustainability and green tyres: Tyre makers are developing low-rolling-resistance tyres to improve fuel efficiency and reduce emissions.
- Regional growth trends: Developing economies, particularly Latin America and Asia-Pacific, are seeing increased tyre demand due to urbanisation and infrastructure expansion.
Market Growth Projections
- The global light truck tyre market was valued at USD 45.2 billion in 2022 and is projected to grow at a CAGR of 4.7% through 2028 (Source: Market Research Report).
- The SUV/light truck tyre market is expected to reach USD 75.6 billion by 2030 (Source: Industry Analysis).
- Key growth drivers include increased vehicle production, e-commerce and logistics expansion, and advancements in high-performance and sustainable tyres.
Product Demand and Emerging Applications
What Types of Tyres Are in Demand?
- Radial vs. bias tyres: Radial tyres dominate due to their durability, fuel efficiency, and better traction. Bias tyres remain cost-effective options in certain markets.
- All-season and specialised tyres: All-season tyres are gaining popularity for their versatility across weather conditions. Winter and off-road tyres are growing in demand for extreme climates.
- Sustainable tyres: Increasing focus on eco-friendly materials and reduced rolling resistance.
- OEM vs. aftermarket tyres: OEM tyres are in high demand for new vehicle production. The aftermarket segment is growing, particularly in developing markets with aging fleets.
Market Dynamics: Supply, Demand, and Trade
Production, Costs, and Profitability
- The global market is expected to grow from USD 28.23 billion in 2024 to USD 38.9 billion by 2032.
- Key production hubs include North America, Europe, and Asia-Pacific.
- Raw material costs and economic fluctuations will impact profitability.
Supply Chain and Trade
- North America and Europe are major importers of light truck tyres.
- China and India lead as exporters, benefiting from lower production costs.
- Trade disruptions and sustainability regulations could reshape supply chains.
Factors Influencing Pricing and Production
Key Cost Drivers
- Raw materials: Prices of natural rubber, synthetic rubber, steel, and silica impact production costs.
- Sustainability compliance: Environmental regulations are pushing manufacturers toward eco-friendly materials.
- Energy and production costs: AI-driven automation is reducing long-term expenses.
Major Raw Materials Used
- Natural and synthetic rubber for tread and durability.
- Steel belts and textile fibres for reinforcement.
- Carbon black and silica for traction and fuel efficiency.
- Chemical additives for longevity and performance.
New Revenue Opportunities in the Tyre Market
How Can the Industry Capitalise on AI and Automation?
- Smart tyres and connected services: Fleet managers can leverage IoT-enabled tyres for predictive maintenance.
- Customisation and personalisation: Manufacturers can offer bespoke tyre solutions for off-road and performance vehicles.
- Electric vehicle specialisation: Low rolling resistance tyres are crucial for EV range optimisation.
- Recycling and circular economy initiatives: Retreading and sustainable production will be key selling points.
- Fleet partnerships: Logistics firms can benefit from tyre-as-a-service (TaaS) models.
What Should Industry Professionals Do?
- Manufacturers: Invest in AI-driven production, smart tyres, and sustainability-focused R&D to stay ahead.
- Retailers: Focus on EV-compatible and sustainable tyres, catering to growing eco-conscious consumer demand.
- Logistics companies: Adopt smart tyre monitoring systems to optimise fleet maintenance and reduce costs.
The light truck tyre market is set for steady growth, with AI and automation enhancing efficiency, sustainability, and innovation.
While AI’s direct market impact is still evolving, its role in supply chain management, consumer trends, and product development is becoming increasingly significant.
The next decade will be defined by digitisation, eco-friendly tyre solutions, and new business models, shaping the future of the industry.
