Performance and sustainability power market growth for tire raw materials

Performance and sustainability power market growth for tire raw materials

World consumption of tire raw materials will reach 57.2 million tons in 2025, according to new research from Smithers, the global authority on the tire industry.

The new Smithers market report – The Future of Tire Raw Materials to 2030 – forecasts volume demand will increase at a 3.2% compound annual growth rate (CAGR), to reach 67.42 million tons in 2030. 

The future of tires relies on innovation. There are major opportunities in the sector for better performing bio-based materials, functionalized compounds, recycled components (embracing reuse, regeneration, and recycling), nanotechnology, and advanced polymers. 

Elastomers (NR, ESBR, SSBR, BR, IIR/PIB/IR) remain the most important input, accounting for 36.2% of the market by weight in 2025, with demand increasing for polybutadiene and butyl rubber grades. There is also increasing demand for processing oils, HD silica, textile cords, adhesion promoters, and silanes, driven by evolving tire design trends.

Raw material supply is adapting to major changes in global tire sales. Established OEMs face increased competition from Chinese and India tire makers taking the lead in volume brands. OEMs are adopting a value-oriented strategy, shifting away from low-margin, high-volume, low-diameter tires to larger premium models – accepting the cost of increased SKU holdings and shorter manufacturing runs, while also diversifying investments beyond tire technology.

Among the most technically challenging – and potentially lucrative – new tire types are those for electric vehicles (EVs). Raw material consumption in this segment is projected to reach 12.3 million tons in 2025. Smithers forecasts raw material demand for EV tries will increase at a 14.1% CAGR, reaching 23.8 million tons in 2030. 

Brand owners are optimizing sustainability, both in tire construction, and in use-phase via lower rolling resistance and boosting durability. This will boost demand for more natural rubber grades, from sustainably managed cultivation; and bio-based oils, which will require compound formula adjustments when used in place of petroleum-derived oils. 

Global tire raw material consumption for all vehicle types, 2021-30
Source: Smithers

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