South Korea Tire Market (2024-2030) | Share, industry, Size, Growth, Revenue, Forecast, Trends, Analysis, Outlook

Latest 2023 Development of the South Korea Tires Market

South Korea Tires Market is primarily driven by the increasing demand for passenger cars, light commercial vehicles, and heavy commercial vehicles. The increasing popularity of eco-friendly tires which are designed to reduce fuel consumption and CO2 emissions is one of the major notable trends in the market. The growing popularity of online sales of tires influences many consumers to purchase tires online. This trend is anticipated to continue, as consumers look for better convenience. The major companies are investing in research and development to stay ahead of the competition, with an increasing focus on developing innovative technologies for sustainable tires.

There are several growth factors driving the market expansion such as the growing automobile industry in South Korea. The growth in consumer disposable income in South Korea is driving demand for high-quality tires, which offer better performance and durability. With an increasing focus on road safety in South Korea, there is a greater demand for high-quality tires that provide better grip. These factors are proliferating the South Korea Tires Market Growth to a great extent. Moreover, South Korea is a major exporter of tires to countries around the world. As demand for tires increases in other countries, this could create opportunities for tire manufacturers in South Korea to expand their businesses. 

South Korea Tire Market Highlights

Report Name	South Korea Tire Market
Forecast period	2024-2030
CAGR	7.3%
Growing Sector	Automotive Industry

Topics Covered in South Korea Tire Market Report

The South Korea Tire Market report provides a comprehensive evaluation by origin, type, end users, and vehicle type. This detailed report offers stakeholders valuable insights into current and projected market trends, main drivers, high-growth segments, and key challenges, aiding in the formulation of strategic decisions and aligning market strategies with evolving industry dynamics.

The South Korea Tire Market Synopsis

South Korea's tire market is experiencing considerable growth, spurred by advancements in automotive technologies and a burgeoning electric vehicle market. Key trends include a shift towards eco-friendly tires and the integration of intelligent tire solutions. Growth drivers encompass rising consumer demand for high-performance tires and supportive government policies. Despite positive market dynamics, challenges such as stringent environmental regulations and fluctuating raw material prices pose significant barriers. Industry players are actively investing in R&D to overcome these obstacles and enhance product offerings.

According to 6Wresearch, The South Korea Tire Market size is expected to grow at a significant CAGR of 7.3% during the forecast period 2024-2030. The South Korea tire market is primarily driven by technological innovations in tire design and manufacturing. The growing adoption of electric vehicles (EVs) significantly contributes to market demand, as these vehicles require specialized tires for optimal performance. Government initiatives promoting sustainable transportation and eco-friendly tire production also bolster market growth. Additionally, rising disposable incomes and an increasing preference for high-performance and smart tires are fueling consumer demand, thus enhancing market expansion.

Despite its growth potential, the South Korea tire market faces several challenges. Stringent environmental regulations related to the disposal and recycling of tires increase compliance costs for manufacturers. Fluctuations in raw material prices, particularly rubber, can impact production costs and profit margins. High competition from established global brands makes market entry and expansion difficult for new players. Moreover, the technological complexity in developing smart and eco-friendly tires requires substantial R&D investments, posing a challenge to smaller manufacturers.

South Korea Tire Market: Leading Players

Prominent players in the South Korea tire market include Hankook Tire, Kumho Tire, Nexen Tire, and Michelin Korea. These companies are known for their continuous investment in R&D to develop innovative tire solutions. Hankook Tire leads in the high-performance tire segment, while Nexen Tire focuses on expanding its global footprint. Kumho Tire is renowned for its commitment to sustainability, and Michelin Korea emphasizes premium tire solutions and smart tire technologies.

South Korea Tire Market: Government Initiatives

The South Korean government has introduced several initiatives to support the tire market. Programs like the "Green Car Promotion Plan" encourage the development and use of eco-friendly tires, aligning with the nation's environmental goals. The "Smart Mobility Program" supports R&D in intelligent tire technologies. Additionally, the "Automotive Industry Development Plan" provides financial incentives for innovation in tire manufacturing, fostering a conducive environment for market growth and technological advancements.

Future Insights of the Market

The future of the South Korea tire market looks promising, with significant growth opportunities driven by evolving consumer preferences and technological advancements. Key trends include the increasing adoption of electric and connected vehicles, which will spur the demand for specialized tires. The focus on sustainability will likely lead to the development of more recyclable and eco-friendly tire materials. Government support for smart mobility and green initiatives will further fuel innovation. However, addressing environmental regulations and raw material volatility will remain crucial for sustained growth.

Market Segmentation By Origin

According to Ravi Bhandari, Research Head, 6Wresearch, among the segments in the South Korea Tire Market by origin, local manufacturing is experiencing the most significant growth. Strategic investments in manufacturing infrastructure and advanced technology have enabled South Korean manufacturers to produce high-quality tires, reducing dependency on imports. This has allowed better control over production standards and costs, enhancing the competitiveness of locally made tires both domestically and internationally.

Market Segmentation By Types

In the category of tire types, radial tires are witnessing robust growth in the South Korea market. The superiority of radial tires in terms of longevity, fuel efficiency, and driving comfort makes them a preferred choice for various vehicles. Continuous innovations and advancements in radial tire technology further enhance their performance, catering to the evolving demands of the automotive industry.

Market Segmentation By End Users

In the end user segment, the replacement market is the fastest-growing sector. A surge in vehicle ownership and the increasing age of vehicles on the roads necessitate regular tire replacements. Greater consumer awareness about tire safety and performance, coupled with a well-established network of tire retailers and service centres, drives the demand for replacement tires.

Market Segmentation By Vehicle Types

Among the different vehicle types, the passenger cars segment is expanding most rapidly. Rising disposable incomes and a growing middle-class population contribute to higher ownership rates of private vehicles. Improvement in road infrastructure and urbanization also play critical roles in bolstering the demand for passenger cars, which, in turn, increases the need for reliable, high-quality tires suited for these vehicles.

Key Attractiveness of the Report

• 10 Years Market Numbers.
• Historical Data Starting from 2020 to 2023.
• Base Year: 2023
• Forecast Data until 2030.
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

Key Highlights of the Report

• South Korea Tire Market Overview
• South Korea Tire Market Outlook
• South Korea Tire Market Forecast
• Historical Data of South Korea Tire Market Revenues and Volume, for the Period 2020-2030
• South Korea Tire Market Size and South Korea Tire Market Forecast of Revenues and Volume, Until 2030
• Historical Data of South Korea Tire Market Revenues and Volume, By Vehicle Types, for the Period 2020-2030
• Market Size & Forecast of South Korea Tire Market Revenues and Volume, By Vehicle Types, until 2030
• Historical Data of South Korea Tire Market Revenues and Volume, By Types, for the Period 2020-2030
• Market Size & Forecast of South Korea Tire Market Revenues and Volume, By Types, until 2030
• Historical Data of South Korea Tire Market Revenues and Volume, By Origin, for the Period 2020-2030
• Market Size & Forecast of South Korea Tire Market Revenues and Volume, By Origin, until 2030
• Historical Data of South Korea Tire Market Revenues and Volume, By End Users, for the Period 2020-2030
• Market Size & Forecast of South Korea Tire Market Revenues and Volume, By End Users, until 2030
• Market Drivers and Restraints
• South Korea Tire Market Trends and Industry Life Cycle
• South Korea Tire Market Revenue Share, By Regions
• South Korea Tire Market Revenue Share, By Players
• South Korea Tire Market Overview on Competitive Benchmarking
• Company Profiles
• Key Strategic Recommendations

Market Covered

The report offers a comprehensive study of the subsequent market segments:

By Origin

• Local Manufacturing
• Imports

By Types

• Radial Tires
• Bias Tires

By End Users

• OEM
• Replacement

By Vehicle Types

• Trucks
• Light Trucks
• Two-Wheelers
• Passenger Cars