World consumption of tyre raw materials will reach 57.2 million tons in 2025, according to new research from Smithers, the global authority on the tyre 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 tyres relies on innovation. There are major opportunities in the sector for better performing bio-based materials, functionalised 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 tyre sales. Established OEMs face increased competition from Chinese and India tyre makers taking the lead in volume brands. OEMs are adopting a value-oriented strategy, shifting away from low-margin, high-volume, low-diameter tyres to larger premium models – accepting the cost of increased SKU holdings and shorter manufacturing runs, while also diversifying investments beyond tyre technology.
Among the most technically challenging – and potentially lucrative – new tyre 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 tyres will increase at a 14.1% CAGR, reaching 23.8 million tons in 2030. Brand owners are optimizing sustainability, both in tyre 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.
