Press Release

South America Tire Market to Grow with a CAGR of 7.8% through 2030

The South America tire market is growing due to rising vehicle ownership, expanding logistics and construction sectors, increasing aftermarket demand, and technological advancements in tire durability, fuel efficiency, and smart monitoring systems.

 

According to TechSci Research report, “South America Tire Market – By Region, Competition Forecast & Opportunities, 2030F”, South America Tire Market was valued at USD 13.38 Billion in 2024 and is expected to reach USD 21.01 Billion by 2030 with a CAGR of 7.8% during the forecast period. The South America tire market is experiencing dynamic evolution, propelled by a mix of economic recovery, evolving mobility preferences, and growing integration of digital and sustainable practices across the automotive ecosystem. One of the primary drivers influencing market momentum is the gradual rebound in industrial production and construction activities, which directly boosts demand for commercial vehicle and OTR tires. In parallel, government-led infrastructure development programs are encouraging greater deployment of heavy-duty transport and machinery, creating ripple effects in associated tire demand. Moreover, increased availability of consumer financing options and credit access has improved vehicle affordability, leading to higher ownership across both passenger and utility segments, thereby expanding the tire replacement base. The growing presence of ride-hailing services and micro-mobility platforms is also supporting more frequent tire wear and replacement cycles, especially in two-wheeler and compact car categories.

However, the market is not without its hurdles. Volatile raw material prices—particularly for synthetic rubber, carbon black, and steel—continue to exert margin pressures on tire manufacturers, affecting pricing strategies and profitability. Currency fluctuations and trade policy uncertainties in key South American economies such as Brazil and Argentina pose risks to both domestic production and cross-border imports. Another significant challenge lies in the fragmented distribution networks and inconsistent quality assurance across the informal aftermarket, which complicates brand positioning and end-user trust. Environmental regulations around end-of-life tire disposal and sustainable material sourcing are adding new compliance requirements, requiring investments in green manufacturing processes and recycling infrastructure. Furthermore, logistical inefficiencies and uneven road conditions in rural areas contribute to irregular wear patterns, increasing operational costs for users and service providers. While growth prospects remain robust, players in the South America tire market must navigate these challenges with localized strategies, technology adoption, and adaptive supply chain models to sustain long-term performance.

 

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The South America Tire market is segmented into vehicle type, tire construction, demand category and region.

Based on vehicle type, medium & heavy commercial vehicles are the fastest growing segment across both OEM and Aftermarket channels. This growth is fueled by the rapid development of logistics and freight industries, infrastructure investments, and industrial activity across South America. As fleet operators seek efficiency and regulatory compliance, there is strong momentum toward adopting radial technology, which reduces rolling resistance and improves tire lifespan. This shift is further supported by rising fuel prices, prompting commercial fleet managers to prioritize fuel-efficient tire solutions. OEM adoption is rising as truck and bus manufacturers standardize radial fitment for new models, while the aftermarket is witnessing a surge in radial replacements due to awareness and TCO benefits. Additional support comes from the rollout of intelligent fleet management systems and tire monitoring technologies, making radial tires not only more attractive but increasingly essential for long-haul and high-utilization vehicles. This trend is expected to accelerate in the coming years and significantly reshape the commercial tire landscape in the region.

Based on country, Colombia is emerging as the fastest-growing tire market in South America, fueled by rapid urbanization, expanding vehicle ownership, and improving road connectivity. The country is witnessing a boom in e-commerce and last-mile delivery services, which is driving significant growth in the light commercial vehicle segment. Additionally, Colombia has a young and mobile population increasingly turning to two-wheelers and compact vehicles, leading to high replacement rates in those categories. Infrastructure investments, particularly in road and freight corridors under national development plans, are further accelerating demand for commercial vehicle tires. Unlike larger economies that face supply chain bottlenecks, Colombia has been actively modernizing customs, trade, and logistics processes, which enhances tire import and distribution efficiency. The government’s emphasis on cleaner transport, along with rising interest in electric mobility, is also opening new avenues for high-performance and low-resistance tire segments. Coupled with a relatively stable political climate and increasing foreign investments in automotive services, Colombia is poised to outpace its neighbors in tire market growth over the coming years.

Major companies operating in the South America Tire market are:

  • Michelin Group
  • The Goodyear Tire & Rubber Company
  • Bridgestone Corporation
  • Cooper Tire & Rubber Company
  • Continental AG
  • Pirelli & C. S.p.A
  • MRF Tyres
  • Yokohama Rubber Company Ltd.
  • Toyo Tire Corporation
  • Hankook Tire & Technology Co. Ltd.

 

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In recent years, With the growing adoption of fleet management systems across South America, especially in Brazil, Chile, and Peru, tire manufacturers are collaborating with telematics providers to offer integrated solutions. These include cloud-based dashboards, mobile apps, and automated alerts that allow fleet managers to take proactive decisions regarding tire rotation, replacement, and alignment. The use of Internet of Things (IoT) platforms in tire management is also gaining traction, particularly in mining and construction sectors, where equipment downtime can result in substantial financial losses. said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

South America Tire Market, By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Medium & Heavy Commercial Vehicles, Two-Wheelers, Off Road Vehicles (OTR)), By Tire Construction (Radial, Bias), By Demand Category (OEM, Aftermarket), By Region, Competition, Forecast & Opportunities,2020-2030F”, has evaluated the future growth potential of South America Tire market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the South America Tire market.

 

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Relevant Reports

South America Tire Market, By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Medium & Heavy Commercial Vehicles, Two-Wheelers, Off Road Vehicles (OTR)), By Tire Construction (Radial, Bias), By Demand Category (OEM, Aftermarket), By Country, Competition Forecast & Opportunities 2020-2030F

Automotive | Jul, 2025

The South America tire market is growing due to rising vehicle ownership, expanding logistics and construction sectors, increasing aftermarket demand, and technological advancements in tire durability, fuel efficiency, and smart monitoring systems.

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  • Pirelli to Lead South America Tire Market until 2023

    Sep, 2018

    Recovering sales of vehicles coupled with expanding automotive fleet to drive South America tire market through 2023 According to TechSci Research report, “South America Tire Market By Vehicle Type