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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"South America Tire Market.”
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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