Indonesia Tire Market to Reach USD 5.82 Billion by 2029
The increasing vehicle ownership, particularly in the motorcycle and
passenger vehicle segments, coupled with rising disposable incomes, is expected
to drive the demand for tires in Indonesia. The growing focus on fuel-efficient
and durable tires will further boost the market. These factors, along with
infrastructure development, will continue to support market growth through
2025-2029.
According to TechSci Research report, “Indonesia Tire Market
–Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type
(Passenger Vehicle, Commercial Vehicle, Two-Wheeler), By Demand Category (OEM,
Replacement), By Tire Construction Type (Radial, Bias), By Region, By
Competition, 2019-2029F”, The Indonesia Tire market was valued at USD 3.85
Billion in 2023 and is expected to reach USD 5.82 Billion by 2029 with a CAGR
of 7.11% during the forecast period. The Indonesian tire market is anticipated
to maintain its growth trajectory, driven by an increase in vehicle ownership,
a heightened demand for durable and energy-efficient tires, and changing
consumer preferences. The transition towards electric vehicles, along with
advancements in sustainable tire technology, will create new expansion opportunities,
drawing investments from prominent global tire manufacturers in the area.
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Indonesia’s tire market is
witnessing robust growth, driven by increasing vehicle ownership, higher
disposable incomes, and a demand for superior tire quality. Motorcycles remain
a key segment, with their widespread use due to affordability and ease of maneuvering
through urban traffic. As the middle class expands, passenger vehicle sales are
also on the rise, creating more demand for replacement tires. Consumers are
increasingly focused on durability, fuel efficiency, and performance, prompting
the shift toward premium tire options that can handle both urban and rural road
conditions.
Key trends in the market
include the growing adoption of radial tires, which offer better safety,
performance, and fuel efficiency compared to bias tires. Eco-friendly and
sustainable tire options are becoming more popular, as consumers seek products
that reduce environmental impact while improving vehicle performance. The push
for electric vehicle adoption is likely to increase demand for specialized
tires tailored to the needs of EVs. E-commerce is reshaping tire sales, with
consumers increasingly purchasing tires online for convenience, competitive
pricing, and access to a wider range of brands.
Despite growth
opportunities, the Indonesian tire market faces challenges, particularly with
raw material price volatility, which can affect tire production costs.
Additionally, road conditions in rural and less-developed regions continue to
pose challenges, leading to rapid tire wear. Manufacturers will need to adapt
by producing more durable and high-performance tires to cater to these diverse
conditions. To maintain market stability, improving quality standards and
focusing on innovation will be essential for meeting consumer needs.
The Indonesia Tire Market
is segmented into Vehicle Type, Demand Category, Tire Construction Type, and Region.
The Indonesian tire market
is divided into radial and bias tires, each catering to different needs based
on vehicle type and usage. Radial tires, with their 90-degree ply structure,
offer better fuel efficiency, durability, and performance, making them the
preferred choice for passenger vehicles and light trucks. Their even weight
distribution provides a longer lifespan and improved stability, making
them popular in urban areas where safety, comfort, and fuel efficiency are
highly valued. As consumer awareness of tire quality grows, the demand for
radial tires continues to rise, especially in regions with developed
infrastructure and high vehicle usage.
Bias tires, with a diagonal
ply design, are more commonly used in older vehicles, agricultural machinery,
and heavy-duty trucks. These tires are known for their strength and durability
in rough conditions, making them ideal for off-road and commercial vehicles,
particularly in rural or less-developed areas of Indonesia. While they offer
less performance at high speeds compared to radial tires, their ability to
withstand heavy loads and rough terrains keeps them in demand, especially in
sectors like agriculture and transportation. Despite the growing popularity of
radial tires, bias tires continue to hold a significant share due to their
affordability and suitability for harsh working environments. Both tire types
remain essential in Indonesia's diverse automotive market, with radial tires
dominating passenger vehicles and bias tires still serving specific industrial
needs.
In 2023, Sumatra became the
fastest-growing region in the Indonesian tire market, driven by expanding
infrastructure and rising industrial activity. The region’s reliance on sectors
like agriculture, mining, and forestry has increased demand for commercial and
heavy-duty vehicle tires, as goods transportation grows. Improved road networks
and rising vehicle ownership in both urban and rural areas further boost tire
consumption, especially for replacement tires. Additionally, Sumatra's focus on
sustainability and eco-friendly tires, along with the ongoing development of
infrastructure, positions the region for continued growth in the tire market.
Major market players
operating in Indonesia Tire market are:
- PT Gajah Tunggal Tbk
- PT Bridgestone Tire Indonesia
- PT Sumi Rubber Indonesia
- Hankook Tire & Technology
- Pirelli Tyre S.p.A
- Goodyear Tire and Rubber
Company
- PT Continental Tyres Indonesia
- YHI Indonesia, PT.
- Toyo Tires Indonesia
- PT Michelin Indonesia
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“The Indonesian tire market is growing due to rising vehicle ownership,
demand for high-performance tires, and expanding infrastructure. Consumers are
prioritizing durability, fuel efficiency, and safety, driving the replacement
tire market. Despite challenges like raw material price fluctuations,
innovations and e-commerce are expected to fuel continued market growth"
said Mr. Karan Chechi, Research Director of TechSci Research, a research-based
global management consulting firm.
The report titled “Indonesia Tire Market By Vehicle Type (Passenger
Vehicle, Commercial Vehicle, Two-Wheeler), By Demand Category (OEM, Replacement),
By Tire Construction Type (Radial, Bias), By Region, By Competition, 2019- 2029F”, evaluates the future
growth potential of Indonesia 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 make
sound investment decisions. Besides, the report also identifies and analyzes
the emerging trends along with essential drivers, challenges, and opportunities
in the Indonesia Tire market.
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