Indonesia Tire Market is expected to grow at a CAGR of 7.11% through 2030

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 2026-2030.

According to TechSci Research report, “Indonesia Tire Market – By Region, Competition, Forecast & Opportunities, 2020-2030F”, The Indonesia Tire market was valued at USD 3.85 Billion in 2024 and is expected to reach USD 5.82 Billion by 2030 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.

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.

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The Indonesia Tire Market is segmented into Vehicle Type, Demand Category, Tire Construction Type, and Region.

Based on vehicle type, the fastest-growing segment in Indonesia’s tire market in 2024 is the two-wheeler category, driven by rising motorcycle sales and increased demand for personal mobility. With the country being one of the largest motorcycle markets globally, the need for two-wheeler tires continues to surge, supported by urbanization, growing e-commerce logistics, and rising fuel costs pushing consumers toward cost-effective transportation. The segment benefits from strong domestic consumption and government initiatives promoting two-wheeler adoption, including financial support for electric motorcycles. The expansion of ride-hailing services further fuels tire demand, as fleets require frequent replacements due to high usage rates.

The electric two-wheeler segment is gaining traction, contributing to the overall growth of two-wheeler tire sales. Government subsidies aimed at boosting electric motorcycle adoption, combined with increasing consumer awareness of lower operating costs, are accelerating demand for specialized tires designed for electric models. Road infrastructure improvements and the expansion of dedicated motorcycle lanes also support the rise in two-wheeler usage, creating a consistent need for replacement tire.

The growth in Indonesia’s food delivery and courier services is another key factor influencing the surge in two-wheeler tire demand. As urban mobility patterns shift, more individuals and businesses rely on motorcycles for fast and cost-efficient transportation. This trend has led to higher wear and tear, necessitating frequent tire replacements and boosting market growth.

Based on region, In 2024, 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.

"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, Competition, Forecast & Opportunities, 2020-2030F”, 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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