South Korea Tyre Market

South Korea Tyre Market Size Report – In a Glance

As per the survey report on South Korea tyre market, the market is expected to foresee a CAGR value of 5.2% during 2025-2035, and further generate a market size of USD 6.7 billion by the end of 2035. In 2025, the market size was value at USD 3.8 billion revenue.

• The South Korea tyre market’s growth is driven by rising demand for sustainable and advanced tires in automotive industry.
• KDMI analyst’s growth analysis foresees expansion of automobile industry as the growth drivers for South Korea tyre market.

South Korea Tyre Market Analysis

A tyre or tier is a round shaped rubber component that serves as a cushion between the vehicle and the road. Tire offers support, traction, and shock resistance properties to efficiently manage vehicle operation, and enabling acceleration, braking, and steering. Tyres are categorized into pneumatic, solid, and metal tyres for specific reasons. Pneumatic tyres are widely used in vehicles like cars, two-wheelers, and three-wheelers. The South Kore tyre market growth is driven by rising demand for advanced and sustainable tyres with the growing demand for electric vehicles in automotive industry. The report by ITA shows, South Korea’s EV sales is projected to reach 20% of total vehicle sales. The country produced nearly 4 lakh+ electric vehicles, accounting for 11% of total automobile production, this growth in sales and production of EVs drives the growing demand for efficient tires in the market. Hankook Tire & Technology Co Ltd, Michelin, and Piregon Tire are some of the significant participants in the South Korea tyre market.

South Korea Tyre Market Growth Drivers and Restraints

Growth Drivers

• Expansion of automobile industry – The South Korean automobile industry’s expansion drives the demand for tyres. With the growing demand for sustainable and eco-friendly automobile products, the demand for sustainable tyres is also gaining popularity. The increasing sales of automobile products is having a strong positive impact of sales of tyres and increasing financial support by organizations is emphasizing manufacturers to produce productive and efficient tyres using rubber and other effective materials. Awareness about environment impact from vehicles and other automobile parts, led the shift of consumer preference for nature-friendly products production and utilization of sustainable production process by implementing advanced, innovative solutions in the industry which drives the overall market growth.
• Government policies and incentives – The South Korean government imposes various policies to boost automobile industry, and which results in the growth of tyre market. Supportive policies by government emphasize manufacturers to produce products that comply with standards set by regulatory body. Government offers incentives in various forms like financial benefits, subsidies, and others to consumers for purchasing electric vehicles, with the aim to reduce carbon emission and protect environment condition of the country. Also, regulations imposed by government ensures vehicles safety and productivity, eliminating errors and inefficient vehicles from automobile industry.

Restraints

• Raw material price volatility – The South Korea tyre market growth faces challenge due to highly volatile prices of raw materials like natural and synthetic rubbers which are widely used to ensure efficiency. The raw materials price volatility is also affected by the geopolitical disruptions and weather-related conditions which have a great impact on rubber production, leading to high cost of materials. Ensuring high-quality tires in vehicles require timely and effective management system that is a complex procedure and it limits the market growth.

South Korea Tyre Market Segmentation

Our experts at KD Market Insights have segmented the South Korea tyre market research report as:

Analyst’s Observation on South Korea Tyre Market Recent Developments

Over the years, the experts at KD Market Insights have been observing the recent developments associated with South Korea tyre market trends. Our expert’s market forecast analysis has recorded the market players adopting plentiful of key strategies including new product launches, mergers & acquisitions, and collaborations.

Hankook Tire & Technology has announced to expand its production lines in its US factory to roll out truck and bus radial tires, or TBR, by 2026. The company’s plan is to increase production by 1 million at the Tennessee factory with the aim to double its annual capacity of passenger cars and light trucks.

Nexen Tire is planning to expand its business in oversees markets of Europe, North America, Middle East and Asia-Pacific region. The aim of expansion is to strengthen its marketing activities and sales network.

South Korea Tyre Market Competitive Landscape

Some of the significant participants who top the South Korea tyre market share:

• Hankook Tire & Technology Co., Ltd
• Kumho Tire Co., Inc
• Nexen Tire Corporation
• Bridgestone Corporation
• Michelin
• Goodyear Tire and Rubber Company
• Continental AG
• Piregon Tire
• Sumitomo Rubber Industries
• Yokohama Rubber Co., Ltd