Iran Tire Market

Iran Tire Market; By type (Radial, Bias), By Application (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, Two Wheelers), By Demand Category (OEM, Replacement), Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: December 2021
  • Report ID: BWC21191
  • Available Format: PDF
  • Page: 115

Report Overview

Iran tire market is being driven primarily by efforts to achieve self-sufficiency and increased automobiles sales. Additionally, the growing demand for passenger cars and infrastructure projects in Iran are driving the growth of the Iranian tire market along with a growing fleet of commercial vehicles as a result of these projects.

Iran Tire Market - Industry Trends & Forecast Report 2027

Iran Tire Market was worth USD 2,178.6 Million in 2020, and is further projected to reach USD 4,023.8 Million by 2027, at a CAGR of 10.1% during 2021-2027 (forecast period). The market's growth can be attributed to an increase in demand for lightweight vehicles and passenger vehicles. With the growth of the Iranian automotive industry, the country has had more success selling commercial vehicles such as trucks, tractors, and trailers. Iran is one of the largest automotive markets in the Middle Eastin terms of production. Furthermore, new trends in the automotive industry, such as electric vehicles, and their promotion by the government and other parties are attracting consumers, hence favoring the market growth. Iran tire market growth is also driven by rising disposable incomes and purchasing power of consumers.

Iran Tire Market

Source: BlueWeave Consulting

Iran Tire Market Overview

A tire is the rubber component of a vehicle that protects the wheel’s rim from the outside. Currently, tires are an important technical component of motor cars and must fulfil multiple functions, including cushioning, dampening, providing good directional stability, and providing long-term service. Most importantly, it must be capable of transmitting longitudinal solid and lateral forces during braking, accelerating, and cornering maneuvers to assure optimal and reliable road-holding quality. The tires act as a cushion between a vehicle and the ground, reducing road shocks and providing friction, enabling a vehicle to function normally. The materials used to manufacture tires today range from natural rubber to synthetic rubber. The materials used in rubber tires are tread, jointless cap piles, beads, synthetic rubber, carbon black, and fabric. A rise in automotive production and sales across diverse vehicle segments is driving the tire market. Furthermore, the outline of progressive technology in the manufacturing process is expected to push the market's growth.

Iran Tire Market Trends

Growth Drivers

Increased Demand for Automobiles Driving the Iran Tire Market

Iran accounts for 41% of tire production in the West Asia region. The country’s automobile industry accounts for 10% of the GDP and 4% of employment of Iran, according to the Middle-East economic and political institutions. The two largest local manufacturers, Iran Khodro (IKCO) and Saipa, employ more than 100,000 people, while another 700,000 Iranians work in industries related to car manufacturing. Thus, Iran’s automotive industry is the key driving force and keeps other industries moving. Even though the automotive sector suffered from sanctions imposed by the West, Iran is now aiming to strengthen its domestic production and achieve self-sufficiency; thus, companies are eager to explore business opportunities in Iran. The presence of domestic tire manufacturers and the rise in demand for passenger cars are also influencing the market. Thus, surging demand for vehicles across all segments among consumers leads to an increase in automobiles and tires associated with it. With the increasing production and sales of automobiles (which are the major end-users of tires), the tire market is also growing significantly in Iran.


Unstable Prices of Raw Material Slowing Market Growth

The fluctuating cost of raw materials, such as nylon and polyester, negatively affect the Iran tire market. In addition, rubber (natural and synthetic) plays an essential role in manufacturing tires, which comes at a high cost. Rubber tires consist of tread, textile cord ply, jointless cap plies, steel-cord belt plies, bead reinforcement, apex, and core. Furthermore, it contains steel wire, synthetic rubber, natural rubber, carbon black, and petrochemical strengthening materials, such as polyester, fabric, nylon, steel, and rayon. The value of these raw materials plays an essential role in determining the tire's overall price. Due to economic fluctuations, the prices of these metals fluctuate irregularly. Thus, this challenge has inhibited market growth. In addition, a lack of skilled technicians is a restraint on the market.

Impact of COVID-19 on Iran Tire Market

The coronavirus-induced pandemic has dealt a big blow to the automotive industry in general. As a result, related industries, such as the tire industry, have also been adversely affected. COVID 19 has affected the automotive industry's supply chain and product requests. When all non-essential services were shut down during the lockdown, commercial vehicle sales & production declined, decreasing demand for tires. Changes in consumer buying behavior also affected demand. The disruption of supply chains made procuring raw materials and delivering finished goods more difficult. However, with the reopening of several services and the easing of restrictions on movement, the market is expected to recover soon and regain its previous position.

Iran Tire Market - By Type

Iran Tire market is segmented into Radial and Bias, based on the type of tire. The radial segment is expected to hold the lion's share in the market. The growth of this segment can be attributed to various benefits, such as lower fuel ingesting, less ground compaction and harm, and reduced machine upkeep costs. Radial tires also offer greater output and require less frequent replacements. All this has led to an increase in the market share of the segment.

Iran Tire Market Share

Source: BlueWeave Consulting

Iran Tire Market- By Application

Based on applications, the Iran tire market is segmented into Passenger Cars, Light Commercial Vehicles, Heavy, and Medium Commercial Vehicles, Two Wheelers, and Off-the-Road Vehicles. Among these, the passenger cars segment dominated the market in terms of revenue and is expected to grow at a healthy CAGR during the forecast period. Additionally, most of the vehicles in the country are passenger cars. Due to the increasing middle class, passenger cars are being adopted at a high rate, which explains the growth of this segment.

Iran Tire Market- By Distribution Channel

Based on distribution channels, the Iran tire market is segmented into online and offline modes. Presently most of the tires are distributed through the offline medium, so the offline segment holds the largest share of the market. However, with the growth of the e-commerce industry, the online distribution channel is also expected to flourish in the forecast period.

Iran Tire Market - Competitive Landscape

The key players dominating the Iran tire market are Barez Industrial Group, Yazd Rubber Industries Complex (YRIC), Hankook Tire, Kumho Tire Co. Inc., Nexen Tire Co., Ltd., Iran Tire Manufacturing Co., Artawheel Tire Co., Michelin, Bridgestone Corporation, Goodyear Tire & Rubber Company, and other prominent players. To maintain their dominance in the market, the market players invest in launching enhanced products and services. Strategic alliances and collaborations are among the strategies used by the market participants to gain a competitive edge.

Recent Development

  • In February 2021, Yazd Rubber Industries (Iranian tire manufacturer) completed an expansion project at its manufacturing facility in the southern city of Yazd. According to the company, the project was launched three years ago and is expected to increase the production capacity of passenger cars and light truck tires by 3,000 and 12,000 units respectively, per day.


Scope of the Report:



Years Considered

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Million

Market Coverage


Product/Service Segmentation

By type, By Application, By Distribution Channel, and By Demand Category

Key Players

Key players in the market include Barez Industrial Group, Yazd Rubber Industries Complex (YRIC), Hankook Tire, Kumho Tire Co. Inc., Nexen Tire Co., Ltd., Iran Tire Manufacturing Co., Artawheel Tire Co., Michelin, Bridgestone Corporation, Goodyear Tire & Rubber Company

and other prominent players.


  • By Type
    • Radial
    • Bias
  • By Application
    • Passenger Cars
    • Light Commercial Vehicles
    • Heavy and Medium Commercial Vehicles
    • Two Wheelers
    • Off-the-Road
  • By Demand Category
    • OEM
    • Replacement
  • By Distribution Channel
    • Offline
    • Online
  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Market Segmentation
  2. Research Methodology
    1. Qualitative Research
      1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
      1. Primary & Secondary Research End-use Vendors
      2. Secondary Research
      3. Primary Research
    4. Assumption & Limitation
  3. Executive Summary
  4. Iran Tire Market Insights
    1. Industry Value Chain Analysis
    2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
    3. Porter’s Five Forces Analysis
      1. Bargaining End-use Industry of Suppliers
      2. Bargaining End-use Industry of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
    4. Recent Development/ Technological Advancement
    5. Regulatory Insights
  5. Iran Tire Market Overview
    1. Market Size & Forecast by Value, 2017-2027
      1. By Value (USD Million)
    2. Market Share & Forecast
      1. By Type
        1. Radial
        2. Bias
      2. By Application
        1. Passenger Cars
        2. Light Commercial Vehicles
        3. Medium and Heavy Commercial Vehicles
        4. Two Wheelers
        5. Off-the Road
      3. By Demand Category
        1. OEM
        2. Replacement
      4. By Distribution Channel
        1. Offline
        2. Online
  6. Competitive Landscape
    1. List of Key Players and their Offerings
    2. Company Market Share Analysis, 2020
    3. Competitive Benchmarking, By Operating Parameters
    4. Competitive Benchmarking, By Products Offerings
  7. Impact of Covid-19 across Iran Tire Market
  8. Company Profile (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *


    1. Barez Industrial Group
    2. Yazd Rubber Industries Complex (YRIC)
    3. Hankook Tire
    4. Kumho Tire Co. Inc.
    5. Nexen Tire Co., Ltd.
    6. Iran Tire Manufacturing Co.
    7. Artawheel Tire Co.
    8. Michelin
    9. Bridgestone Corporation
    10. Goodyear Tire & Rubber Company
    11. Other Prominent Players.
  1. Key Strategic Recommendations

*Financial details of unlisted companies will be available as per data availability in the final deliverable

**The segmentation and the companies are subjected to modifications based on the in-depth secondary for the final deliverable


List of figures


  1. Iran Tire Market Segmentation
  2. Iran Tire Market Value Chain Analysis
  3. Company Market Share Analysis, 2020
  4. Iran Tire Market Size, By Value (USD Million), 2017-2027
  5. Iran Tire Market Share (%), By Type, By Value, 2017-2027
  6. Iran Tire Market Share (%), By Application, By Value, 2017-2027
  7. Iran Tire Market Share (%), By Demand Category, By Value, 2017-2027
  8. Iran Tire Market Share (%), By Distribution channel, By Value, 2017-2027


List of Tables


  1. Iran Tire Market Size, By Type, By Value, 2017-2027
  2. Iran Tire Market Size, By Application, By Value, 2017-2027
  3. Iran Tire Market Size, By Demand Category, By Value, 2017-2027
  4. Iran Tire Market Size, By Distribution Channel, By Value, 2017-2027
  5. Barez Industrial Group   Financial Analysis
  6. Barez Industrial Group  Business Overview
  7. Yazd Rubber Industries Complex (YRIC) Financial Analysis
  8. Yazd Rubber Industries Complex (YRIC) Business Overview
  9. Hankook Tire Financial Analysis
  10. Hankook Tire Business Overview
  11. Kumho Tire Co. Inc. Financial Analysis
  12. Kumho Tire Co. Inc. Business Overview
  13. Nexen Tire Co., Ltd. Financial Analysis
  14. Nexen Tire Co., Ltd. Business Overview
  15. Iran Tire Manufacturing Co. Financial Analysis
  16. Iran Tire Manufacturing Co. Business Overview
  17. Artawheel Tire Co. Financial Analysis
  18. Artawheel Tire Co. Business Overview
  19. Michelin Financial Analysis
  20. Michelin Business Overview
  21. Bridgestone Corporation Financial Analysis
  22. Bridgestone Corporation Business Overview
  23. Goodyear Tire & Rubber Company Financial Analysis
  24. Goodyear Tire & Rubber Company Business Overview

Market Segmentation

  • By Type
    • Radial
    • Bias
  • By Application
    • Passenger Cars
    • Light Commercial Vehicles
    • Heavy and Medium Commercial Vehicles
    • Two Wheelers
    • Off-the-Road
  • By Demand Category
    • OEM
    • Replacement
  • By Distribution Channel
    • Offline
    • Online
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