Report Overview

Expanding automobile exports, high sales of electric vehicles, and supportive government initiatives are expected to boost the growth of South Korea Tire Market during the forecast period between 2023 and 2029.

South Korea Tire Market – Industry Trends & Forecast Report, 2029

South Korea tire market size was estimated at USD 3.94 billion in 2022. During the forecast period between 2023 and 2029, South Korea Tire Market size is expected to grow at a CAGR of 5.31% reaching a value of USD 5.62 billion by 2029. Major factors driving the growth of the South Korea tire market are the significant industrial growth and the country's thriving automobile industry. The size of the vehicle fleet is growing due to South Korea's high rate of automobile production. Also, the country is the fifth-largest producer of passenger automobiles in the world, and exports have long been the main priority of the auto industry. The price of tires has decreased due to competition among tire producers, which is likely to support market growth during the forecast period. Increasing electric vehicle usage, rising car exports, and supportive government measures are a few additional major drivers of the South Korea tire market's expansion.

South Korea Tire Market - Overview

To ensure a safe and pleasurable ride, tires, one of a car's most noticeable parts, need to be checked and maintained regularly. Ensuring a steady connection between the car and the road, they are crucial in preserving proper grip and traction and ensuring a safe driving experience. Therefore, the top tire producers are working hard to produce and distribute durable tires across South Korea, which is likely to help the nation's tire sector grow for the forecast period.

Growth Drivers

Rapid Adoption of Technology Advancements

Because of the rapid advancements of technology, the majority of manufacturing companies are utilizing automation to increase productivity and profitability. The automotive tire market in South Korea is expected to grow due to technological advancements such as the introduction of rimless tires, green tires, and the use of lightweight elastomers, metals such as alloys and carbon fiber, or composites such as manganese bronze and nickel aluminum bronze in tire manufacturing.

Restraints

Dependence on Imports of Raw Materials

The country’s high dependence on raw material imports may limit the growth of South Korean tire market. Due to a scarcity of natural rubber, the country lacks indigenous tire manufacturing units and thus relies heavily on natural rubber imports from Asian countries, such as Thailand, Indonesia, Vietnam, Malaysia, and the Philippines.

Impact of COVID-19 on the South Korea Tire Market

Covid-19 severely affected the majority of South Korean businesses, including the tire industry, which was particularly hard hit. When the government enacted stringent movement restrictions, lockdowns, and travel bans to stop the spread of this terrible virus, the tire industry encountered several first-ever difficulties with the design, manufacturing, and distribution of tires across the nation. Together with other problems, the sector faced a shortage of workers and raw materials, was unable to import or export cars and tires, was seeing a decline in customer demand, and had to close many manufacturing facilities. Because it was unclear how long these limits would last, the general public showed a paradigm change in their spending patterns by restricting themselves to necessities.

South Korea Tire Market

Segmental Coverage

South Korea Tire Market - By Tire Type

On basis of tire type, South Korea tire market is divided into Radial Tires and Bias Tires segments. The radial tires segment contributes more to the South Korean tire market. They provide better comfort since they protect the rider from shocks, crashes, and bumps. Also, radial tires' superior fuel efficiency has a substantial impact on consumer demand. Radial tires are more popular due to their resilience to heat, wear, and cutting.

South Korea Tire Market – By Rim Size

On basis of rim size, South Korea tire market is divided into Below 15 inches, 15–20 inches, and Above 20 inches segments. The less than 15 inches segment dominates the market. There would be a large amount of growth during the forecast period. The tire comes in a variety of sizes and is sold on the South Korean tire market. There are many different tire sizes available for different vehicle types and layouts. The demand for tires has increased due to rising fuel prices, growing concerns about pollution and climate change, and a shift in consumer preference toward electric vehicles.

South Korea Tire Market – By Application

On basis of application, South Korea tire market is divided into On-road tires, Off-road Tires, Agricultural Tires, and Other (including Industrial Tires and Aviation Tires) segments. The off-road tires segment dominates the market. It is expanding as mechanization spreads into industries such as construction, mining, and agriculture. These tires are suitable for harsh weather conditions and uneven roads because they have thick threads that provide traction on a variety of terrain, including loose gravel, mud, and dirt. Their wider and deeper grooves increase rolling turbulence and stability while also penetrating sand and mud surfaces.

Competitive Landscape

Major players in the South Korea Tire Market include Hankook Tire, Kumho Tire, Nexen Tire, GT Radial, NEXEN Tire Corporation, KUMHO TIRE Co., Inc., Nexen Tire America Inc., Hankook Tire & Technology Co., Ltd., Kumho Tire U.S.A., Inc., and GITI Tire. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In 2021 – Hankook introduced the Kinergy 4S2, a new all-season tire, in South Korea. The Kinergy 4S2 tire was designed to provide improved performance in both wet and dry conditions, as well as enhanced durability and fuel efficiency.

Scope of the Report

By Tire Type

• Radial Tires

• Bias Tires

By Rim Size

• Below 15 inches

• 15–20 inches

• Above 20 inches

By Application

• On-road Tires

• Off-road Tires

• Agricultural Tires

• Others (including Industrial Tires and Aviation Tires)