Indonesia Tire Market 2030 Outlook, Growth and Opportunities

Market Overview

According to TechSci Research’s latest findings, the Indonesia Tire Market was valued at USD 3.85 billion in 2024 and is projected to reach USD 5.82 billion by 2030, growing at a CAGR of 7.11% during the forecast period. This upward trajectory is being fueled by several critical factors, including increasing vehicle ownership, heightened demand for durable and energy-efficient tires, and the evolving consumer preference for premium and sustainable tire solutions.

As the Indonesian economy expands and disposable incomes rise, the automotive sector is seeing consistent growth. This translates directly into increased demand for both OEM tires (used in new vehicles) and replacement tires, which form the bulk of the tire market. The widespread adoption of motorcycles, rising passenger car ownership, and expansion in logistics and commercial vehicle usage are reshaping the industry dynamics.

Furthermore, advancements in sustainable tire technology, greater emphasis on radial tires, and growing interest in electric vehicle (EV) tires are creating opportunities for both domestic and global manufacturers to expand their footprints in the region.

Emerging Trends in the Indonesia Tire Market

1. Shift Toward Radial Tires

Radial tires are gaining significant momentum over traditional bias-ply tires due to their superior performance. Consumers are increasingly recognizing the benefits of radial tires, such as better fuel efficiency, enhanced safety, and improved durability, making them the preferred choice for both passenger and commercial vehicles.

2. Rising Popularity of Eco-Friendly Tires

Environmental consciousness is becoming an influential trend in Indonesia’s tire market. Manufacturers are introducing eco-friendly tires that reduce rolling resistance, enhance fuel economy, and generate lower emissions. As the government strengthens its commitment to environmental sustainability, demand for such products is expected to surge.

3. Electric Vehicle Tire Development

Indonesia is gradually moving toward electric mobility, supported by government incentives and policies promoting electric two-wheelers and passenger EVs. This has created a niche market for EV-specific tires, which need to withstand heavier battery loads and deliver quieter, more energy-efficient performance.

4. Growth of E-Commerce in Tire Sales

Digital platforms are transforming consumer purchasing behavior. Online tire retailing in Indonesia offers convenience, competitive pricing, and a broader product selection compared to traditional stores. This trend is reshaping distribution channels, encouraging manufacturers and retailers to build strong online presences.

5. Premium Tire Segment Expansion

As Indonesia’s middle class grows and urban lifestyles evolve, there is a rising preference for premium and high-performance tires. Consumers seek better comfort, safety, and longevity, leading to higher adoption of branded and technologically advanced products.

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Market Drivers

Rising Vehicle Ownership

One of the primary growth drivers of Indonesia’s tire industry is the rapid increase in vehicle ownership. With the growing middle-class population, more individuals are investing in motorcycles, passenger cars, and commercial vehicles. This creates consistent demand for both OEM and replacement tires.

Growing Two-Wheeler Market

Indonesia is one of the largest motorcycle markets globally, and two-wheelers dominate the country’s mobility landscape. Affordable pricing, ease of maneuverability, and low operating costs have made motorcycles the preferred mode of transport, particularly in urban centers. This directly drives two-wheeler tire demand, especially in the replacement category.

Expanding Logistics and E-Commerce

The boom in e-commerce and delivery services has led to an increase in commercial vehicle and motorcycle utilization for last-mile connectivity. With higher usage comes faster tire wear, pushing the demand for frequent replacements and higher-quality tires capable of handling heavy workloads.

Government Push for Electric Mobility

Indonesia’s government has introduced subsidies and incentives for EV adoption, particularly for electric two-wheelers. This shift is encouraging tire manufacturers to innovate and design specialized tires that can meet the unique performance requirements of EVs.

Infrastructure Development

Investment in road and transport infrastructure is making vehicle usage more widespread across both urban and rural areas. Better road networks are facilitating smoother transportation, increasing the need for durable and reliable tires that can withstand diverse driving conditions.

Industry Key Highlights

• The Indonesia Tire Market is forecasted to grow from USD 3.85 billion in 2024 to USD 5.82 billion by 2030 at a CAGR of 7.11%.
• Motorcycles and two-wheelers dominate the market, supported by affordability and rising demand for personal mobility.
• Radial tires are steadily replacing bias tires due to their superior performance and efficiency.
• Eco-friendly and EV-specific tires are emerging as high-potential categories.
• The replacement tire segment contributes the largest share, driven by heavy vehicle usage and poor rural road conditions leading to faster wear and tear.
• E-commerce platforms are transforming sales and distribution strategies.
• Sumatra emerged as the fastest-growing region in 2024 due to industrial expansion, infrastructure development, and higher vehicle adoption.

Segmentation Analysis

By Vehicle Type

• Two-Wheelers dominate due to Indonesia’s massive motorcycle user base. Ride-hailing, food delivery, and courier services significantly boost replacement demand.
• Passenger Vehicles are seeing growth due to urbanization and rising middle-class income. This increases demand for both OEM and premium replacement tires.
• Commercial Vehicles drive steady tire demand, particularly from logistics, agriculture, and mining sectors.

By Demand Category

• Replacement Tires account for the largest market share due to the high wear-and-tear cycle of tires in Indonesia.
• OEM Tires are steadily rising with increased automotive production, though replacement continues to dominate.

By Tire Construction

• Radial Tires are growing at a faster pace due to better durability, safety, and efficiency.
• Bias Tires remain relevant in heavy-duty applications but are gradually losing ground.

By Region

• Sumatra leads market growth due to industrial activity and infrastructure expansion.
• Java remains a strong market due to high population density and urbanization.
• Kalimantan, Sulawesi, and other regions are also showing increasing demand, fueled by mining, forestry, and agriculture.

Competitive Analysis

The Indonesian tire market is competitive, with both domestic and international players vying for market share.

Major Players:

• PT Gajah Tunggal Tbk – A leading domestic player known for affordable and durable tire solutions.
• PT Bridgestone Tire Indonesia – Strong presence with premium radial tires and innovation in eco-friendly products.
• PT Sumi Rubber Indonesia – Expanding production capabilities with focus on passenger and motorcycle tires.
• Hankook Tire & Technology – Leveraging global expertise to cater to the rising premium tire segment.
• Pirelli Tyre S.p.A – Targeting the luxury and performance tire category.
• Goodyear Tire and Rubber Company – Strong brand positioning in passenger and commercial vehicle tires.
• PT Continental Tyres Indonesia – Focusing on radial and sustainable tire solutions.
• Toyo Tires Indonesia & PT Michelin Indonesia – Innovating in EV and premium tire segments.

Competition revolves around pricing strategies, brand loyalty, distribution networks, and product innovation. With the growing digital shift, companies are also enhancing their online retail strategies to capture tech-savvy consumers.

Future Outlook

The future of Indonesia’s tire market looks promising and dynamic. By 2030, several key factors will define its growth trajectory:

1. Rise of Electric Mobility – EV adoption will require specialized tires, opening new opportunities for manufacturers.
2. Shift to Premium Tires – As incomes rise, consumer preference will move toward high-performance and branded tires.
3. Sustainability as a Priority – Eco-friendly tire demand will continue to expand, pushing companies to invest in green technologies.
4. Digital Transformation – Online sales channels will dominate, requiring companies to build strong e-commerce partnerships.
5. Industrial and Infrastructure Growth – Increased demand for commercial vehicle tires will follow infrastructure expansion.

Overall, the Indonesian tire market will remain resilient, supported by structural changes in mobility, government incentives, and innovation by global and local tire companies.

10 Benefits of the Research Report

1. Provides comprehensive market size and growth forecasts for 2020–2030F.
2. Identifies emerging trends such as EV tire demand, radial adoption, and sustainability.
3. Offers detailed segmentation insights by vehicle type, demand category, tire construction, and region.
4. Analyzes key drivers, challenges, and opportunities influencing market performance.
5. Provides an overview of competitive strategies and positioning of major players.
6. Highlights regional market dynamics and fast-growing regions like Sumatra.
7. Evaluates the impact of e-commerce on tire distribution and sales.
8. Assesses consumer preferences for premium, eco-friendly, and durable tires.
9. Serves as a decision-making tool for investors, manufacturers, and stakeholders.
10. Enables strategic planning by forecasting market expansion opportunities and risks.

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