Market Report
The Future of Last-Mile Fleet Tires to 2030
Market boom for last mile fleet tires
Exclusive forecasting from the business intelligence division of Smithers is published in its new market report, The Future of Last Mile Fleet Tires to 2030. In this booming tire market, Smithers research shows that in 2025 sales of delivery tires will reach 215 million units generating global sales revenue of $21.2 billion.
Already enjoying above-average growth prior to 2020, the market was boosted by increases in e-commerce and home delivery associated with the Covid-19 response, and it continues to experience exceptional growth presently and through 2030. By 2030 global demand for last mile fleet tires will reach 365 million units and yield sales of $38.0 billion, which is a 12.4% compound annual growth rate (CAGR) for 2025-2030.
Key market drivers
In addition to the above mentioned growth areas, the last mile fleet tire segment has become better defined, according to report author Arthur Mayer. Energy efficiency requirements are making lower rolling resistance even more of a priority, while durability needs are also high, with heavy loads, congestion, stops and starts, curb parking all part of the last mile delivery market. In many cases, less-experienced drivers are putting tires under extra stress and could be reducing the tire’s life as an asset (for example, retreading).Traction and noise reduction are also priority areas of optimization. The greater economic and sustainability-related demands on LMD fleets have made them more amenable to new technologies, such as electric powertrains, tire tools and connectivity to improve vehicle and tire management.
Often the tires used in light vehicle applications for last mile delivery use are the same as they would be for these vehicles generally. Some tire manufacturers are not yet offering specific tires as they are in the van/truck segment.
The market situation presents opportunities for connected tires, via sensors that are more exact and broadly sensing than traditional tire pressure monitoring systems (TPMS), to gain a foothold at both OE and aftermarket/fleet levels. Tires have been adapting to electric vehicle requirements – and, to some degree, increasingly “autonomous” via advanced driver assistance systems (ADAS) phase-in – setting the stage for a true market breakout of connected tires past 2030.