The first bicycle "tires" were iron bands on the wooden wheels of velocipedes. These were followed by solid rubber tires on penny-farthings. The first patent for "rubberized wheels" was granted to Clément Ader in 1868. In an attempt to soften the ride, rubber tires with a hollow core were also tried.
The first practical pneumatic tire was made by John Boyd Dunlop in 1887 for his son's bicycle, in an effort to prevent the headaches his son had while riding on rough roads. (Dunlop's patent was later declared invalid because of prior art by fellow Scot Robert William Thomson.) Dunlop is credited with "realizing rubber could withstand the wear and tear of being a tire while retaining its resilience". This led to the founding of Dunlop Pneumatic Tyre Co. Ltd in 1889. By 1890, it began adding a tough canvas layer to the rubber to reduce punctures. Racers quickly adopted the pneumatic tire for the increase in speed it enabled.
Source - Wikipedia