Founded in Milan in 1872 by Giovanni Battista Pirelli, the company initially specialised in rubber and derivative processes and also made scuba diving rebreathers. Thereafter, Pirelli's activities were primarily focused on the production of tyres and cables (for energy and telecommunications). 

In 1974, Pirelli invented the "wide radial tyre", upon a request from the Lancia rally racing team for a tyre strong enough to withstand the power of the new Lancia Stratos. At that time, racing tyres were either slick tyres made with the cross ply technique (very wide tyres with a reduced sidewall height), or radial tyres, which were too narrow to withstand the Stratos' power and did not provide enough grip. Both were unusable for the Lancia Stratos, as the radials were destroyed within 10 km, and the slicks too stiff. Lancia asked Pirelli for a solution, and in 1975 Pirelli created a wide tyre with a reduced sidewall height like a slick, but with a radial structure.

Subsequently, Porsche started using the same tyres with the Porsche 911 Turbo.

In 1988, Pirelli acquired the Armstrong Rubber Company, which was headquartered in New Haven, Connecticut, for $190 million.

In 2002 the company started a range of Pirelli branded clothing, watches and eyewear.