Green Tires Market Size, Share and Trends 2024 to 2034

Green Tires Market Size and Forecast 2024 to 2034

The global green tires market size is projected to be worth around USD 432.43 million by 2034 from USD 140.10 million in 2024, at a CAGR of 11.93% from 2024 to 2034. The increasing demand for sustainable, recycled, and fuel-efficient materials in automobiles to reduce greenhouse gas emissions by vehicles is driving the growth of the green tires market.

Green Tires Market Key Takeaways

• Asia Pacific dominated the green tires market with the largest market share of 40% in 2023.
• North America is anticipated to have significant growth during the forecast period.
• By vehicle, the passenger car segment generated the highest market share of 63% in 2023.
• By vehicle, the light commercial vehicle segment is predicted to witness significant growth in the market over the forecast period.
• By application, the on-road segment contributed the biggest market share of 85% in 2023.
• By application, the off-road segment is anticipated to grow at the fastest rate in the market during the forecast period.

Asia Pacific Green Tires Market Size and Growth 2024 to 2034

The Asia Pacific green tires market size was exhibited at USD 50.07 million in 2023 and is projected to be worth around USD 175.13 million by 2034, poised to grow at a CAGR of 12.05% from 2024 to 2034.

Asia Pacific dominated the green tires market in 2023. The growth of the market is attributed to the rising industrialization and the continuously growing population in regional countries like China and India, which are driving the demand for commercial, industrial, and passenger vehicles. The region has seen the highest global warming or environmental pollution due to the rising industrialization, growing number of passenger vehicles and commercial vehicles, population, and other factors are driving the demand for efficient and environmentally friendly components and materials in the industries and vehicles are driving the demand for the fuel-efficient, environmentally friendly, sustainable, and recyclable tire material for the passenger and commercial vehicles are driving the growth of the green tires market across the region.

Economies like India, China, and Japan are the leading exporters and manufacturers of automobiles in China. Leading global industry players are efficiently investing in the expansion of automobile manufacturing units.

• China’s car export beat Japan in the car export and became the first exporter for the first time in 2023, contributing to the increase in the share of Chinese tires globally. China’s export of semi-steel tires, basically utilized for passenger vehicles, witnessed a 20% year-on-year increase, with a reach of 287 million units in 2023.
• Sailun is planning to establish a manufacturing unit of semi-steel tires in Mexico with an investment of $240 million.
• ATMA said, citing data published by the Ministry of Commerce, that tire exports from India made a significant turn in the second half of FY2023-24 and reached 12% in value terms against the year-ago period.
• The total export of tires from India stood at Rs 23,073 Crore during FY2023-24, the same as the previous year’s figure.
• According to the ATMA, the Indian tire manufacturing sector has one of the highest turnover ratios, with approximately Rs 90,000 crore and exports of over Rs 23,000 crore.

North America is anticipated to have significant growth during the forecast period. The growth of the market is attributed to the rising environmental consciousness and research on environmentally friendly materials or components. Rising industrialization and urbanization are driving demand for the automotive industry, and the adoption of environmentally sustainable materials and tires is driving the growth of the market. The rising investment by the major public and private sectors for the development of electronic or green material components in different sectors has also helped the market to grow.

Market Overview

Tire manufacturing is a technology that is a combination of physics, chemistry, and engineering that offers greater performance, comfort, safety, and reliability. The tire can be customized and manufactured as per the requirements and performance of the vehicles. The green tires are basically made from green materials such as recycled rubber and plant-based silica that enhance the sustainability of the operations.

The green tires are manufactured by placing them in the mold for the curing process, which consists of the tires being heated and inflated up to 300 degrees to bond to each other and get the ideal shapes and sizes. The green tires are made to reduce the fuel consumption by the vehicles and are designed to resist the infiltration of moisture and air and reduce the requirement for the inner tube. The green tires market is also growing due to increasing demand for fuel-efficient materials and the reduction of environmental pollution in automobiles.

Green Tires Market Trends

• Here are some of the revolutionary trends in the tire industry with leading players
• The sustainable rubber plant from Bridgestone
• Smart Tire sensors by the Cerebrum
• Wheel Replacement Training Application from Program-Ace
• Airless Tires from SMART Tires
• Solar Cars by Lightyear
• The SMART TYRE CONCEPT from Sumitomo Rubber Industries
• Automate Tire Management with Revvo

Green Tires Market Growth Factors

• The increasing industrialization, urbanization, and the rising population are driving the demand for the automobile industry for passenger, commercial, and industrial vehicles, accelerating the demand for green tires.
• The rising global pollution level due to rising industrialization, the growing number of vehicles across the world, and the rising concern about carbon pollution in the environment are driving the adoption of green tires.
• The increasing concern about the depleting natural resources, the concern about greenhouse gas emissions by gasoline vehicles, and the rising consumption of fuel-based vehicles are driving the demand for the green tires market.
• The rising demand for sustainable, recycled, and green materials such as recycled rubber and plant-based silica for tire production helps reduce carbon footprint and waste and promotes sustainability, which accelerates the growth of the market.
• The rising investment in research and development activities in the expansion and the innovative launch of sustainable, recycled, and environmentally friendly products are fueling the growth of the green tires market.

How Can AI Impact the Green Tires Market?

AI is a revolutionary technology that has enhanced the overall industrial operations, and the tire industry is also included in it. The integration of AI in tire manufacturing improves the quality and research and development process. The adoption of AI in tire innovations includes benefits such as predictive maintenance, intelligent tire manufacturing, virtual testing and simulation, R&D and material development, defect detection, and quality control. All these benefits enhance the safety and performance standards of tires, fuel efficiency, sustainability, customization, personalization, cost saving, and increased efficiency.

• In March 2024, Sumitomo is developing a tire shape that uses aerodynamic performance by visualizing the airflow around the tire of on-road vehicles with its own simulation using AI and aiming to further contribute to reducing the need for the electricity consumption of electronic vehicles and next-generation EV tires launched by 2027.

Market Scope

Market Dynamics

Driver

The rise in the electric vehicle demand

The rising demand for the automotive industry and the continuous evaluation of the automobile, such as developments like the electric vehicle and more connected and integrated technology vehicles. The rising adoption of electric vehicles by the population across the world due to more automation, digitization, and other technologies with environment-friendly impacts are also contributing to the expansion of electric vehicles.

The rising concern about environmental pollution due to the higher fuel consumption by vehicles and the rising adoption of green tires by electric vehicles helps in reducing electric consumption, which makes it more cost-efficient and lower maintenance requirements.

• In 2023, the sales of electric cars nearly reached 14 million, 95% from China, Europe, and the United States. The sales of electric cars in 2023 are 3.5 million (35% year-on-year growth), higher than in 2022.
• 60% of the new electric cars are registered in the Republic of China, 25% in Europe, and 10% in the United States, corresponding to the combined 95% of the global electric car sales.

Restraint

Lack of knowledge

The insufficient awareness about green or eco-friendly tires for automobiles and the high cost of the tire material as compared to traditional tires are collectively restraining the growth of the green tires market.

Opportunity

Advancements in green tire technologies

The continuous investment in the rise in technological advancement in the tire industry is driving the adoption of green or eco-friendly tires, benefiting the green tires market. Advancements like s include the integration of intelligent technologies in the tires, such as sensors for tracking temperature, tire pressure, and treadsmart tire wear. It helps in increasing the safety and efficiency of vehicles and cars. It reduces the time-to-time replacement of the tires and increases fuel efficiency. Thus, further investment by the automotive industry leaders in the adoption of technologies and sustainability in the manufacturing of vehicles, tires, and other components is also beneficial.

Vehicle Insights

The passenger car segment dominated the green tires market in 2023. The rising population and the increasing demand for the automobile industry due to the rising disposable income in the population and the demand for self-owned cars are increasing the number of passenger cars on the road. The increasing urbanization is one of the factors driving the demand for passenger cars due to the rising traffic conditions and long-distance travel for work and other reasons. The rising concern about environmental pollution and the demand for environmentally friendly and sustainable tire materials are promoting the use of green tires.

The light commercial vehicle segment is predicted to witness significant growth in the green tires market over the forecast period. The rising adoption of green tires in the light commercial vehicle due to enhanced capabilities like traction, braking systems, and effective and cost-friendly alternatives to normal or traditional tires is driving the demand for green tires in the light commercial vehicle segment.

Application Insights

The on-road type segment held a dominant presence in the green tires market in 2023. The increasing adoption of green tires in on-road vehicles, such as passenger and commercial vehicles, includes heavy-weight and light-weight vehicles for increasing efficiency, reduced tread wear, and enhancing the lifespan of the tires. Green tires are highly capable of reducing fuel consumption, although they are highly fuel efficient. On-road vehicles are mainly heavy-weight vehicles for the logistic purpose of looking for environment-friendly and fuel-efficient materials or components in the vehicles that boost the demand for green tires in the on-road vehicles segment.

The off-road type segment is anticipated to grow at the fastest rate in the green tires market during the forecast period. The off-road vehicles mainly consist of industrial vehicles, such as those in the construction, mining, and agriculture industries. The rising investment in the development of industrialization in economically developing countries is driving the demand for off-road vehicles. The rising concern over environmental pollution and global warming due to vehicle pollution is driving the demand for fuel-efficient materials or components that help reduce fuel consumption in vehicles and accelerating the adoption of green tires in off-road vehicles.

Green Tires Market Companies

• APOLLO TYRES LTD
• Bridgestone Corporation
• CANADIAN TIRE
• MICHELIN
• MRF Tyres
• Nokian Tyres plc.
• Pirelli & C. S.p.A.
• RPG Group (CEAT tires)
• The Goodyear Tire & Rubber Company
• Continental AG
• GRI Tires
• JK TYRE & INDUSTRIES LTD
• THE YOKOHAMA RUBBER CO., LTD.
• Toyo Tire Corporation

Recent Developments

• In March 2024, GRI launched the highly sustainable material “Next Generation” of environmentally-friendly specialty tires. The range included the Green XLR Earth series, with 87.3% sustainable materials, and the Ultimate Green XT material handling tire, which has 93.5% sustainable materials.
• In March 2024, Sumitomo Rubber Industries announced the launch of FALKEN e. ZIEX is a new line of tires for the evolving market of electric vehicles in Europe, and it has the highest level of fuel efficiency of any tire that the company offers.

Segments Covered in the Report

By Vehicle Type

• Light Commercial Vehicle
• Passenger Cars
• Heavy Trucks
• Buses & Coaches

By Application

• On Road
• Off Road

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa