Green Tires Market

Global Green Tires Market Size (2024 to 2029)

The size of the global green tires market was valued at USD 28.84 billion in 2023. The global market is further anticipated to grow at a CAGR of 15.58% from 2024 to 2029 and be worth USD 68.75 billion by 2029 from USD 33.33 billion in 2024.

Although individual vehicles do not produce many pollutants, their worldwide popularity means that the cumulative contribution of the automotive sector is extremely high. Tires are one of the crucial components of a vehicle in determining the number of pollutants emitted by the vehicle. The rolling resistance of a vehicle, that is, the friction between the tires and the surface, is crucial in this regard. The higher the rolling resistance of a vehicle, the more energy it needs to overcome friction and the more pollutants it releases.

MARKET DRIVERS

The fuel efficiency benefit of green tires is majorly propelling the global market growth.

To growing need to achieve an increase in fuel efficiency worldwide is primarily driving the adoption of green tires over conventional tires. In light motor vehicles and traditional passenger cars, 7-10% of the fuel is employed to overcome rolling resistance, and in heavy trucks and commercial vehicles, fuel consumption is higher. The use of environmentally friendly tires can improve a vehicle's fuel consumption by approximately 2-4% for light vehicles and 7-10% for heavy vehicles. Rising energy costs, strict government regulations, and escalated consumer environmental awareness of fuel consumption, along with a desire to improve handling and safety, are some of the other key factors driving expansion.

Green tires help reduce energy loss due to friction between the tires and the tread. This is called rolling resistance. In light motor vehicles and conventional passenger cars, 7-10% of the fuel is consumed to overcome rolling resistance, and in heavy trucks and commercial vehicles, fuel consumption is higher. The use of environmentally friendly tires can increase the fuel consumption of a vehicle by approximately 2-4% in light vehicles and 7-10% in heavy vehicles. In the long run, using green tires pays off, as the additional cost paid for green tires is recouped through savings in fuel costs. The main driver of the worldwide green tire market is the growing recognition of the environmental damage employed by cars and the advances that can be made by changing the way tires are designed. The accumulated number of pollutants emitted by vehicles is not only harmful to the environment and human health but the problem is also exacerbated by the escalating shortage of natural oil reserves. While the introduction of environmentally friendly tires is relatively a small step towards reducing the overall threat of pollution, it is a necessary step and, more importantly, an easily achievable step.

MARKET RESTRAINTS

Poor awareness about green tires is hampering the global market growth.

Consumers are aware of the benefits of using hybrid and CNG vehicles; however, there is a lack of awareness about the benefits of green tires and the role they play in reducing fuel consumption. In emerging economies like India and Indonesia, the general consumer is less employed in the benefits of green tires. This is a major limitation of the green tire market.

MARKET OPPORTUNITIES

Although the call for environmentally friendly tires is escalating among various car manufacturers, i.e., at the original equipment (OE) level, the replacement tire market is predicted to provide many opportunities for manufacturers in the future. The call for replacement tires is predicted to increase during the foreseen period due to escalated vehicle use in the context of an increase in cab-sharing facilities around the world. The worldwide green tire market has also been boosted by the fact that governments and citizens are escalating united in their support for measures to conserve and protect the environment. Growing environmental awareness among the world's population has escalated the preference for green tires among private car owners and commercial fleet owners, while several governments have encouraged the use of green tires.

MARKET CHALLENGES

The main limitation of the worldwide green tire market is the lack of technical knowledge about green tire development. While many companies have stepped up their research efforts to reduce their environmental footprint, green tires are a low-priority product for most tire manufacturers. This situation will take some time to change despite public and government support due to the popularity of regular tires.

REPORT COVERAGE

REGIONAL ANALYSIS

APAC is the fastest-growing regional segment in the global market during the forecast period.

This is due to the growing call for cars and the improvement in the standard of living of the region's population. The worldwide market for green tires originated in Europe, where the use of silica in tire treads laid the groundwork for the market in the 1990s. The region remains the dominant market for green tires and is among the main research centers. North America has also been quick to integrate green automotive technologies, with the region's green tire market now ranking second after Europe. Europe and North America will continue to be the two largest regional markets for green tires due to the strong presence of pre-eminent automotive giants such as Mercedes, BMW, Audi, Volkswagen, Ford, and GM. The vibrant auto industry in Asia-Pacific is predicted to drive the green tire market in countries such as Japan, China, and India in the coming years.

KEY PLAYERS IN THE GLOBAL GREEN TIRES MARKET

Companies playing a prominent role in the global green tires market include Michelin (France), Bridgestone (Japan), Goodyear Tire and Rubber (US), Continental (Germany), Hankook (South Korea), Pirelli (Italy), Cheng Shin Rubber (China), Kumho Tires (South Korea), ZC Rubber (China), Nokian Tires (Finland), Apollo Tires (India), Sailun Tires (China), Shandong Linlong Tire (China), Kenda Tires (Taiwan), Giti Rubber (Singapore), Cooper (US), Yokohama (Japan), Nexen (South Korea), MRF (India), Petlas (Turkey) and BKT (India).

RECENT HAPPENINGS IN THE GLOBAL MARKET

• Launch of the green tire standard in China. Testing of a new specification standard for green tires began in China on March 1, reports the China Rubber Industry Association.
• Kenda launches a new range of ecological tires. Kenda has launched a new touring tire designed with a strong emphasis on reducing fuel consumption.

DETAILED SEGMENTATION OF THE GLOBAL GREEN TIRES MARKET INCLUDED IN THIS REPORT

This research report on the global green tires market has been segmented and sub-segmented based on vehicle type, application and region.

By Vehicle Type

• Passenger Cars
• Light Commercial Vehicle

By Application

• On-Road
• Off-Road

By Region

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