Green Tires Market Report 2026

The green tires market size has grown rapidly in recent years. It will grow from $124.05 billion in 2025 to $140.4 billion in 2026 at a compound annual growth rate (CAGR) of 13.2%. The growth in the historic period can be attributed to increasing environmental regulations on vehicle emissions, growth in automotive production volumes, rising fuel efficiency standards, expansion of passenger vehicle ownership, early adoption of eco-friendly tire technologies.

The green tires market size is expected to see rapid growth in the next few years. It will grow to $228.99 billion in 2030 at a compound annual growth rate (CAGR) of 13%. The growth in the forecast period can be attributed to growing electric vehicle adoption, rising demand for sustainable mobility solutions, expansion of circular tire manufacturing practices, increased investments in green materials, tightening global emission norms. Major trends in the forecast period include increasing adoption of low rolling resistance tires, rising use of bio-based rubber compounds, growing demand for fuel-efficient vehicle tires, expansion of green tire manufacturing capacity, enhanced focus on emission reduction performance.

The rising demand for electric vehicles is anticipated to drive the growth of the green tires market in the coming years. Electric vehicles (EVs) are automobiles that run on electricity stored in rechargeable batteries or other energy storage systems. Green tires are utilized in electric vehicles to enhance energy efficiency, increase driving range, reduce environmental impact, and fulfill the eco-friendly expectations of EV owners. For example, in March 2024, a report published by Greenmatch, a UK-based company, indicated that electric vehicles are experiencing rapid growth, with 25% of new passenger car registrations projected to be electric by 2024, surpassing 17 million units worldwide. As of 2023, there are over 10 million EVs on the road, with more than 6 million plug-in EVs sold annually. By 2025, EVs are expected to account for 46% of light-vehicle sales. Therefore, the rising demand for electric vehicles is propelling the growth of the green tires market.

Innovation in product development, exemplified by offerings such as the Goodyear UltraGrip Performance 3, contributes to meeting the rising demand for sustainable products in the green tire market. The Goodyear UltraGrip Performance 3 is a high-performance winter tire crafted with various sustainable materials. It aims to provide excellent grip and handling in winter conditions while promoting fuel efficiency and minimizing environmental impact. Launched in January 2023 by Goodyear Corporation, this tire incorporates sustainable materials, including silica from rice husk ash and recycled polyester from plastic bottles. With features like snow protect technology, advanced wet grip technology, and 90% sustainable materials, the Goodyear UltraGrip Performance 3 exemplifies the industry's commitment to innovative and eco-friendly tire solutions.

In July 2025, CARBIOS S.A., a France-based biotechnology company, entered into a partnership with Indorama Ventures Public Company Limited to provide biorecycled monomers for manufacturing r-PET textile filaments used in tire reinforcement applications by Michelin. Through this collaboration, CARBIOS S.A. and Indorama Ventures Public Company Limited seek to accelerate the use of biorecycled PET in industrial applications, promote the shift toward circular materials, and deliver high-performance recycled polyester filaments for tire production. Indorama Ventures Public Company Limited is a Thailand-based manufacturer of PET and polyester products.

Major companies operating in the green tires market are Compagnie Générale des Établissements Michelin, Bridgestone Corporation, Goodyear India Limited, Continental AG, Hankook Tire & Technology Co. Ltd., Pirelli & C. S.p.A., Apollo Tyres Ltd., Cheng Shin Rubber Ind. Co. Ltd., Kumho Industry Co. Ltd., Nokian Tyres plc, Zhongce Rubber Co. Ltd., Sailun Group Co. Ltd., Shandong Linglong Tire Co. Ltd., The Yokohama Rubber Co. Ltd., Kenda Rubber Industrial Company, Linglong Americas Inc., Guizhou Tyre Co. Ltd., PT Gajah Tunggal Tbk, Toyo Tire & Rubber Co. Ltd., Cooper Tire & Rubber Co., Madras Rubber Factory Ltd., Giti Tire Pte Ltd., Shandong Fengyuan Tyre Co. Ltd., Southern Rubber Industry Co., Specialty Tires of America Inc., Sumitomo Rubber Industries Ltd., Nexen Tire Corporation, Hangzhou Zhongce Rubber Co. Ltd., Double Coin Holdings Ltd.

Europe was the largest region in the green tyre market in 2025. The regions covered in the green tires market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the green tires market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The green tire market consists of sales of round tires, bias tires, medium commercial vehicles, and retail sales. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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