Green Tires Market Global Market Report 2024

A green tire refers to a circular component of an automotive tire that is fully assembled, made from environmentally friendly rubber, but has not undergone the curing process or received tread patterns. In comparison to other types of tires, such as those made from semi-aromatic, styrene-butadiene rubbers, or polycyclic hydrocarbons, green tires are designed to improve fuel efficiency and reduce greenhouse gas emissions.

Green tires find application in various vehicle types, including passenger cars, light commercial vehicles (LCV), and heavy commercial vehicles (HCV). The passenger car segment encompasses green tires manufactured specifically for use in passenger vehicles. These tires are suitable for both on-road and off-road applications. Green tires come in different sizes, such as 10 inches, 10-20 inches, and 20-30 inches, catering to different vehicle requirements. They are distributed through aftermarket and original equipment manufacturer (OEM) sales channels.

The green tyre research report is one of a series of new reports that provides green tyre statistics, including green tyre industry global market size, regional shares, competitors with green tyre shares, detailed green tyre segments, market trends and opportunities, and any further data you may need to thrive in the green tyre industry. This green tyre research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The green tires market size has grown rapidly in recent years. It will grow from $100.9 billion in 2023 to $112.87 billion in 2024 at a compound annual growth rate (CAGR) of 11.9%. The growth observed in the historic period for green tires can be attributed to several key factors. These include a heightened environmental awareness among consumers, the influence of government regulations promoting eco-friendly products, increasing consumer demand for environmentally conscious products, a rise in disposable income contributing to purchasing decisions, and an overall increased demand for mobility services. These factors collectively contributed to the adoption of green tires during the historic period, reflecting a broader trend toward sustainability and environmental consciousness in the automotive industry.

The green tires market size is expected to see rapid growth in the next few years. It will grow to $180.64 billion in 2028 at a compound annual growth rate (CAGR) of 12.5%. The anticipated growth in the forecast period for green tires can be attributed to several factors. These include the growth of electric vehicles, the emergence of autonomous vehicles, increasing urbanization leading to a higher demand for sustainable transportation solutions, and overall economic growth. Major trends expected in the forecast period include the adoption of smart tire technology, the development of electrification-optimized tires to meet the specific needs of electric vehicles, cross-industry collaborations to drive innovation, and the exploration of tire-as-a-service models.

The surge in environmental awareness among consumers is a key driver for the green tire market. Countries like the USA, China, South Korea, and Japan have implemented tire standards, ratings, labeling, and correct pressure programs to enhance awareness. Consumers are increasingly choosing green tires over conventional ones due to their environmental benefits, including eco-friendliness, high durability, fuel efficiency, and reduced carbon emissions. In September 2023, The Roundup reported that 78% of consumers considered environmental sustainability important, with 55% willing to pay more for eco-friendly brands. Additionally, in 2021, 50% of global consumers reported adopting more eco-friendly practices in the preceding six months. The heightened environmental awareness related to the use of eco-friendly tires is expected to drive the growth of the green tire market.

The growing demand for electric vehicles (EVs) is anticipated to propel the green tire market. Green tires are crucial in maximizing energy efficiency, extending driving range, minimizing environmental impact, and meeting the eco-friendly expectations of EV owners. According to the International Energy Agency in September 2022, sales of electric vehicles nearly doubled to 6.6 million in 2021 compared to 2020, representing nearly 9% of the sales share. This increase, coupled with a 4% rise in market share, brought the total number of electric vehicles on the road to 16.5 million. The increasing adoption of electric vehicles is a significant factor driving the growth of the green tire 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.

Major players in the green tire market are actively developing innovative products to meet the surging demand for electric vehicles (EVs), exemplified by offerings like FALKEN e.ZIEX. This new replacement tire, specifically designed for EVs, addresses key requirements such as low rolling resistance, extended wear life, and quiet performance. Launched in March 2023 by Sumitomo Rubber Industries Ltd., a Japan-based automobile company, the FALKEN e.ZIEX aims to enhance the range and efficiency of EVs. Its features include long wear life, crucial for EVs that are typically heavier than gasoline-powered vehicles, and low rolling resistance. The tire is designed to contribute to the overall performance and environmental benefits of electric vehicles, meeting the evolving needs of the market.

In a strategic move in February 2021, Goodyear Tire & Rubber Company, a prominent multinational tire manufacturing company headquartered in the USA, acquired Cooper Tire & Rubber Company for approximately $2.5 billion. This strategic acquisition positions Goodyear to expand its portfolio and tap into additional revenue growth opportunities. Cooper Tire & Rubber Company, an American company specializing in the manufacture of replacement automobile and truck tires, particularly in the light truck and SUV segments, adds valuable expertise and capabilities to Goodyear's business. The acquisition is reflective of the industry's dynamism and the pursuit of growth through strategic partnerships and expansions in the green tire market.

Major companies operating in the green tires market market include 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., Barez Industrial Group Company Public Joint, 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 2023. The regions covered in the green tyre market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The countries covered in the Green Tires market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

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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