PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1684290
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1684290
Automotive green tires market size was valued at US$ 12,908.32 Million in 2024, expanding at a CAGR of 6.99% from 2025 to 2032.
Automotive green tires are eco-friendly tires designed to reduce fuel consumption, carbon emissions, and environmental impact. Made from sustainable materials like natural rubber, silica, and recycled components, they enhance fuel efficiency through lower rolling resistance. Advanced tread designs improve durability and traction while minimizing energy loss. Green tires contribute to sustainability efforts by promoting longer lifespan, reduced waste, and lower CO2 emissions, making them a key innovation in the automotive industry.
Automotive Green Tires Market- Market Dynamics
Increasing consumer demand for fuel efficiency to propel market demand
Governments worldwide are implementing regulations to reduce vehicular emissions, promoting the adoption of green tires. In addition, Rising fuel prices and environmental awareness are driving consumers toward fuel-efficient vehicles equipped with green tires. However, the use of advanced materials and technologies in green tires increases manufacturing costs, leading to higher retail prices, which may deter price-sensitive consumers. On the contrary, Innovations such as the development of bio-based materials and smart tire technologies present opportunities for creating high-performance green tires. Moreover, the expanding EV market increases demand for energy-efficient tires.
Automotive Green Tires Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 6.99% over the forecast period (2025-2032)
Based on Vehicle Type segmentation, passenger cars was predicted to show maximum market share in the year 2024
Based on Propulsion Type segmentation, the internal combustion engine (ICE) was the leading Propulsion Type in 2024
Based on Rim Size segmentation, 16-18" was the leading Rim Size in 2024
Based on Application segmentation, on-road was the leading Application in 2024
Based on Sales Channel segmentation, original equipment manufacturer (OEM) was the leading Sales Channel in 2024
On the basis of region, North America was the leading revenue generator in 2024
The Global Automotive Green Tires Market is segmented on the basis of Vehicle Type, Propulsion Type, Rim Size, Application, Sales Channel, and Region.
The market is divided into five categories based on Vehicle Type: light commercial vehicles, heavy commercial vehicles, passenger cars, two-wheelers, and buses. The passenger cars segment is expected to hold the largest market share in the automotive green tires market. This is due to the high production and sales volumes of passenger vehicles globally, coupled with increasing consumer demand for fuel-efficient and environmentally friendly tires.
The market is divided into two categories based on Application: on-road and off-road. The on-road segment is expected to hold the largest market share in the automotive green tires market. This is due to the higher number of vehicles operating on paved roads, including passenger cars and commercial vehicles, which predominantly require on-road tires.
Automotive Green Tires Market- Geographical Insights
North America held the largest market share in 2024 in the automotive green tires market. This dominance was driven by stringent government regulations on fuel efficiency and emissions, including standards set by the U.S. Environmental Protection Agency (EPA) and the Corporate Average Fuel Economy (CAFE) regulations.
The Asia-Pacific region is projected to experience the fastest growth rate in the automotive green tires market. Factors such as the expanding middle class, increasing vehicle ownership, and supportive government policies promoting sustainable practices are propelling the adoption of green tires.
The growing demand for fuel-efficient and eco-friendly vehicles is driving the adoption of green tires in the automotive industry. Manufacturers are focusing on developing low-rolling-resistance tires using sustainable materials such as bio-based rubber and silica. Strategic collaborations with automakers, advancements in tire Application, and increased investment in research and development are key strategies to enhance performance and durability. Additionally, stringent government regulations promoting carbon footprint reduction are encouraging companies to innovate and expand their green tire offerings globally.
In February 2025, Continental launched the EcoContact 7 and EcoContact 7 S tires, designed for EVs with reduced rolling noise and improved handling. Featuring Green Chili 3.0 rubber, Smart Energy Casing, and energy-efficient materials, they optimize energy use and wet braking performance.