PUBLISHER: The Business Research Company | PRODUCT CODE: 1650297
PUBLISHER: The Business Research Company | PRODUCT CODE: 1650297
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 from The Business Research Company 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 $112.19 billion in 2024 to $125.5 billion in 2025 at a compound annual growth rate (CAGR) of 11.9%. The growth in the historic period can be attributed to environmental awareness, government regulations, consumer demand for eco-friendly products, rise in disposable income, increased demand for mobility services.
The green tires market size is expected to see rapid growth in the next few years. It will grow to $207.78 billion in 2029 at a compound annual growth rate (CAGR) of 13.4%. The growth in the forecast period can be attributed to growth of electric vehicles, emergence of autonomous vehicles, rising urbanization, economic growth. Major trends in the forecast period include smart tire technology, electrification-optimized tires, cross-industry collaborations, 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 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.
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 June 2022, Hyundai Motor Group, an automotive manufacturer based in South Korea, entered into a partnership with Michelin for an undisclosed amount. This collaborative research will concentrate on creating eco-friendly tires, greatly enhancing the use of sustainable materials. Michelin is a manufacturer of green tires located in France.
Major companies operating in the green tires market include Compagnie Generale des Etablissements 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 2024. 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.
Green Tires Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on green tires market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for green tires ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The green tires market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.