Automotive Green Tires Market: Current Analysis and Forecast (2024-2032)

The demand for green tires for automotive products, especially in emerging developed countries is growing at a very fast rate because of the awareness of the environment and more regulations that are being enforced on companies about environmental conservation. Eco-friendly green tires are developed to enhance fuel economy and decrease CO2 emissions by the emerging Eco eco-consciousness internationally. There is increased consumer consciousness for sustainable products, technological developments in tires, and increased support for such changes in laws by governments. The innovation in technology in the use of advanced- materials and better design on the treads of the green tires improves the performance and adds beauty to the green tires. Moreover, long-term cost benefits such as fuel consumption levels in the long run and possibilities of cost reduction from the principle of economies of scale are some of the economic factors that enhance market growth.

The Automotive Green Tire Market is expected to grow at a significant rate of around 5.33% during the forecast period (2024-2032). Market key players are adopting strategies like partnership, and investment to gain more growth in the market. In April 2022, Mercedes-Benz announced an exciting development partnership with Bridgestone Corporation for the manufacturing of tires intended for their futuristic electric vehicle, the Mercedes-Benz Vision EQXX. This collaboration aims to design highly efficient custom Turanza Eco tires for Mercedes EVs, to extend the driving range to an impressive 1,000 km. Bridgestone will work closely with the original equipment manufacturer (OEM) to achieve this milestone. Thus, to create high growth rates in the green tire market the companies have to invest in materials and technology which will improve the fuel efficiency and the negative impact on the environment. It also gives them the chance to develop sustainable activities in all the production procedures and enhance consumer awareness of environmentally friendly tires. Appropriate tire accessibility, enhancement of the relationship with automotive manufacturers, and design of new types of tires will help in enhancing the market operations and adoption. Furthermore, taking part in effective and efficient recycling efforts as well as the enhancement of the overall management of the tires' life cycle can enhance long-run growth.

Based on vehicle type, the market is bifurcated into passenger and commercial. The passenger segment has significantly contributed to the market's growth by capturing a substantial share within its vehicle-type segment. The expansion of green tires among passenger cars globally is encouraged because consumers become more environmentally sensitive with the development of eco-friendly automotive solutions. For instance, in 2023, JK Tyre & Industries developed a passenger car radial tire with 80 percent sustainable, recycled and renewable material. The company said the tire has been developed based on decade-long research and will deliver performance comparable to that of a standard radial tire while registering a lower carbon footprint.

Based on material, the market is segmented into natural rubber, carbon black, synthetic rubber, steel wire, and fabric, fillers, antioxidants, and antimonate. The carbon black segment dominated the market in the historic year and is expected to dominate in the forecast period. Using carbon black contributes to the improvement of green tires' durability, strength, and performance of the tire. Advancements in technologies and research about more sustainable sources of carbon black or methods of reusing carbon black industrial waste are also on the rise. Such strategies make it possible to operate the industry with a lesser emissive impact than the customary methods of making carbon black.

Based on propulsion, the market is bifurcated into electric and ICE. The ICE segment has significantly contributed to the market's growth by capturing a substantial share within its propulsion segment. In Internal Combustion Engine (ICE) vehicles, the adoption of green tires is fueled by the demand for improved fuel efficiency and reduced carbon emissions. Green tires, with their lower rolling resistance, contribute to better fuel economy, which is becoming increasingly important as fuel prices fluctuate and emissions regulations become stricter. Consumers and manufacturers are more aware of the environmental impact of traditional tires, leading to a shift towards greener alternatives.

For a better understanding of the market adoption of automotive green tires market, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, France, U.K., Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Asia Pacific holds a significant share of the green tire market and is anticipated to maintain a steady growth rate over the forecast period. It has been observed that the business world in the Asia Pacific region is progressively toning its eyes on sustainability, mechanical and physical properties improvements, aesthetics, and development, such as green tires. For example, in the year 2023, Bridgestone commercialized the Enliten technology that deemed it possible to cut down the weight of the tire by a very steep notch as well as increase the fuel efficiency corresponding to the level of its performance. Also, on the issue of market positioning, various companies have entered into strategic alliances. Continental signed a cooperation deal in 2022 with Kordsa to use environmentally friendly reinforcements in tires using Kordsa's knowledge of green chemical products. Companies in the Asia Pacific could attain growth by forming strategic partnerships with local agricultural cooperatives and distributors to improve market penetration. Investing in research and development to create advanced, efficient, and environmentally friendly automotive green tire formulations will also be key. Expanding production capacities and modernizing existing plants with advanced technologies can enhance output and reduce costs.

Some of the major players operating in the market include Bridgestone Corporation, Continental AG, Michelin Group, Apollo Tyres Limited, Yokohama Tire Corporation, Goodyear Tire & Rubber Company, Pirelli & C. Spa, Toyo Tire Corporation, MRF Limited, CEAT Limited.