Green Tires

Green Tires

Global Green Tires Market to Reach US$288.9 Billion by 2030

The global market for Green Tires estimated at US$155.6 Billion in the year 2023, is expected to reach US$288.9 Billion by 2030, growing at a CAGR of 9.2% over the analysis period 2023-2030. On-Road Application, one of the segments analyzed in the report, is expected to record a 9.5% CAGR and reach US$234.3 Billion by the end of the analysis period. Growth in the Off-Road Application segment is estimated at 8.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$43.1 Billion While China is Forecast to Grow at 8.5% CAGR

The Green Tires market in the U.S. is estimated at US$43.1 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$43.8 Billion by the year 2030 trailing a CAGR of 8.5% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 8.5% and 7.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.5% CAGR.

Global Green Tires Market - Key Trends and Drivers Summarized

Why Are Green Tires Becoming Essential for Sustainability and Energy Efficiency in the Automotive Industry?

Green tires are quickly becoming essential for promoting sustainability and energy efficiency in the automotive industry. But why are green tires so important today? Green tires are designed with environmentally friendly materials and advanced technologies to reduce fuel consumption, lower carbon emissions, and improve overall vehicle efficiency. These tires use innovative designs, materials like silica, and low rolling resistance technology to enhance fuel economy without compromising performance. As governments and consumers increasingly focus on reducing the environmental impact of vehicles, green tires are playing a crucial role in supporting the global shift toward cleaner, more sustainable transportation solutions.

With transportation accounting for a significant portion of global greenhouse gas emissions, reducing fuel consumption has become a priority for automakers, regulatory bodies, and consumers alike. Green tires offer a practical and immediate solution by improving fuel efficiency through reduced rolling resistance. Lower rolling resistance means less energy is required to keep a vehicle moving, which directly translates to reduced fuel use and lower emissions. For consumers, green tires not only help reduce their carbon footprint but also provide long-term savings on fuel costs. As electric vehicles (EVs) continue to gain popularity, green tires are also evolving to meet the unique needs of EVs by extending range and improving energy efficiency.

How Are Technological Advancements Improving the Performance and Sustainability of Green Tires?

Technological advancements are driving significant improvements in the performance, durability, and sustainability of green tires, making them more effective and accessible to consumers and automakers. One of the most important advancements is the development of low rolling resistance technology. By reducing the energy lost through tire deformation, low rolling resistance tires help vehicles use less fuel to maintain speed. This is achieved through innovative tire designs, optimized tread patterns, and the use of advanced materials like silica-based compounds. Silica helps reduce friction between the tire and the road, resulting in improved fuel efficiency and enhanced traction. Tires that reduce rolling resistance by just 10% can improve a vehicle’s fuel economy by up to 3%, which has a measurable impact on reducing carbon emissions.

Another key advancement is the increased use of sustainable and renewable materials in tire manufacturing. Traditionally, tires have been made from synthetic rubber and petrochemical-based materials, which have a significant environmental impact. However, green tires are incorporating more sustainable alternatives, such as natural rubber from responsibly managed sources, bio-based materials, and recycled rubber. For instance, some tire manufacturers are experimenting with bio-oils, plant-based resins, and recycled materials to replace petroleum-based ingredients, reducing the overall carbon footprint of the tire production process. These eco-friendly materials not only lower the environmental impact of tire manufacturing but also improve the sustainability of the entire tire lifecycle, from production to disposal.

Advancements in tread design are also enhancing the performance of green tires. New tread patterns are being engineered to provide a balance between low rolling resistance and safety, ensuring that green tires maintain excellent traction and handling in various driving conditions, including wet and icy surfaces. These innovative tread designs help reduce the amount of friction between the tire and the road, contributing to improved fuel efficiency without compromising on performance or safety. Additionally, advancements in wear-resistant materials are helping extend the lifespan of green tires, reducing the need for frequent replacements and minimizing waste.

The development of tires specifically tailored for electric vehicles (EVs) is another major technological advancement in the green tire sector. EVs have unique requirements due to their heavier weight from battery packs and the need for energy efficiency to maximize driving range. Green tires for EVs are designed with even lower rolling resistance and stronger materials to support the extra weight while enhancing range. Some manufacturers are also exploring the use of sound-absorbing technologies in green tires for EVs to reduce road noise, further improving the driving experience for electric vehicle owners.

Advances in tire recycling and circular economy practices are also contributing to the sustainability of green tires. Tire manufacturers are investing in technologies that allow used tires to be broken down and repurposed into new tires or other products, reducing the need for virgin materials and minimizing waste sent to landfills. Innovations in devulcanization, a process that breaks down the rubber in used tires, are making it possible to recycle more of the materials used in tires and reintegrate them into the manufacturing process. This shift toward a circular economy in tire production not only reduces the environmental impact of tire waste but also supports the industry’s move toward more sustainable practices.

Why Are Green Tires Critical for Reducing Carbon Emissions, Improving Fuel Efficiency, and Supporting Electric Vehicle Adoption?

Green tires are critical for reducing carbon emissions, improving fuel efficiency, and supporting the growing adoption of electric vehicles (EVs) because they offer an effective solution to one of the major sources of energy loss in vehicles: rolling resistance. By minimizing the energy required to maintain a vehicle’s movement, green tires help reduce fuel consumption and emissions, making them an essential tool in the fight against climate change. Rolling resistance accounts for up to 20% of a vehicle’s fuel consumption, so reducing it with green tires can have a significant impact on improving fuel economy.

In addition to their environmental benefits, green tires offer a practical solution for consumers who want to save on fuel costs. The lower rolling resistance of green tires means that vehicles require less fuel to cover the same distance, which translates to direct savings at the gas pump. For fleet operators, logistics companies, and other businesses that rely on transportation, these savings can be substantial over time, especially as fuel prices continue to rise. By improving fuel efficiency, green tires not only help reduce operational costs but also support companies’ sustainability goals by lowering their carbon footprints.

Green tires are also playing a vital role in supporting the adoption of electric vehicles (EVs), which are central to the future of sustainable transportation. As range anxiety—the fear of running out of battery power before reaching a charging station—remains a significant concern for potential EV buyers, green tires offer a solution by extending the driving range of EVs. With their ultra-low rolling resistance, green tires allow EVs to use less energy, maximizing the distance they can travel on a single charge. Additionally, green tires are designed to handle the heavier weight of EVs without compromising performance or safety. This makes them an important component in the overall efficiency of electric vehicles, helping to make EVs more practical and appealing to a broader range of consumers.

Furthermore, green tires contribute to reducing the environmental impact of the automotive industry beyond just fuel consumption. As governments around the world introduce stricter emissions standards and push for the widespread adoption of cleaner transportation technologies, automakers are increasingly incorporating green tires into their vehicle designs to meet these regulations. Green tires help manufacturers comply with fuel efficiency standards such as the Corporate Average Fuel Economy (CAFE) regulations in the U.S. and the European Union’s emissions targets, making them a key part of the automotive industry’s shift toward more sustainable practices.

Additionally, the integration of green tires into the design of electric and hybrid vehicles underscores their importance in achieving sustainability goals. Electric vehicle manufacturers are prioritizing low rolling resistance tires to optimize battery life and enhance range, and green tire technology is evolving to meet these specific needs. As EV sales grow and become a larger share of the global vehicle market, the demand for high-performance, energy-efficient tires will continue to rise, making green tires a vital component in the future of transportation.

What Factors Are Driving the Growth of the Green Tire Market?

Several key factors are driving the rapid growth of the green tire market, including increasing government regulations on emissions and fuel efficiency, rising consumer demand for eco-friendly products, advancements in tire technology, and the global shift toward electric and hybrid vehicles. First, the introduction of stricter emissions standards and fuel efficiency regulations is a major driver of the green tire market. Governments around the world are implementing policies to reduce greenhouse gas emissions from vehicles, pushing automakers and consumers to adopt technologies that improve fuel efficiency. Green tires, with their low rolling resistance and eco-friendly materials, are an essential solution for meeting these regulatory requirements.

Second, rising consumer demand for eco-friendly and sustainable products is fueling the growth of the green tire market. As consumers become more aware of the environmental impact of their purchasing decisions, they are increasingly seeking products that align with their sustainability values. Green tires offer a practical and effective way for drivers to reduce their carbon footprint and contribute to cleaner air, all while saving on fuel costs. This growing demand is particularly strong among younger, environmentally conscious consumers who prioritize sustainability in their vehicle choices.

Technological advancements in tire design and materials are also contributing to the growth of the green tire market. As discussed earlier, innovations such as silica-based compounds, bio-based materials, and advanced tread designs are improving the performance and durability of green tires. These advancements allow green tires to compete with traditional tires in terms of safety, handling, and longevity, making them a more attractive option for a wider range of consumers. The ability to offer both environmental benefits and high performance is driving the adoption of green tires across various vehicle segments, from passenger cars to commercial trucks.

The global shift toward electric and hybrid vehicles is another significant factor driving the green tire market. As more consumers and businesses transition to EVs and hybrids, the demand for tires that maximize energy efficiency and support the unique needs of these vehicles is increasing. Green tires designed specifically for electric vehicles are playing a key role in extending driving range and optimizing battery life, making them an essential component of the growing EV ecosystem. As the electric vehicle market continues to expand, so too will the demand for advanced, energy-efficient green tires.

Finally, the economic benefits of green tires are contributing to their growth. While green tires may have a higher upfront cost compared to conventional tires, their ability to improve fuel efficiency results in long-term savings on fuel expenses. For businesses with large fleets, these savings can be substantial, making green tires a cost-effective investment. Additionally, as green tires become more widespread, economies of scale are expected to drive down production costs, making them more affordable for a broader range of consumers.

Select Competitors (Total 19 Featured) -

• Apollo Tyres Ltd.
• Balkrishna Industries Limited (BKT)
• Bridgestone Corporation
• Cheng Shin Rubber Ind. Co., Ltd.
• Continental AG
• Cooper Tire & Rubber Company
• Goodyear Tire & Rubber Company
• Hankook Tire Co., Ltd.
• Kenda Tires
• Kumho Tire Co., Inc.
• Michelin
• MRF Ltd.
• Nexen Group, Inc.
• Nokian Tyres plc
• Petlas
• Pirelli & C. SpA
• Sailun Tires
• Shandong Linglong Tire Co., Ltd.
• The Yokohama Rubber Co., Ltd.
• Toyo Tires
• ZHONGCE Rubber Group Co., Ltd.

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.