Global Green Tires Market 2024-2031

Global Green Tires Market 2024-2031

Global Green Tires Market Size, Share & Trends Analysis Report by Vehicle Type (Light Commercial Vehicles, Passenger Cars, Heavy Trucks, Buses & Coaches), by Application (On Road, Off-Road), Forecast Period (2024-2031)

The green tires market is anticipated to grow at a significant CAGR of 12.0% during the forecast period (2024-2031). Green tires are a sustainable tire industry framework that focuses on environmental sustainability throughout the entire lifecycle of tire production, use, and disposal. These tires use environmentally friendly materials, such as natural rubber from sustainable plantations, renewable synthetic rubber blends, and eco-friendly additives, to minimize resource extraction, energy consumption, and greenhouse gas emissions. They improve fuel efficiency by reducing rolling resistance, resulting in lower fuel consumption and CO2 emissions. Green tires maintain or enhance performance, safety, and durability compared to conventional tires. They undergo lifecycle assessments to evaluate their environmental impact, promote recyclability and end-of-life management, and align with industry standards for environmental sustainability.

Market Dynamics

Consumer Preference for Eco-Friendly Products

Consumers are increasingly choosing eco-friendly products, including tires, as part of their commitment to sustainability. Manufacturers are responding to this demand by offering a wide range of green tire options that meet environmental standards without compromising performance, safety, or durability. For instance, in January 2024, the Goodyear Tire & Rubber Company released a demonstration tire with 70.0% sustainable material content, including industry-leading innovations. The 70% sustainable-material tire includes 13 featured ingredients across nine different tire components. Company performance indicators have shown the component properties to deliver strong overall tire performance.

Corporate Sustainability Initiatives

Globally, tire manufacturers and automotive OEMs are implementing corporate sustainability initiatives to reduce their environmental footprint and enhance their brand reputation. Investing in green tire technologies aligns with these sustainability goals and helps companies meet environmental targets. In May 2023, Yokohama Rubber acquired Trelleborg Wheel Systems, enhancing its position among tire producers in the off-highway tire segment.

Market Segmentation

Our in-depth analysis of the global green tires market includes the following segments by vehicle type and application,

Based on vehicle type, the market is segmented into light commercial vehicles, passenger cars, heavy trucks and buses & coaches

Based on application, the market is segmented into on-road and off-road

Passenger Cars is Projected to Emerge as the Largest Segment

The passenger cars green tires segment is expected to hold the largest share of the market. The growth of this market segment is driven by the high production and sales volume of passenger cars, growing consumer awareness of environmental issues, stricter regulations, and technological advancements. Passenger cars represent the largest segment of the automotive market globally, leading to a higher demand for eco-friendly tires.

Regional Outlook

The global green tires market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

North America Holds Major Market Share

Among all the regions, North America holds a significant share owing to the presence of rising demand for green tires by environment-friendly consumers across the region. The presence of stringent regulatory standards, technological innovation, and government support are some other contributors to the regional market growth. Consumers are increasingly concerned about sustainability and willing to pay a premium for eco-friendly products. North America's large automotive market with a well-developed infrastructure for manufacturing, distribution, and sales contributes to market growth. Companies in North America have adopted corporate sustainability initiatives to reduce their environmental impact, aligning with green tire technologies. Governments in North America provide incentives for green technology development, including tax credits, grants, and subsidies. Consumer preferences and brand reputation also influence investment in green tire technologies.

The major companies serving the global green tires market include GRI Tires, JK Tyre & Industries Ltd, Michelin, MRF Tyres, Nokian Tyres plc, Pirelli & C. S.p.A., and RPG Group, among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market.