Automotive Green Tires Market Forecasts to 2030 – Global Analysis By Vehicle Type (Buses, Two-wheelers, Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles and Other Vehicle Types), Propulsion Type, Material, Technology, End User and By G

Automotive Green Tires Market Forecasts to 2030 – Global Analysis By Vehicle Type (Buses, Two-wheelers, Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles and Other Vehicle Types), Propulsion Type, Material, Technology, End User and By Geography

According to Stratistics MRC, the Global Automotive Green Tires Market is accounted for $11.5 billion in 2023 and is expected to reach $20.3 billion by 2030 growing at a CAGR of 8.5% during the forecast period. Green tires, also known as eco-friendly tires or low rolling resistance tires, refer to a type of tire designed to reduce fuel consumption and minimize environmental impact. These tires are engineered with specific features and materials aimed at improving fuel efficiency, decreasing carbon emissions, and enhancing overall sustainability in the automotive industry. Green tires contribute to environmental sustainability by reducing fuel consumption and greenhouse gas emissions. They also may use recycled materials or be designed for easier recycling at the end of their lifespan, further reducing their environmental impact.

According to the China Association of Automobile Manufacturers (CAAM), In 2021, approximately 505,000 busses and 4.3 million trucks were sold in China. This represented a 13% increase in bus sales compared to the previous year. Further, a remarkable 30% of new automobiles sold in the nation in 2022 were electric vehicles, and 22% of those were battery-electric vehicles.

Market Dynamics:

Driver:

Increasing electric vehicle sales

The market is witnessing a surge in electric vehicle (EV) sales, driving significant growth. As EV adoption rises globally, the demand for eco-friendly tires has escalated. Manufacturers are prioritizing sustainable materials, enhancing tire efficiency and durability to cater to this expanding market segment. This trend reflects a broader shift towards environmentally conscious practices in the automotive industry, driving innovation and investment in green tire technologies.

Restraint:

Lack of awareness in emerging economies

In emerging economies, there persists a notable lack of awareness regarding the market. This gap in understanding encompasses the benefits, technologies, and environmental impact of green tires. Such limited awareness hampers the adoption of eco-friendly tire solutions and inhibits market growth potential within these regions. Efforts towards education and promotion are crucial to bridge this awareness gap and foster a more sustainable approach to automotive tire usage in emerging economies.

Opportunity:

Government initiatives for clean and green environment

Several government initiatives are fostering a clean and green environment within the market. These include stringent emission regulations, incentivizing the adoption of eco-friendly tire manufacturing processes, promoting research and development in sustainable tire technologies, and encouraging tire recycling and disposal programs. Such initiatives not only reduce the environmental footprint of tire production and usage but also drive innovation in the automotive industry towards more eco-conscious practices.

Threat:

Higher initial cost

While the initial cost of automotive green tires may be higher compared to conventional tires, the long-term benefits outweigh this expense. These tires are designed with advanced eco-friendly materials that enhance fuel efficiency, reduce emissions, and increase overall durability. Although the upfront investment may seem substantial, drivers can save significantly on fuel costs over time, making these tires a cost-effective and environmentally responsible choice in the market.

Covid-19 Impact:

The COVID-19 pandemic significantly impacted the Automotive Green Tires market, leading to supply chain disruptions, reduced production capacities, and a decline in demand due to economic uncertainties. However, it also accelerated trends towards sustainability, increasing interest in eco-friendly tire options. Companies focused on innovation and resilience managed to adapt, leading to a gradual recovery post-pandemic, with a renewed emphasis on green technologies and environmental consciousness driving market growth.

The passenger cars segment is expected to be the largest during the forecast period

The passenger cars segment is expected to be the largest during the forecast period due to their widespread usage and environmental impact. Green tires, designed for improved fuel efficiency and reduced emissions, are gaining traction among car manufacturers and consumers alike. The demand for eco-friendly solutions in the automotive industry has propelled the adoption of green tires in passenger vehicles, driving innovation and sustainability across the sector.

The conventional tires segment is expected to have the highest CAGR during the forecast period

The conventional tires segment is expected to have the highest CAGR during the forecast period. These eco-friendly alternatives offer reduced rolling resistance, enhancing fuel efficiency and lowering emissions. With a heightened focus on sustainability, consumers and manufacturers are increasingly turning to green tires, leveraging advanced materials and manufacturing techniques. This shift signifies a significant evolution in the automotive tire market, reflecting a broader trend toward environmentally conscious solutions.

Region with largest share:

North America is projected to hold the largest market share during the forecast period due to increasing environmental concerns and regulatory pressures. Manufacturers are focusing on developing eco-friendly tire solutions to reduce carbon emissions and improve fuel efficiency. Advanced technologies such as silica compounds, low rolling resistance, and sustainable materials are driving market expansion.

Region with highest CAGR:

Asia Pacific is projected to hold the highest CAGR over the forecast period. Increased awareness about environmental issues such as climate change and air pollution has led to a greater demand for eco-friendly products, including tires. Governments and regulatory bodies in many countries are also implementing stricter emission standards, encouraging the adoption of green technologies in the automotive sector. Moreover, consumer awareness and government incentives for eco-friendly products are further boosting the demand for green tires in the region.

Key players in the market

Some of the key players in Automotive Green Tires market include Apollo Tyres Limited, Yokohama Tire Corporation, Goodyear Tire & Rubber Company, Bridgestone Corporation, Continental AG, Michelin Group, Pirelli & C. Spa, Toyo Tire Corporation, MRF Limited, CEAT Limited, Titan International, Inc., Sumitomo Rubber Industries, Hankook Tire & Technology Group, Cooper Tire & Rubber Company, MRF Limited and Nexen Tire Corporation.

Key Developments:

In June 2023, Michelin announced to invest USD 27.8 million to expand car tire production capacity at its Shenyang, China factory by 1.3 million tires.

In February 2023, Bridgestone announced to invest USD 72.4 million by 2025 expand production capacity and upgrade technology at its Pune-based plant. It will improve the plant capability in terms of technologies and capacities for the manufacture of tires for the passenger car segment.

Vehicle Types Covered:
• Buses
• Two-wheelers
• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Other Vehicle Types

Propulsion Types Covered:
• Electric
• Hybrid
• Plug-In Hybrid Electric Vehicles (PHEVs)
• Fuel Cell Electric Vehicles (FCEVs)
• Other Propulsion Types

Materials Covered:
• Silica
• Low-Aromatic Oils
• Synthetic Rubber
• Natural Rubber
• Other Materials

Technologies Covered:
• Low Rolling Resistance (LRR) Tires
• Self-Inflating Tires
• Green Tires
• Conventional Tires
• Other Technologies

End Users Covered:
• Individual Consumers
• Fleet Operators
• Original Equipment Manufacturers (OEMs)
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements