Green Tires Market Forecasts to 2028 – Global Analysis By Vehicle Type (Light Commercial Vehicles (LCVS), Passenger Cars and Other Vehicle Types), Application and By Geography

Green Tires Market Forecasts to 2028 – Global Analysis By Vehicle Type (Light Commercial Vehicles (LCVS), Passenger Cars and Other Vehicle Types), Application and By Geography

According to Stratistics MRC, the Global Green Tires Market is accounted for $31.1 billion in 2022 and is expected to reach $60.4 billion by 2028 growing at a CAGR of 11.6% during the forecast period. In order to maintain a good grip on the road, green tyres are developed with both aerodynamics and lightweight in mind. In order to retain more energy when driving and reduce rolling resistance, these tyre types also use a specific kind of firmly bonded rubber in the tread blocks. As a result, less engine power is required to rotate the tyre. Traditional tyres are made using a manufacturing technique that produces significant amounts of pollution and uses materials that are not renewable. Rubber and other petroleum-based compounds, which are added to conventional tyres, are some of these materials.

According to the China Association of Automobile Manufacturers, the country is estimated to manufacture 30 million units of passenger cars in 2020 and rise up to 35 million units by the end of 2025.

Market Dynamics

Driver

Less rolling resistance

Carbon emissions are significantly influenced by rolling resistance in vehicles. As rolling resistance increases, more energy is required to overcome friction, which results in more pollutants being discharged. This helps to decrease the overall weight of the vehicle type, which saves fuel. Rolling resistance causes an increase in the energy required for the tyres to make contact with the ground and deform. As a result, these elements are having an impact on market expansion.

Restraint

Lack of awareness in emerging economies

The advantages of utilising CNG and hybrid cars are generally known to customers; however, the advantages of green tyres and their contribution to fuel economy are less well known. Consumers in emerging economies are less aware of the advantages that come with using green tyres. However, switching from renewable raw materials to conventional goods can reduce the effectiveness of brakes. This significantly inhibits the demand for green tyres.

Opportunity

Strict government laws to reduce pollution

The increasing pace of carbon emissions from vehicles is causing serious environmental problems. As a result of their extensive usage of fossil fuels, cars are also the main source of air pollution. Even while individual cars don't produce a lot of pollutants, the world's overall number of vehicles is quite large. Many governments have imposed strict pollution rules on automakers to slow the growth of car emissions, which is fueling the market's expansion.

Threat

Increasing costs for raw materials

Synthetic and natural resources are employed to manufacture green tyres. The pricing and availability of these materials can vary. Raw material prices have also been rising quickly. The growing price of raw materials is a significant problem for producers of green tyres. Furthermore, silica, butyl, and silane are the main raw materials used in the production and their prices have been gradually growing. This is the main element driving market expansion.

Covid-19 Impact

In addition to having a significant negative impact on people's lives, the COVID-19 pandemic has also had a significant negative impact on the global economy. However, following the shutdown, industries are progressively absorbing losses, though the pace of recovery is relatively slow. Instead of investing heavily in R&D innovation, many businesses and individuals are changing their investment strategies to make up for losses. In addition, despite the pandemic, people are not spending much on automobile purchases. The automobile and transportation industries have ultimately suffered more severe effects as a result of all these issues.

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

The passenger cars segment is estimated to have a lucrative growth, due to the rising number of commercial vehicles and the spike in the need for freight transit. People are encouraged to adopt green tyres in passenger cars by rising CO2 awareness and laws. The sale of these cars has expanded dramatically as a result of frequent launches of passenger e-vehicles and rising individual disposable income, which is likely to fuel this segment's revenue growth.

The on-road segment is expected to have the highest CAGR during the forecast period

The on-road segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the increase in their sales and production across the world. In addition, the market is being driven by factors such as rising urbanisation, higher living standards, and more consumer spending power. As a result of the high carbon emission rate and the pressing need to reduce fuel consumption, manufacturers and consumers are becoming more interested in purchasing environmentally friendly cars and car parts.

Region with Largest share

Asia Pacific is projected to hold the largest market share during the forecast period owing to dynamic automobile industry across the region. Due to the booming demand for fuel-efficient tyres and the quick development of the automotive sector, there is a significant demand for green tyres. The region's well-established distribution network, high levels of raw material supply, and high levels of polyester production are anticipated to fuel market revenue growth.

Region with highest CAGR

Europe is projected to have the highest CAGR over the forecast period, owing to increasing stringency in government regulations in order to reduce carbon emissions and promote environment-friendly vehicles and vehicular components. The presence of a robust healthcare system in the area, increasing investment in a sustainable transportation system, increased awareness among government agencies for the green economy, and most crucially, the use of silica in tyre treads, are all factors that have contributed to the market's rise.

Key players in the market

Some of the key players profiled in the Green Tires Market include Bridgestone, Giti Rubber, Hankook Tire Co., Ltd., Nokian Tires plc, Apollo Tires, Nexen, ZC Rubber, Goodyear Tire and Rubber Company, Continental AG, MRF, Petlas, Michelin, Yokohama Rubber Co., Ltd., Toyo Tire Corporation and Kumho Tire Company.

Key Developments

In March 2022, ZC Rubber Group Co., Ltd. Acquired the businesses of Tianjin United Tire & Rubber International CO. and ZC Rubber is one of the largest suppliers of OTR tires globally, for rigid dump trucks, port application underground mines, and various industrial applications.

In March 2021, Kumho Tire announced the expansion of its Vietnam tire plant expecting double its manufacturing capacity. Kumho Tire is one of the largest tires manufacturers across the globe.

Vehicle Types Covered
• Light Commercial Vehicles (LCVS)
• Passenger Cars
• Other Vehicle Types

Applications Covered
• Off-Road
• On-Road
• Other Applications

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 2020, 2021, 2022, 2025, and 2028
- 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