The Automotive Green Tires Market had an estimated market share worth USD 11.5 billion in 2023, and it is predicted to reach a global market valuation of USD 25 billion by 2034, growing at a steady CAGR of 4.5% from 2024 to 2034.
Demand for eco-friendly tires is increasing as customers become more aware of the environmental effect of conventional tires along with the benefits of green alternatives.
Growing consumer awareness of environmental issues has led to an increase in the demand for green tires, which has expanded the industry and spurred more innovation in environmentally friendly tire solutions.
Sales Analysis of Automotive Green Tires
Report Attribute | Details |
---|---|
Estimated Market Value in 2023 | USD 11.5 billion |
Expected Market Value for 2024 | USD 12.4 billion |
Projected Forecast Value in 2034 | USD 25 billion |
Anticipated Growth Rate from 2024 to 2034 | 4.5% CAGR |
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The demand for the automotive green tires market was estimated to reach a valuation of USD 8.2 billion in 2019, according to a report from Future Market Insights. From 2019 to 2023, sales witnessed significant growth in the automotive green tires market, registering a CAGR of 8.9%.
Historical CAGR from 2019 to 2023 | 8.9% |
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Forecast CAGR from 2024 to 2034 | 4.5% |
The market for automotive green tires is driven by technological developments in tire production, such as the development of innovative materials and manufacturing techniques. These advances will fuel market expansion by making it possible to produce tires with better performance attributes including decreased rolling resistance, increased durability, and greater sustainability.
Some important factors that will boost the market growth through 2034 are:
Consumer Inclination towards Eco Friendly and Fuel Efficient Vehicles to Bolster Sales
The growing customer desire for environmentally friendly and fuel-efficient cars is a major factor propelling the market for automotive green tires. Customers are actively looking for environmentally friendly transportation solutions that reduce their carbon impact as environmental awareness rises.
Green tires suit these desires because they are recognized for their capacity to improve fuel economy and lower emissions. The market for automobile green tires is expanding as a result of automakers incorporating green tire technology into their lineup of vehicles to satisfy consumer demand for eco-friendly options.
Increasing Focus on Environmental Sustainability to Bolster demand globally
The growing emphasis on environmental sustainability and the need to minimize carbon emissions are key drivers of the automotive green tire market. As global concerns about climate change rise, countries throughout the world are enacting more stringent laws designed to lower car emissions.
This encourages both customers and automakers to look for environmentally friendly options, including green tires, which provide better fuel economy and less rolling resistance while also supporting market expansion and sustainability objectives.
Supply Chain Disruptions to Stifle the Market Growth
The market for automotive green tires is being hindered by supply chain interruptions brought on by things like labor shortages, delays in shipping, and shortages of raw materials. These issues cause delays in production and higher expenses because they interfere with manufacturing procedures.
Trade tensions and uncertainty surrounding the state of the world economy intensify market issues and impede the smooth growth and development of the automobile green tire sector.
This section focuses on providing detailed analysis of two particular market segments for automotive green tires, the dominant vehicle type and the significant end user. The two main segments discussed below are passenger vehicles and OEM.
Vehicle Type | Passenger Vehicle |
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CAGR from 2024 to 2034 | 7% |
During the forecast period, the passenger vehicle segment is likely to garner a 7% CAGR. Green tires are expected to be widely used in passenger vehicles for a number of important reasons.
Green tires, which minimize environmental effect and reduce carbon emissions, are in high demand as a result of the increased consumer awareness of environmental issues and their desire to choose eco-friendly options. Green tires also provide improved fuel efficiency, which saves drivers money over time.
In order to comply with strict emissions regulations and fulfill customer expectations for environmentally friendly transportation options, manufacturers of automobiles are compelled by governmental pressures to emphasize sustainability, which has resulted in the widespread incorporation of green tire technology.
End User | OEM |
---|---|
Market Share in 2024 | 51.2% |
In 2024, the OEM segment is likely to acquire a 51.2% global market share. Green tires are expected to be widely used in the OEM (Original Equipment Manufacturer) sector for a variety of reasons. In order to comply with environmental requirements, manufacturers are compelled by strict emissions restrictions to integrate eco-friendly parts, such as tires, into their vehicles.
OEMs aim to conform to customer preferences while acknowledging the market demand for sustainable goods. Green tires support the objectives of OEMs for increased performance and sustainability by providing noticeable advantages like less carbon footprint and increased fuel economy.
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The markets for automotive green tires in a few significant countries, including the United States, the United Kingdom, China, Japan, and South Korea, will be covered in detail in this section. The section will focus on the significant factors driving up demand for automotive green tires in these countries.
Countries | CAGR |
---|---|
The United States | 7.5% |
The United Kingdom | 8.3% |
China | 7.8% |
Japan | 8.8% |
South Korea | 9.3% |
The United States automotive green tires is anticipated to gain a CAGR of 7.5% through 2034. Factors that are bolstering the growth are:
The market in the United Kingdom is expected to expand with an 8.3% CAGR through 2034. The factors pushing the growth are:
The automotive green tires ecosystem in China is anticipated to develop with a 7.8% CAGR from 2024 to 2034. The drivers behind this growth are:
The automotive green tires industry in Japan is anticipated to reach an 8.8% CAGR from 2024 to 2034. The drivers propelling growth forward are:
The automotive green tires ecosystem in South Korea is likely to evolve with a 9.3% CAGR during the forecast period. The factors bolstering the growth are:
Companies in the global automotive green tires market are concentrating more on producing environmentally friendly tire solutions to solve sustainability issues and minimize carbon footprint.
Significant companies are funding research and development to create novel materials and production techniques that reduce energy use and emissions over the course of the lifespan of a tire.
Companies are working with manufacturers to incorporate green tire technology into cars, encouraging fuel economy and cutting greenhouse gas emissions. Companies are committed to meeting the increasing demand from consumers for sustainable transportation solutions, as seen by their strategic alliances and investments in environmentally friendly projects. The key players in this market include:
Significant advancements in the automotive green tires sector are being made by key market participants, and these include:
Report Attribute | Details |
---|---|
Growth Rate | CAGR of 4.5% from 2024 to 2034 |
Market value in 2024 | USD 12.4 billion |
Market value in 2034 | USD 25 billion |
Base Year for Estimation | 2023 |
Historical Data | 2019 to 2023 |
Forecast Period | 2024 to 2034 |
Quantitative Units | USD billion for value |
Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
Segments Covered | Vehicle Type, End User, Region |
Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; Middle East & Africa |
Countries Profiled | The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, Poland, Russia, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC Countries, South Africa, Israel |
Key Companies Profiled | 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 |
Customization Scope | Available on Request |
The automotive green tires market is expected to garner a 4.5% CAGR from 2024 to 2034.
By 2024, the global automotive green tires market is likely to gain USD 12.4 billion.
By 2034, the automotive green tires market valuation is likely to reach a sum of USD 25 billion.
The automotive green tires industry in the United States is likely to garner a 7.5% CAGR during the forecast period.
The passenger vehicles will be using automotive green tires solution along with a 7% CAGR through 2034.
The OEM sector is likely to be a significant end user for automotive green tires with a 6.8% CAGR through 2034.
Estimated Value (2024) | USD 10,158.3 million |
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Projected Size (2034) | USD 23,509.1 million |
Value-based CAGR (2024 to 2034) | 8.8% |
Market Estimated Value (2023) | USD 33.68 billion |
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Market Estimated Value (2033) | USD 85.79 billion |
Market Value CAGR (2023 to 2033) | 9.8% CAGR |
Market Size Value (2023) | USD 9,444.1 million |
---|---|
Market Size Value (2033) | USD 99,884.7 million |
Market CAGR (2023 to 2033) | 26.6% |
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