Automotive Green Tires Market Snapshot from 2024 to 2034

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

  • Green tires often feature lower rolling resistance, which boosts vehicle fuel efficiency and lowers carbon emissions.
  • Modern construction methods and materials provide greater endurance and durability, which lowers the need for tire changes.
  • Green tires frequently provide better handling, braking, and traction, improving both the safety and overall driving pleasure.
  • Green tires help to lessen carbon footprint and encourage environmental conservation by employing eco-friendly materials and production techniques.
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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Automotive Green Tires Market Historical Analysis from 2019 to 2023 vs. Forecast Outlook from 2024 to 2034

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%
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:

  • The market for automotive green tires may be driven by ongoing research and development into sustainable materials including bio-based rubber as well as recycled materials.
  • The growing use of autonomous and electric vehicles (EVs) gives an opportunity for green tires to improve energy efficiency and range, harmonizing with the sustainability aims of these developing vehicle technologies.
  • By improving vehicle safety, performance, and efficiency, the integration of smart tire technologies, such as tire pressure monitoring systems (TPMS) and tire performance sensors, may stimulate demand for green tires and therefore propel market expansion.
  • Embracing circular economy ideas, such as tire recycling and retreading, may boost the automotive green tire industry by increasing tire material reuse and repurposing, decreasing waste, and minimizing environmental effect throughout the tire.

Key Factors Driving the Automotive Green Tires Market

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.

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Factors that can impede the Market Growth

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.

Category-wise Insights

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.

Passengers Vehicles to drift towards an increased Adoption of Green Tires

Vehicle Type Passenger Vehicle
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.

Automotive Green Tires to be Widely Used by the OEM Sector

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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Region-wise Analysis

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%

Diverse Driving Conditions the United States to Further Automotive Green Tire Sales

The United States automotive green tires is anticipated to gain a CAGR of 7.5% through 2034. Factors that are bolstering the growth are:

  • Driving conditions vary due to the huge geographical area and varying climates of the United States. This increases the need for green tires made for varying weather conditions and terrain.
  • Tire performance is a major factor in the United States tire market, in addition to environmental considerations. This results in the development of environmentally friendly tires that provide excellent traction, longevity, and comfort along with sustainability advantages.

Tax Incentives and Emission Standards in the United Kingdom to Push Demand

The market in the United Kingdom is expected to expand with an 8.3% CAGR through 2034. The factors pushing the growth are:

  • The strong dedication of the United Kingdom to sustainability increases demand for eco-friendly products, such as green tires, as customers prioritize lowering their carbon footprint and adhering to environmental laws.
  • The superior research and development skills enable the development of innovative green tire solutions that include innovative materials and manufacturing techniques to improve performance and sustainability.
  • The green tire market in the United Kingdom is expanding as a result of supportive policies that promote the adoption of green technology in the automobile industry, like tax incentives and emissions standards.

Increasing Sustainable Transportation in China to Spur Industry Growth

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 enormous potential presented by the growing urbanization and automotive industry in China are noteworthy for manufacturers of green tires.
  • Green tire adoption is fueled by the regional strict regulations designed to promote sustainability in the automobile industry and reduce pollution.
  • China is a leader in eco-friendly tire production and adoption owing to its growing investments in sustainable transportation and green technologies.

Robust Automotive Innovation Hub in Japan to bolster Demand

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 industry in Japan is well-known for its demanding quality standards, which encourage tire manufacturers to develop premium green tires that fulfill stringent performance and durability requirements.
  • The position of the country as a center of global innovation encourages the development of environmentally friendly technology, which results in the production of state-of-the-art green tire solutions that are more sustainable and efficient.
  • Japan has a large metropolitan population and struggles with pollution and traffic, which is why there is a need for green tires that offer better fuel economy and lower emissions to address environmental issues in crowded places.

Government Initiatives towards Sustainable Solutions in South Korea to Enhance Demand

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:

  • The need for green tires in the automotive sector is being driven by the pro-environment regulations and incentives throughout South Korea.
  • High-tech capabilities encourage the development of environmentally friendly tire solutions, which accelerates market expansion by enhancing sustainability and performance.
  • The adoption of green tires in South Korea's automobile sector is rising due to growing consumer desire for eco-friendly products and environmental consciousness.

Market Competition

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:

  • 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

Significant advancements in the automotive green tires sector are being made by key market participants, and these include:

  • In 2023, Bridgestone Americas (Bridgestone) held an official groundbreaking ceremony to mark the expansion of its Warren County, Tennessee Truck and Bus Radial (TBR) Tire Plant in Morrison. In order to accommodate the expanded capacity and to speed up the adoption of modern technologies that enable cleaner, safer, and more effective commercial truck and bus fleets, the USD 550 million investment will create 380 new jobs and grow the plant's current area by 850,000 square feet. Warren County will be among the first factories in the world to add the capacity to create the Enliten technology stack as part of the expansion. This technology stack is designed to minimize wear and rolling resistance.
  • In 2022, GRI unveiled a new radial tire for the agricultural business at the SIMA 2022 show in Paris, France. The Green XLR EARTH 65+ is a new tire of the Green XLR Earth Series, which is dedicated to environmental preservation. Of the materials used in the production of the Green XLR EARTH 65+, 37.5% were sustainable. The tire provides comfort for drivers of vehicles used for both on- and off-road driving thanks to its tread pattern, which benefits from a simulated rib. It enhances steering inputs for faster moving tractors.

Report Scope

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
Table of Content
  • 1. Executive Summary
  • 2. Market Overview
  • 3. Market Background
  • 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034
  • 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Vehicle Type
    • 5.1. Passenger Vehicles
    • 5.2. Commercial Vehicles
  • 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End-User Type
    • 6.1. OEM
    • 6.2. Aftermarket
  • 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
    • 7.1. North America
    • 7.2. Latin America
    • 7.3. Europe
    • 7.4. East Asia
    • 7.5. South Asia
    • 7.6. Oceania
    • 7.7. MEA
  • 8. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 9. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 10. Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 11. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 12. South Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 13. Oceania Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 14. MEA Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 15. Key Countries Market Analysis
  • 16. Market Structure Analysis
  • 17. Competition Analysis
    • 17.1. Bridgestone Corporation
    • 17.2. Continental AG
    • 17.3. Michelin Group
    • 17.4. Apollo Tyres Limited
    • 17.5. Yokohama Tire Corporation
    • 17.6. Goodyear Tire & Rubber Company
    • 17.7. Pirelli & C. Spa
    • 17.8. Toyo Tire Corporation
    • 17.9. MRF Limited
    • 17.10. CEAT Limited
  • 18. Assumptions & Acronyms Used
  • 19. Research Methodology

Key Segments Profiled in the Automotive Green Tires Market

By Vehicle Type:

  • Passenger Vehicles
  • Commercial Vehicles

By End User:

  • OEM
  • Aftermarket

By Region:

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • South Asia and Pacific
  • East Asia
  • Middle East & Africa

Frequently Asked Questions

What is the anticipated growth of the automotive green tires market from 2024 to 2034?

The automotive green tires market is expected to garner a 4.5% CAGR from 2024 to 2034.

What will be the global market outlook for automotive green tires through 2024?

By 2024, the global automotive green tires market is likely to gain USD 12.4 billion.

What is the expected global market valuation for automotive green tires by 2034?

By 2034, the automotive green tires market valuation is likely to reach a sum of USD 25 billion.

How will the demand for automotive green tires develop in the United States?

The automotive green tires industry in the United States is likely to garner a 7.5% CAGR during the forecast period.

Which kind of vehicles will be the significant user of automotive green tires?

The passenger vehicles will be using automotive green tires solution along with a 7% CAGR through 2034.

By end user, which sector will be utilizing the automotive green tires on a wide scale?

The OEM sector is likely to be a significant end user for automotive green tires with a 6.8% CAGR through 2034.

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