The Global Green Tire Market size is expected to reach $59.3 billion by 2030, rising at a market growth of 8.4% CAGR during the forecast period.
Green tires are designed to have lower rolling resistance compared to conventional tires. Rolling resistance is the force that opposes the movement of a tire as it rolls on the road. Green tires minimize this resistance, requiring less energy to keep the tire rolling. Therefore, On-road Tires segment would generate $23,336.9 million revenue in the market in 2022. As a result, vehicles equipped with green tires experience less resistance and, consequently, better fuel efficiency. For individual consumers, green tires translate into real cost savings at the gas pump. Some of the factors impacting the market are rising concerns related to carbon emissions, prioritization of safety and sustainability during manufacturing and less adoption due to the higher cost of green tires.
Environmentally conscious consumers often seek products that align with their values. It provide consumers with a choice that benefits their wallets through improved fuel efficiency and contributes to a cleaner and healthier planet. Additionally, the reduction in rolling resistance directly translates into improved fuel efficiency. It enable vehicles to travel more on the same amount of fuel as conventional tires with higher rolling resistance. Improved fuel efficiency means the engine burns less energy to generate the same amount of power, reducing carbon dioxide (CO2) emissions. Additionally, Green tire manufacturers utilize eco-friendly materials, such as bio-based additives, natural rubber, and recycled content, in tire production. These materials reduce the environmental impact of tire manufacturing by conserving natural resources and reducing the need for petroleum-based materials. Harmful chemicals in tire production can have adverse environmental and health effects. These processes minimize energy consumption during production, contributing to lower greenhouse gas emissions and reduced environmental impact. These factors will drive the worldwide demand in the coming years and all these factors are expected to boost the demand in the market.
However, the reduced demand due to their higher price point can also slow innovation in the market. Tire manufacturers may be less inclined to invest in research and development to improve the cost-efficiency of green tire production further or enhance their performance characteristics. The growth of the market may become heavily dependent on government incentives and regulations that promote eco-friendly products. The market may struggle to compete with lower-cost traditional tires without such incentives. Therefore, these factors will pose restraints for the future growth of the market.
Based on type, the market is bifurcated into on-road tires and off-road tires. In 2022, the off-road tires segment garnered a significant revenue share in the market. Green off-road tires are known for their reduced rolling resistance, which translates into improved fuel efficiency. In sectors where fuel costs are a significant operational expense, such as construction and agriculture, these tires offer substantial cost savings over time. Regulatory bodies in various regions are placing stricter emissions and environmental regulations on off-road vehicles. Green off-road tires help operators comply with these regulations by reducing fuel consumption and emissions. Therefore, these factors will help in increasing demand in the segment.
On the basis of application, the market is divided into passenger cars and commercial vehicle. The passenger cars segment recorded the maximum revenue share in the market in 2022. Ongoing research and development efforts in the market have led to tire materials and construction innovations. These advancements allow manufacturers to produce green tires that offer improved performance, safety, and durability, meeting the stringent requirements of passenger cars. As consumer awareness of green tires increases, there is a growing demand for these eco-friendly options. Owing to these factors, the segment will proliferate in the coming years.
On the basis of sales channel, the market is divided into OEM and aftermarket. In 2022, the aftermarket segment witnessed a substantial revenue share in the market. Green tires are no longer perceived as a compromise on performance. Advancements in tire technology have allowed green tires to offer competitive or even superior handling, traction, and safety performance, further driving aftermarket sales. Online retail platforms provide consumers with detailed information about green tire options, allowing them to make informed choices. This digital landscape has facilitated aftermarket sales by offering convenience and transparency. These factors are expected to boost the demand in the aftermarket segment.
Based on tire size, the market is segmented into 15 inch, 16 inch, 17 inch, and 18 inch. The 15 inch segment held the largest revenue share in the market in 2022. Compared to larger wheel sizes, 15-inch green tires are generally more affordable, making them an attractive choice for budget-conscious consumers. This affordability factor contributes to their popularity. The 15-inch segment benefits from a robust aftermarket for tire replacement. Consumers prioritizing sustainability are more likely to explore green tire options when replacing worn-out tires on their 15-inch wheels. Therefore, the segment will witness increased growth in the upcoming years.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 30.8 Billion |
| Market size forecast in 2030 | USD 59.3 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 8.4% from 2023 to 2030 |
| Number of Pages | 261 |
| Number of Table | 420 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling |
| Segments covered | Type, Sales Channel, Tire Size, Application, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment procured the highest revenue share in the market in 2022. Governments in the Asia Pacific region have implemented regulations and incentives to promote environmentally friendly products, including green tires. These regulations may include stricter emissions standards and labeling requirements that encourage the use of fuel-efficient and low-rolling-resistance tires. These factors will help in the growth of the Asia Pacific segment.
Free Valuable Insights: Global Green Tire Market size to reach USD 59.3 Billion by 2030
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Zhongce Rubber Group Co., Limited, Toyo Tire Corporation, Nokian Tyres plc, MRF Limited, Continental AG, Bridgestone Corporation, Pirelli & C. S.p.A., The Goodyear Tire & Rubber Company, Hankook Tire & Technology and The Yokohama Rubber Co., Ltd.
By Type
By Application
By Sales Channel
By Tire Size
By Geography
This Market size is expected to reach $59.3 billion by 2030.
Rising concerns related to carbon emissions are driving the Market in coming years, however, Less adoption due to the higher cost of green tires restraints the growth of the Market.
Zhongce Rubber Group Co., Limited, Toyo Tire Corporation, Nokian Tyres plc, MRF Limited, Continental AG, Bridgestone Corporation, Pirelli & C. S.p.A., The Goodyear Tire & Rubber Company, Hankook Tire & Technology and The Yokohama Rubber Co., Ltd.
The expected CAGR of this Market is 8.4% from 2023 to 2030.
The On-road Tires segment is generating the highest revenue in the Market by Type in 2022; thereby, achieving a market value of $43.8 billion by 2030.
The Asia Pacific region dominated the Market by Region in 2022; and would continue to be a dominant market till 2030, thereby, achieving a market value of $23.1 billion by 2030.
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