The Global Green Tires Market size is estimated to reach USD 239.13 Billion from USD 97.62 Billion in 2021, delivering a CAGR of 10.6% through 2030. Green tires or eco-friendly tires are those that offer low fuel consumption, minimize noise pollution and reduce carbon emissions. They are manufactured using sustainable materials such as natural rubber and are designed to tread lightly on the earth. Also, these tires enable significant reduction in a vehicle's carbon footprint.
The automotive industry has been witnessing a shift towards electric vehicles (EVs) in the past few years. The sale of EVs has been on the rise owing to the need for reduced carbon emissions and fuel economy. This has resulted in an increased demand for green tires as they are more efficient and reduce a vehicle's carbon footprint.
The market growth is driven by the increased demand for fuel-efficient tires, the rise in vehicle production, and the growing need for eco-friendly tires. The market is further driven by the government regulations regarding fuel efficiency and emission standards. However, the market growth is hindered by the high cost of green tires and the lack of awareness about these products.
Top players have adopted various growth strategies such as partnerships, expansions, acquisitions, and new product launches to strengthen their position in the market. Michelin has adopted the strategy of expansion to increase its market share. The company expanded its manufacturing facility in Thailand in 2017 to meet the growing demand for tires in Asia Pacific. Bridgestone has adopted the strategy of acquisition to expand its product portfolio. The company acquired TomTom Telematics in 2018 to strengthen its position in the telematics market. Continental has adopted the strategy of new product launch to expand its product portfolio. The company launched a new fuel-efficient tire, ContiEcoPlus HT3, for commercial vehicles in 2017.
The automotive industry has been witnessing a shift towards electric vehicles (EVs) in the past few years. The sale of EVs has been on the rise owing to the need for reduced carbon emissions and fuel economy. This has resulted in an increased demand for green tires as they are more efficient and reduce a vehicle's carbon footprint.
The market growth is driven by the increased demand for fuel-efficient tires, the rise in vehicle production, and the growing need for eco-friendly tires. The market is further driven by the government regulations regarding fuel efficiency and emission standards. However, the market growth is hindered by the high cost of green tires and the lack of awareness about these products.
Top players have adopted various growth strategies such as partnerships, expansions, acquisitions, and new product launches to strengthen their position in the market. Michelin has adopted the strategy of expansion to increase its market share. The company expanded its manufacturing facility in Thailand in 2017 to meet the growing demand for tires in Asia Pacific. Bridgestone has adopted the strategy of acquisition to expand its product portfolio. The company acquired TomTom Telematics in 2018 to strengthen its position in the telematics market. Continental has adopted the strategy of new product launch to expand its product portfolio. The company launched a new fuel-efficient tire, ContiEcoPlus HT3, for commercial vehicles in 2017.
Further key findings from the report suggest
- On the basis of type, the green tires market is classified into fuel-efficient tires, low rolling resistance tires, and biodegradable tires. Fuel-efficient tires are expected to grow at the highest CAGR during the forecast period owing to their ability to reduce fuel consumption and emissions. Low rolling resistance tires help in reducing the energy required to rotate the tire, thereby reducing fuel consumption. Biodegradable tires are made from natural rubber and other eco-friendly materials that decompose over time.
- On the basis of application, the green tires market is classified into passenger cars, commercial vehicles, two-wheelers, and others. Passenger cars are expected to grow at the highest CAGR during the forecast period due to the increased demand for fuel-efficient and eco-friendly tires in this application.
- Based on raw materials, the silica incorporated rubber segment is estimated to witness major demand in the coming years as it holds outstanding performance attributes in the tire industry. Owing to the wide use of light trucks and SUVs, the all-season tires segment is projected to grow at a considerable pace over the forecast period.
- Based on vehicle type, the green tires market is categorized into passenger car, two-wheeler, all-terrain vehicle (ATV), light commercial vehicle (LCV), and heavy commercial vehicle (HCV). The passenger car segment is estimated to grow at a considerable pace over the forecast period. The LCV and HCV segments are projected to grow at significant rates in order to cater to the rising demand for these vehicles.
- The Asia Pacific region is expected to be the largest market for green tires, in terms of value and volume, during the forecast period. The market in the region is expected to be driven by the increasing demand for passenger cars and commercial vehicles in the countries such as China and India. In addition, the government initiatives to promote the use of EVs are also expected to drive the market for green tires in the region.
- Key players operating in the global green tires market are Gunze, Saint-Gobain S.A., Toray Industries Inc, Nitto Denko Corporation, The Chemours Company, DowDuPont, Teijin Ltd., Toyobo Co, Ltd, TDK Corporation, 3M Corporation, Mitsubishi Chemical Holding, O-film Tech Co Ltd, and Oike & Co. Ltd., among others.
For the purpose of this study, the author has segmented the global green tires market on the basis of raw materials, vehicle type, application, sales, and region:
Application Outlook (Revenue, USD Billion; 2019-2030)
- On-Road
- Off-Road
Vehicle Type Outlook (Revenue, USD Billion; 2019-2030)
- Passenger Vehicles
- Commercial Vehicles
- Heavy Commercial Vehicles
Sales Channel Outlook (Revenue, USD Billion; 2019-2030)
- Original Equipment Manufacturer (OEM)
- Aftermarket
Raw Material Outlook (Revenue, USD Billion; 2019-2030)
- Silica Incorporated Rubber
- Butyl Rubber
- Silane Incorporated Rubber
- Others
Regional Outlook (Revenue, USD Billion; 2019-2030)
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Sweden
- BENELUX
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Rest of APAC
- Latin America
- Brazil
- Rest of LATAM
- Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Rest of MEA
Table of Contents
Chapter 1. Market Synopsis
Chapter 2. Executive Summary
Chapter 4. Green Tires Market Segmentation & Impact Analysis
Chapter 5. Green Tires Market By Application Insights & Trends
Chapter 6. Green Tires Market By Vehicle Type Insights & Trends
Chapter 7. Green Tires Market By Sales Channel Insights & Trends
Chapter 8. Green Tires Market By Raw Material Insights & Trends
Chapter 9. Green Tires Market Regional Outlook
Chapter 10. Competitive Landscape
Chapter 11. Company Profiles
Companies Mentioned
- Bridgestone Corporation
- Continental AG
- Michelin SCA
- Goodyear Tire & Rubber Company
- Hankook Tire & Technology
- Pirelli & C. S.p.A
- Kumho Tire
- Zhongce Rubber Group Co. Ltd.
- Nokian Tyres Plc
- Cheng Shin Rubber Industry Co
- Kenda Rubber Industrial Company
- Madras Rubber Factory (MRF).
