Automotive Green Tires Market Report 2026

The automotive green tires market size has grown strongly in recent years. It will grow from $11.68 billion in 2025 to $12.52 billion in 2026 at a compound annual growth rate (CAGR) of 7.2%. The growth in the historic period can be attributed to fuel efficiency regulations, growth in passenger vehicle production, demand for eco-friendly products, rising oil prices, early adoption of silica-based tires.

The automotive green tires market size is expected to see strong growth in the next few years. It will grow to $16.18 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to stricter emission norms, ev adoption growth, sustainable mobility initiatives, advancements in green rubber technology, lifecycle carbon reduction focus. Major trends in the forecast period include adoption of low rolling resistance tires, increased use of sustainable raw materials, rising demand from electric vehicles, development of bio-based tire compounds, focus on extended tire lifespan.

The increasing adoption of electric vehicles is expected to drive the growth of the automotive green tires market going forward. Electric vehicles are automobiles powered wholly or partially by electricity stored in rechargeable batteries rather than internal combustion engines. The uptake of electric vehicles is accelerating due to technological advancements, rising environmental awareness, supportive government incentives, and declining costs. Automotive green tires are widely used in electric vehicles to improve driving range and reduce environmental impact, as they feature lower rolling resistance and are manufactured using eco-friendly materials. For example, in July 2023, according to the Electric Vehicle Council, an Australia-based national organization representing the electric vehicle industry, electric vehicle sales in Australia surged during the first half of 2023, exceeding total sales for the entire year 2022. By the end of June 2023, 46,624 electric vehicles had been sold, representing a 269% increase compared to the same period in 2022. This surge raised electric vehicles’ share of new car sales in Australia to 8.4%, reflecting a 120.5% increase from the previous year. Therefore, the growing adoption of electric vehicles is driving the growth of the automotive green tires market.

Major companies in the automotive green tire market are focusing on the development of innovative products, such as next-generation sustainable tires, to meet increasing demand for environmentally responsible mobility solutions. Next-generation sustainable tires are designed using advanced materials and manufacturing technologies to enhance sustainability, performance, and efficiency. For instance, in March 2024, GRI Tires, a Sri Lanka-based industrial tire manufacturer, launched the GREEN XLR EARTH series and ULTIMATE GREEN XT tires with high sustainable material content. The Green XLR Earth series, designed for agricultural applications, contains 87.3% sustainable materials, while the Ultimate Green XT, intended for material handling, features 93.5% sustainable content. Notably, the Ultimate Green XT incorporates 86.4% bio-sourced and recycled materials, including a tread compound made with highly dispersible silica and no carbon black, which helps reduce abrasion loss and particle emissions into the environment.

In May 2023, Yokohama Rubber Co. Ltd., a Japan-based tire manufacturer, acquired Trelleborg Wheel Systems for an undisclosed amount. This acquisition formed part of Yokohama Rubber’s strategy to expand its off-highway tire business, identified as a key future growth area under the company’s Yokohama Transformation 2023 initiative. Trelleborg Wheel Systems Holding AB is a Sweden-based manufacturer specializing in off-highway tires, with a strong focus on the development and production of green tire solutions.

Major companies operating in the automotive green tires market report include Bridgestone Corporation, Continental AG, Michelin, Goodyear Tire and Rubber Company, Maxxis International Inc., Sumitomo Rubber Industries Ltd., Giti Tire Pte Ltd, Pirelli & C.S.p.A, Hankook Tire & Technology Co. Ltd., Yokohama Rubber Company, MRF Tyres, Apollo Tyres Limited, Cooper Tire & Rubber Co, Kumho Tire, Nexen Tire Corp, CEAT Limited, Nokian Tyres plc, The Triangle Group, Linglong Americas Inc, Zhongce Rubber Group.

North America was the largest region in the automotive green tires market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive green tires market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive green tires market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive green tires market consists of sales of low-rolling-resistance tires, recycled material tires, and energy-efficient tires. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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