Tire Recycling Market - Global Forecast 2025-2032

The tire recycling market is undergoing rapid transformation as sustainability priorities, regulatory initiatives, and advanced technologies converge. Senior leaders must balance environmental requirements with operational efficiency to harness new revenue streams and drive strategic growth.

Market Snapshot: Tire Recycling Market Size and Growth

The global tire recycling market expanded from USD 7.30 billion in 2024 to USD 7.71 billion in 2025, with projections indicating sustained growth at a 5.85% CAGR. Market value is expected to exceed USD 11.52 billion by 2032. This momentum is primarily driven by regulatory mandates, advances in recycling technologies, and heightened focus on corporate sustainability. As industry focus shifts from landfill diversion to resource optimization, the sector’s evolving dynamics increasingly influence supply chain strategies and investment decisions in core and adjacent markets.

Scope & Segmentation

• Offerings: The tire recycling market encompasses carbon black, crumb rubber, fiber and nylon, steel, tire-derived aggregate, tire-derived fuel, as well as associated services. Service areas include logistical management to streamline collection and transport, material testing for quality assurance, and custom recycling solutions tailored to client requirements.
• Recycling Processes: Chemical recycling methods—such as catalytic cracking, depolymerization, hydrolysis, ozonation, and solvent extraction—facilitate conversion of tires to advanced raw materials. Mechanical recycling encompasses crumb rubber processing, devulcanization, granulation, and shredding. Pyrolysis options include catalytic, flash, thermal decomposition, and vacuum-based processes, expanding material recovery potential.
• Tire Types: Commercial tires serve heavy- and medium-duty vehicles, off-the-road tires cater to sectors like agriculture, construction, and mining, while passenger tires remain vital for volume-based recycling streams.
• Size of Operations: Large-scale facilities support global distribution, whereas small-scale operators offer flexibility in meeting niche demands and adaptable investment models.
• End User Industries: Automotive aftermarket stakeholders and OEMs, construction and infrastructure sectors—including contractors and road development—plus consumer goods companies, all generate significant demand for recycled tire materials.
• Geographies: The market covers the Americas (including the United States, Canada, Mexico, Brazil, Argentina, Chile, Colombia, Peru), Europe, Middle East and Africa (with particular emphasis on major European economies, Gulf states, and top African markets), and Asia-Pacific (notably China, India, Japan, Australia, South Korea, Southeast Asia, and Taiwan).

Key Takeaways

• Technological improvements in devulcanization, precision granulation, and modular pyrolysis are increasing operational efficiency and enabling broader end-use applications in the global tire recycling sector.
• Collaboration across the value chain—facilitated by partnerships between automotive manufacturers, technology providers, and infrastructure companies—is streamlining material recovery and supporting integrated sustainable business models.
• Diversification by tire type and end-user unlocks specific growth levers, as demand varies across commercial fleets, construction industries, and the consumer products sector.
• Regional variation signals different market opportunities: Europe leads with early circular economy adoption; Asia-Pacific is rapidly scaling up with innovative processes; and other regions show opportunity through infrastructure investment and regulatory evolution.
• Strategic actions from major market participants—including forming joint ventures, licensing new technologies, and integrating supply chains—are steadily reshaping competitive dynamics and leading to greater market consolidation.

Tariff Impact: United States Policy and Market Adaptation

New U.S. tariffs introduced in 2025 are increasing materials costs, motivating localized investment, and pushing companies to diversify feedstock sourcing. Domestic processors are expanding capacity, integrating upstream suppliers, and renegotiating procurement arrangements. This environment accelerates supply chain realignment, improving industry resilience but also introducing additional price volatility for sectors utilizing recycled fuel, aggregate, and automotive materials.

Methodology & Data Sources

This analysis integrates direct interviews with industry executives, subject-matter experts, and technology providers, alongside secondary research from technical publications, regulatory filings, and industry association data. Rigorous triangulation and expert validation underpin reliable, forward-focused insights.

Tire Recycling Market: Why This Report Matters

• Offers senior executives clear guidance on regulatory trends, technological changes, and operational shifts in tire recycling value chains.
• Supports strategic planning with deep segmentation and market intelligence, enabling robust investment, partnership, or expansion decisions.
• Delivers actionable recommendations for strengthening supply chains, leveraging circular economy initiatives, and preparing for evolving regional policy landscapes.

Conclusion

Tire recycling now stands as a pillar of sustainable resource management. By embracing innovation and strategic alignment, sector leaders can build long-term value, enhance sustainability, and capture emerging opportunities across evolving global markets.