Report Overview

The global green tire market was valued at USD 38.60 billion in 2022 and is estimated to reach approximately USD 84.41 billion by 2031, at a CAGR of 9.0% from 2023 to 2031.

The necessity for sustainable solutions within the tire industry and environmental concerns led to the emergence of the green tire sector. Green tires are developed with an emphasis on minimizing rolling resistance, improving fuel efficiency, and cutting carbon emissions. They were introduced as a proactive approach to alleviate environmental damage. Innovative ingredients like silica, natural rubber blends, and sophisticated polymers are used in these tires to maximize performance and reduce the usage of hazardous chemicals and non-renewable resources. Green tires strive to reduce their ecological footprint over the course of its lifecycle by incorporating environmentally friendly production techniques and placing a high value on recyclability. The growing consumer consciousness of environmental issues, strict laws encouraging eco-friendly behaviors, and tire manufacturers' dedication to sustainable production are the main drivers of this market. The market for green tires is growing as consumers look for more eco-friendly options. This is a viable way to lessen the automotive industry's environmental effect.

GREEN TIRE MARKET: REPORT SCOPE & SEGMENTATION

Global Green Tire Market Dynamics

The demand side is greatly impacted by consumer awareness of environmental issues and an increasing preference for sustainable products. Tire producers are compelled to invest in environmentally friendly advancements by regulations that promote fuel efficiency and reduce emissions. Furthermore, the industry is always changing due to technological breakthroughs, which makes it possible to create new materials and manufacturing techniques for green tires. Production economics and market price are impacted by the cost and availability of raw materials, especially for sustainable substitutes like natural rubber. Tire producers face increased competition as they look to set themselves apart with environmentally friendly products, which drives ongoing research and development. Collaborations between tire manufacturers and suppliers of raw materials are also essential for promoting innovation and expanding the market. The dynamics of the green tire market are also influenced by changes in the automotive industry's trends, such as the popularity of electric vehicles, and global economic and geopolitical conditions. The market's development is influenced by a complex interplay of elements that continuously change its trajectory, including environmental consciousness, economic viability, and technical improvements.

Global Green Tire Market Drivers

• Corporate Social Responsibility (CSR) Initiatives

Companies are proactively committing to include social, environmental, and ethical considerations into their operations and stakeholder relationships through these programs. By adopting CSR, companies realize that their duties go beyond maximizing profits and take into account their effects on the environment and society. Companies are encouraged by such initiatives to fund environmental conservation, ethical labor standards, community development projects, and sustainable practices. CSR programs serve as catalysts by improving reputation and building a favorable brand image, but they also draw in investors, socially conscious customers, and skilled workers who share the company's values.Furthermore, through risk reduction, enhanced long-term viability, and resource efficiency, these programs frequently lead to cost savings. CSR efforts play a crucial role in creating corporate culture, strategies, and the overall impact of enterprises on society as firms become more aware of the connection between their actions and the well-being of society at large.

• Technological Advancements

Technological developments are key forces that are transforming entire sectors of the economy and changing the face of the world by continuously pushing boundaries and encouraging creativity. Within the realm of business, these developments propel forward by providing novel instruments, procedures, and resolutions that augment effectiveness, output, and durability. Since technology makes it possible to create innovative goods, services, and operational strategies, industries are always changing. These developments, which range from advances in materials science and manufacturing to artificial intelligence and machine learning, enable companies to improve supply chains, streamline operations, and provide higher-quality goods and services. Technological advancements also frequently result in cost savings, which raise accessibility and affordability of procedures and increase market competitiveness. These developments also create access to completely untapped markets and prospects, promoting global connectedness and economic growth. Companies that successfully use these technologies gain a competitive advantage, disrupt entire industries, and open the door for innovative approaches to difficult social and environmental problems.

Restraints:

• Higher Production Costs

A rise in production costs frequently results in higher product pricing, which impacts demand and consumer affordability. Businesses may encounter obstacles as a result, especially in marketplaces where prices are competitive or when facing less expensive alternatives. Increased production costs can also have a direct effect on profit margins, which could limit profitability and prevent investments in growth or innovation. In certain instances, these escalated expenses can compel corporations to make concessions on product excellence or pursue less expensive, possibly substandard materials, thereby impacting the entire value proposition. Furthermore, increased production costs might prevent market penetration and limit scalability, particularly for smaller companies or those with narrower profit margins. It becomes difficult to balance rising expenses with preserving competitiveness, which could impede efforts to promote growth or make investments in novel or sustainable methods. Increased manufacturing costs provide a variety of issues that affect pricing policies, market competitiveness, and the viability of a company as a whole.

• Limited Raw Material Supply

Supply chains that are unstable or scarce can cause industrial processes to be disrupted in businesses that depend on specialized organic chemicals, rare minerals, or limited resources like metals. Price swings brought on by this scarcity frequently affect corporate margins by spiking production costs. Businesses that rely on these resources might find it difficult to keep up with demand, which could cause delays in product delivery or shortages in the marketplace. Furthermore, a shortage of raw materials intensifies rivalry among companies fighting for access to these resources, which could lead to trade disputes or geopolitical unrest. Furthermore, industries face greater risks when their reliance on a limited variety of commodities makes them more susceptible to supply chain disruptions, natural disasters, or geopolitical conflicts that could disrupt the market. Investing in sustainable alternatives, supporting circular economy models that prioritize resource efficiency and recycling, and diversifying sourcing techniques are essential ways to counteract the constraints imposed by a finite supply of raw materials.

Opportunities:

• Increasing Consumer Demand

There is a rising market for businesses that satisfy consumers' demands for ecologically friendly products, ethical business operations, and sustainability. Companies that follow this trend can benefit from it by creating and providing sustainable, socially conscious, and environmentally friendly goods and services. Companies that embrace this shift in consumer behavior are able to both meet market demands and establish themselves as industry leaders in ethical business operations. It creates opportunities for innovation and promotes the creation of environmentally friendly materials, methods, and procedures. In addition, satisfying the needs of environmentally concerned customers promotes brand loyalty, improves client retention, and draws in a larger customer base. This tendency also affects market distinctiveness, enabling businesses to emphasize their sustainability commitment in order to stand out in crowded marketplaces.

• Government Incentives and Policies

Companies are encouraged to invest in environmentally friendly technologies and practices by these incentives, which range from tax credits and subsidies to regulatory regulations supporting sustainability. Adhering to these policies can benefit businesses financially as well as environmentally, since they can save money by implementing energy-efficient procedures or embracing renewable energy sources through grants or incentives. Respecting legal requirements also helps companies project a positive image by showing their dedication to social responsibility and corporate responsibility. Furthermore, by influencing consumer behavior and preferences and encouraging a shift in consumer preference toward companies that uphold environmental norms, these policies frequently open up new markets.  Businesses who take advantage of these incentives in a proactive manner stand to benefit from increased market penetration, research and development funding, and recognition as sustainability leaders. With government backing, companies can take advantage of financial and commercial advantages to spur innovation, increase productivity, and contribute to a more sustainable future.

Segment Overview

By Type

Based on type, the global green tire market is divided into on- road tires, off- road tires. The on- road tires category dominates the market with the largest revenue share  in 2022. These tires are specifically engineered for vehicles primarily used on paved surfaces like highways and city roads. They are further categorized based on different vehicle types such as passenger cars, trucks, and buses. Green on-road tires are designed with a focus on reducing rolling resistance, which enhances fuel efficiency and lowers carbon emissions. Manufacturers achieve this by utilizing advanced tread designs, innovative materials, and optimized tire construction to improve performance without compromising safety and durability. Off-road tires are designed for vehicles that traverse non-paved surfaces, rugged terrains, and challenging environments such as construction sites, agricultural fields, off-road vehicles, and mining operations. These tires are engineered to withstand harsh conditions, provide traction, and ensure durability in demanding off-road applications. Green off-road tires aim to balance the ruggedness required for these environments with eco-friendly features, including specialized tread patterns, durable compounds, and sustainable materials.

By Application

Based on the application, the global green tire market is categorized into passenger cars, commercial vehicle. The commercial vehicle category leads the global green tire market with the largest revenue share  in 2022. Green tires for commercial vehicles, including trucks, buses, and other heavy-duty vehicles, are engineered to withstand higher loads and endure harsh driving conditions while prioritizing fuel efficiency and durability. These tires are designed to handle long distances, heavy payloads, and varied terrains while reducing rolling resistance to improve fuel economy. Manufacturers develop specialized compounds, sturdy constructions, and tread patterns optimized for commercial use to ensure longevity and minimize the environmental impact of these larger vehicles. Where, green tires designed for passenger cars aim to enhance fuel efficiency, reduce carbon emissions, and improve overall performance while maintaining safety and durability. These tires undergo specific design and composition modifications to minimize rolling resistance, which contributes to better mileage and lower fuel consumption. Manufacturers optimize tread patterns, utilize advanced rubber compounds, and incorporate innovative materials to meet eco-friendly standards without compromising on traction or handling capabilities.

By Tire Size

Based on tire size, the global green tire market is divided into 15 inch, 16 inch, 17 inch, 18 inch. The 15 inch tires category dominates the market with the largest revenue share  in 2022. Typically found in smaller vehicles, compact cars, and some mid-sized sedans, 15-inch tires offer a balance of comfort and performance suited for everyday commuting. These tires are often associated with fuel-efficient and cost-effective options. 16-inch tires are commonly used in a wide range of vehicles, including compact SUVs, mid-sized sedans, and some smaller trucks, 16-inch tires provide a blend of performance, comfort, and handling capabilities suitable for various driving conditions. 17-inch tires often fitted on larger sedans, crossover SUVs, and some sports cars, 17-inch tires offer improved handling, traction, and a sportier driving experience compared to smaller sizes. 18-inch tires commonly found on larger SUVs, trucks, and performance-oriented vehicles, 18-inch tires offer enhanced stability, grip, and aesthetic appeal. They are often associated with vehicles prioritizing performance and handling.

By Sales Channel

Based on sales channel, the global green tire market is segmented into OEM, aftermarket. The OEM segment dominates the green tire market. OEM tires are those fitted as original factory-installed tires on vehicles during manufacturing. These green tires are supplied directly to automobile manufacturers for use in new vehicles. OEM green tires are specifically designed and selected by vehicle manufacturers to meet the performance, safety, and efficiency standards of their vehicles. Automakers often collaborate with tire manufacturers to develop tires that complement the vehicle's characteristics, ensuring optimal performance, fuel efficiency, and environmental impact. Aftermarket tires refer to replacement tires that consumers purchase separately from the original manufacturer's specifications. These are sold through various retail channels, including tire shops, dealerships, online stores, and specialty retailers. Aftermarket green tires cater to vehicle owners seeking replacements for worn-out tires or those looking to upgrade their vehicle's tires to more eco-friendly options. These tires come in a variety of sizes, designs, and brands, offering consumers a choice beyond the tires originally fitted on their vehicles.

Global Green Tire Market Overview by Region

The global green tire market is categorized into North America, Europe, Asia-Pacific, and the Rest of the World. Asia Pacific emerged as the leading region, capturing the largest market share in 2022. The Asia Pacific area has become the market leader for green tires due to a combination of factors that are driving economic growth and sustainable measures in the automobile sector. This region, which includes South Korea, Japan, China, and India, is rapidly industrializing, urbanizing, and seeing a rise in automobile sales. As a result, governments and businesses alike are searching for environmentally responsible solutions due to worries about carbon emissions and the sustainability of the ecosystem. Asia Pacific automakers have been encouraged to embrace green technologies in recent years due to strict environmental restrictions and an increased focus on lowering greenhouse gas emissions. This emphasis is in line with consumer desires for environmentally friendly products, which is why tire companies are investing in the creation, development, and manufacturing of green tires. Furthermore, the area's dedication to innovation and technological breakthroughs encourages the development of sustainable tire solutions that strike a balance between environmental effect, efficiency, and performance. Asia Pacific is in the forefront of the adoption of green tires due to the sheer size of the region's automobile market, rising consumer awareness, and government support for sustainable practices. Thus, the development and application of environmentally friendly solutions is led by tire manufacturers and the automotive industries in Asia Pacific, which propels the expansion and market dominance of green tires in the area.

Global Green Tire Market Competitive Landscape

In the global green tire market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.

Some of the prominent players in the global green tire market include MRF, Continental AG, KUMHO TIRE, MICHELIN, THE YOKOHAMA RUBBER CO., LTD., THE GOODYEAR TIRE & RUBBER COMPANY, PETLAS, HANKOOK TIRE & TECHNOLOGY, BRIDGESTONE CORPORATION, Pirelli & C. S.p.A, and various other key players.

Global Green Tire Market Recent Developments

In December 2022, A wholly owned subsidiary of Holcim (US) Inc., Geocycle LLC announced today that it has acquired Coleman, Michigan-based CM Rubber Technologies, Inc. as part of our continuous effort to accelerate green growth and build a zero waste future.

Green Tire Market Report Segmentation

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

• Global Green Tire Market Size and Forecast:

To identify and estimate the market size for the global green tire market segmented by type, by application, by tire size, by sales channel, region and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of green tire between 2019 and 2031.

• Market Landscape and Trends:

To identify and infer the drivers, restraints, opportunities, and challenges for the global green tire market

• Market Influencing Factors:

To find out the factors which are affecting the sales of green tire among consumers

• Impact of COVID-19:

To identify and understand the various factors involved in the global green tire market affected by the pandemic

• Company Profiling:

To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Intended Audience

• Automotive Industry Professionals
• Environmentalists and Sustainability Advocates
• Policy Makers and Government Officials
• Supply Chain Professionals
• Retailers, Wholesalers, and Distributors
• Governments, Associations, and Industrial Bodies
• Investors and Trade Experts