Global Green Tires Market Definition
The tire is a crucial component of the car that covers the rim of the wheel to preserve it and enhance driving performance. Tires create friction between the car and the road while also acting as flexible shock absorbers. Generally, rubber is used to make tires, and in order to focus on fuel efficiency, green tires were created. The components and rubber used in green tires are varied, each with excellent properties of their own. The term "Green Tire" refers to an innovative kind of environmentally friendly rubber that is now being introduced to the market.
Green tires contain plasticizers such as silane and silica, which are tightly bound in the tread block and assure road safety during downpours while also preserving energy, reducing rolling resistance, and reducing carbon emissions. Additionally, silica in tires enhances their steering and responsiveness in a range of adverse weather scenarios. These tires have also been shown to increase traction on icy surfaces owing to their significant benefits including material lightweight, which results in a reduction in the overall vehicle weight, as well as better durability. These eco-friendly renewable raw materials are currently favored over conventional tire materials, as they also have lower rolling resistance and use less gasoline.
Global Green Tires Market: Key Insights
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~9% |
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Base Year Market Size (2022) |
~ USD 20 Billion |
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Forecast Year Market Size (2033) |
~ USD 80 Billion |
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Regional Scope |
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Global Green Tires Market Size, Forecast, and Trend Highlights Over 2023 – 2033
The global green tires market is estimated to garner a revenue of ~USD 80 billion by the end of 2033 by growing at a CAGR of ~9% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 20 billion in the year 2022. The growth of the market can primarily be attributed to the growing demand for more sustainable products, as well as the rising use of green tires with innovative features around the globe. For instance, it is estimated globally that a reduction of ~8% can be achieved in fuel consumption with green tires featuring the silica/silane system.
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Global green tires market trends such as recent advancements in environment-friendly initiatives, an increasing number of tires in wheels, and the demand for green tires in the transportation sector are estimated to influence the growth of the market over the forecast period. For instance, it is estimated that in the year 2022, there were more than ~35 billion wheels globally. Furthermore, rising energy prices, stringent government restrictions, increased urbanization, and globalization, rising environmental consciousness among consumers regarding fuel consumption and, utilizing green tires, as they also aid in lowering global pollution, are estimated to influence the growth of the market as well. For instance, according to the National Academies of Science, a 10% reduction in rolling resistance can save 1 to 2% in fuel. Furthermore, customers who purchase some of the green tires currently available can reduce rolling resistance by 20% and reduce fuel consumption by up to 4%.
Global Green Tires Market: Growth Drivers and Challenges
Growth Drivers
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Strict Government Laws to Reduce Pollution- Significant environmental issues are being caused by the rising rate of carbon emissions from vehicles. Moreover, vehicles are the most significant source of air pollution, as they use fossil fuels very frequently. Even though individual automobiles do not emit a lot of pollutants, the total number of vehicles on the planet is rather significant. When assessing how many pollutants a car emits, one of the most important parts to consider are the tires. To slow the growth of vehicle emissions, the governments of many nations have imposed several pollution standards on automakers. For instance, tire labeling is compulsory for all tires sold in Europe. The Tire Energy Label, which the European Union has introduced, provides precise information about the safety and ecological qualities of tires based on important standards such as noise levels, fuel efficiency, and wet surface braking. The embossed labels on the tires that list these standards might help the customers make better choices that reduce air pollution, improve road safety, and increase fuel efficiency. According to the three standards, the tires are ranked in order of best to worst, from A to G. When compared to tires in the "G" category, tires in the "A" category typically use 7.5% less gasoline. The tires in the "A" category also provide significantly more precise braking on wet surfaces at high speeds.
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Less Rolling Resistance- Vehicle rolling resistance is a major factor in carbon emissions. As rolling resistance rises, the amount of energy needed to overcome friction rises as well, increasing the number of pollutants that are released. This contributes to the vehicle type's overall weight being reduced, which results in fuel savings. Green tire development makes it possible to use less gasoline and hence lower rolling resistance. The energy needed for the tires to make contact with the road and deform increases owing to rolling resistance. A thorough control of the composite interaction between the tire structure, tread pattern, and rubber compound is also necessary to decrease rolling resistance. For instance, NAS Transportation Research Board found that it was technically and economically feasible to reduce the average rolling resistance of replacement tires by 10%. This would improve the fuel economy of passenger cars by 1% to 2%, saving 1.2 to 2.3 billion gallons of fuel annually across the country.
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Rising Penetration of Vehicles- In Europe there were ~405 million vehicles in the first quarter of 2022, distributed among EU and non-EU nations.
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Increase in the Development of Transportation Infrastructure - It is predicted that, from now until 2040, approximately USD 2 trillion in investments in transportation infrastructure would be required for its development globally.
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Increased Investment in Energy Transition – It was determined that the global investment in the energy transition will exceed ~750 billion in 2021.
Challenges
- Lack of Awareness Regarding the Benefits of Green Tires - The barrier to the market of green tires is thought to be a lack of awareness in emerging markets. On the other hand, the benefits of using CNG and crossover vehicles are well-known to consumers. In any case, people are unaware of the benefits of green tires and how they help reduce fuel consumption, so they frequently choose cheaper alternatives. Additionally, it is predicted that the sale of green tires in low and middle-income countries will be affected by a few public and private-sector efforts to protect the environment in these nations through cheaper options. For instance, according to studies, the average consumer pays less attention to the benefits of green tires in emerging markets such as India and Indonesia.
- Availability of Alternate Cost-Effective Substitutes
- Increasing costs for raw materials- The materials used to make green tires are synthetic and organic in use. Such materials can have erratic availability and costs. The cost of raw materials has also been rising rapidly in recent years. For manufacturers of green tires, the rising cost of raw materials is a serious issue. Moreover, the production of green tires, silica, butyl, and silane are the major ingredients in rubber and the demand-supply imbalance, the price of these raw materials has been rising steadily over the past few years.
Market Segments
The global green tires market is segmented and analyzed for demand and supply by vehicle type into passenger vehicle, light commercial vehicle, and heavy commercial vehicle. The heavy commercial vehicle segment is predicted to have the highest revenue among these by the end of 2033, supported by the rising number of commercial vehicles and the spike in the need for freight transit globally. Moreover, there has been increasing production of commercial vehicles across the globe, that is predicted to boost the growth of the commercial vehicle segment in the market. For instance, by 2050, the need for freight transport will increase to 300 tons-kilometer from 135 ton-kilometer in 2015 across the globe.
The global green tire market is segmented and analyzed for demand and supply by type into below 15-", between 16"-19", and above 19". Out of these three segments the 16"-19" segment is estimated to gain the largest market share over the projected time frame. Larger vehicles, including SUVs and CUVs, are becoming more popular, which is causing larger-diameter tires to gain popularity. There has been a rise in the trend of automotive cars with large-sized tires as consumer desire comfortable and luxurious automobiles. Moreover, the tire sizes of 16"-19" are growing quickly owing to the rising need for larger, more fuel-efficient automobiles, that is expected to drive the segment’s growth in the market.
Our in-depth analysis of the global green tires market includes the following segments:
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By Product Size |
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By Vehicle Type |
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By Distribution Channel |
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Global Green Tires Market Regional Synopsis
The Europe green tires market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033.The growth of the market can be attributed to the presence of a strong healthcare network in the region, growing investment in a sustainable transport system, rising awareness among the government agencies for the green economy, and most importantly to the usage of silica in tire treads. For instance, in the Netherlands, all new buses will use 100% renewable energy from 2025 onwards while all buses have to become fully emission-free from 2030. The green technology trend has also been quickly adopted in the North American region, where the market for green tires is currently second after Europe. Further, the presence of leading automotive manufacturers such as Mercedes, BMW, Audi, Volkswagen, Ford, and GM in these two regions, promotes the market players to opt for easy transport and supply, which is anticipated to contribute to the market growth in the region.
Top Featured Companies Dominating the Global Green Tires Market
- Bridgestone Corporation
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Continental AG
- Manufacture Française des Pneumatiques Michelin
- Goodyear Tire & Rubber Company
- The Yokohama Rubber Co., Ltd.
- Pirelli Tyre S.p.A.
- Hankook Tire Co., Ltd.
- Toyo Tire Corporation
- Nokian Tyres plc
- Kumho Tire Company
