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The global green tires market was valued at USD 26 billion in 2023 and grew at a CAGR of 11% from 2024 to 2033. The market is expected to reach USD 73.82 billion by 2033. The growing emphasis on sustainability will drive the growth of the global green tires market.
Green tires are a novel solution in the sector of tire manufacturing. These tires play an important role in reducing carbon emissions as part of a trend towards more environmentally friendly driving around the world. They also improve mileage and reduce rolling resistance. Basic objective of green tires is to reduce rolling, that is, the energy dissipated by a tire as it rolls leading to improved fuel efficiency. These reductions decrease fuel use and lower emissions of greenhouse gases, which is becoming ever more critical in the present era. In simple terms, green tires can be best characterized by the fact that they are made of environmentally friendly products such as renewable resources and reclaimed parts. Sustainability is evident in synthetic rubber produced from renewable resources or bio-derived feedstocks and tread compounds containing silica from rice husk ash. This not only decreases the reliance on fossil fuel but also decentralises the nuisances that come with manufacturing of tires. Besides, most green tires have features that make them outlast their conventional counter parts by many years. Sophisticated technologies in production increase wear resistance and general performance of the products to eliminate deterioration of quality due to the utilization of environmentally friendly products. Global concerns as to the effects of producing and disposing tires are well known, and green tires are meant to address these issues. Employers of production have adopted the use of sustainable practices in production hence making a small contribution to carbon trace.
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Favourable government regulation – The demand for green tires is significantly influenced by two primary factors: These factors are the environmental awareness and government regulation. Increased awareness of consumers on the adverse impacts of climate change and environmental degradation has made them act in a way that they purchase products that are sustainable and eco-friendly like green tires. The increasing willingness of consumers to buy environmentally sustainable products also contribute to the increasing demand for green tires. Government measures also augment the industry’s growth and development. Higher standards of emission and fuel efficiency requirements push the companies to develop tires that have certain performance characteristics good for the environment. Most governments/authorities provide subsidies, or tax credits/reductions for environmentally friendly products, which increases consumer demand for green tires. Support by the government for green initiatives create a favourable climate for green technologies encouraging business to embrace environmentally friendly technologies. Moreover, corporate social responsibility standards make firms use environmentally friendly products. Combined, these factors support the creation of a strong market for green tires.
High initial investment costs – The factors which have contributed to the slow growth of green tires include, higher initial cost and lack of necessary infrastructure to support the said industry. Indeed, it is evident from research that green tires cost more than regular tires because they comprise sound performing raw materials and high-end manufacturing procedures. It may lead to a product being placed in the lower strategic market grid due to its high price, which many consumers with a view to saving money in the short-term are not willing to pay for. Economic sensitivity enhances the problem because when the economy turns to the worse, individuals are forced to switch to the traditional non-Environmental Protection Agency (EPA) friendly tires. There is limited infrastructure which is also limits the market’s growth. for instance, some tire retailers definitely do not have the experience or the necessary information to effectively market these products, so there is a lot of misinformation and no advancement. Besides, poor service and maintenance factor of green tires can limit potential consumers’ demand as most consumers may have concern with how to maintain these products to their optimum usability.
Technological advancements enhancing the performance of green tires – Green tires are on the rise due to the technological developments that revolutionize the process of manufacturing and improve the qualities of green tires. Production process advancements enable the inclusion of recycled material like recycled rubber and plastics. Similarly, sustained production lines and intricate precision moulding means more efficient tyre manufacturing with reduced losses and energy required. New tyre structures have also been developed with the aim to reduce rolling resistance and improve fuel efficiency. Other measures such as precision positioning of sipes and thinning of its thickness improves performance while retaining safety standards. Adopting other smart technologies in tires including sensor technology in monitoring tire pressure and temperature advances maintenance practices that enhance the conservation of tires and therefore decrease wastage. The market will continue to develop with continued research and development aimed towards unlocking new materials and technologies that allow manufacturers to meet consumers’ demands with better quality and higher standards.
The regions analysed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Europe emerged as the most significant global green tires market, with a 38% market revenue share in 2023.
Regulations introduced by tough environmental legislations mainly by the European Union to regulate CO2 emissions promote the adoption of green tires. Consumers in Europe are conscious of the environment and are willing to purchase products emanating from sustainable resources. This awareness makes consumers look for environmentally friendly tires. Huge capital expenditure by the leading tire manufacturers in the region promoting research development of green tires from renewable resources also contribute to the regional market’s growth. Also, the robust automotive industry in Europe can also be attributed for the high consumption of green tires in the region. Automobile giants work together with manufacturers of tires to incorporate environmentally sustainable products into new models of cars, and the same way, car consumers benefit from a variety of eco-friendly green tyres depending on the range of cars in the market.
Europe Region Green Tires Market Share in 2023 - 38%
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The vehicle type segment is divided into light commercial vehicle, passenger cars, heavy trucks, buses and coaches, and others. The passenger cars segment dominated the market, with a market share of around 38% in 2023. First of all, the segment of passenger cars is the most significant for overall automotive market and creates significant amounts of both initial and replacement tire requirements. Rising awareness of environmental sensitiveness among consumers has resulted in more demand for green products and therefore popular green tires among drivers. Further, green tires also have design attributes that cater with fuel economy which is a major issue of most drivers most especially with increasing fuel prices. Several advancements have led to introduction of new materials and smart technologies enhancing the capability and durability of green tires for passenger car. Social factors that support green tires include; legal requirements postured by government to insist on green products thus encouraging the use of green tires, collaborations between OEMs and tire producers that guarantee that new passenger vehicles sold are fitted with green tires. With a growing focus on sustainability within the automotive industry, there is strong potential for the continued growth of green tires within the potentially saturated passenger car segment which further strengthens its market dominance.
The application segment is divided into on-road and off-road. The on-road segment dominated the market, with a market share of around 65% in 2023. There are several reasons why on-road application for green tires out weights the Off-road application. First of all, most of vehicles on the roads are on-road ones, like personal use cars, LCVs, and SUVs, so the demand for on-road tires is high. On-road green tires have also benefited from technological enhancement of low rolling resistance patterns and smart technologies. Government policies more towards energy efficient technologies also supports the market for on-road green tires where manufacturers and OEMs partner to include green options in new models of passenger cars.
The size type segment is divided into 15-inch, 16-inch, 17-inch, and 18-inch. The 15-inch segment dominated the market, with a market share of around 37% in 2023. 15-inch tire is adjustable for most of the compact, sedan and some crossover models which makes it preferred both by consumers and auto-makers. This is made possible due to its ability to be used under different driving situations. 15-inch tires are chronically cheaper than larger sizes due to lower manufacturing costs and a plethora of price offers on the market. This is relatively cheaper than its counterparts while the regular replacement is triggered by the numerous vehicles in the market using the 15-inch tires which augments the segment’s growth. In addition, these tires are usually provided with low rolling resistance attributes, which help improve fuel economy – a factor that becomes crucial as costs of fuel gradually increase, and awareness on the environment also grows.
The sales channel segment is divided into OEM and aftermarket. The OEM segment dominated the market, with a market share of around 66% in 2023. OEMs incorporate green tires into the set of standard options for new vehicles, so that they matched certain performance characteristics, including green certification. This integration increases the chances of the consumers purchasing eco-friendly tires when purchasing new vehicles. Strategic OEM partnerships make it possible to customize green tires for individual car models which also augments the market’s growth. Moreover, OEMs use their marketing funds as a tool for advertising the sustainability of the green tires. With governments tightening their environmental policies, OEMs have no option other than to conform to these measures and this makes green tires a valid solution that will be accepted by customers due to environmentally friendly measures embraced by governments. In summary, OEMs currently control the green tire market because of a connection with new auto manufacturing, alliances with businesses and efficient marketing of sustainability.
Report Description:
| Attribute | Description |
|---|---|
| Market Size | Revenue (USD Billion) |
| Market size value in 2023 | USD 26 Billion |
| Market size value in 2033 | USD 73.82 Billion |
| CAGR (2024 to 2033) | 11% |
| Historical data | 2020-2022 |
| Base Year | 2023 |
| Forecast | 2024-2033 |
| Region | The regions analysed for the market are Asia Pacific, Europe, South America, North America, and Middle East and Africa. Furthermore, the regions are further analysed at the country level. |
| Segments | Vehicle Type, Application, Size Type and Sales Channel |
As per The Brainy Insights, the size of the global green tires market was valued at USD 26 billion in 2023 to USD 73.82 billion by 2033.
Global green tires market is growing at a CAGR of 11% during the forecast period 2024-2033.
The market's growth will be influenced by favourable government regulation.
High initial investment costs could hamper the market growth.
This study forecasts revenue at global, regional, and country levels from 2020 to 2033. The Brainy Insights has segmented the global green tires market based on below mentioned segments:
Global Green Tires Market by Vehicle Type:
Global Green Tires Market by Application:
Global Green Tires Market by Size Type:
Global Green Tires Market by End User:
Global Green Tires Market by Region:
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