The global green tire market is poised to surpass USD 33.68 billion by 2023. Furthermore, with rising demand for lightweight and fuel-efficient, and eco-friendly tires, the overall market size is poised to expand at a CAGR of 9.8% through 2033 to reach USD 85.79 billion.
The market for green tires is witnessing growth driven by the surging demand for fuel-efficient vehicles that emit lower levels of pollutants and offer enhanced fuel efficiency.
These eco-friendly tires, constructed from sustainable materials like natural rubber and silica, reduce rolling resistance, thus boosting fuel efficiency.
This development holds significance amidst rising fuel prices, environmental concerns, and global warming. Furthermore, the implementation of carbon emissions regulations by governments worldwide further propels the demand for green tires.
| Attribute | Details |
|---|---|
| Green Tire Market Estimated Value (2023) | USD 33.68 billion |
| Green Tire Market Estimated Value (2033) | USD 85.79 billion |
| Green Tire Market Value CAGR (2023 to 2033) | 9.8% CAGR |
The World Bank predicts that in 2023, global economic growth may rise by 3.2%, providing significant potential for the infrastructure sector to prosper in numerous international locations.
The market for green tires is expected to grow as a result of changing consumer preferences and rapid urbanization in various nations.
Factors such as increased demand for mobility services and changing consumer preference for sustainable and efficient vehicle components continue to push the demand for green tires during the forecast period.
The market growth is also projected to be fostered by surging demand for passenger vehicles in ride-hailing services and cab-sharing facilities. Green tires improve the fuel efficiency of vehicles and account for around 11.9% of the global automotive tire market.
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According to historical data from 2018 to 2022, the market for green tires spiked at a CAGR of 8.2%. However, with the rapid expansion of the automotive industry worldwide and the growing demand for fuel-efficient and eco-friendly tires, the global demand for green tires is slated to capture an impressive CAGR of 9.8% from 2023 to 2033.
Global demand for green tires is being fueled by a growing awareness of environmental issues as well as strict rules surrounding the use of hazardous raw materials in tire production.
Generally, silica is used in the manufacturing of these tires to create low rolling resistance, which may eliminate tire friction on any given surface. Silica increases the energy efficiency of tires and raises the general level of tire and vehicle safety.
In emerging countries, the vehicle industry and its components have experienced substantial growth due to the rapidly growing population and economic boom. This, in turn, is creating a conducive environment for market growth.
With growing awareness of environmental issues, it is anticipated that demand for fuel-efficient and sustainable vehicle options may rise robustly across several regions during the forecast period, creating lucrative opportunities for green tire manufacturers over the next ten years.
As per the FMI study, the market for green tires in the United States is expected to garner a value share of 17.6% by 2033 on account of several factors. Firstly, the increasing environmental consciousness among consumers is driving the demand for sustainable and eco-friendly solutions, including green tires.
Secondly, stringent regulations and policies aimed at reducing carbon emissions and promoting sustainable practices in the automotive sector are pushing tire manufacturers to develop and offer fuel-efficient and environmentally-friendly tire options.
The United States is focused on clean energy and sustainable transportation aligns with the growing interest in green tires, as these tires contribute to improved fuel efficiency and reduced carbon footprint.
The green tire market in China is projected to expand at a value CAGR of 10.1% from 2023 to 2033. Governmental regulations on carbon emissions in China are directing the demand for green tires in the automotive industry.
With the rapid development of the automotive industry over the past few years, the tire industry across China has been growing steadily. The strong presence of leading manufacturers, the growing popularity of eco-friendly tires, and increasing governmental regulations on tires with regard to energy efficiency, environmental protection, and safety are driving the market growth in China.
Standards and regulations for motor tires have been created by governmental regulating authorities. Due to rapid production and sales of vehicles, countries like China are continuously putting efforts to control pollution and increase the energy efficiency of automotive vehicles pushing forward the development of green tire technology.
Tire manufacturers are hence concentrating on producing fuel-efficient tires to lower overall CO2 emissions in the environment and provide tire technologies that are affordable for consumers.
Germany is expected to account for about 7.7% of the market share in Europe by 2033, owing to growing environmental concerns, favorable government support, the rising popularity of green tire technology, increasing spending on regional transportation projects, and vehicle utilization in mobility services.
As per FMI, the green tire market in Germany is likely to emerge as a strong player in Europe amid growing consumer preference for energy-efficient vehicles.
The 16-inch sub-segment is experiencing high demand in the global market and is predicted to hold a significant value share of 32.6% by 2033. This size tire is increasingly preferred by consumers for various vehicle types due to its optimal balance between performance, comfort, and affordability.
The 16-inch tire size offers a versatile option that caters to a wide range of vehicles, including compact cars, sedans, and SUVs. Its popularity can be attributed to its compatibility with different vehicle models, ease of replacement, and availability of various tire options in this size.
With its projected substantial value share, the 16-inch sub-segment represents a dominant and sought-after choice in the global tire market.
Based on application, the on-road application category is anticipated to grow as a result of the rising demand for on-road vehicles, including passenger cars and LCVs. As per FMI, the on-road segment currently accounts for about 86.5% of the total market share by 2033.
The need for e-commerce and e-retailing services is growing, and with it, so are consumer expectations. Government spending on road infrastructure is increasing, and supply chain and transportation have assumed a prominent role.
Huge demand for environmentally friendly and fuel-efficient commercial vehicles is anticipated as a result of the logistics and e-commerce sectors' rapid growth, which ultimately leads to skyrocketing demand for green tires.
Leading manufacturers are continuously under pressure to improve tire efficiency and vehicle performance using environmentally friendly materials because there is a higher demand for tires that are both environmentally friendly and fuel-efficient.
Main Companies:
These leading players are adopting strategies such as new product launches, collaborations, acquisitions, mergers, and the establishment of new facilities to gain a competitive edge in the market.
For instance,
The market is valued at USD 33.68 billion in 2023.
Michelin Group, Continental AG, Kumho Tire are prominent market players.
The market is forecast to register a CAGR of 9.8% through 2033.
The market will reach USD 85.79 billion by 2033.
From 2018 to 2022, the market registered a CAGR of 8.2%.
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Green Tire Market
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