Green Tires Market

Green Tires Market Overview

Total sales in the global green tires market are forecast to reach nearly US$ 28 Bn in 2022. Increasing focus on fuel efficiency in passenger vehicles is expected to drive sales at a 4% CAGR, pushing the market size close to US$ 39 Bn by 2032.

Growing focus on environmental concerns, along with stringent regulations regarding the usage of harmful raw materials for tire production are key factors spurring demand for green tires across the globe.

These tires are manufactured using silica to provide low rolling resistance, which potentially removes the friction of the tire rolling on any given surface. Incorporating silica in tire material makes tires more energy-efficient and improves the overall safety of tires and the vehicle.

In passenger vehicles and light commercial vehicles, most of the fuel consumption is attributed to rolling resistance, and the amount is even higher in heavy vehicles. The usage of green tires improves the fuel efficiency of these vehicles to a certain extent by eliminating rolling resistance.

These tires are also cost-effective when used in a long run. Rising fuel costs worldwide are compelling consumers to invest in green tires, which is expected to boost the market in the forthcoming years.

What are the Trends that are Driving the Green Tires Market?

Increasing sales of passenger vehicles across the globe are also resulting in higher replacement rates of tires and other automotive components. This is expected to create opportunities for growth for green tire market players in the forthcoming years.

Higher vehicle utilization and increasing ride-hailing services and cab sharing facilities in various countries are some factors pushing sales of green tires. In addition to this, stringent regulations regarding carbon emissions are compelling manufacturers to switch to sustainable materials, which in turn is expected to boost the market.

As per the United States Environmental Protection Agency, almost 95% of the world’s transportation energy comes from burning fossil fuels for diesel, gasoline, and petroleum. In response to this, governments in various countries are implementing regulations to cut down on carbon emissions.

As green tires significantly improve the fuel efficiency of vehicles, demand is expected to rise at a considerable pace over the forecast period. Besides this, manufacturers are investing in research and development to incorporate new sustainable materials in green tires, which is expected to bode well for the market in the forthcoming years.

What are the Challenges in the Green Tires Market?

Lack of the availability of skilled labor and technical know-how required for the manufacturing of green tires is expected to hamper sales in the market. These tires require innovative technologies and manufacturing equipment to get the desired results that do not compromise the safety of vehicles.

In addition to this, a lack of awareness regarding fuel efficiency and carbon emissions in developing economies and rural areas will further hinder the growth in the market. However, government agencies are taking up initiatives to spread awareness regarding fuel economy, thereby creating prospects for growth in the market.

What is the North America Green Tires Market Outlook?

As per FMI, the presence of a robust automotive sector in the U.S. is expected to drive the North America green tires market over the forecast period. Besides this, the U.S. government has implemented regulations to curb greenhouse emissions, which is expected to boost sales of green tires.

The Environmental Protection Agency (EPA) has finalized federal greenhouse gas emission standards for passenger and light commercial vehicles through 2026. The updated standards are expected to result in avoiding over 3 billion tons of greenhouse gas emissions through 2050.

Driven by this, manufacturers are launching innovative tire materials to improve sustainability and reduce emissions. Consumers are also seeking vehicles with higher fuel economy, which in turn is fueling sales of green tires.

Nikhil Kaitwade

Principal Consultant

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How Will the Europe Green Tires Market Fare?

Demand for green tires is projected to increase at a steady pace in the Europe green tires market driven by high demand for fuel-efficient vehicles, opines FMI. The U.K. has also committed to reaching net-zero carbon emissions by 2050.

Decarbonizing Transport: A Better, Greener Britain, is a set of credible plans for all means of transport and the system as a whole to achieve these targets by 2050. Road vehicles in the U.K. are responsible for 90% of domestic transport emissions out of which cars and vans alone are responsible for 70%.

In response to this, players are launching green tires with the incorporation of silica to reduce rolling resistance, thereby improving the fuel efficiency of the vehicle. This is expected to continue pushing sales in the Europe market over the forecast period.

Market Competition

Some of the leading players present in the global green tires market include PPG Industries Inc., Pirelli Tires S.p.A., Bridgestone, Green Arc Tire Manufacturing Inc., Goodyear Tire and Rubber Co., and Michelin North America Inc.

Leading players operating in the global green tires market are investing in research and development and collaborations to introduce new tire materials in the market. Through this, players are expecting to expand their product portfolios. Players such as Goodyear Tires and Bridgestone are offering silica-based tires to gain a competitive edge.

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Report Scope

Key Segments Profiled in the Green tires Industry Survey

Product Type:

• Passenger Tires
• Light Commercial Tires
• Heavy Commercial Tires

Application:

• On-road
• Off road

Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• APEJ
• Japan
• Middle East & Africa