What are the Historical Developments and Current Growth Metrics of the Green Tires Market?
The green tires market has seen considerable growth due to a variety of factors.
• The market size for green tires has experienced swift expansion over the recent years. Anticipated to escalate from a valuation of $112.19 billion in 2024, it is predicted to reach $125.5 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 11.9%.
The significant growth during the historic period can be ascribed to factors such as heightened environmental consciousness, regulatory measures by governments, increasing consumer preference for eco-friendly products, a surge in disposable income, and a greater demand for mobility services.
What Does Future Hold for The Green Tires Market Size?
The green tires market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for green tires is anticipated to experience swift expansion in the coming years, reaching $207.78 billion by 2029 with a compound annual growth rate (CAGR) of 13.4%.
The upsurge during this forecast period can be credited to the emergence of electric and autonomous vehicles, increasing urbanization, and economic expansion. Significant trends for this period encompass smart tire technology, tires optimized for electrification, collaborations across different industries, and tire-as-a-service models.
What Are The Key Drivers Fueling Growth In The Green Tires Market?
The escalating cognizance towards the environment amongst consumers is fueling the expansion of the green tire market. To foster increased understanding, several nations, including the USA, China, South Korea, and Japan, have instituted standards, ratings, labeling and relevant pressure programs for tires. The growing advantages of green tires such as their eco-friendly nature, superior durability, fuel effectiveness, and the ability to reduce carbon emissions are encouraging consumers to prefer them over conventional tires. For example, The Roundup, a non-profit organization based in the US, reported in September 2023 that 78% of consumers considered environmental sustainability crucial and 55% were ready to pay a premium for eco-responsible brands. In 2021, half of the global consumers claimed to have embraced more earth-friendly habits in the prior six months. Consequently, the surge in environmental consciousness concerning the usage of eco-compatible tires is set to stimulate the green tire market's growth.
What Are The Principal Market Segments In The Global Green Tires Industry?
The green tires market covered in this report is segmented –
1) By Vehicle Type: Passenger Cars, Light Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV)
2) By Size: <10 Inch, 10-20 Inch, 20-30 Inch
3) By Sales Channel: After market, Original Equipment Manufacturer (OEM)
4) By Application: On-Road, Off-Road
Subsegments:
1) By Passenger Cars: Eco-Friendly Tires, Low Rolling Resistance Tires
2) By Light Commercial Vehicles (LCV): Green Tires For Vans, Eco-Friendly Tires For Pickups
3) By Heavy Commercial Vehicles (HCV): Green Tires For Trucks, Eco-Friendly Tires For Buses
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Which Emerging Market Trends Are Altering The Green Tires Sector?
Prominent businesses in the green tire market, such as Goodyear, are coming up with innovative solutions like the UltraGrip Performance 3, in an aim to cater to the increasing demand for eco-friendly products. The Goodyear UltraGrip Performance 3 is a premium winter tire, constructed from a range of sustainable components, designed to offer superior traction and handling on winter terrains while optimizing fuel efficiency and minimizing environmental harm. For example, Goodyear Corporation, an American manufacturing firm, introduced its eco-friendly automotive tire, the Goodyear UltraGrip Performance 3, in January 2023. The UltraGrip Performance 3 is a winter-specific tire constructed using an array of environmentally-friendly materials such as silica derived from rice husk ash and polyester recycled from plastic bottles. The tire also incorporates snow protect technology and advanced wet grip technology and comprises 90% sustainable materials.
Who Are the Key Players in the Green Tires Market?
Major companies operating in the green tires market include:
• Compagnie Générale des Établissements Michelin
• Bridgestone Corporation
• Goodyear India Limited
• Continental AG
• Hankook Tire & Technology Co. Ltd.
• Pirelli & C. S.p.A.
• Apollo Tyres Ltd.
• Cheng Shin Rubber Ind. Co. Ltd.
• Kumho Industry Co. Ltd.
• Nokian Tyres plc
• Zhongce Rubber Co. Ltd.
• Sailun Group Co. Ltd.
• Shandong Linglong Tire Co. Ltd.
• The Yokohama Rubber Co. Ltd.
• Kenda Rubber Industrial Company
• Linglong Americas Inc.
• Guizhou Tyre Co. Ltd.
• PT Gajah Tunggal Tbk
• Toyo Tire & Rubber Co. Ltd.
• Cooper Tire & Rubber Co.
• Madras Rubber Factory Ltd.
• Giti Tire Pte Ltd.
• Shandong Fengyuan Tyre Co. Ltd.
• Southern Rubber Industry Co.
• Specialty Tires of America Inc.
• Sumitomo Rubber Industries Ltd.
• Nexen Tire Corporation
• Hangzhou Zhongce Rubber Co. Ltd.
• Double Coin Holdings Ltd.
What are the Regional Insights into the Green Tires Market?
Europe was the largest region in the green tyre market in 2024. The regions covered in the green tires market market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
