Automotive Green Tires Market Report 2026

Automotive Green Tires Market Overview

• Automotive Green Tires market size has reached to $11.68 billion in 2025 • Expected to grow to $16.18 billion in 2030 at a compound annual growth rate (CAGR) of 6.6% • Growth Driver: Electric Vehicle Surge Fuels Expansion of Automotive Green Tires Market • Market Trend: Innovative Sustainable Tires Lead Automotive Green Tire Market • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Automotive Green Tires Market?

Automotive green tires refer to tires that are designed and manufactured with a focus on environmental sustainability. They typically incorporate recycled materials, reduce rolling resistance to improve fuel efficiency and minimize the use of harmful chemicals during production. Green tires aim to decrease overall carbon emissions and environmental impact compared to traditional tire manufacturing processes. The main types of automotive green tires are bias tires and radial tires. A bias tire refers to a type of tire construction where the internal ply cords are laid diagonally across the tire, typically at an angle of 30-45 degrees relative to the tread centerline. The materials used comprise silica, low-aromatic oils, synthetic rubber, natural rubber, and others, alongside various technologies including low rolling resistance (LRR) tires, self-inflating tires, green tires, conventional tires, and others. Propulsion types encompass electric, hybrid, plug-in hybrid electric vehicles (PHEVs), fuel cell electric vehicles (FCEVs), and others and are used by several end users, such as individual consumers, fleet operators, original equipment manufacturers (OEMs), and others.

What Is The Automotive Green Tires Market Growth Forecast?

The automotive green tires market size is expected to see strong growth in the next few years. It will grow to $16.18 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to stricter emission norms, ev adoption growth, sustainable mobility initiatives, advancements in green rubber technology, lifecycle carbon reduction focus. Major trends in the forecast period include adoption of low rolling resistance tires, increased use of sustainable raw materials, rising demand from electric vehicles, development of bio-based tire compounds, focus on extended tire lifespan.

Global Automotive Green Tires Market Segmentation

1) By Type: Bias Tire, Radial Tire 2) By Material: Silica, Low-Aromatic Oils, Synthetic Rubber, Natural Rubber, Other Materials 3) By Propulsion Types: Electric, Hybrid, Plug-In Hybrid Electric Vehicles (PHEVs), Fuel Cell Electric Vehicles (FCEVs), Other Propulsion Types 4) By End Users: Individual Consumers, Fleet Operators, Original Equipment Manufacturers (OEMs), Other End Users Subsegments: 1) By Bias Tire: Bias Ply Tires For Passenger Vehicles, Bias Ply Tires For Commercial Vehicles 2) By Radial Tire: Radial Tires For Passenger Cars, Radial Tires For Light Commercial Vehicles (Lcvs), Radial Tires For Heavy Commercial Vehicles (Hcvs), Radial Tires For Trucks And Buses, Radial Tires For Electric Vehicles (Evs)

What Is The Driver Of The Automotive Green Tires Market?

The growing adoption of electric vehicles is expected to propel the growth of the automotive green tires market going forward. Electric vehicles refer to automobiles that are powered either entirely or partially by electricity stored in rechargeable batteries rather than by internal combustion engines. The adoption of electric vehicles (EVs) is growing due to advancements in technology, environmental concerns, government incentives, and decreasing costs. Electric vehicles use automotive green tires to maximize range efficiency and minimize environmental impact due to reduced rolling resistance and eco-friendly materials. For instance, in July 2023, according to the Electric Vehicle Council, an Australia-based national body for the electric vehicle industry, electric vehicle (EV) sales in Australia surged in the first half of 2023, surpassing the total sales for the entire year 2022. By the end of June 2023, 46,624 EVs had been sold, marking a remarkable 269% increase compared to the same period in 2022. This growth has elevated EVs to 8.4% of all new car sales in Australia, a significant 120.5% rise from the previous year's total. Therefore, the growing adoption of electric vehicles is driving the growth of the automotive green tires industry.

What Is The Driver Of The Automotive Green Tires Market?

The growing adoption of electric vehicles is expected to propel the growth of the automotive green tires market going forward. Electric vehicles refer to automobiles that are powered either entirely or partially by electricity stored in rechargeable batteries rather than by internal combustion engines. The adoption of electric vehicles (EVs) is growing due to advancements in technology, environmental concerns, government incentives, and decreasing costs. Electric vehicles use automotive green tires to maximize range efficiency and minimize environmental impact due to reduced rolling resistance and eco-friendly materials. For instance, in July 2023, according to the Electric Vehicle Council, an Australia-based national body for the electric vehicle industry, electric vehicle (EV) sales in Australia surged in the first half of 2023, surpassing the total sales for the entire year 2022. By the end of June 2023, 46,624 EVs had been sold, marking a remarkable 269% increase compared to the same period in 2022. This growth has elevated EVs to 8.4% of all new car sales in Australia, a significant 120.5% rise from the previous year's total. Therefore, the growing adoption of electric vehicles is driving the growth of the automotive green tires industry.

Global Automotive Green Tires Market Trends and Insights

Major companies operating in the automotive green tire market are developing innovative products, such as next-generation sustainable tires, to better serve customers with environmentally friendly options. Next-generation sustainable tires refer to advanced tires designed with innovative materials and technologies to enhance environmental sustainability, performance, and efficiency. For instance, in March 2024, GRI Tires, a Sri Lanka-based industrial tire manufacturer, launched the GREEN XLR EARTH series and ULTIMATE GREEN XT tires, featuring remarkable sustainable material content. The Green XLR Earth series (for agriculture) contains 87.3% sustainable materials, while the Ultimate Green XT (for material handling) boasts 93.5% sustainable content. Notably, the Ultimate Green XT includes 86.4% bio-sourced and recycled materials, with a tread compound using highly dispersible silica and no carbon black, which reduces abrasion loss and particle release into the environment.

What Are Latest Mergers And Acquisitions In The Automotive Green Tires Market?

In May 2023, Yokohama Rubber Co. Ltd., a Japan-based tire manufacturer, acquired Trelleborg Wheel Systems for an undisclosed amount. The acquisition was part of Yokohama Rubber's strategic initiatives to expand its off-highway tire (OHT) business, which is positioned as a future growth driver for the company's commercial tire business under Yokohama Transformation 2023. Trelleborg Wheel Systems Holding AB, a Sweden-based manufacturer of off-highway tires, has been focused on developing and producing automotive green tires.

Regional Outlook

North America was the largest region in the automotive green tires market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the Automotive Green Tires Market?

The automotive green tires market consists of sales of low-rolling-resistance tires, recycled material tires, and energy-efficient tires. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Automotive Green Tires Market Report 2026?

The automotive green tires market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the automotive green tires industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.