Green Tires Market Report 2026

Green Tires Market Overview

• Green Tires market size has reached to $124.05 billion in 2025 • Expected to grow to $228.99 billion in 2030 at a compound annual growth rate (CAGR) of 13% • Growth Driver: Surging Demand For Electric Vehicles Accelerates Growth In The Green Tires Market • Market Trend: Goodyear Introduces Innovative Green Tire, The Ultragrip Performance 3, Redefining Sustainability And Performance In Winter Tire • Europe was the largest region in 2025.

What Is Covered Under Green Tires Market?

A green tire refers to a round-shaped part of an automotive tire that has all of its components assembled and is made of environmentally friendly rubber but has not yet been cured or given treads. When compared to other tyres such as semi-aromatic, styrene-butadiene rubbers or polycyclic hydrocarbons, green tyres improve fuel efficiency and lower greenhouse gas emissions. The vehicle types that use green tyres are passenger cars, light commercial vehicles (LCV), and heavy commercial vehicles (HCV). The passenger car segment includes green tyres manufactured for passenger vehicles. Green tyres are used in on-road and off-road applications. Green tyres are available in different sizes, such as 10 inches, 10-20 inches, and 20-30 inches. Green tyres are sold through aftermarket and OEM sales channels.

What Is The Green Tires Market Growth Forecast?

The green tires market size is expected to see rapid growth in the next few years. It will grow to $228.99 billion in 2030 at a compound annual growth rate (CAGR) of 13.0%. The growth in the forecast period can be attributed to growing electric vehicle adoption, rising demand for sustainable mobility solutions, expansion of circular tire manufacturing practices, increased investments in green materials, tightening global emission norms. Major trends in the forecast period include increasing adoption of low rolling resistance tires, rising use of bio-based rubber compounds, growing demand for fuel-efficient vehicle tires, expansion of green tire manufacturing capacity, enhanced focus on emission reduction performance.

Global Green Tires Market Segmentation

1) By Vehicle Type: Passenger Cars, Light Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV) 2) By Size: 10-20 Inch, 20-30 Inch 3) By Sales Channel: Aftermarket, 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

What Is The Driver Of The Green Tires Market?

Increasing demand for electric vehicles is expected to propel the growth of the green tires market going forward. Electric vehicles (EVs) are automobiles powered by electricity, which is stored in rechargeable batteries or other energy storage devices. Green tires are used in electric vehicles to maximize energy efficiency, extend driving range, minimize environmental impact, and meet the eco-friendly expectations of EV owners. For instance, in March 2024, according to a report published by Greenmatch, a UK-based company, Electric vehicles (EVs) are growing rapidly, with 25% of new passenger car registrations forecast to be electric by 2024, exceeding 17 million units globally. As of 2023, there are over 10 million EVs on the road, and more than 6 million plug-in EVs are sold annually. By 2025, EVs are expected to make up 46% of light-vehicle sales. Therefore, the increasing demand for electric vehicles is driving the growth of the green tires industry.

Key Players In The Global Green Tires Market

Major companies operating in the green tires market are 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.

Global Green Tires Market Trends and Insights

Major companies operating in the green tire market are developing innovative products such as Goodyear UltraGrip Performance 3 to meet the growing demand for sustainable products. Goodyear UltraGrip Performance 3 is a high-performance winter tire that is made with a number of sustainable materials. The tire is designed to provide excellent grip and handling in winter conditions while also being fuel-efficient and reducing environmental impact. For instance, in January 2023, Goodyear Corporation, a US-based manufacturing company, launched its automotive green tire, the Goodyear UltraGrip Performance 3. The UltraGrip Performance 3 is a winter tire that is made with a number of sustainable materials, including silica made from rice husk ash and polyester from recycled plastic bottles. It has snow protect technology, advanced wet grip technology, and includes 90% sustainable materials.

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

In July 2025, CARBIOS S.A., a France-based biotechnology company, partnered with Indorama Ventures Public Company Limited to supply biorecycled monomers for the production of r-PET textile filaments for use in tire reinforcement applications by Michelin. With this partnership, CARBIOS S.A. and Indorama Ventures Public Company Limited aim to accelerate the adoption of biorecycled PET in industrial applications, support the transition to circular materials, and enable high-performance recycled polyester filaments for tire manufacturing. Indorama Ventures Public Company Limited is a Thailand-based producer of PET and polyester products.

Regional Outlook

Europe was the largest region in the green tyre market in 2025. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Green Tires Market?

The green tire market consists of sales of round tires, bias tires, medium commercial vehicles, and retail sales. 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 Green Tires Market Report 2026?

The green tires market research report is one of a series of new reports from The Business Research Company that provides market statistics, including Market Report 2026?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 green tires Market Report 2026? 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 Market Report 2026?