Green Tires Market By Tire Type (Radial Tires, Bias Tires), By Material Type (Natural Rubber, Synthetic Rubber, Recycled Materials, Silica, Carbon Black), By Sales Channel (OEM, Aftermarket), By End-User Industry (Automotive, Commercial Vehicles, Two-Wheelers, Electric Vehicles, Agricultural Vehicles); Global Insights & Forecast (2023 – 2030)

As per Intent Market Research, the Green Tires Market was valued at USD 18.6 Billion in 2024-e and will surpass USD 35.4 Billion by 2030; growing at a CAGR of 11.3% during 2025-2030.

The green tires market is experiencing significant growth due to the increasing demand for eco-friendly, fuel-efficient, and sustainable automotive solutions. As governments, consumers, and manufacturers alike focus on reducing carbon footprints and environmental impact, tire manufacturers are advancing the development of “green” or eco-friendly tires. These tires are designed using sustainable materials, such as silica and recycled rubber, and feature technologies like low rolling resistance, which contribute to fuel efficiency and reduced emissions. This market is further fueled by the automotive industry's transition towards electric vehicles (EVs) and stringent environmental regulations across key global regions.

The market is segmented by tire type, material, sales channel, and end-user industry, with each segment showing varying growth patterns. This report explores the largest and fastest-growing subsegments within each category, offering insights into the dynamics of the green tires market and its evolution in response to technological advancements, regulatory changes, and shifting consumer preferences.

Tire Type Segment is Largest Owing to Radial Tires' Dominance

Within the tire type segment, radial tires are the largest and most widely used type, dominating the global green tires market. Radial tires feature a structure where the tire's cord plies are arranged at 90-degree angles to the direction of travel, offering superior durability, better performance, and fuel efficiency compared to bias tires. The rise of radial tires in the automotive industry is attributed to their enhanced traction, longevity, and ability to withstand high-speed conditions, all of which make them the preferred choice for passenger vehicles, commercial trucks, and electric vehicles (EVs).

The demand for radial tires continues to grow, especially in the context of green tires, as their design reduces rolling resistance and, in turn, lowers fuel consumption. These tires are increasingly adopted by automakers aiming to improve fuel efficiency and meet stricter environmental standards. As the market for electric vehicles expands, the need for radial tires with low rolling resistance will continue to increase, further cementing the dominance of this subsegment in the green tires market.

Material Type Segment is Fastest Growing Owing to Recycled Materials

The recycled materials subsegment in the material type category is the fastest-growing segment in the green tires market. Recycled rubber and other sustainable materials are becoming increasingly popular as manufacturers seek to reduce the environmental impact of tire production. By incorporating recycled materials into tire manufacturing, companies are able to lower the carbon footprint of their products while maintaining or even enhancing performance characteristics such as durability and grip.

The shift toward recycled materials is being driven by both regulatory pressure and consumer demand for more sustainable products. Many leading tire manufacturers are investing in technologies that allow for the reuse of old tires, which can be shredded and processed into new rubber components for the production of green tires. This growing trend reflects a broader commitment within the automotive industry to incorporate circular economy principles, where materials are reused and recycled, reducing waste and conserving natural resources.

Sales Channel Segment is Largest in OEM Due to Large-Scale Vehicle Production

In the sales channel segment, OEM (Original Equipment Manufacturer) is the largest subsegment, accounting for the majority of green tire sales. OEMs are the primary suppliers of tires for new vehicles, including electric vehicles (EVs) and hybrids, as well as traditional gasoline-powered vehicles. Tire manufacturers typically design and produce tires that meet the specific requirements of automakers, who then integrate these tires into new vehicles as part of their production process.

The OEM subsegment's dominance is largely due to the increasing number of vehicles produced globally, especially with the growing adoption of electric vehicles. Automakers are placing greater emphasis on using environmentally friendly tires to align with sustainability goals and government regulations targeting vehicle emissions. As demand for EVs rises, OEMs will continue to be a significant driver of growth in the green tires market, as manufacturers increasingly focus on incorporating green tires into their vehicle offerings.

End-User Industry Segment is Fastest Growing in Electric Vehicles

The electric vehicle (EV) segment within the end-user industry is the fastest-growing category in the green tires market. The shift toward electric vehicles is accelerating, driven by consumer demand for cleaner alternatives to traditional internal combustion engine vehicles and government incentives aimed at reducing carbon emissions. As EVs become more mainstream, the need for tires that improve energy efficiency, reduce rolling resistance, and support higher performance becomes increasingly important.

Green tires for electric vehicles offer specific advantages, such as longer tire life, enhanced grip, and reduced environmental impact. Given that EVs are typically heavier than conventional vehicles due to their battery packs, tires designed for these vehicles need to balance performance and durability. As the global EV market continues to expand, the demand for specialized green tires designed for these vehicles will continue to rise, making EVs the fastest-growing end-user industry in the green tires market.

Asia Pacific is Largest Region for Green Tires Market

The Asia Pacific region is the largest market for green tires, driven by high production volumes in countries such as China, India, and Japan. These nations are major automotive manufacturing hubs, producing both traditional and electric vehicles at scale. As environmental regulations in the region become stricter and consumer awareness of sustainability increases, the demand for green tires is growing rapidly. Additionally, the significant automotive markets in these countries have prompted tire manufacturers to invest in the development of eco-friendly tires tailored for local consumer preferences.

In addition to the automotive sector, the growing adoption of electric vehicles in Asia Pacific is a key driver of the green tire market. Government policies in countries like China and Japan, which incentivize the adoption of EVs and environmentally friendly technologies, are further boosting demand. This makes Asia Pacific the largest and most influential region in the global green tires market.

Leading Companies and Competitive Landscape

The green tires market is highly competitive, with several leading companies striving to meet the increasing demand for sustainable tire solutions. Key players such as Michelin, Bridgestone, Goodyear, and Continental are investing heavily in research and development to produce tires made from renewable resources and advanced materials. These companies are not only focused on reducing the environmental impact of tire production but also on enhancing tire performance to meet the needs of modern vehicles, especially electric vehicles.

The competitive landscape is characterized by innovations in tire design, material sourcing, and manufacturing processes. Many leading companies are forming strategic partnerships and collaborations with automakers to ensure that their green tires meet the specific requirements of new vehicle models. Additionally, the growing trend of tire recycling is encouraging manufacturers to develop technologies that make tire production more circular, reducing waste and promoting sustainability. As the demand for green tires increases, companies that can balance environmental goals with high-performance standards will lead the market.

Recent Developments:

• Bridgestone has launched a new line of sustainable tires made from 100% renewable materials, as part of its commitment to reducing environmental impact.
• Michelin has entered a strategic partnership with an electric vehicle manufacturer to co-develop tires specifically designed to optimize EV performance.
• Goodyear has announced the development of a new tire technology that significantly reduces rolling resistance, improving fuel efficiency for commercial vehicles.
• Continental AG has expanded its green tire portfolio with a new product that uses eco-friendly materials and aims to reduce the carbon footprint of its manufacturing processes.
• Pirelli has introduced a new tire range made from sustainable materials, including natural rubber and silica, to further support its commitment to sustainability in the automotive sector.

List of Leading Companies:

• Michelin
• Bridgestone Corporation
• Goodyear Tire & Rubber Company
• Continental AG
• Pirelli & C. S.p.A.
• Yokohama Rubber Company
• Hankook Tire
• Sumitomo Rubber Industries, Ltd.
• Kumho Tire
• Cooper Tire & Rubber Company
• Nokian Tyres
• Apollo Tyres Ltd.
• Toyo Tire & Rubber Co., Ltd.
• Cheng Shin Rubber Industry Co. Ltd. (Maxxis)
• Falken Tire Corporation

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