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The Fuel-Efficient (Green) Tires Market was valued at USD 41.3 billion in 2023-e and projected to grow at a CAGR of 12.3% through 2030 to reach USD 90.6 billion. Fuel-efficient (green) tires are increasingly popular among consumers owing to increasing interest in sustainable alternatives and rising innovations in fuel-efficient tires. Technological innovations in tire manufacturing with the introduction of new chemical additives such as silica and innovative designs are driving the market growth.
Increasing Consumer Awareness of Fuel-Efficient Tires is Driving ICE Segment’s Growth
Internal combustion engines (ICE) include vehicles that run on petroleum and natural gases. Rising fuel prices have driven the demand for fuel-efficient tires for the ICE. According to the Annual Energy Outlook 2023, light-duty vehicles (cars, sport utility vehicles, and small trucks) account for about 91% of all gasoline consumption in the US. There has been an increase in interest among consumers for fuel-efficient tires which has boosted the fuel efficient tires market growth.
In addition to that, an increasing number of product launches drives the segment’s growth. For instance, in December 2023, Toyo Tire launched Proxes CF3, a fuel-efficient comfort tire. It further announced that fuel-efficient comfort tires in all 46 sizes will be released, with an open price. Moreover, hydrogen internal combustion engine development has also been receiving more interest recently, particularly for heavy-duty commercial vehicles which are anticipated to provide significant growth opportunities.
Increasing Adoption of EV Trucks is Driving the Demand for Fuel-Efficient Tires
There is a growing momentum towards the adoption of electric commercial vehicles. For instance, in August 2023, Amazon announced that it would acquire 1,000 electric trucks from Eicher Motors, signaling a major shift towards eco-friendly deliveries. In another instance, in March 2022, the United States Postal Service (USPS) announced that it placed its first order with Oshkosh, accounting for 50,000 vehicles, of which 10,019 are battery electric vehicles (BEVs). Thus, there’s a substantial rise in demand for fuel-efficient tires for EV trucks, thereby driving the market.
Rising Sales of Passenger Vehicles is Driving the Market in Asia-Pacific
Asia-Pacific is anticipated to grow at an exponential growth rate owing to the growing automotive industry in the region. For instance, according to the Society of Indian Automobile Manufacturers, in 2022, new vehicles delivered in India totaled about 4.13 million. Moreover, the growing presence of local and regional online ride-hailing companies such as Didi, Gojek, Grab, and Ola are also driving the market growth.
In recent years, several tire manufacturers have emerged in the region that are actively selling fuel-efficient (green) tires. For instance, in February 2023, Apollo Tyres launched Vredestein Pinza all-terrain tire in India. Thus, Asia-Pacific is among the fastest-growing region in the fuel-efficient (green) tires market.
The Key Players are Highly Competitive to Capture the Market Share
The key companies in the fuel-efficient (green) tires market are continuously striving to strengthen their portfolio to meet the growing demand. The companies are focused on establishing long-term partnerships with automobile industries. Some of the key companies in the market are Apollo Tyres, Bridgestone, Continental, Goodyear, Hankook, Michelin, Nokian, Pirelli, Sumitomo, and Yokohama.
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