The global green tires market size was estimated at USD 124.8 million in 2023 and is projected to reach USD 4.05 million by 2030, growing at a CAGR of 11.9% from 2024 to 2030. The rapid growth of this market is driven by increasing concerns over greenhouse gas emissions, the depletion of natural resources, and the automotive industry's shift toward sustainable alternatives.

Green tires are produced using eco-friendly and recycled materials such as plant-based silica, bio-derived rubber, and recycled carbon black, which reduce dependence on fossil resources and enhance sustainability across the supply chain. These materials help minimize environmental impact by lowering carbon emissions, reducing waste, and improving overall manufacturing efficiency.

Global sustainability regulations are further accelerating green tire adoption. For instance, in July 2022, the Indian Ministry of Road Transport and Highways introduced regulations aligning with European standards for rolling resistance, wet grip, and rolling sound emissions—aimed at enhancing fuel efficiency and reducing vehicle noise.

 With their enhanced rolling resistance, green tires offer numerous advantages to consumers and the environment. By reducing the energy needed to propel a vehicle forward, these tires contribute to fuel conservation, offering significant cost savings to vehicle owners in the long term and making these tires an attractive option for consumers.

The green tires industry has witnessed significant advancements in research and development to meet the growing demand for sustainable and eco-friendly tire solutions. Tire manufacturers are investing heavily in innovative technologies and materials to improve green tires' awareness, durability, and environmental impact. For instance, in January 2024, Toyo Tires developed a concept tire that utilizes 90% sustainable materials, displaying a significant growth in the tire industry towards environmentally friendly solutions. This innovative design incorporates various sustainable materials, including biomass-derived butadiene rubber, bio-derived polyester fiber, rice husk ash silica, recycled carbon black, biomass-derived styrene-butadiene rubber recycled steel cord, plant-derived oil, and recycled bead wire.

Market Drivers and Innovations

• Green tires offer consumers practical and environmental benefits. Improved rolling resistance significantly enhances fuel economy by requiring less energy to move the vehicle, leading to lower fuel consumption and cost savings for users.
• R&D investments in sustainable technologies are intensifying. For example, in January 2024, Toyo Tires developed a concept tire made from 90% sustainable materials—including biomass-derived butadiene rubber, recycled bead wire, and plant-based oils—demonstrating the industry's growing commitment to environmental innovation.

Key Market Trends & Insights

• North America is expected to witness significant growth over the forecast period. There is a growing awareness among consumers in North America regarding environmental issues and sustainability. As more individuals become conscious of pollution and climate change and seek ways to reduce it, there is a rising demand for products that align with these issues.
• The U.S. held the largest market share in 2023. The U.S. market presents significant growth opportunities for automotive green tires due to increasing car ownership and a growing focus on environmental issues. 
• The Asia Pacific region held the largest market share of 39.8% in 2023. Stringent regulations and policies aimed at promoting energy efficiency and reducing carbon footprint are driving the adoption of green tires in the Asia Pacific market. 
• The passenger car segment held the largest market share of 62.4% in 2023. Tire manufacturers increasingly focus on sustainable materials such as natural rubber from sustainable plantations, bio-based materials, and recycled rubber to reduce reliance on non-renewable resources and minimize waste.
• On road type segment held the largest revenue share in 2023. Integrating green tires into on road vehicles can significantly boost sustainability efforts and environmental impact. Enhanced compounds in green tires ensure even road pressure distribution, reducing tread wear and increasing tire lifespan to minimize waste.

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Market Size & Forecast

• 2023 Market Size: USD 8 million
• 2030 Projected Market Size: USD 05 million
• CAGR (2024-2030): 9%
• Asia Pacific: Largest market in 2023
• North America: Fastest growing market

Key Companies & Market Share Insights

Some of the key players operating in the green tires market include The Goodyear Tire, MICHELIN, and Nokian Tyres plc among others.

• Goodyear is a tire manufacturer that operates in most regions of the world. It focuses on reducing energy consumption and emissions in its factories and utilizing renewable energy sources. It also uses sustainable material sources, develops alternatives such as green tires, and aims to create 100% sustainable material tires by 2030.
• The MICHELIN Group is a global company headquartered in France and delivers tires to over 170 countries. MICHELIN is strongly committed to innovation and sustainable development for the mobility of people and goods. MICHELIN manufactures tires for various applications, including space shuttles, aircraft, automobiles, heavy equipment, motorcycles, and bicycles.

Key Players

• APOLLO TYRES LTD
• Bridgestone Corporation
• CANADIAN TIRE
• Continental AG
• GRI Tires
• JK TYRE & INDUSTRIES LTD
• MICHELIN
• MRF Tyres
• Nokian Tyres plc.
• Pirelli & C. S.p.A.
• RPG Group (CEAT tires)
• The Goodyear Tire & Rubber Company
• THE YOKOHAMA RUBBER CO., LTD.
• Toyo Tire Corporation

Conclusion

The green tires market is experiencing robust growth fueled by regulatory support, rising consumer awareness, and rapid innovation in sustainable materials. As the automotive industry continues its shift toward cleaner, more efficient technologies, green tires are poised to become a mainstream component in the global push for environmental sustainability. With increasing investments in R&D and stronger global commitments to climate goals, the future of the green tires market looks promising and transformative.