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Automotive Green Tires Market
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Automotive Green Tires Market

Author: Swarup Sahu - Senior Consultant, Report ID - DS2001056, Published - January 2025

Segmented in Vehicle Type (Passenger Cars, Commercial Vehicles), Type (Radial, Bias), Material Composition, Sales Channel and Regions - Global Industry Analysis, Size, Share, Trends, and Forecast 2024 – 2034

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Global Automotive Green Tires Market Outlook

The market for tires in the automotive sector is set to reshape the way sustainable transportation is viewed in the future and signifies a notable move towards environmentally friendly practices, within the automotive industry worldwide. The market, for Automotive green tires was estimated at $11.9 billion in 2024. It is anticipated to increase to $18.3 billion by 2030 with projections indicating a growth to around $26.3 billion by 2035. This expansion represents a compound annual growth rate (CAGR) of 7.5% over the forecast period.


Green tires are known for their ability to reduce resistance and utilize sustainable materials in manufacturing processes which brings several benefits such as better fuel efficiency and lower carbon emissions as well as improved performance of vehicles. In times there has been a noticeable increase in the usage of green tires by leading car manufacturers and companies that operate fleets due to government mandates and the growing public interest, in environmental conservation.


Market Size Forecast & Key Insights

2019
$11.9B2024
2029
$24.5B2034

Absolute Growth Opportunity = $12.6B

The Automotive Green Tires market is projected to grow from $11.9 billion in 2024 to $24.5 billion in 2034. This represents a CAGR of 7.5%, reflecting rising demand across Fuel Efficiency Enhancement, Eco-Friendly Vehicle Integration and Performance and Safety Improvement.

The Automotive Green Tires market is set to add $12.6 billion between 2024 and 2034, with manufacturer targeting Natural Rubber & Bio-based Oil Material Composition projected to gain a larger market share.

With Increasing environmental consciousness, and Regulations and policy changes, Automotive Green Tires market to expand 106% between 2024 and 2034.

Opportunities in the Automotive Green Tires Market

Rising Environmental Consciousness

Global awareness about issues is driving the demand for products that help minimize carbon emissions and Green Tires provide consumers with a sustainable option for their vehicles tire needs reflecting theindustry'sgrowth, in eco consciousness.

Growth in Electric Vehicle Sector and Government Policies and Regulations

The Green Tires market is poised for growth as the world moves towards electric vehicles since these eco friendly tires can enhance the range of electric vehicles and are well suited for this expanding market segment that shows promising potential for future growth, in the automotive industry.

The worldwide shift towards rigorous environmental laws and regulations might have a positive impact on the Green Tires industry. As governments enforce measures to reduce CO₂ emissions and enhance fuel efficiency standards Green Tires are gaining popularity among automakers as a choice opening up new possibilities for market growth, in the future.

Growth Opportunities in North America and Europe

Europe Outlook

In Europe's automotive green tires market is flourishing thanks to countries such as Germany and France well as the UK leading the way with their initiatives and commitments to reducing carbon emissions and promoting environmental awareness among consumers in the regions auto industry sector. The presence of players like Continental and Bridgestone further fuels market growth through healthy competition. Moreover the market stands to benefit from the rise of electric and hybrid vehicles offering ample growth opportunities, for industry players.

North America Outlook

In North America. Mainly led by the US and Canada. There is a presence in the market for environmentally friendly tires in the automotive sector due to a growing preference for sustainable and energy efficient products influenced by strict government rules on CO2 emissions and heightened environmental consciousness among consumers driving up demand levels. The competition is fierce in this market segment with companies like Goodyear and Michelin coming up with new eco conscious tire solutions showcasing their innovative edge in the industry. Opportunities abound in this region as more consumers show readiness to invest in products and with the expanding electric vehicle market paving the way, for further growth potential.

North America Outlook

In North America. Mainly led by the US and Canada. There is a presence in the market for environmentally friendly tires in the automotive sector due to a growing preference for sustainable and energy efficient products influenced by strict government rules on CO2 emissions and heightened environmental consciousness among consumers driving up demand levels. The competition is fierce in this market segment with companies like Goodyear and Michelin coming up with new eco conscious tire solutions showcasing their innovative edge in the industry. Opportunities abound in this region as more consumers show readiness to invest in products and with the expanding electric vehicle market paving the way, for further growth potential.

Europe Outlook

In Europe's automotive green tires market is flourishing thanks to countries such as Germany and France well as the UK leading the way with their initiatives and commitments to reducing carbon emissions and promoting environmental awareness among consumers in the regions auto industry sector. The presence of players like Continental and Bridgestone further fuels market growth through healthy competition. Moreover the market stands to benefit from the rise of electric and hybrid vehicles offering ample growth opportunities, for industry players.

Growth Opportunities in North America and Europe

Established and Emerging Market's Growth Trend 2025–2034

1

Major Markets : United States, Germany, China, Japan, France are expected to grow at 4.9% to 7.2% CAGR

2

Emerging Markets : India, Brazil, South Africa are expected to grow at 8.6% to 10.3% CAGR

Market Analysis Chart

The green tires market in the industry experienced notable changes due to various factors that may continue to shape its future trajectory. This assessment provides insights into how these factorsre currently impacting the market and could affect it going forward. The growing focus on sustainability is a key factor driving the adoption of green tires, in the automotive sector.

Recent Developments and Technological Advancement

December 2024

Hankook Tire & Technology launched their eco-friendly and fuel-efficient tire series aiming at reducing carbon emissions and improving fuel efficiency

October 2024

Bridgestone Corporation unveiled a groundbreaking Air Free eco tire concept that utilizes recyclable materials to enhance environmental sustainability.

August 2024

Continental AG has introduced a technology, for producing eco friendly tires using sustainable and recycled materials.

The latest trends in the Automotive Green Tires market indicate a surge in enthusiasm for friendly tires that are designed to be sustainable and eco friendly in response to growing environmental consciousness and stricter carbon emission regulations imposed by governments worldwide. A key driving force behind this shift is the expansion of the electric vehicle sector which has led to an increased demand, for top notch green tires that align with the eco conscious philosophy of EVs.

Impact of Industry Transitions on the Automotive Green Tires Market

As a core segment of the Automotive industry, the Automotive Green Tires market develops in line with broader industry shifts. Over recent years, transitions such as Shift Towards Eco-friendly Production and Rise of Electric Vehicles have redefined priorities across the Automotive sector, influencing how the Automotive Green Tires market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.

1

Shift Towards Eco-friendly Production:

The green tire sector in the industry is experiencing a noticeable move towards eco friendly manufacturing methods due to rising environmental worries and strict government rules in place lately. Businesses are turning towards resources and embracing advanced production methods that prioritize lowering carbon emissions and waste output. This transformation isnt, about complying with regulations; its also a strategic move to meet the changing needs of environmentally aware consumers and gain a competitive advantage in the market.

2

Rise of Electric Vehicles:

The rise and increasing interest in vehicles have triggered a significant change in the eco friendly tire market, for automobiles.

Global Events Shaping Future Growth

The chart below highlights how external events including emerging market developments, regulatory changes, and technological disruptions, have added another layer of complexity to the Automotive industry. These events have disrupted supply networks, changed consumption behavior, and reshaped growth patterns. Together with structural industry transitions, they demonstrate how changes within the Automotive industry cascade into the Automotive Green Tires market, setting the stage for its future growth trajectory.

Market Dynamics and Supply Chain

Driver: Increasing Environmental Consciousness, and Technological Advancements in Tire Manufacturing

Customers are also becoming more conscious of conservation and sustainability and are also gravitating towards green, eco friendly products at an increasing rate. This change in consumer behavior is also a driver, for the Automotive Green Tires market as people are also recognizing the impact tires have also in improving fuel efficiency. They are also choosing tires that not only only cut down carbon emissions but also enhance fuel efficiency.
The ongoing developments and progress, in tire technology are also driving the expansion of the Automotive Green Tires market well with companies consistently striving to create eco friendly tires that enhance fuel efficiency and decrease rolling resistance.
Around the world government regulations and policies aimed at reducing air pollution and cutting carbon emissions are also playing a role in driving the growth of the Automotive Green Tires market. Automakers are also being pushed to prioritize eco tire production due to stringent fuel efficiency standards and CO2 emission regulations. With an increasing number of countries adopting friendly initiatives the demand, for Automotive Green Tires is also projected to increase significantly in the near future.

Restraint: High Manufacturing Costs

Green tires symbolize an advancement in the car tire sector by prioritizing environmental sustainability and cutting down on carbon emissions; however these innovations come with a range of advantages despite their more intricate and expensive manufacturing procedures compared to conventional tire making techniques. The requirement for recyclable materials during production along, with advanced manufacturing methods and technological breakthroughs can all lead to higher expenses. This could lead to costs for consumers interested in green tires and might hinder their popularity and use across different markets—especially, in regions where pricing heavily influences consumer buying choices.

Challenge: Regulatory Variations Across Regions

One of the challenges that green tires for cars face in the market is the differing regulations, in various parts of the world.

Supply Chain Landscape

Raw Material Suppliers

Bridgestone

Goodyear

Tire Material Development

Michelin

Hankook

Tire Production
Continental / Pirelli
End-user Application
Volkswagen / Ford
Raw Material Suppliers

Bridgestone

Goodyear

Tire Material Development

Michelin

Hankook

Tire Production

Continental

Pirelli

End-user Application

Volkswagen

Ford

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Leading Providers and Their Strategies

Application AreaIndustryLeadingProvidersProvider Strategies
Passenger Cars
Automotive
Michelin, Bridgestone, Goodyear
Developing high-performance, fuel-efficient tires utilizing advanced materials and designs
Commercial Vehicles
Transportation
Continental, Pirelli, Yokohama
Innovating durable, long-lasting green tires that withstand heavy loads and rigorous conditions
Electric Vehicles
Clean Energy
Nokian, Hankook, Kumho Tire
Focusing on low rolling resistance and lightweight tire designs to enhance electric vehicle efficiency and range
Hybrid Vehicles
Environmentally-friendly Automotive
Toyo Tires, Cooper Tire & Rubber Company, Apollo Tyres
Creating green tires with optimum grip and reduced noise levels to improve hybrid vehicle performance and fuel efficiency

Elevate your strategic vision with in-depth analysis of key applications, leading market players, and their strategies. The report analyzes industry leaders' views and statements on the Automotive Green Tires market's present and future growth.

Our research is created following strict editorial standards. See our Editorial Policy

Applications of Automotive Green Tires in Fuel Efficiency Enhancement, Eco-Friendly Vehicle Integration and Performance and Safety Improvement

Fuel Efficiency Enhancement

Rolling resistance tires are commonly referred to as green tires in the automotive sector for their ability to improve fuel efficiency by minimizing energy loss while the tire rolls and thus increasing the vehicles overall fuel economy. Key players in this field such, as Michelin and Bridgestone provide a variety of tires appreciated for their fuel saving benefits.

Eco-Friendly Vehicle Integration

Green tires are often used in friendly cars like electric vehicles and hybrids to support the sustainability aspects of these vehicles. These tires are manufactured from eco materials that have a lower impacton environmental pollution. Tesla, a player, in the electric vehicle industry is recognized for incorporating green tires to boost the eco friendly characteristics of their vehicles.

Performance and Safety Improvement

Green tires are known for their capability to enhance a cars performance while keeping safety a top priority too! Made with groundbreaking materials. Designs these tires provide excellent traction in rainy conditions along with reduced noise levels and longer lifespan than regular tires do! Brands, like Continental and Pirelli stand out for offering eco friendly tires packed with performance and safety benefits.

Automotive Green Tires vs. Substitutes:
Performance and Positioning Analysis

Car tires that are friendly provide better gas mileage and last longer than regular tires do. Their special advantage is evident in the increasing interest in eco options, in the market which could lead to substantial expansion opportunities.

Automotive Green Tires
  • Recycled Automotive Tires /
  • Bio Degradable Tires /
  • Airless Automotive Tires
    Improved fuel efficiency, reduced carbon emissions
    High manufacturing cost, limited availability in certain regions
    Lower rolling resistance, improved fuel efficiency
    Compromised wet traction, higher purchase cost

Automotive Green Tires vs. Substitutes:
Performance and Positioning Analysis

Automotive Green Tires

  • Improved fuel efficiency, reduced carbon emissions
  • High manufacturing cost, limited availability in certain regions

Recycled Automotive Tires / Bio Degradable Tires / Airless Automotive Tires

  • Lower rolling resistance, improved fuel efficiency
  • Compromised wet traction, higher purchase cost

Car tires that are friendly provide better gas mileage and last longer than regular tires do. Their special advantage is evident in the increasing interest in eco options, in the market which could lead to substantial expansion opportunities.

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Research Methodology

This market research methodology defines the Automotive Green Tires market scope, gathers reliable data, and validates findings using integrated primary and secondary research. Our systematic framework ensures precise market sizing, growth trend analysis, and competitive benchmarking.


Secondary Research Approach


We begin secondary research by defining the targeted market at macro and micro levels. As part of the Automotive ecosystem, we analyze Automotive Green Tires across Passenger Cars and Commercial Vehicles Applications. Our team gathers data systematically from country level ministerial sources, industry associations & federations, trade databases, company annual & quarterly reports and other credential sources, enabling us to map global and regional market size, pricing trends, regulatory standards, and technology advancements.



Key Sources Referenced:


We benchmark competitors such as Michelin, Bridgestone, and Goodyear Tire and Rubber Company by reviewing company financial statements, and regulatory filings. Our secondary insights identify key market drivers and constraints, forming the analytical foundation for primary research.


Primary Research Methods


We conduct structured interviews and surveys with industry stakeholders, including Raw Material Suppliers, Tire Material Development, and Tire Production. Our geographic coverage spans Americas (40%), Europe (30%), Asia-Pacific (25%) and Middle East & Africa (5%). Our online surveys generally achieve a response rate of above 65%, and telephone interviews yield 60%, resulting in above 92% confidence level with a ±7% margin of error.


Through targeted questionnaires and in-depth interviews, we capture purchase intent, adoption barriers, brand perception across Segment Type. We use interview guides to ensure consistency and anonymous survey options to mitigate response bias. These primary insights validate secondary findings and align market sizing with real-world conditions.


Market Engineering & Data Analysis Framework


Our data analysis framework integrates Top-Down, Bottom-Up, and Company Market Share approaches to estimate and project market size with precision.


Top-down & Bottom-Up Process


In Top-down approach, we disaggregate global Automotive revenues to estimate the Automotive Green Tires segment, using historical growth patterns to set baseline trends. Simultaneously, in Bottom-up approach, we aggregate Country-Level Demand Data to derive regional and global forecasts, which provide granular consumption insights. By reconciling both approaches, we ensure statistical precision and cross-validation accuracy.


We evaluate the supply chain, spanning Raw Material Suppliers (Bridgestone, Goodyear), Tire Material Development (Michelin, Hankook), and Tire Production. Our parallel substitute analysis examines Recycled Automotive Tires, Bio Degradable Tires, and Airless Automotive Tires, highlighting diversification opportunities and competitive risks.


Company Market Share & Benchmarking


We benchmark leading companies such as Michelin, Bridgestone, and Goodyear Tire and Rubber Company, analyzing their capabilities in pricing, product features, technology adoption, and distribution reach. By assessing company-level revenues and product portfolios, we derive market share comparisons, clarifying competitive positioning and growth trajectories across the ecosystem.


Our integration of data triangulation, supply chain evaluation, and company benchmarking, supported by our proprietary Directional Superposition methodology enables us to deliver precise forecasts and actionable strategic insights into the Automotive Green Tires market.


Quality Assurance and Compliance


We cross-reference secondary data with primary inputs and external expert reviews to confirm consistency. Further, we use stratified sampling, anonymous surveys, third-party interviews, and time-based sampling to reduce bias and strengthen our results.


Our methodology is developed in alignment with ISO 20252 standards and ICC/ESOMAR guidelines for research ethics. The study methodology follows globally recognized frameworks such as ISO 20252 and ICC codes of practice.

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Automotive Green Tires Market Data: Size, Segmentation & Growth Forecast

Report AttributeDetails
Market Value in 2025USD 12.8 billion
Revenue Forecast in 2034USD 24.5 billion
Growth RateCAGR of 7.5% from 2025 to 2034
Base Year for Estimation2024
Industry Revenue 202411.9 billion
Growth OpportunityUSD 12.6 billion
Historical Data2019 - 2023
Growth Projection / Forecast Period2025 - 2034
Market Size UnitsMarket Revenue in USD billion and Industry Statistics
Market Size 202411.9 billion USD
Market Size 202714.8 billion USD
Market Size 202917.1 billion USD
Market Size 203018.3 billion USD
Market Size 203424.5 billion USD
Market Size 203526.3 billion USD
Report CoverageMarket revenue for past 5 years and forecast for future 10 years, Competitive Analysis & Company Market Share, Strategic Insights & trends
Segments CoveredVehicle Type, Type, Material Composition, Sales Channel
Regional scopeNorth America, Europe, Asia Pacific, Latin America and Middle East & Africa
Country scopeU.S., Canada, Mexico, UK, Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Mexico, Argentina, Saudi Arabia, UAE and South Africa
Companies ProfiledMichelin, Bridgestone, Goodyear Tire and Rubber Company, Pirelli & C.S.p.A, Hankook Tire, Continental AG, Cheng Shin Rubber Ind. Co. Ltd, Kumho Tire Co. Inc, Toyo Tire & Rubber Co. Ltd, Yokohama Rubber Company Limited, Apollo Tyres Ltd and Sumitomo Rubber Industries Ltd
CustomizationFree customization at segment, region or country scope and direct contact with report analyst team for 10 to 20 working hours for any additional niche requirement which is almost equivalent to 10% of report value

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Table of Contents

Industry Insights Report - Table Of Contents

Chapter 1

Executive Summary

Major Markets & Their Performance - Statistical Snapshots

Chapter 2

Research Methodology

2.1Axioms & Postulates
2.2Market Introduction & Research MethodologyEstimation & Forecast Parameters / Major Databases & Sources
Chapter 3

Market Dynamics

3.1Market OverviewDrivers / Restraints / Opportunities / M4 Factors
3.2Market Trends
3.2.1Introduction & Narratives
3.2.2Market Trends - Impact Analysis(Short, Medium & Long Term Impacts)
3.3Supply Chain Analysis
3.4Porter's Five ForcesSuppliers & Buyers' Bargaining Power, Threat of Substitution & New Market Entrants, Competitive Rivalry
Chapter 4

Automotive Green Tires Market Size, Opportunities & Strategic Insights, by Vehicle Type

4.1Passenger Cars
4.2Commercial Vehicles
Chapter 5

Automotive Green Tires Market Size, Opportunities & Strategic Insights, by Type

5.1Radial
5.2Bias
Chapter 6

Automotive Green Tires Market Size, Opportunities & Strategic Insights, by Material Composition

6.1Silica-based
6.2Natural Rubber
6.3Bio-based Oil
6.4Recycled Rubber Powder
Chapter 7

Automotive Green Tires Market Size, Opportunities & Strategic Insights, by Sales Channel

7.1Original Equipment Manufacturer (OEM)
7.2Aftermarket
Chapter 8

Automotive Green Tires Market, by Region

8.1North America Automotive Green Tires Market Size, Opportunities, Key Trends & Strategic Insights
8.1.1U.S.
8.1.2Canada
8.2Europe Automotive Green Tires Market Size, Opportunities, Key Trends & Strategic Insights
8.2.1Germany
8.2.2France
8.2.3UK
8.2.4Italy
8.2.5The Netherlands
8.2.6Rest of EU
8.3Asia Pacific Automotive Green Tires Market Size, Opportunities, Key Trends & Strategic Insights
8.3.1China
8.3.2Japan
8.3.3South Korea
8.3.4India
8.3.5Australia
8.3.6Thailand
8.3.7Rest of APAC
8.4Middle East & Africa Automotive Green Tires Market Size, Opportunities, Key Trends & Strategic Insights
8.4.1Saudi Arabia
8.4.2United Arab Emirates
8.4.3South Africa
8.4.4Rest of MEA
8.5Latin America Automotive Green Tires Market Size, Opportunities, Key Trends & Strategic Insights
8.5.1Brazil
8.5.2Mexico
8.5.3Rest of LA
8.6CIS Automotive Green Tires Market Size, Opportunities, Key Trends & Strategic Insights
8.6.1Russia
8.6.2Rest of CIS
Chapter 9

Competitive Landscape

9.1Competitive Dashboard & Market Share Analysis
9.2Company Profiles (Overview, Financials, Developments, SWOT)
9.2.1Michelin
9.2.2Bridgestone
9.2.3Goodyear Tire and Rubber Company
9.2.4Pirelli & C.S.p.A
9.2.5Hankook Tire
9.2.6Continental AG
9.2.7Cheng Shin Rubber Ind. Co. Ltd
9.2.8Kumho Tire Co. Inc
9.2.9Toyo Tire & Rubber Co. Ltd
9.2.10Yokohama Rubber Company Limited
9.2.11Apollo Tyres Ltd
9.2.12Sumitomo Rubber Industries Ltd