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Tire Recycling Market

The market for Tire Recycling was estimated at $7.4 billion in 2025; it is anticipated to increase to $8.9 billion by 2030, with projections indicating growth to around $10.8 billion by 2035.

Report ID:DS1314002
Author:Vineet Pandey - Business Consultant
Published Date:
Datatree
Chemicals & Materials
C&M Technology
Tire Recycling
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Report Summary
Market Data
Methodology
Table of Contents

Global Tire Recycling Market Outlook

Revenue, 2025

$7.4B

Forecast, 2035

$10.8B

CAGR, 2026 - 2035

3.8%

The Tire Recycling industry revenue is expected to be around $7.4 billion in 2026 and expected to showcase growth with 3.8% CAGR between 2026 and 2035. The company stands as a fundamental element of worldwide circular economy operations because authorities together with manufacturers and infrastructure builders now focus on handling scrap tires sustainably and developing environmentally friendly materials. The Building & Construction and Automotive & Transportation end use segments together account for 61.6% of total demand because recycled rubber serves essential functions in road infrastructure and insulation and sealants and flooring and automotive components. The Rubber Product segment stands as the leading segment in the Tire Recycling market because it will achieve $3.1 billion in sales during 2025 through its ability to transform waste tires into valuable products including mats and molded goods and industrial components. The strategic value of Tire Recycling continues to grow because of strong government backing and increasing material expenses and business dedication to environmentally friendly production methods which benefit both developed and developing nations.

The process of Tire Recycling includes both tire collection and processing and recycling of waste tires into recycled rubber products and granulated rubber and crumb rubber and additional industrial materials. The market features advanced shredding and grinding technologies together with devulcanization and chemical recycling capabilities and waste management systems which optimize resource extraction while reducing landfill disposal. The market uses rubber products as its main application while rubberized asphalt serves to create safer roads with reduced noise levels and the industry produces building materials and construction materials and automotive components and sports facilities and playgrounds which require high performance and long lasting durability and environmentally friendly solutions for customers to purchase. The market experiences growing demand because of four main factors which include circular economy model growth and enhanced scrap tire management rules and fast developments in recycled rubber materials and tire industry partnerships for material sustainability.

Tire Recycling market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Tire Recycling Market Outlook

Market Key Insights

  • The Tire Recycling market is projected to grow from $7.4 billion in 2025 to $10.8 billion in 2035. This represents a CAGR of 3.8%, reflecting rising demand across Construction and Infrastructure, Automotive and Aerospace, and Energy.

  • The market competition exists between Liberty Tire Recycling and Genan Group and Lakin Tire which operate as its leading companies.

  • The Tire Recycling market shows its largest customer base in the United States and Germany which will experience market expansion at 2.7% to 3.5% annual rates from 2025 to 2030.

  • The research predicts Brazil, Mexico and Indonesia will experience the most significant market expansion because these emerging markets will achieve CAGR rates between 4.2% and 5.3%.

  • The Transition from Energy Recovery to Circular Material Recovery holds more power in the United States and Germany market value chain because it will generate $132 million of new value for the Tire Recycling industry throughout 2030.

  • The Tire Recycling market will experience a $3.4 billion expansion from 2025 to 2035 because manufacturers will focus on Building & Construction & Energy Application sectors which will dominate market growth.

  • The Tire Recycling market will experience a 45% expansion from 2025 to 2035 because of government regulations and Sustainability Initiatives.

tire recycling market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Tire Recycling - Country Share Analysis

Opportunities in the Tire Recycling

Tire Recycling provides construction companies with recycled rubber and tire derived aggregate which they use to build cost effective and environmentally friendly public infrastructure projects. Tire Recycling rubber revenue will expand from $3.1 billion to 3.8 billion throughout the 2030 period which will establish it as the leading product segment. The market has also not only yet explored its potential through three specific applications which involve using recycled rubber to replace traditional materials in road resurfacing and noise reducing asphalt and urban sports infrastructure. The implementation of recycling programs in infrastructure development projects will become more efficient through strategic partnerships between recycling facilities and asphalt manufacturers and urban planning organizations.

Growth Opportunities in North America and Europe

The North American Tire Recycling industry faces three main factors which drive its development through government regulations and business climate change initiatives and public investment in infrastructure development while Building & Construction sector stands out as the leading market segment because agencies require crumb rubber and tire derived products for rubberized asphalt and noise reducing pavements and playgrounds and sports surfaces. The company should focus on three main business opportunities which involve expanding its high purity crumb rubber production and engineered recycled tire materials that meet state Department of Transportation requirements and creating complete sustainable infrastructure solutions and using tire derived fuel in industrial facilities with sophisticated emissions management systems. The market competition has grown stronger because waste management companies from different sectors including local recyclers and processing facilities compete to protect their raw materials while improving their operations and obtaining certification for their products. The competitive advantage in the market now requires businesses to implement devulcanization and fine grinding for material enhancement and maintain construction grade material quality and implement digital tracking systems which support circular economy performance reporting. The main regional factors which drive market growth stem from changing regulations about landfills and stockpiles and the dual advantages of extended durability and reduced noise levels in road surfaces and public support for sustainable infrastructure development and commercial and municipal sectors requiring recycled tire material based surfacing that offers low maintenance and impact absorption.
The European Tire Recycling system operates through strict extended producer responsibility rules which support its circular economy goals because Automotive & Transportation stands as the most important market segment for vehicle manufacturers who want to increase their use of recycled materials in vehicle components and seals and acoustic insulation made from advanced rubber reclaim. The company should focus on delivering advanced recycled rubber compounds to original equipment manufacturers and their supplier network while working with chemical and materials companies to develop performance elastomers from crumb rubber and extracting maximum value from tire waste through improved mechanical granulation and tire derived fuel processing and high end material extraction. The market competition exists because of two main factors: large scale tire recycling operations run by experienced companies which operate throughout different nations and industrial businesses that use tires as fuel for their energy needs. New market participants need to develop innovative processing methods and build efficient cross border collection networks to succeed in this market. The market requires new entrants to provide documented low carbon Tire Recycling solutions which will connect to current automotive and industrial supply networks. The main regional factors which drive the market stem from vehicle manufacturers who must meet strict CO2 emission standards and recyclability regulations and from government waste diversion targets which aim to eliminate landfill waste and from policies which support the use of recycled materials instead of new materials and from consumers who want to see proof of sustainability in their transportation needs and infrastructure projects.

Market Dynamics and Supply Chain

01

Driver: Increasing Environmental Regulations and Demand for Sustainable Secondary Raw Materials

The tire recycling market is also propelled by increasingly stringent environmental regulations and the rising demand for sustainable secondary raw materials. Governments worldwide are also implementing policies like extended producer responsibility and landfill bans to curb tire waste and promote recycling, directly supporting industry investments and compliance activities. These regulatory actions not only reduce landfill burden but also encourage innovation in recycling processes to meet compliance requirements. At the same time, industries such as construction and automotive are also seeking eco‑friendly, cost‑effective alternatives to virgin materials like rubber and carbon black, boosting demand for recycled tire products like crumb rubber and pyrolysis‑derived materials. Together, environmental policy pressures and sustainability‑driven material demand are also expanding market adoption and directing capital toward scalable recycling technologies, shaping industry growth and revenue generation.
A key driver of tire recycling market expansion is also the growing volume of end‑of‑life tires coupled with advancements in processing technologies such as pyrolysis and devulcanization. Rapid vehicle ownership growth results in increasing discarded tires annually, creating urgent demand for efficient recycling solutions and infrastructure. Meanwhile, technological improvements enhance recovery rates, product quality, and process economics for valuable outputs like recovered carbon black, fuel oil, and high‑quality rubber. These innovations not only increase profitability but also broaden application potential in construction materials and industrial products, accelerating market uptake and investment in modern recycling facilities.
02

Restraint: High Capital and Operational Costs Limit Market Expansion and Profitability

The tire recycling industry faces significant restraint from the high initial investment and ongoing operational costs required to establish and maintain recycling facilities. Advanced processing technologies like pyrolysis, cryogenic grinding, and devulcanization require expensive specialized equipment and maintenance, creating steep barriers to entry and limiting participation from smaller recyclers. This cost burden often leads to higher prices for recycled products compared to virgin alternatives, reducing demand in cost‑sensitive segments and constraining revenue growth across markets, especially in developing regions with limited financial support.
03

Opportunity: Advanced pyrolysis technologies converting waste tires into high-value carbon black for automotive manufacturing markets and Rising adoption of tire-derived fuel in energy-intensive cement and industrial plants across emerging economies

The pyrolysis based Advanced Tire Recycling method enables worldwide market access because it generates environmentally friendly carbon black for rubber applications in automotive and industrial sectors. The market for carbon black extracted from waste tires will expand its worldwide revenue from 0.54 billion to 0.61 billion during 2030 with a 2.3% annual growth rate while maintaining substantial value in each ton. The development of new technologies which enhance purity levels and enable better particle size management and performance stability makes it possible to replace traditional carbon black materials. The market will see joint ventures between recyclers and tire manufacturers and chemical companies which will establish themselves in major manufacturing region's to gain access to profitable market segments.
The market for tire derived fuel in Tire Recycling will expand because cement facilities and industrial operations need affordable power sources which produce less environmental pollution. The market for tire derived fuel will expand from 2.34 billion to 2.92 billion during 2030 with tire derived fuel representing the fastest growing product at a 4.5% annual growth rate from 2026 to 2030. The construction industry of emerging economies operates in markets which remain unexplored for co processing scrap tire waste. The long term supply agreements between recyclers and utilities and cement producers will establish stable feedstock sources which will lead to better waste management and stronger renewable energy systems and more reliable power grids.
04

Challenge: Inadequate Infrastructure and Inconsistent Collection Systems Hamper Efficiency

A critical restraint on tire recycling market growth is the lack of robust collection, transport, and processing infrastructure in many regions. Inefficient or fragmented end-of-life tire collection networks hinder consistent feedstock supply, increasing logistical costs and reducing processing throughput, which in turn affects profitability and operational scalability. Without standardized recycling frameworks and traceable tire recovery mechanisms, materials often enter informal disposal streams or illegal dumping, diminishing overall recycling rates and dampening long‑term demand for recycled products.

Supply Chain Landscape

1

Waste Tire Collection

Liberty Tire RecyclingLakin TireGenan Group
2

Tire Recycling Processing

Liberty Tire RecyclingGenan GroupLakin Tire
3

Crumb Rubber Recovery

Scandinavian Enviro SystemsMichelinLiberty Tire Recycling
4

End-Use Applications

Construction materialsRubberized asphaltTire-derived fuel
Tire Recycling - Supply Chain

Use Cases of Tire Recycling in Construction & Infrastructure

Construction and Infrastructure : In the construction and infrastructure sector, tire recycling products like crumb rubber and tire‑derived aggregate are widely used for sustainable building materials and road projects. Crumb rubber is blended with asphalt to produce rubberized asphalt, which enhances pavement flexibility, increases skid resistance, and extends service life, while rubber shreds and TDA serve as lightweight fill, drainage layers, and embankment material in civil engineering works. These recycled materials help reduce construction costs and improve environmental performance, making them attractive for modern infrastructure projects, especially under stringent sustainability regulations. 
Automotive and Aerospace : In automotive applications, recycled tire materials such as micronized rubber powder and devulcanized rubber are utilized to manufacture molded rubber goods including floor mats, seals, vibration‑damping components, and gaskets, improving durability and reducing reliance on virgin rubber. Recycled rubber also plays a role in automotive noise control and underbody protection. While aerospace use is relatively niche, tire‑derived materials are increasingly explored for non‑critical components, insulation, and vibration damping, supporting circular economy goals in transportation sectors. 
Energy : In the energy sector, tire recycling contributes through tyre-derived fuel (TDF) and pyrolysis oil that serve as alternative high‑calorific value fuels in cement kilns, industrial boilers, and power plants. These energy recovery solutions help reduce dependence on traditional fossil fuels while lowering operational costs and emissions. Advanced pyrolysis processes also yield syngas and recovered carbon black, enhancing the economic viability of energy applications and supporting decarbonization efforts in heavy industries. 

Impact of Industry Transitions on the Tire Recycling Market

As a core segment of the C&M Technology industry, the Tire Recycling market develops in line with broader industry shifts. Over recent years, transitions such as Transition from Energy Recovery to Circular Material Recovery and Transition from Low-Value Downcycling to High-Specification Industrial Applications have redefined priorities across the C&M Technology sector, influencing how the Tire Recycling market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Transition from Energy Recovery to Circular Material Recovery

The Tire Recycling market now operates as a high value secondary raw materials engine because it has transitioned from energy recovery to circular material recovery which creates new high value opportunities for the industry. The market transition will create $132 million in additional revenue for the industry throughout 2030 which will focus on United States and German value chains. The combination of tighter emission rules and decarbonization targets and producer responsibility expansion has driven the industry toward using recycled rubber materials and recovered carbon black and pyrolysis oil instead of tire derived fuel. The circular economy approach has led to higher capital expenses and advanced technological developments which now link up with tire manufacturers and chemical producers who want environmentally friendly materials. The redirection of end of life tires toward closed loop applications will create better business conditions for Tire Recycling companies which focus on material recovery because they will obtain higher profit margins and better access to feedstock materials and improved business stability in the future.
02

Transition from Low-Value Downcycling to High-Specification Industrial Applications

The main use of recycled tire materials during previous times involved their application in playground surfaces and mats and basic construction products which did not only need high performance standards. The market has started to transition toward using recycled materials for tire recycling and automotive parts manufacturing and plastics processing and performance improved asphalt production. The transition occurs because OEMs have made sustainability promises to their customers while governments enforce regulations which demand recycled materials for products that maintain their performance standards. The recycling industry now demands that recyclers must provide materials which meet industrial standards while maintaining both quality and traceability which results in elevated market access requirements and extended certification periods and industry consolidation.