Automotive Green Tires Market Size
Market Overview
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 133.73 Billion |
| Market Size (2030) | USD 225.55 Billion |
| Growth Rate (2025 - 2030) | 11.02% CAGR |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Automotive Green Tires Market Analysis
The Automotive Green Tires Market size is estimated at USD 133.73 billion in 2025, and is expected to reach USD 225.55 billion by 2030, at a CAGR of 11.02% during the forecast period (2025-2030).
The automotive green tires industry is experiencing a significant transformation driven by increasing environmental consciousness and technological advancements in tire manufacturing. Tire manufacturers are increasingly focusing on sustainable materials and production methods, with companies like Nokian Tires leading the way through innovations such as their Green Step concept tire, which comprises 93% recycled or renewable materials. This shift towards sustainability is reshaping the entire supply chain, from raw material sourcing to manufacturing processes, as manufacturers work to reduce their environmental footprint while maintaining high-performance standards. The industry is witnessing a remarkable evolution in tire composition, with traditional materials being replaced by eco-friendly alternatives such as silica derived from rice husks and natural rubber tires from sustainable sources.
Technological innovation in green tire manufacturing has led to significant improvements in tire performance and efficiency. Modern green tires demonstrate superior performance characteristics, with current designs achieving up to a 20% reduction in rolling resistance compared to conventional tires. This advancement is particularly significant as rolling resistance accounts for 10-15% of fuel consumption in passenger cars and up to 30% in heavy trucks, with low rolling resistance tires capable of reducing this consumption by 2-3%. These improvements are driving increased adoption across various vehicle segments, as manufacturers and consumers alike recognize the dual benefits of environmental sustainability and operational efficiency.
Strategic partnerships and collaborations are becoming increasingly prevalent in the industry, fostering innovation and accelerating the development of next-generation green tires. In 2023, Hyundai Motor Group and Michelin formed a significant partnership to develop specialized tires for premium electric vehicles, focusing on increasing the use of sustainable materials and improving overall tire performance. This collaboration exemplifies the industry's shift towards integrated development approaches, where tire manufacturers work closely with automotive OEMs to create optimized solutions for specific vehicle types and use cases. The industry is also witnessing increased investment in research and development, with companies exploring novel materials and manufacturing processes.
The market is experiencing a notable shift in consumer preferences and regulatory requirements, driving manufacturers to adapt their product offerings and manufacturing processes. Major tire manufacturers are setting ambitious sustainability targets, with companies like Michelin committing to using 50% recycled or renewable materials in their tire production by 2030. This transformation is supported by advances in material science and manufacturing technology, enabling the production of high-performance green tires that meet or exceed traditional tire specifications. The industry is also seeing increased adoption of digital technologies and smart manufacturing processes, enabling more efficient production methods and better quality control in green tire manufacturing. The inclusion of recycled tire materials and natural rubber tire components is becoming more prevalent, aligning with consumer demand for sustainable products.
Automotive Green Tires Market Trends
Rising Demand for Long Range in Electric Vehicles to Drive Demand
The exponential growth in electric vehicle adoption is creating substantial demand for electric vehicle tires solutions, as manufacturers focus on maximizing vehicle range and efficiency. Global electric car sales witnessed a remarkable 55.5% increase in 2022 compared to 2021, with one in every seven passenger cars purchased globally being an electric vehicle. These low rolling resistance tires provide 20% less rolling resistance, which has become a critical solution for electric vehicle manufacturers facing range limitations. The enhanced efficiency provided by these tires enables longer-range electric vehicles, making them more practical and appealing to consumers.
Leading tire manufacturers are actively collaborating with automotive OEMs to develop specialized green tires for electric vehicles. A notable example is the April 2022 partnership between Mercedes-Benz and Bridgestone Corporation for manufacturing tires for the Mercedes-Benz Vision EQXX. This collaboration aims to design highly efficient custom Turanza Eco tires to help extend driving range to 1,000 km. Bridgestone has incorporated its innovative ENLITEN technology in these tires, reducing rolling resistance and tire weight by 20%. Similarly, Goodyear introduced the ElectricDrive GT featuring SoundComfort Technology, specifically optimized for popular electric vehicles like Tesla models, demonstrating the industry's commitment to developing specialized green tire solutions for the growing electric vehicle market.
Growing Focus Toward Fuel Efficiency of IC Engine Vehicles to Drive Demand
The automotive industry's increasing emphasis on fuel efficiency and environmental sustainability is driving significant innovations in energy-efficient tire technology. These tires contribute substantially to reducing overall vehicle emissions and fuel consumption, with studies showing that rolling resistance accounts for 10-15% of fuel consumption in passenger cars and up to 30% in heavy trucks. Green tires can effectively reduce rolling resistance by 30% and decrease fuel consumption by 5-7%, making them an essential component in achieving improved vehicle efficiency and meeting stringent environmental regulations.
Tire manufacturers are accelerating their efforts to develop sustainable tire technologies, including the use of renewable rubbers that outperform traditional materials. This transformation is supported by various government initiatives and regulations aimed at reducing vehicle emissions. For instance, in June 2022, India's Bureau of Energy Efficiency launched the Star Labeling Program for tires, providing consumers with clear information about rolling resistance and potential fuel economy benefits. This program, similar to appliance energy ratings, has led to significant developments such as Michelin becoming the first tire brand in India to receive a five-star rating for its Latitude Sport 3 and Pilot Sport 4 SUV tires. These initiatives, combined with the growing consumer awareness of environmental impact, are creating strong market pull for green tires in both new vehicles and the replacement market.
Segment Analysis: By Vehicle Type
Passenger Vehicle Segment in Automotive Green Tires Market
The passenger vehicle segment continues to dominate the automotive green tires market, commanding approximately 65% market share in 2024, while also maintaining the highest growth trajectory with a projected growth rate of around 11% during 2024-2029. This segment's prominence is primarily driven by increasing consumer awareness about electric mobility and the growing demand for passenger cars globally. Major automotive manufacturers are actively incorporating green tire technology in their vehicle offerings to enhance fuel efficiency and reduce environmental impact. The segment's growth is further bolstered by stringent emission regulations worldwide, compelling automotive manufacturers to adopt eco-friendly components, including low rolling resistance tires. Additionally, the rising adoption of electric vehicles in the passenger car segment has created a strong demand for low rolling resistance tires, as these tires directly contribute to extending the vehicle's range and overall efficiency.
Commercial Vehicle Segment in Automotive Green Tires Market
The commercial vehicle segment represents a significant portion of the automotive green tires market, focusing on delivering enhanced fuel efficiency and reduced operating costs for fleet operators. This segment has witnessed substantial technological advancements in tire manufacturing, with manufacturers developing specialized compounds and tread patterns specifically designed for commercial applications. The segment's growth is driven by increasing awareness among fleet operators about the long-term cost benefits of green tires, including reduced fuel consumption and extended tire life. Furthermore, the commercial vehicle segment is experiencing a transformation with the introduction of electric trucks and buses, creating new opportunities for green tire manufacturers to develop specialized products that can handle the unique requirements of these vehicles, including higher torque characteristics and increased vehicle weight due to battery systems.
Segment Analysis: By End-User Type
OEM Segment in Automotive Green Tires Market
The Original Equipment Manufacturer (OEM) segment dominates the automotive green tires market, holding approximately 67% market share in 2024. This significant market position is primarily driven by the increasing focus of automotive manufacturers on electric and hybrid vehicles that require specialized green tire solutions. Major automotive OEMs are actively collaborating with tire manufacturers to develop custom-designed energy-efficient tires that offer reduced rolling resistance and improved fuel efficiency. The segment's growth is further supported by stringent emission regulations worldwide, compelling vehicle manufacturers to incorporate eco-friendly components, including green tires, in their new vehicle models. Additionally, the rising consumer awareness about environmental sustainability and the growing demand for vehicles with better fuel economy have encouraged OEMs to increase their adoption of green tires as standard equipment in new vehicles.
Aftermarket Segment in Automotive Green Tires Market
The aftermarket segment is emerging as the fastest-growing segment in the automotive green tires market, with a projected growth rate of approximately 11% during 2024-2029. This accelerated growth is attributed to the increasing awareness among vehicle owners about the benefits of green tires, including reduced fuel consumption and lower environmental impact. The segment is witnessing strong momentum due to the implementation of tire labeling programs and environmental regulations in various regions, which are encouraging consumers to opt for eco-friendly tire replacements. Tire manufacturers are expanding their distribution networks and launching innovative green tire products specifically targeted at the replacement market. Furthermore, the growing focus on vehicle maintenance and sustainability among fleet operators and individual vehicle owners is expected to continue driving the aftermarket segment's growth in the coming years.
Automotive Green Tires Market Geography Segment Analysis
Automotive Green Tires Market in North America
North America represents a significant market for the automotive green tires sector, driven by stringent emission regulations and increasing adoption of electric vehicle tire solutions. The region's market is characterized by a strong presence of major automotive manufacturers and tire companies, with substantial research and development activities in sustainable tire technologies. The United States dominates the regional landscape, while Canada shows promising growth potential with its increasing focus on environmental sustainability and automotive sector development.
Automotive Green Tires Market in the United States
The United States leads the North American market with approximately 21% share of the global automotive green tires market in 2024. The country's dominance is attributed to its large automotive manufacturing base and the presence of major tire manufacturers. The market is driven by increasing consumer awareness about fuel efficiency and environmental sustainability. The U.S. government's stringent regulations on vehicle emissions and fuel efficiency standards continue to push automotive manufacturers towards adopting green technologies, including eco-friendly tires and low rolling resistance tire options. The presence of established distribution networks and strong aftermarket services further strengthens the country's position in the green tires segment.
Automotive Green Tires Market in Canada
Canada emerges as the fastest-growing market in North America, with a projected growth rate of approximately 11% during 2024-2029. The country's market is experiencing rapid expansion due to the increasing adoption of electric vehicle tire solutions and government initiatives promoting sustainable transportation solutions. Canadian authorities are actively encouraging tire manufacturers to produce eco-friendly tires while advising vehicle owners about proper tire maintenance and replacement. The country's focus on reducing carbon emissions and promoting clean energy solutions in the automotive sector creates favorable conditions for green tire adoption. The market is further supported by growing consumer awareness about environmental sustainability and the fuel efficiency benefits offered by low rolling resistance tire options.
Automotive Green Tires Market in Europe
Europe stands as a crucial market for the automotive green tires industry, driven by stringent environmental regulations and a strong focus on sustainable mobility solutions. The region's market is characterized by high technological advancement in tire manufacturing and a strong presence of leading automotive and tire manufacturers. Germany leads the European market with its robust automotive manufacturing base, while France shows the highest growth potential. The region's commitment to reducing carbon emissions and promoting electric mobility creates a favorable environment for green tire adoption.
Automotive Green Tires Industry Overview
Top Companies in Automotive Green Tires Market
The automotive green tires market is characterized by intense innovation and strategic developments among key players, including Bridgestone Corporation, Michelin Group, Continental AG, and other prominent manufacturers. Companies are heavily investing in research and development to create sustainable tire solutions with reduced rolling resistance and improved fuel efficiency. The industry witnesses continuous product launches focusing on electric vehicle tire solutions and eco-friendly materials, demonstrating the sector's commitment to sustainability. Operational excellence is being achieved through the modernization of manufacturing facilities and the adoption of advanced production technologies. Strategic partnerships with automotive OEMs and expansion into emerging markets, particularly in Asia-Pacific and Latin America, have become crucial for market penetration. Companies are also strengthening their aftermarket presence through digital channels and enhanced distribution networks to capture growing replacement tire demand.
Consolidated Market with Strong Global Players
The automotive green tires market exhibits a moderately consolidated structure dominated by multinational corporations with extensive manufacturing footprints and established brand presence. These major players leverage their technological capabilities, research facilities, and long-standing relationships with automotive manufacturers to maintain their market positions. The industry landscape is characterized by a mix of traditional tire manufacturers who have diversified into green technologies and specialized companies focused exclusively on sustainable tire solutions. Regional players, particularly in emerging markets, are gaining prominence through competitive pricing and localized distribution strategies.
Market dynamics are shaped by strategic mergers, acquisitions, and collaborations aimed at expanding product portfolios and geographical reach. Companies are increasingly focusing on vertical integration to secure raw material supply chains and enhance cost competitiveness. The market witnesses ongoing consolidation as larger players acquire regional manufacturers to strengthen their presence in high-growth markets. Joint ventures and technology partnerships have become common, particularly for developing innovative sustainable materials and manufacturing processes.
Innovation and Sustainability Drive Future Success
Success in the automotive green tires market increasingly depends on companies' ability to develop innovative, sustainable products while maintaining cost competitiveness. Manufacturers must focus on developing proprietary compounds and technologies that reduce rolling resistance while maintaining performance characteristics. Building strong relationships with OEMs, particularly in the electric vehicle segment, is becoming crucial for market success. Companies need to invest in digital capabilities and direct-to-consumer channels while maintaining traditional distribution networks. Establishing robust recycling programs and circular economy initiatives, such as recycled tire solutions, will become increasingly important for market leadership.
Market contenders can gain ground by focusing on specific vehicle segments or regional markets where they can build competitive advantages. Success factors include developing specialized products for electric vehicles and other emerging mobility solutions. Companies must navigate increasing regulatory pressures regarding environmental standards and tire labeling requirements, making compliance capabilities crucial for market participation. The ability to manage raw material costs, including sourcing natural rubber tire materials, while maintaining product quality will be essential for sustainable growth. Future success will also depend on building strong brand recognition through sustainability credentials and performance validation.
Automotive Green Tires Market Leaders
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Michelin Group
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Bridgestone Corporation
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Continental AG
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The Goodyear Tire & Rubber Company
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Pirelli & C. S.p.A.
- *Disclaimer: Major Players sorted in no particular order
Automotive Green Tires Market News
- March 2023: Sumitomo Rubber Industries announced the launch of Falken e.ZIEX's new line of replacement tires for the electric vehicles fleet across Europe.
- January 2023: Goodyear announced the launch of its automotive green tire, which is made up of 90% sustainable material which would be used for electric vehicles. The tire material comprises soybean oil and polyester from recycled plastic bottles.
- September 2022: TOYO Tire Corporation delivered its Nano energy tire model J67 to Toyota Motor Corporation as OE for its new model Toyota Sienta. Due to their low rolling resistance, the company delivered 185/65 R15 88S dimension J67 green tires with exceptional fuel-saving capabilities.
- May 2022: Bridgestone Corporation introduced the R192E all-position radial tire specially designed for electric urban transit. The R192E tire offers ultra-low rolling resistance and high load capacity, increasing daily ranges.
- May 2022: ZC Rubber recently launched its new Westlake and Goodride flagship range of ultra-high-performance passenger car tires for the European market at Tire Cologne 2022. The tire range also offers a 5% reduction in overall rolling resistance owing to its redesigned tire profile based on ZC rubber's updated design configuration. The tires also add improved handling and grip performance in wet conditions s as well.
- March 2022: Pirelli unveiled its new range of aftermarket tires for electric vehicles in North America. The tires offer a reduction in rolling resistance by 15%, specifically made for Lucid Air Dream Edition or Tesla Model S All-Wheel Drive.
- February 2022: Yokohama Tire Corporation announced the launch of tires with sustainable materials for Supercars. The company would produce synthetic rubber from biomass and recyclable thermo-reversible rubber.
Automotive Green Tires Industry Segmentation
Green tires are high-performance tires with high dispersible silica content. These tires have several critical properties, including being lightweight, low rolling resistance, low CO2 emissions, and fuel consumption, extended life, and good durability, making them suited for off-road use.
The automotive green tire is segmented into vehicle type, end-user type, and geography. On the basis of vehicle type, the market is segmented into passenger and commercial vehicles. On the basis of end-user type, the market is segmented into OEM and aftermarket, and on the basis of geography, the market is segmented into North America, Europe, Asia-Pacific, and the rest of the world.
For each segment, the market sizing and forecast have been done based on value (USD).
| By Vehicle Type | Passenger Vehicles | ||
| Commercial Vehicles | |||
| By End-User Type | OEM | ||
| Aftermarket | |||
| By Geography | North America | United States | |
| Canada | |||
| Rest of North America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Rest of Europe | |||
| Asia-Pacific | India | ||
| China | |||
| Japan | |||
| South Korea | |||
| Rest of Asia-Pacific | |||
| Rest of the World | Brazil | ||
| United Arab Emirates | |||
| Other Countries | |||
| Passenger Vehicles |
| Commercial Vehicles |
| OEM |
| Aftermarket |
| North America | United States |
| Canada | |
| Rest of North America | |
| Europe | Germany |
| United Kingdom | |
| France | |
| Rest of Europe | |
| Asia-Pacific | India |
| China | |
| Japan | |
| South Korea | |
| Rest of Asia-Pacific | |
| Rest of the World | Brazil |
| United Arab Emirates | |
| Other Countries |
Automotive Green Tires Market Research FAQs
How big is the Automotive Green Tires Market?
The Automotive Green Tires Market size is expected to reach USD 133.73 billion in 2025 and grow at a CAGR of 11.02% to reach USD 225.55 billion by 2030.
What is the current Automotive Green Tires Market size?
In 2025, the Automotive Green Tires Market size is expected to reach USD 133.73 billion.
Who are the key players in Automotive Green Tires Market?
Michelin Group, Bridgestone Corporation, Continental AG, The Goodyear Tire & Rubber Company and Pirelli & C. S.p.A. are the major companies operating in the Automotive Green Tires Market.
Which is the fastest growing region in Automotive Green Tires Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Automotive Green Tires Market?
In 2025, the Asia-Pacific accounts for the largest market share in Automotive Green Tires Market.
What years does this Automotive Green Tires Market cover, and what was the market size in 2024?
In 2024, the Automotive Green Tires Market size was estimated at USD 118.99 billion. The report covers the Automotive Green Tires Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Automotive Green Tires Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
