Automotive Green Tires Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Automotive Green Tires Market has been segmented by Vehicle Type (Passenger Cars and Commercial Vehicles), End User (OEM and Aftermarket), and Geography.

Market Snapshot

Market_Overview
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Europe
Largest Market: Europe
CAGR: >10 %

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Market Overview

The Automotive Green Tires Market is expected to register a CAGR of 10% during the forecast period, 2020-2025.

  • The need for low emission transportation systems has led to the introduction of green tires in the automotive industry. A green tire is similar to a conventional tire but provides a lower rolling resistance, which results in better fuel economy and low emissions. This can be achieved with the use of precipitated silica during the manufacturing of green tires. Low rolling-resistance green tires are made of rubber, silica, carbon black, and silica consumption in green tires is double the amount used in conventional tires.
  • According to the EPA and the Rubber Manufacturers Association, around 290 million tires are discarded in the United States each year. In which around 80% of these tires are reused or recycled in some way. In contrast, around 130 million tires are used annually as tire-derived fuel (TDF), one of the single biggest use of old tires.
  • Automotive sales primarily drive the automotive green tires market. However, COVID-19 has heavily disrupted passenger car sales. As a result, the demand for automotive green tires has become stagnant in 2020. However, with the easing of COVID-19 lockdown all across the world, the automotive green tires market is expected to regain its momentum.

Scope of the report

The automotive green tires market covers the latest trends with recent technological developments. The report will provide a detailed analysis of various areas of the market by vehicle and end-user type. The market share of significant automotive green tire companies and regional level analysis will be provided in the report.

By Vehicle Type
Passenger Cars
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

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Key Market Trends

OEM Sales Channel Holds Major Market Share

Governments of various countries are coming with various stringent regulations for vehicles and vehicle manufacturers. As a result, tire manufacturers adopt environment-friendly raw materials without compromising on lighter tires, which significantly reduces vehicle weight, providing higher fuel efficiency and less consumption. This all advantages of green tires will propel the demand for green tires in the market.

Major players in the market are constantly working on various technologies. For instance, in 2019, Sumitomo Rubber Industries, Ltd., and Kansai University have developed a new technology to generate electric power from a tire's rotation. The tire takes advantage of the build-up of static electricity, also known as frictional charging, to produce power from tires rotation.

Whereas in 2020, Goodyear developed a self-generating design to extend the life of tires, making them more adaptable to different conditions. The Goodyear ReCharge tire concept utilizes a tread that can be replenished using fluid-filled capsules. The tread compound is made up of biological material and reinforced with fibers based on spider silk.

key market trend 1

Europe is Expected to Lead the Market

Europe is registering the fastest growth for the Green tire market. With the rise in government regulations on installing green tire and a steady rise in vehicle sales are driving the European Green Tires Market. For instance, the REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals by the European Parliament) regulation, which was launched in 2007, restricts the use of chemical substances that harm human health and the environment.

Due to the stringent emission norms (EURO VI) in the region, major vehicle manufacturers opt for suppliers with components that help them meet those standards. Tires are an important aspect in terms of reducing emissions and delivering good fuel economy. Major tires manufacturers and automakers are entering into a partnership for the development of next-generation sustainable tires. For instance, in 2019, General Motors and Michelin entered into a new partnership on a prototype of a radically new type of wheel designed to replace the conventional pneumatic tires and wheels. Michelin UPTIS materials reduce the number of tires censured for scrapping while reducing overall raw materials and energy used in tire production.

In the second quarter of 2020, the market share of electrically-chargeable vehicles increased to 7.2% of total European Union car sales, compared to a 2.4% share during the same period in 2019. The overall decline in passenger car registrations due to the COVID-19 pandemic affected the diesel and petrol cars in particular, although together still account for more than 80% of total car sales.

key market trend 2

Competitive Landscape

The automotive green tires market is dominated by players such as Michelin, Bridgestone, Continental, Yokohama, and Apollo Tires. These few players hold a major share in the market and investing in their production capabilities to develop sustainable tire materials. For instance,

In 2019, Michelin and IFP Energies Nouvelles and Axens announced a plan for scaling up its BioButterfly project with the construction of an industrial prototype facility to produce bio-based butadiene. The plan was launched back in 2012, with a total investment of USD 80.5 million to produce butadiene, which will be used to produce environmentally friendly synthetic rubber.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Vehicle Type

      1. 5.1.1 Passenger Cars

      2. 5.1.2 Commercial Vehicles

    2. 5.2 By End User Type

      1. 5.2.1 OEM

      2. 5.2.2 Aftermarket

    3. 5.3 By Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 France

        4. 5.3.2.4 Rest of Europe

      3. 5.3.3 Asia Pacific

        1. 5.3.3.1 India

        2. 5.3.3.2 China

        3. 5.3.3.3 Japan

        4. 5.3.3.4 South Korea

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 Rest of the World

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 United Arab Emirates

        3. 5.3.4.3 Other Countries

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Bridgestone Corporation

      2. 6.2.2 Continental AG

      3. 6.2.3 Michelin Group

      4. 6.2.4 Apollo Tyres Limited

      5. 6.2.5 Yokohama Tire Corporation

      6. 6.2.6 Goodyear Tire & Rubber Company

      7. 6.2.7 Pirelli & C. S.p.A.

      8. 6.2.8 Toyo Tire Corporation

      9. 6.2.9 MRF Limited

      10. 6.2.10 Dunlop Tyres

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Automotive Green Tires Market market is studied from 2018 - 2026.

The Automotive Green Tires Market is growing at a CAGR of >10% over the next 5 years.

Europe is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2020.

Michelin Group, Bridgestone Corporation, Continental AG, Yokohama Rubber Company, Apollo Tyres Limited are the major companies operating in Automotive Green Tires Market.

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