Market Size of Automotive Green Tires Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 120.46 Billion |
| Market Size (2029) | USD 203.16 Billion |
| CAGR (2024 - 2029) | 11.02 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Automotive Green Tires Market Analysis
The Automotive Green Tires Market size is estimated at USD 120.46 billion in 2024, and is expected to reach USD 203.16 billion by 2029, growing at a CAGR of 11.02% during the forecast period (2024-2029).
- The COVID-19 pandemic hindered the growth of automotive green tires owing to declined vehicle production and the shutdown of manufacturing units due to lockdowns and restrictions imposed by the government. Furthermore, supply chain disruptions and trade restrictions created chaos in the market, making tire assembly and its supply to major OEMs more complex than expected. However, as manufacturers started taking necessary measures to mitigate such future risks and as restrictions eased, the demand in the market started picking up pace and is expected to continue over the forecast period.
- Over the medium term, rising electric car sales have been cited as a key element driving demand for green tires. These green tires provide 20% less low rolling resistance, increasing total vehicle efficiency. This has been recognized as a primary solution for electric car manufacturers who are experiencing issues with limited range and green tires; they may see longer-range electric vehicles as a result of the improved efficiency supplied by them.
- Silica aids in the reduction of rolling resistance or the energy lost as the tire deforms against the road. Energy conservation improves fuel efficiency. Rolling resistance accounts for 10-15% of fuel consumption in passenger cars but can account for up to 30% of fuel consumption in heavy trucks. While low rolling resistance tires may only cut this by 2 to 3%, fuel savings still assist the environment.
- Asia-Pacific is anticipated to drive the demand for green tires owing to the increased penetration of electric vehicles across South Asian countries, China, Japan, etc. Further, shifting consumer preferences and rising sales of the passenger car segment across the region fuel the demand for green tires. In the wake of these factors, tire manufacturers are seen switching towards green tire, which is available as original equipment (OE), and even gets retrofit to lower the rolling resistance to improve fuel economy and reduce CO2 emission.
