Automotive Green Tires Market Size, Share, and Growth Analysis

Automotive Green Tires Market By Vehicle (Passenger Car, Commercial Vehicles), By Application (On-Road, Off-Road), By End Use (OEM, Aftermarket), By Region -Industry Forecast 2025-2032


Report ID: SQMIG25B2026 | Region: Global | Published Date: January, 2025
Pages: 198 |Tables: 84 |Figures: 71

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Automotive Green Tires Market Insights

Global Automotive Green Tires Market size was valued at USD 106.3 Billion in 2023 and is poised to grow from USD 118.6 Billion in 2024 to USD 274.2 Billion by 2032, growing at a CAGR of 11.4% in the forecast period (2025-2032).

The global automotive green tires market growth is expected to develop significantly with sustainability gaining more attention in the industry. Growing greenhouse gas emissions from conventional tire production, in addition to concerns over climate change and global warming, are creating a need for environmentally friendly alternatives. Green tires play a critical role in sustainable transportation. This not only saves the customers but also provides an avenue for a significant reduction in rolling resistance of up to 30% and up to 5%–7% reduction in fuel consumption and reduction in greenhouse gas emissions. The manufacturing process and materials for green tires are developed to have significant performance and efficiency. There are new standards of the industry brought by the newly developed silica-based compounds, renewable raw resources, and energy-efficient production techniques. There are strict laws, including Clean Air Act (CAA) and the National Emission Standards for Hazardous Air Pollutants (NESHAP), which require the use of eco-friendly production methods from the manufacturer, contributing to the market's growth.

Fluctuating raw material prices, raising operating expenses, and energy-intensive production methods are providing difficulties for the market. Increased focus on environmental preservation, fuel economy, and improvements in automobile production create possibilities for green tires. The sector is expected to flourish as worldwide producers concentrate on increasing the tire economy and coordinating with global environmental goals.

Market snapshot - (2025-2032)

Global Market Size

USD 106.3 Billion

Largest Segment

Off-Road

Fastest Growth

On-Road

Growth Rate

11.4% CAGR

Global Automotive Green Tires Market ($ Bn)
Country Share for Asia-Pacific (%)

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Automotive Green Tires Market Segments Analysis

The global automotive green tires market is segmented into vehicle, application, end user, and region. By vehicle, the market is classified into passenger car and commercial vehicles. Depending on the application, it is divided into on-road and off-road. According to end user, the market is bifurcated into OEM and aftermarket. Regionally, the market is studied across North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.

Analysis by Vehicle

As per the 2024 global automotive green tires market analysis, the commercial vehicles segment dominated the market, owing to the increasing adoption of eco-friendly solutions in logistics and transportation. Green tires offer several advantages for commercial vehicles, such as reduced rolling resistance, better fuel efficiency, and lower emissions of greenhouse gases. To remain in conformity with environmental standards while saving operational expenditure, fleet operators are putting forward sustainability at the helm. In return, it has been motivated by global trade as well as by e-commerce requirements for an efficient freight solution. Green tires have also been more popular among customers due to being inexpensive and enduring heavy-duty applications. This market is expected to continue dominating as companies focus on reducing their carbon footprint and embracing sustainable transportation solutions.

The passenger cars segment is expected to grow at a robust CAGR of approximately 11% during the forecast period through 2032. The rise in passenger car sales is driven by growing disposable income and changing mobility needs, which fuels this growth. As green tires add more energy-efficient qualities to electric and hybrid vehicles, the demand for these tires increases even further, given the rise in demand for such vehicles. The segment is growing at a faster pace due to the regular launch of passenger electric vehicles by the top manufacturers and improvements in tire technology. In addition, consumer awareness of sustainability and the benefits of fuel-efficient tires is driving product penetration in this market, thus making it a significant contributor to the market.

Analysis By Application

Off-road is the highest contributing category to the global automotive green tires market. It has recorded increased growth as it finds itself increasingly required to implement environmentally friendly solutions within such sectors as mining, construction, and agriculture that highly employ off-road vehicles. Off-road green tires are the greatest for heavy-duty in difficult terrains as they assure more durability with less rolling resistance and greater economy. Stringent environmental laws towards reducing carbon footprint also support the utilization of sustainable methodology in these industrial sectors. Their market penetration further increases and gets expanded by modern materials and latest tread designs being still developed.

Based on the 2024 global automotive green tires market forecast, the on-road category is expected to grow at a compound annual growth rate (CAGR) of about 11.3% between 2025 and 2032. The segment is expected to grow due to rising consumer demand for passenger automobiles and light commercial vehicles in particular. Weight and fuel optimization in light commercial vehicles will be driven mainly by changing consumer lifestyles and the growth of e-commerce freight and logistics services. Rising environmental concerns about fuel emission and safety will also put potential prospects towards sector expansion. Moreover, the government mandates related to emissions and economy of on-road vehicles such as Euro 6 (6/VI) and BS-VI (BS6) up to the year 2027 will have a positive impact on the expansion of the global automotive green tires industry.

Global Automotive Green Tires Market By Application

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Automotive Green Tires Market Regional Insights

Asia-Pacific led the automotive green tires market in 2024. The demand coming from China, India, and Japan mostly reinforce the supremacy. Regional market revenue is expected to be boosted through increased car ownership brought on through rising disposable incomes and strict pollution standards and laws set out by various nations. APAC accounted for about half of the world's automobile output in 2024. More than a quarter of all vehicles sold across the globe in the same period were from China, the world's largest automaker. With most of the world's largest automakers shifting their manufacturing base there in recent years, the region has emerged as a hub for the automobile sector.

Due to strict government rules encouraging eco-friendly practices in the automobile sector and growing awareness of environmental sustainability, North America is expected to dominate the market during the projection period. The region's thriving automotive manufacturing industry and the increasing demand for low-emission and fuel-efficient automobiles are further driving the adoption of green tires. Environmental goals of the US and Canada also align with the advancement in tire technology and a strong focus on reducing greenhouse gas emissions. In addition, growth is driven by increasing customer demand for environmentally friendly transportation solutions, especially in electric and hybrid vehicles. North America's continued leadership in the market for green tires is assured by its forward-thinking approach to sustainability.

Global Automotive Green Tires Market By Geography
  • Largest
  • Fastest

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Automotive Green Tires Market Dynamics

Drivers

Consumer Awareness Toward Sustainable Lifestyle

  • As consumers increasingly focus on their environmentally friendly and sustainable lifestyle needs in every phase of life, such as car components, environmental concerns drive demand for them. Green tires reduce pollutants, and the usage of fuel is more in vogue. Rising awareness among the consumers, with more emphasis on goods that deliver energy efficiency through saving costs, coupled with contribution towards environmental savings, is raising the demand, pushing the growth for this market across geographies.

Development in the Automotive Industry

  • Explosive growth of the automobile industry, particularly in emerging markets, is the principal driving factor in this market. Increasing vehicle production, with more stress on electric and hybrid vehicles, further escalates the demand for green tires. These are popular choices as the industry gets closer to environmentally friendly mobility solutions worldwide because they meet the sustainability goals of the industry and legal standards.

Restraints

Lack of Awareness in Underdeveloped Countries

  • Green tires are increasingly gaining acceptance in developed nations, but their awareness is low in poor countries due to a lack of marketing and awareness. Many buyers are not well aware of the long-term financial and environmental benefits of green tires. This ignorance coupled with fears about affordability makes it challenging to break into price-sensitive and underdeveloped markets.

Infrastructure Challenges

  • There is a significant challenge of poor infrastructure for recycling and producing green tires. Most regions lack the infrastructure to develop alternatives to used tires or manufacture eco-friendly products. The supply chains can also not be successfully developed when there are no policies and support from the government, thus severely limiting the scope of the expansion of this green tire market in these regions.

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Automotive Green Tires Market Competitive Landscape

The competitive environment of the global automotive green tires industry is characterized by leading international companies that emphasize sustainability and innovation. To gain a competitive advantage, businesses are investing in sustainable production methods, smart tire technologies, and advanced materials. Large firms may form strategic alliances, mergers, and acquisitions to enhance their market position. The pressure to adhere to very specific environmental regulations increase competition in this fast-changing industry.

Top Players in Automotive Green Tires Market

  • Michelin
  • Bridgestone Corporation
  • Continental AG
  • Goodyear Tire & Rubber Company
  • Pirelli & C. S.p.A.
  • Hankook Tire & Technology Co., Ltd.
  • Sumitomo Rubber Industries, Ltd.
  • Yokohama Rubber Co., Ltd.
  • Toyo Tire Corporation
  • Kumho Tire Co., Inc.
  • Nokian Tyres Plc
  • Apollo Tyres Ltd.
  • CEAT Limited
  • Falken Tire Corporation
  • MRF Limited

Recent Developments

  • In January 2023, Goodyear announced the launch of their automobile green tire. The tire is made of 90% sustainable material and will be used in electric cars. The composition of the tire is soybean oil and polyester from recycled plastic bottles.
  • In May 2022, Pirelli invested USD 15 million to build a state-of-the-art technology and digitization center next to its Silao, Mexico, facility. It will produce tires for the increasingly connected, ecological, and electric cars of the future.
  • In April 2022, Bridgestone declared that Mercedes-Benz AG has selected it to be the tire development partner for the Mercedes-Benz VISION EQXX. Experts from Mercedes-Benz and Bridgestone cooperated to create specially designed tires that have increased the car's economy and allowed it to drive up to 1,000 kilometers in the real world on a single charge.

Automotive Green Tires Key Market Trends

Automotive Green Tires Market SkyQuest Analysis

SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.

As per SkyQuest analysis, the global automotive green tires market outlook is becoming greatly opened due to stricter laws, growing environmental consciousness, and the increased requirements of low-emission, fuel-efficient tires. Green tires are a huge issue in fuel consumption, and better performance besides the reduction in carbon footprint of the car sector as a whole, the industry is working its way through eco-friendly alternatives. There is much scope in the industry, mainly due to developments in smart tire technology and recycling programs, though there are several challenges such as high production costs and low awareness in developing countries. The future for green tires looks bright if the producers back the environmental objectives.

Report Metric Details
Market size value in 2023 USD 106.3 Billion
Market size value in 2032 USD 274.2 Billion
Growth Rate 11.4%
Base year 2024
Forecast period (2025-2032)
Forecast Unit (Value) USD Billion
Segments covered
  • Vehicle
    • Passenger Car and Commercial Vehicles
  • Application
    • On-Road and Off-Road
  • End User
    • OEM and Aftermarket
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Michelin
  • Bridgestone Corporation
  • Continental AG
  • Goodyear Tire & Rubber Company
  • Pirelli & C. S.p.A.
  • Hankook Tire & Technology Co., Ltd.
  • Sumitomo Rubber Industries, Ltd.
  • Yokohama Rubber Co., Ltd.
  • Toyo Tire Corporation
  • Kumho Tire Co., Inc.
  • Nokian Tyres Plc
  • Apollo Tyres Ltd.
  • CEAT Limited
  • Falken Tire Corporation
  • MRF Limited
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Automotive Green Tires Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Automotive Green Tires Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Automotive Green Tires Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Automotive Green Tires Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Automotive Green Tires Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Automotive Green Tires Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Global Automotive Green Tires Market size was valued at USD 106.3 Billion in 2023 and is poised to grow from USD 118.6 Billion in 2024 to USD 274.2 Billion by 2032, growing at a CAGR of 11.4% in the forecast period (2025-2032).

The competitive environment of the global automotive green tires industry is characterized by leading international companies that emphasize sustainability and innovation. To gain a competitive advantage, businesses are investing in sustainable production methods, smart tire technologies, and advanced materials. Large firms may form strategic alliances, mergers, and acquisitions to enhance their market position. The pressure to adhere to very specific environmental regulations increase competition in this fast-changing industry. 'Michelin', 'Bridgestone Corporation', 'Continental AG', 'Goodyear Tire & Rubber Company', 'Pirelli & C. S.p.A.', 'Hankook Tire & Technology Co., Ltd.', 'Sumitomo Rubber Industries, Ltd.', 'Yokohama Rubber Co., Ltd.', 'Toyo Tire Corporation', 'Kumho Tire Co., Inc.', 'Nokian Tyres Plc', 'Apollo Tyres Ltd.', 'CEAT Limited', 'Falken Tire Corporation', 'MRF Limited'

As consumers increasingly focus on their environmentally friendly and sustainable lifestyle needs in every phase of life, such as car components, environmental concerns drive demand for them. Green tires reduce pollutants, and the usage of fuel is more in vogue. Rising awareness among the consumers, with more emphasis on goods that deliver energy efficiency through saving costs, coupled with contribution towards environmental savings, is raising the demand, pushing the growth for this market across geographies.

Combining Intelligent Tire Technologies: The global market is changing due to the integration of smart tire technology in green tires. Features such as integrated sensors provide real-time data on tire pressure, temperature, and performance to maximize driving economy and prolong tire life. As a result of this innovation that also increases safety and energy savings, smart green tires will attract more customers who are concerned about the environment and technology.

Asia-Pacific led the automotive green tires market in 2024. The demand coming from China, India, and Japan mostly reinforce the supremacy. Regional market revenue is expected to be boosted through increased car ownership brought on through rising disposable incomes and strict pollution standards and laws set out by various nations. APAC accounted for about half of the world's automobile output in 2024. More than a quarter of all vehicles sold across the globe in the same period were from China, the world's largest automaker. With most of the world's largest automakers shifting their manufacturing base there in recent years, the region has emerged as a hub for the automobile sector.

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Automotive Green Tires Market

Report ID: SQMIG25B2026

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