USD 106.3 Billion
Report ID:
SQMIG25B2026 |
Region:
Global |
Published Date: January, 2025
Pages:
198
|Tables:
84
|Figures:
71
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
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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.
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.
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.
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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.
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Consumer Awareness Toward Sustainable Lifestyle
Development in the Automotive Industry
Lack of Awareness in Underdeveloped Countries
Infrastructure Challenges
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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.
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 |
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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 |
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Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
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.
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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.
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Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
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Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
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Report ID: SQMIG25B2026
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