Automotive green tire market forecast at $175 billion by 2027
Pune, India – Automotive Green Tires Market size valued at USD 77.4 billion in 2020 and will grow at a CAGR of 11.4% from 2021 to 2027 according to Global Market Insights.
Green tires are high-performance tires that are formed using high dispersible silica. The Silica/Silane-system in tires offers excellent performance in handling, traction, and wet grip, improving driving safety. Several key characteristics of these tires include lightweight, reduced rolling resistance, CO2 emission & fuel consumption, long-life, and excellent durability, which makes them even suitable for off-road applications.
Passenger cars segment is expected to witness around 11% CAGR through 2027. Increasing sales of passenger cars owing to rising disposable income and mobility requirements with the frequent launch of passenger e-vehicles will drive product penetration. For instance, in December 2020, Toyota launched its ultracompact EV and the Luxgen’s launch, a fully electric vehicle by 2021 being one of the many announcements done by other major manufacturers will promote green tires demand.
On-road automotive green tires market volume is projected to expand at more than 11.3% CAGR from 2021 to 2027. Increasing product demand in passenger cars and particularly light commercial vehicles is set to drive the market expansion. Rising e-commerce shipment & logistics services coupled with changing consumer lifestyles will primarily drive the demand in light commercial vehicles for weight and fuel optimization.
In 2020, Original Equipment Manufacturers (OEMs) generated above USD 20 billion in automotive green tires market. Increasing automobile sales and the transition toward e-vehicles are among the prominent factors fueling green tire demand. OEMs deliver quick access to products through their global distribution network and ensure product quality & support services with a warranty, which signifies higher product life. Thus, long-standing relationships coupled with consumer preference for product quality, reliability, and after-sales services will strengthen the market growth.
Asia Pacific dominated the automotive green tires market with over 395 million units in 2020. The dominance is mainly strengthened by the demand from China, India, and Japan. Increasing vehicle ownership due to rising disposable income and stringent pollution norms & policies proposed by various countries is poised to fuel regional market revenue.
APAC captured about 50% share in global automotive production in 2019. China, the largest automotive manufacturer across the globe, accounted for more than one-fourth of the global automotive sales during the same period. In the last few years, the region has transformed into an automotive hub as a majority of the leading automotive producers have shifted their manufacturing bases in the region. It can be ascribed to the availability of raw materials, robust economic development, increasing disposable income of the middle-class population, cost-effective labor, favorable government initiatives, and rising private & public investments in the region.
The fast-developing e-vehicles industry in India, China, and Japan will further augment the market revenue by 2027. In 2021, Tesla Inc., an electric car manufacturing giant, announced the expansion of its electric car manufacturing in Southern India.
Automotive green tire manufacturers are constantly investing in product innovation, research & development, mergers & acquisitions, and geographic expansion to attain a competitive edge in the market. In July 2019, Bridgestone Corporation introduced Enliten, a newly advanced lightweight tire technology, which reduces the tire’s rolling resistance by up to 20% and also contributes to lower CO2 emissions & fuel consumption.
The key automotive green tires market participants include Bridgestone, The Goodyear Tire & Rubber Company, Michelin, Hankook Tire, Continental AG, Pirelli & C. S.p.A., Cheng Shin Rubber Ind. Co., Zhongce Rubber Group Co., Kumho Tire, and Nokian Tyres Plc.