Pune, India – The global tire recycling market size was valued at $12.9 billion in 2022, and is projected to reach $18.1 billion by 2032, growing at a CAGR of 3.4% from 2023 to 2032 according to Allied Market Research. Tire recycling is a process of converting old and scrap tires that can no longer be used, into other products, such as pyrolysis oil, tire-derived fuel, and other rubber products. Various small-scale vendors also repurpose old tires into other useful products such as drinking water tanks for cattle, planters for planting trees in parks, and other products. It also includes the repair and retreading of old tires for reuse. Tire recycling gives the tire a new use; therefore, reducing its carbon footprint.
Tire recycling is gaining popularity owing to the abundance of waste tires and the use of recycled tire products in the manufacturing industry. However, the increasing popularity of cost-effective tires may negatively impact the tire refurbishing market.
Tire Recycling Market
The tire recycling market is primarily driven by factors such as growth in the number of automobiles, public and private initiatives for tire recycling, and problems associated with the disposal of scrap tires. Every year a significant number of vehicles are sold each year. Around 65 million automobiles were sold in 2022, and 68 million units were sold in 2021, marking an increase of 0.7 million. India and China have emerged as major automotive markets in the last decade. According to International Energy Agency, India has approximately 25 vehicles per thousand people as of 2020, and the number is expected to cross 150 by the year 2040. In addition, according to the data from the European Union’s Eurostat, the total number of passenger cars in 2016 was 233,186,872, which increased to 253,305,631 in 2021. The rise in sales of private, commercial, and industrial automobiles in developed and developing economies is the sole reason for the increasing number of waste tires each year. More than 1 billion waste tires also known as End-of-Life Tires (ELTs) are generated across the world, accounting for 2% of total waste generated. The U.S. alone generates approximately 280 million scrap tires each year, according to the Federal Highway Administration Research and Technology.
Waste tires negatively impact the earth’s environment; thus, it becomes a dire need to properly dispose of them. However, landfill; a widely adopted method of waste management is not suitable for waste tires as they do not decompose and release chemicals into the air, ground, and water that alter the ecosystem. In addition, tires release methane under the sun, and their large stockpiles can catch fire, which is also a major environmental and health hazard. Thus, managing and disposing of the waste tires by recycling becomes important, and has proved to be the best method. Tire recycling helps in reducing the need for harvesting raw materials for making tires and other rubber materials; thereby reducing greenhouse gases and preventing pollution. Recycling also saves a large amount of energy, which would otherwise be required to process freshly procured virgin material. Moreover, in the last 50 years tire recycling has increased by more than 8 times, whereas the new tire generation increased by only around six folds; thereby, indicating a rapid growth of tire recycling in coming years.
However, problems associated with the storage of scrap tires, expensive machinery, and strict government regulations restrain the market growth. For example, large storage of scrap tires is considered a fire hazard; therefore, many regulatory authorities have formulated rules and regulations for its collection, storage, and transportation.
Moreover, the innovative use of tires in producing unique and groundbreaking products is a tire recycling market opportunity that can positively affect the market players. For instance, Acciona Infrastructure Group, a Spain-based sustainable project developer, is working on developing methods to reduce noise from trains on railroads, by incorporating waste tires.
The tire recycling market has witnessed various obstructions in its regular operations during COVID-19 pandemic; however, the upcoming recession is expected to be the next major global event to negatively affect the tire recycling market growth. Earlier, the worldwide lockdowns resulted in reduced industrial activities, eventually leading to reduced demand for recycled tire products such as tire-derived fuel, crumb rubbers, and others from various sectors such as construction, plastic manufacturing, the automotive industry, and other industrial sectors. However, COVID-19 has subsided, and the major manufacturers in 2023 are performing well. Contrarily, the rising global inflation is a new major upcoming obstructing factor for the entire industry. The inflation, which is a direct result of the Ukraine-Russia war, and few long-term impacts of the coronavirus pandemic, is soon expected to push major world economies into recession. However, India and China are performing relatively well. In addition, inflation is expected to worsen in the coming years, as the possibility of the ending of the war between Ukraine and Russia is less.
The tire recycling market is segmented on the basis of process, product, application, and region. By process, the market is bifurcated into pyrolysis, shredding, refurbishing. Furthermore, the refurbishing segment is further categorized into retreading and reconditioning. Depending upon the product, the market is categorized into tire derived fuel, crumbed rubbers, refurbished commercial vehicle tires, and others. On the basis of application, it is divided into manufacturing, construction, rubber products, automotive, and others. Region wise, it is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, Italy, UK, and rest of Europe), Asia-Pacific (China, India, Japan, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
By process: The tire recycling market is bifurcated into pyrolysis, shredding, refurbishing. Furthermore, the refurbishing segment is further categorized into retreading and reconditioning. In 2022, the refurbishing segment dominated the tire recycling market share, in terms of revenue, and the pyrolysis segment is expected to grow with a higher CAGR during the forecast period. Tire refurbishing primarily includes tire repair and tire retread. The casing of tires has a long lifespan, however, their treads which are always in touch with roads suffer wear and tear and need to be repaired or applied with a new tread layer. Refurbishing a tire is a cost-effective and sustainable solution, as it minimizes waste generation and reduces the demand for new tire production. On the other hand, the reason behind the higher CAGR of the pyrolysis segment is the growth in demand for pyrolysis oil, carbon black powder, scrap steel wires, and gas, which can be used in various industrial processes.
By Product: The tire recycling market is divided into tire derived fuel, crumbed rubbers, refurbished commercial vehicle tires, and others. In 2022, the refurbished commercial vehicle tires segment dominated the tire recycling market, in terms of revenue, and the crumbed rubber segment is expected to witness growth at a higher CAGR during the forecast period. Refurbished commercial vehicle tires have been recognized by many as an environment-friendly option against buying a new tire. Moreover, crumbed rubber segment is owing to its versatile application in various industries such as automotive, sports, construction, railway, and various others.
By end-user industry: The tire recycling market is divided between manufacturing, construction, rubber products, automotive, and others. The automotive segment accounted for a higher market share in 2022, owing to the rise in the automotive segment which uses recycled tire products in manufacturing of its various products. However, the construction segment is anticipated to register a higher growth rate throughout the forecast period.
By region: Asia-Pacific accounted for the highest market share in 2022 and LAMEA is expected to grow with a higher CAGR throughout the projected period. China is a major tire consumer and producer. Major tire manufacturers in China are expanding their businesses to meet the demand for tires across the world. For instance, Shandong Linglong Tire, a Zhaoyuan-headquartered tire manufacturer, has invested $680 million in development of a manufacturing base in Changchun automotive economic zone. This plant is anticipated to have a capacity of manufacturing 12 million passenger and 2 million truck/ bus tires/year and 200,000 truck/bus retreads/year. In addition, Sailun Group has expanded its manufacturing capacities in the China. Moreover, other countries such as India, Japan, South Korea are also contributing in the growth of the market. For instance, in September 2021, Indian government introduced PLI (Production Linked Incentive) scheme for automobile and auto components worth $ 3.49 billion. Moreover, Agile Process Chemicals LLP operate in India and offer various tire recycling solutions. Such factors are anticipated to increase the number of scrape tires in the coming years, thereby; driving the demand in the tire recycling market in Asia-Pacific. Furthermore, rapidly growing disposable income of people in LAMEA is expected to increase the number of cars in the region, eventually increasing the number of tires discarded each year. For example, Latin America comprises many emerging economies such as Brazil, Chile, and Argentina. The demand for automobiles is considerably high. However, the COVID-19 induced component shortage is a big hinderance in automobile production. In the coming years, the market is anticipated to witness a boom, as this component shortage subsides. Moreover, Michelin, a tire manufacturer has begun construction on its first tire recycling plant in Chile. It is expected to recycle 30,000 tons of earthmover tires. Such instance is anticipated to drive the demand for tire recycling in during the forecast period.
Competitive analysis and profiles of the major players in the tire recycling market are provided in the report. Major companies in the report includes, Apollo Tyres Ltd, Bridgestone Corporation (Bandag LLC), Champlin Tire Recycling, Inc, Contec, Continental AG, Emanuel Tire, LLC, Entech Inc., Genan Holdings A/S, Green Distillation Technologies Corporation LTD., Liberty Tire Services LLC (Lakin Tire), Michelin Group S.A., Re-Match Holding A/S, reRubber, LLC., Tire Disposal & Recycling, Inc., Tyre Recycling Solutions SA, and Wastefront AS.