Pune, India – The market for green tires is expected to grow at a 9.9% CAGR between 2023 and 2029. It is expected to exceed USD 54.99 billion by 2028, up from USD 28.40 billion in 2022 according to Exactitude Consultancy.
Green tires are designed with aerodynamics and lightness in mind, both of which are critical for maintaining a firm grip on the road. These tires also use a tightly bonded rubber in the tread blocks to retain more energy while driving, resulting in lower rolling resistance and, as a result, less engine power is required to rotate the tire. A tire’s rolling resistance can account for up to 30% of a vehicle’s fuel consumption and a quarter of its CO2 emissions. Reduced rolling resistance reduces the vehicle’s carbon footprint.
Concerns about greenhouse gas emissions and limited natural resource availability are encouraging businesses to produce more sustainable products, such as green tires. Tire manufacturers are pursuing sustainable innovations, such as renewable rubbers that outperform traditional rubber. For example, tire manufacturing company ‘Continental’ unveiled its green tire concept in September 2021 to manufacture sustainable green tires for passenger cars. Several manufacturers have formed strategic relationships with governments, researchers, and biotechnology companies to enhance their efforts to commercialise renewable rubber, creating ample opportunities for the green tires market.
The green tire market in China is expected to grow at an 11.3% CAGR between 2022 and 2032. Carbon emission regulations in China are driving up demand for green tires in the automotive industry.
The market in Asia-Pacific is expected to register a significantly rapid revenue growth rate over the forecast period due to dynamic automobile industry across the region, particularly in China, Japan, and India, which is spurring significant demand for green tires, Asia-Pacific is anticipated to post a significantly quick revenue growth rate over the course of the forecast period. Due to the brisk growth of the automotive industry and growing demand for fuel-efficient tires, there is a high demand for green tires in China. The region’s well-established distribution network, rising raw material supply, and high polyester production levels are anticipated to fuel the market’s expected revenue growth.
The automobile industry significantly contributes to global CO2 emissions. According to the US Department of Energy, fuel-powered passenger vehicles use 4% to 11% of their fuel just to overcome tire rolling resistance.
Standards and requirements for automotive tires have been developed by government regulatory agencies. For example, the European Union has proposed new tire labelling based on wet grip, noise, and fuel efficiency.
The rolling resistance of the vehicles is critical in terms of carbon emissions. As rolling resistance increases, so does the energy required to overcome friction, resulting in increased pollutant emissions. This contributes to the overall weight reduction of the vehicle type, resulting in lower fuel consumption. Green tire development reduces rolling resistance while increasing petrol consumption. Rolling resistance increases the amount of energy required for the tires to make contact with and deform on the road surface. Furthermore, comprehensive control of the composite relationship between the tire structure, tread pattern, and rubber compound is required to reduce rolling resistance. Rolling resistance accounts for 10 to 15% of fuel consumption in passenger cars; however, rolling resistance may account for 30% of fuel consumption in heavy vehicles. As a result of rising demand for tires with improved rolling resistance, the global market for green tires is expanding.
Green tires are seen as a game changer in the automotive industry, but there are some structural constraints that may stymie the market. Because these tires have less rubber, they may have less grip, affecting braking, particularly on wet roads. This may increase the likelihood of skidding and, as a result, fatalities in accidents. Reduced rolling resistance requires a good tread pattern. The tires have fewer treads than other types of tires if the vehicle/fleet owner wants fast tires to be used in the vehicle fleet.
When the best tread design is compromised, the vehicle drives faster and has less grip. As a result, when choosing a tire, the vehicle driver must carefully balance the tread pattern. Furthermore, as technology evolves, manufacturers must constantly upgrade their product offerings, which frequently raises operational costs, making small and medium-sized businesses unable to afford them and, as a result, limiting sales outreach.
Green tires Market Players include MICHELIN, Continental AG, Bridgestone Corporation, Pirelli & C. S.p.A, The Goodyear Tire & Rubber Company, Hankook Tire & Technology, The Yokohama Rubber Co. Ltd., Petlas, Kumho Tire, and MRF are key players in the green tires market. Mergers and acquisitions, joint ventures, capacity expansions, major distribution, and branding decisions made by established industry players to increase market share and regional presence. They are also engaged in ongoing R&D activities to develop new Types and are working to expand the Type portfolio. This is expected to increase competition and put new market entrants at risk.