Green tire market forecast to exceed $85 billion by 2033

Newark, DE – The green tire market is projected to generate revenue of USD 85.79 billion by 2033, up from USD 33.68 billion in 2023, reflecting a robust CAGR of 9.8% from 2023 to 2033 according to Future Market Insights.

The growth of the green tire industry is driven by increasing environmental awareness, stringent government regulations on carbon emissions, and the rising demand for fuel-efficient vehicles. Consumers are increasingly opting for eco-friendly products, and green tires, made with sustainable materials and energy-efficient production methods, fit this demand. Advances in technology, such as the development of low rolling resistance tires, also contribute to the industry’s expansion, as they help reduce fuel consumption and emissions. Additionally, the growing popularity of electric vehicles, which require specialized tires, further boosts the market.

The green tire industry is experiencing significant growth driven by increasing environmental awareness and regulatory pressures for sustainable practices. Demand for eco-friendly tires is rising as manufacturers focus on reducing carbon footprints through the use of sustainable materials like natural rubber and silica, and by improving fuel efficiency with low rolling resistance designs. The electric vehicle (EV) market also contributes to this trend, as green tires are seen as essential for maximizing EV range. As consumers and governments prioritize sustainability, the green tire industry is poised for continued expansion.

Germany is expected to capture approximately 7.7% of the European market by 2033, driven by increasing environmental concerns, supportive government policies, the growing adoption of green tire technology, rising investment in regional transportation projects, and expanded vehicle use in mobility services.

According to FMI, Germany’s green tire sector is on track to become a significant force in Europe as consumer demand for energy-efficient vehicles continues to rise.

The competition in the green tire industry is structured around several key factors. Firstly, tire manufacturers compete based on their ability to develop and offer innovative and sustainable tire technologies that meet the stringent requirements of environmental regulations and consumer demands.

Secondly, competition exists in pricing and cost-efficiency, as manufacturers strive to balance using sustainable materials while keeping their products competitive in the market. Market players compete through effective branding, marketing strategies, and distribution networks to capture market share and establish themselves as leaders in the green tire segment.

Continuous research and development efforts, collaborations, and strategic partnerships also play a crucial role in shaping the competitive landscape of the green tire industry.

Leading Key Players include: Michelin Group; Continental AG; Goodyear Tire and Rubber Company; Bridgestone Corporation; Hankook Tire & Technology Co. Ltd; Pirelli & C S.p.A; The Yokohama Rubber Co. Ltd; Toyo Tire corporation; Kumho Tire; Sumitomo Rubber Industries Ltd.