"Market Intelligence for High-Geared Performance"
The global green tires market size is projected to reach USD 38.35 billion by 2027 from its value USD 24.79 billion in 2020, at CAGR of 4.4% during forecast period. In 2019, the global Europe green tires market size was valued at USD 8.01 billion.
Based on our analysis, the global market will exhibit a lower growth of -14.9% in 2020 as compared to the average year-on-year growth during 2016-2019. The global impact of COVID-19 has been unprecedented and staggering, with green tires witnessing a negative impact on demand across all regions amid the pandemic. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Automotive tires are a vital component, covering the rim with inflated inner tubes located underneath the wheel. The tires help maintain a grip on the road while offering traction between the road and vehicle to absorb the shocks during impacts. Tires are usually made of rubber. With the growing attention to environmental and energy issues, the tire manufacturers are gradually inclining towards renewable raw materials to manufacture environmentally-friendly tires.
Green tires potentially use plasticizers such as silica and silane and resins that are tightly bonded in the tread block that maintains safety on road during rains as well as preserves more energy while driving thus lowering the rolling resistance and carbon emissions. Silica in tires also significantly improves the responsiveness and steering ability of tires under various severe weather conditions. These tires have also been shown to improve the traction on frosty roads. Currently, these eco-friendly renewable raw materials are being preferred over conventional tire materials owing to the significant advantages including lightweight of the materials which results in the overall reduction of weight of the vehicle along with the improved durability and retread able facility in tires. Besides, these tires are fuel-efficient and also help in the rolling resistance. The global green tire market is expected to experience rapid growth during the forecast period. For instance, Evonik is a rubber company that solely manufactures silica and silanes for its customers. The company has been focusing on research to develop advanced eco-friendly tires and make them available to the world.
Green Tires Market to Observe a Momentary Downfall amid COVID-19 Pandemic
The raging COVID-19 pandemic across the globe has made a drastic impact not only on the lives of people but has also impacted the entire economy of the world to a large extent. However, post lockdown, industries are gradually coping up with losses but the recovery rate is quite slow. Several industries as well as individuals are shifting their investment plans to recover the losses instead of making heavy investments in R&D innovation. In addition, individuals are also not investing much in buying vehicles amidst the pandemic. All these problems have ultimately impacted the automotive and transportation industry on a larger scale.
The sales of vehicles have declined steeply owing to the prolonged lockdown and shift in investment budget. Also, the disruption in the import and export trades and shut down of manufacturing companies, have resulted in the rise of raw material prices, consequently hampering the production capacities of automobiles. Thus, the deterioration in the sales of vehicles is expected to hinder the market amid coronavirus.
Request a Free sample to learn more about this report.
Adoption of Airless Tires is seen as a Positive Trend in the Market
The adoption of advanced technologies and innovation of eco-friendly tires has led to an increase in the development of next-generation airless tires across the world. The airless tires usually run without an inner tube and air pressure and the flexible ring made of metal composite spokes is connected to the strong inner hub to maintain its shape. The airless tires mainly consist of high tension steel belts, treads, spokes, and hubs. These tires offer improved load carrying capacities, enhanced driving performance, and environment-friendly design and have the potential to decrease carbon emissions by eliminating energy loss and lowering rolling resistance.
Consumers are inclined towards such tires owing to the requirement for spare tires, easy puncture repair, and superior productivity as compared to conventional tires. Also, prominent manufacturers such as Hankook Tire Group, Bridgestone Corporation, and Michelin Group are working rigorously to develop more reliable and seamless designs for airless tires for vehicles.
Stringent Government Regulations to Drive Market Growth
The increasing rate of carbon emission from vehicles is leading to severe environmental problems. Vehicles are the major prolific contributors to air pollution owing to the extensive utilization of fossil fuels. Although individual vehicles do not produce a high amount of emissions, the cumulative number of vehicles across the globe is enormously high. Automotive tires are one of the significant components of vehicles in terms of determining the number of pollutants emitted by the vehicles. The governments of various countries are imposing several emission norms on automotive manufacturers to reduce the increasing rate of vehicular emissions. For example, all the tires sold in Europe are subject to mandatory tire labeling.
The European Union has implemented the Tire Energy Label that provides explicit information regarding the safety and ecological characteristics of tires based on major significant standards including the noise levels, fuel efficiency, and wet surface braking. The labels embossed on the tires indicating these standards can assist the customers to make wise decisions including the reduction of air pollution, enhanced road safety, and increased fuel economy. The tires are categorized from A to G (Best to Worst) in the three standards. Tires under the ‘A’ category usually consume about 7.5 percent less gasoline as compared to the tires under the ‘G’ category. The ‘A’ category tires also brake much precisely on wet surfaces at high speed.
Low Rolling Resistance of Tires to Boost the Green Tires Market Growth
The rolling resistance of the vehicles plays a crucial role in carbon emission. As the rolling resistance increases, simultaneously the energy required for overcoming the friction also increases, thereby leading to the emission of more pollutants. This helps to reduce the overall weight of the vehicle type, thereby consuming less fuel. The development of green tires improves the consumption of gasoline to reduce the rolling resistance. Rolling resistance raises the energy required for the tires to get in contact with the road surface and deform. Besides, in order to reduce the rolling resistance, it demands comprehensive control of the composite relationship between the tire structure, tread pattern, and rubber compound. Rolling resistance accounts for about 10 to 15% of the fuel consumption of passenger cars, nevertheless, the percentage may rise to 30% of the fuel consumption in heavy vehicles. Therefore, the growing demand for improved rolling resistance in tires is driving the growth of global green tires.
Lack of Awareness in Developing Economies to Restrain the Market Growth
The deficiency of technological know-how and lack of awareness regarding the development of these tires are the major factors that may hamper the growth of the market. Moreover, the engineering involved in the manufacturing of green tires, along with the cost associated with it, may slow down or delay the growth of the market.
To know how our report can help streamline your business, Speak to Analyst
15 Inches Tire Segment Dominates the Market
Based on tire size type, the market is segmented into 15 inch, 16 inch, 17 inch, and 18 inch. The 15-inch segment holds the largest share in the global market. 16 inch tires are also expected to witness significant growth over the green tires market forecast period owing to the increasing adoption of 16 inch tires by automotive manufacturers. A large number of passenger cars usually comprises 15 inch tires owing to the rapid increase in the adoption of innovatively designed wheels with great rim sizes.
Prominent tire manufacturers such as Bridgestone, Hankook, Continental, Goodyear, etc. have been investing a high percentage in research methodologies to develop and innovate advanced raw materials for tires to improve their rolling resistance, enhance fuel efficiency and minimize the noise level. The companies are greatly into developing green tires for on-road vehicles owing to the enormous number of cars across the world. Thus, the 15-inch type is greatly preferred by the customers in order to reduce carbon emission and save fuels.
On-Road Segment is expected to hold the Largest Market Share
Based on the application type, the market is segmented into on-road and off-road. The on-road segment accounts for the largest share in the global market. The on-road segment majorly comprises passenger cars and light commercial vehicles. The on-road vehicle segment is witnessing rapid growth in the market owing to the increase in their sales and production across the world. Also, the growing urbanization, improvement in the living standards, and rise in the purchasing power of people are a few of the main factors that are propelling the on-road vehicles market. Also, the rising environmental concern owing to the high carbon emission rate and urgency of lowering the fuel consumption among the manufactures and customers is leading them towards adopting environmentally-friendly vehicles and vehicular components.
The prominent manufacturers are also focusing on developing innovative thread designs and low rolling resistance in tires in order to improve the mileage of vehicles and ultimately lower the overall cost of the vehicles. All these factors are thus driving the growth of the market in the on-road vehicle segment.
The OEM segment is anticipated to hold the Major Market Share
Based on the sales channel, the market is further segmented into OEM and aftermarket. The OEM segment holds the major share in the global market in terms of volume and value owing to the increasing environmental and safety issues. The OEM companies are investing in research to innovate environment-friendly, lightweight, and durable tires in order to control the increasing rate of vehicular pollutants, as well as reduce the consumption of fuels. For instance, in 2019, Kansai University along with Sumitomo Rubber Industries Ltd has introduced an advanced technology that can produce electrical energy when the tires of the vehicle are rotating. The tires utilize the accumulation of static electricity (also called friction charging) to generate energy from the rotation of the tires.
The aftermarket segment also holds a significant share in the global market and is expected to further propel in the coming years. The increasing inclination of existing vehicle owners and automotive manufacturers towards a clean and green environment as well as the demand for high fuel efficiency are the major factors that are expected to propel the aftermarket segment. Also, the technological advancement, usage of renewable raw materials to make tires are promoting the aftermarket green tire segment.
Europe Green Tires Market Size, 2016-2027 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
The market size in Europe stood at USD 8.01 billion in 2019. The region holds dominance in the global market owing to increasing stringency in government regulations in order to reduce carbon emissions and promote environment-friendly vehicles and vehicular components. The green tire originated in Europe in the year 1990, where the use of silane and silica for making tire treads laid the foundation of the market. These tires are also called energy tires in Europe as they help in the reduction in rolling resistance. Therefore, as far as all the European tire manufacturers and suppliers are concerned, the market of green tires has caught the attention of all in this region. Since the region has strict emission standards (EURO VI), the automotive parts suppliers opted by the major automakers help them meet these standards.
Tires are an important aspect of reducing emissions and providing a good fuel economy. Also, prominent tire manufacturers and automotive companies are coming together to develop next-generation eco-friendly tires. Moreover, the European Commission is formulating post-2020 carbon dioxide emission standards for passenger cars and commercial vehicles which is ultimately expected to promote the adoption of eco-friendly tires in the OEM and aftermarket in this region. For example, in the year 2019, Michelin and General Motors established a partnership to develop a new wheel prototype designed to replace traditional pneumatic tires and wheels. The renewable materials from Michelin UPTIS reduce the number of scrapped tires, thereby reducing the overall raw materials and energy used in the production of tires.
North America is also rapidly integrating green car technologies in automobiles. Apart from this, the increasing number of infrastructure projects and growing demand for replacement tires is fueling the growth of this market. Moreover, the expansion of vehicle fleets for construction and agricultural purposes will continue to boost the demand in the coming years.
Furthermore, the dynamic automotive industry in Asia Pacific is expected to propel the market in countries such as China, Japan, and India in the coming years. The region provides a broader market space for the green tires business owing to the massive production capacity of polyester products, availability of raw materials, and a well-established distribution channel. According to the China Association of Automobile Manufacturers, the country is estimated to manufacture 30 million units of passenger cars in 2020 and rise up to 35 million units by the end of 2025.
Other regions including the Middle East and African countries are also showing a steady growth rate in the market as various prominent companies are planning to invest in these countries to expand their business and target the remote regions.
The Goodyear Tire & Rubber Company is a Key Player in the Market
Prominent tire manufacturers in the global market include Goodyear, Michelin, Continental, and Bridgestone among others. Goodyear is one of the world’s largest tire companies and one of the most renowned brand names in the global market as it manufactures advanced and high-quality tires for motorcycles, passenger cars, commercial vehicles, racing cars, and airplanes. The company produces a wide range of tires along with multiple benefits including innovative technology, all-weather reliability, high quality, and affordable tires to their consumers across the world. Connected tires technology introduced by Goodyear helps in reducing the stopping distance and wearing of car tires by 30%. It uses an intelligent tire system that can record tire-derived data and measures load, wear, temperature, and road conditions in real-time, thus allowing the tires to respond to these evaluations and optimize the performance accordingly.
An Infographic Representation of Green Tires Market
To get information on various segments, share your queries with us
The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.
Value (USD billion) & Volume (thousand units)
By Tire Size Type
By Application Type
By Sales Channel Type
Fortune Business Insights says that the global green tires market size was USD 27.24 billion in 2019 and is projected to reach USD 38.35 billion by 2027.
In 2019, the European green tires market stood at USD 8.01 billion.
The green tires market is projected to grow at a CAGR of 4.4% and will exhibit steady growth in the forecast period (2020-2027).
The application type segment is expected to be the leading segment in this market during the forecast period.
Stringent government regulation to reduce carbon emission will drive the market growth.
The Goodyear Tire and Rubber Company is the leading player in the global market.
Europe dominated the market share in 2019.
Low rolling resistance in tires is expected to drive the market growth.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- UGlobal hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry