Tire Recycling Market Size, Share, and Industry Analysis By Product (Rubber, Tire-Derived Fuel (TDF), Tire-Derived Aggregate (TDA), Carbon Black, and Others), By Process (Mechanical Shredding, Ambient Grinding, and Pyrolysis), By End-Use (Automotive, Construction, Manufacturing, and Others), and Regional Forecast, 2026-2034

The global tire recycling market size was valued at USD 6.4 billion in 2025. The market is projected to grow from USD 6.64 billion in 2026 to USD 8.93 billion by 2034, exhibiting a CAGR of 3.77% during the forecast period.

The global tire recycling market is expanding with increasing environmental concern, stringent regulations, and circular economy adoption. Tire recycling is a process of making used tires into reusable products such as rubber and carbon black and encompasses technological advancements, economic inducements, and infrastructure expansion in developing markets for sustainable waste management.

• According to Rubber Manufacturers Association, tire recycling in North America reduces CO2 emissions by 2.5 million tons annually.

Tire Recycling Market Driver

Environmental Concerns, Government Regulations, Economic Incentives to Foster the Demand for Tire Recycling

An increasing awareness regarding unwanted tires and how they affect the environment is having its impact on driving demand for recycling solutions, with industries trying all means to follow sustainability practices to ease the flow of waste from landfills and reduce damage to the environment.

Regulations to enforce proper disposal and recycling of tires are hastening the establishment of necessary infrastructure, reusing waste management solutions from manufacturers while putting them to comply with environmental standards.

Emerging cost increases for raw materials and the demand for eco-innovative goods are driving economic adjacencies for the recycling of tires, making these options attractive for industries looking for cost-efficient as well as circular economy solutions.

Tire Recycling Market Restraint

Lack of Infrastructure, High Initial Investment, Technological Limitations may Affect Market Expansion

Inadequate facilities for tire collection, transport, and recycling hinder market expansion. They make it difficult to efficiently process end-of-life tires; therefore, this limits the increasing sustainability demands.

Establishing tire recycling plants involves huge capital expenditures, which serve as a disincentive for new entrants and hence their inability to grow in the market, with companies having to contend with the high costs of advanced machinery and operational requirements.

The existing recycling technologies are faced with challenges such as high energy consumption, efficiency constraints, reduced profitability, and slow innovation regarding sustainable tire processing and recovery of materials from tires.

Tire Recycling Market Opportunity

Technological Advancements, Circular Economy Adoption, Expansion in Emerging Markets to Offer New Growth Avenues

New techniques of pyrolysis and devulcanization have been developed to improve the efficiency of recycling processes and yield greater quantities of valuable raw materials, resulting in more cost-effective and sustainable solutions for converting old tires into high-value raw materials.

The increase in demand for recycling tire materials becomes obvious from the growing importance being given to circular economy principles—the emphasis on resource efficiency and reduction in waste.

Emerging countries provide a greater growth potential due to increasing vehicle ownership and an urgent need for sustainable waste management, which would lay the ground for more investments in tire recycling infrastructures and technologies.

Segmentation

Key Insights

The report covers the following key insights:

• Tire Waste Generation, By Key Countries
• Recycling Rates and Adoption of Sustainable Practices Across Major Regions
• Major Market Drivers, Trends, and Growth Opportunities
• Business Strategies Adopted by Key Players and Industry Developments (Mergers, Acquisitions, Partnerships)
• Overview: Regulatory Scenario and Government Policies on Tire Disposal and Recycling

Analysis by Product

By Product, the Tire Recycling Market is divided into Rubber, Tire-Derived Fuel (TDF), Tire-Derived Aggregate (TDA), Carbon Black, and Others.

Sustainable initiatives and cost-effective material sourcing have increased the need for recycled rubber, which finds extensive application in the manufacture of flooring, automotive parts, and sports surfaces.  The rubber segment commands a major share due to its large commercial applications in the manufacture of new tires, playground surfaces, and industrial applications.

Recycled carbon black is slowly getting into the alternative but sustainable parts in tire manufacture, plastics, and coatings due to the increasing environmental regulations and circular economy practices.

Analysis by Process

By Process, the Tire Recycling Market is fragmented into Mechanical Shredding, Ambient Grinding, and Pyrolysis.

Mechanical shredding is at the forefront as it is best suited to the production of recycled rubber for industrial applications amid increasing sustainable materials' demand in the construction, automotive, and manufacturing industries.

Rising acceptance of ambient grinding is because of its ability to produce fine rubber powder for asphalt, coatings, and sealants complemented by stringent environmental regulations plus waste minimization programs.

Analysis by End-Use

Based on End-Use, the Tire Recycling Market is divided into Automotive, Construction, Manufacturing, and Others.

The high demand for recycled rubber in tire retreading and manufacturing has made the Motor Vehicle segment sweep the board.  Thanks to cost-effectiveness as well as sustainability goals and the rising demand for eco-friendly products, recycled tire materials now being used in the manufacture of new tires, molded rubber products, and vehicle components continue to enhance the product line.

In construction, recycled tire-derived materials serve as asphalt, insulation, and flooring.  It is mainly attributed to efforts in infrastructure development, regulation in promoting sustainable building materials, and circular economy endeavors.

Regional Analysis

Based on region, the Tire Recycling Market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America dominates the tire recycling market due to increasing environmental awareness, stringent government regulations, and growing demand for recycled tire materials in the construction and manufacturing industries.  Furthering market growth is regulatory initiatives driving towards sustainable waste management.

Strict environmental policies and a strong sustainability drive are invariably making Europe a growing market.  Several countries, such as Germany, France, and Italy, have stringent rules mainstreaming proper tire disposal and recycling towards the eco-friendly alternatives into industries.

The rising industrialization, increase in the production of vehicles, and very difficult policies related to the environment position Asia Pacific as a prominent market.  Countries such as China and India are emerging as hubs for automobiles and are, therefore, expected to have a high inflow of out-of-life tires and, as a result, the demand for better recycling.

Key Players Covered

The report includes the profiles of the following key players:

• Liberty Tire Recycling (U.S.) 
• GENAN HOLDING A/S (Denmark) 
• ResourceCo (Australia) 
• GRP LTD (U.K.) 
• Lehigh Technologies (U.S.) 
• Entech Inc. (U.S.) 
• Emanuel Tire (U.S.) 
• BDS Tire Recycling (U.S.) 
• TRS (U.S.) 
• ABC Tire Recycling (U.S.)

Key Industry Developments

• In December 2024, Trek Bicycle and Liberty Tire Recycling rolled out an advanced program for bicycle tire recycling across Trek’s stores in North America. The move would offer a responsible and free alternative for cyclists for recycling the used tires of their bicycles.
• In August 2024, Mitsubishi Chemical initiated studies focused on the chemical recycling of ELTs (End-of-Life Tires). The studies would involve the deployment of coke ovens at the company’s Kagawa Plant. The chemical industry major is aimed at commencing the marketing of ELT-based sustainable carbon black by March 2026.
• In October 2023, Swedish Tire Recycling (SDAB) launched the End-of-Life Tire Research Portal (ELTRP), one of the world's first research portals for recycled tire rubber.