Green Tires Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025

Description

The global green tires market is on an impressive growth trajectory, with its valuation projected to surge from USD 91.7 billion in 2024 to USD 178.3 billion by 2032, reflecting a robust CAGR of 8.8%. This growth is driven by the expanding automotive industry, increasing environmental consciousness, and stringent government regulations targeting carbon emissions and pollution control.

As consumers and manufacturers alike prioritize sustainability, tire producers are shifting toward eco-friendly materials such as silica, which helps reduce rolling resistance and improve fuel efficiency. In fact, low rolling resistance can cut road noise by up to 10 dB. The automotive sector's transition to electric vehicles and hybrid models further fuels the demand for green tires, which offer significant reductions in fuel consumption and CO2 emissions. Green tire innovation is also supported by initiatives from government bodies and industry alliances worldwide, including the Euro 7 regulation and U.S. tire manufacturing sustainability programs.

Key Insights

The silica-based category accounted for the largest market share, 45% in 2024, owing to its superior fuel-saving properties and hydroplaning resistance. Companies like Solvay SA are leading with highly dispersible silica formulations that improve fuel efficiency by up to 7%.

The bio-based material segment is forecasted to grow the fastest, driven by global sustainability targets and growing consumer preference for renewable raw materials such as soybean oil and guayule rubber.

Among tire sizes, 15-inch variants held the dominant 35% market share in 2024 due to affordability and wide applicability. However, >18-inch tires are set to grow at the fastest pace, close to 9% CAGR, driven by rising SUV and EV adoption.

OEMs captured 55% of the market in 2024 as automakers increasingly integrate green tires into new vehicle models to meet emission norms. Meanwhile, the aftermarket channel is expected to grow faster as eco-conscious consumers upgrade their vehicles for better fuel efficiency.

Application-wise, on-road vehicles dominated with an 85% share due to widespread adoption across personal and commercial transport. Off-road tires are set for higher growth, with sectors like construction and agriculture prioritizing sustainable solutions.

Passenger cars represented the largest vehicle segment in 2024 with a 60% share, driven by high volumes and rapid uptake of eco-friendly tire technologies. Light commercial vehicles will experience the highest CAGR due to urban delivery demands and fleet electrification.

Regionally, Asia-Pacific led the market with a 35% share in 2024 and will maintain the highest growth rate. Nations like China, India, and South Korea are championing green tire policies and incentives under various eco-initiatives.

Regulatory frameworks, including India's AIS-142 and the EU's Emissions Trading System, are propelling green tire production by offering credits and funding for energy-efficient, sustainable manufacturing.

Smart green tires are gaining popularity with the integration of technologies that enable real-time safety monitoring and better performance in electric and autonomous vehicles. Regulations like the U.S. AEB rule and EU TPMS mandates are accelerating this trend.

The competitive landscape remains moderately fragmented, with major players like Michelin, Bridgestone, Goodyear, and Continental investing in recycling innovations and ESG-driven production. Emerging players are leveraging niche opportunities in EV and smart tire segments.

Recent market developments include Goodyear Canada's CAD 575 million investment in clean tire production, Continental's EcoContact 7 tire launch, and Michelin's collaboration on a new recycling plant in Sweden to advance circular tire manufacturing.

Product Code: 13648

Chapter 1. Research Scope

1.1. Research Objectives
1.2. Market Definition
1.3. Analysis Period
1.4. Market Size Breakdown by Segments
- 1.4.1. Market Size Breakdown, by Tire Size
- 1.4.2. Market Size Breakdown, by Distribution Channel
- 1.4.3. Market Size Breakdown, by Application
- 1.4.4. Market Size Breakdown, by Material Type
- 1.4.5. Market Size Breakdown, by Vehicle Type
- 1.4.6. Market Size Breakdown, by Region
- 1.4.7. Market Size Breakdown, by Country
1.5. Market Data Reporting Unit
- 1.5.1. Revenue
1.6. Key Stakeholders

Chapter 2. Research Methodology

2.1. Secondary Research
- 2.1.1. Paid
- 2.1.2. Unpaid
- 2.1.3. P&S Intelligence Database
2.2. Primary Research
2.3. Market Size Estimation
2.4. Data Triangulation
2.5. Currency Conversion Rates
2.6. Assumptions for the Study
2.7. Notes and Caveats

Chapter 3. Executive Summary

Chapter 4. Market Indicators

Chapter 5. Industry Outlook

5.1. Industry Background
5.2. Market Dynamics
- 5.2.1. Trends
- 5.2.2. Drivers
- 5.2.3. Restraints/Challenges
- 5.2.4. Emerging Economies and Key Opportunities
- 5.2.5. Impact Analysis of Drivers/Restraints
5.3. Impact of COVID-19
5.4. Sociopolitical Impact
5.5. Porter's Five Forces Analysis
- 5.5.1. Bargaining Power of Buyers
- 5.5.2. Bargaining Power of Suppliers
- 5.5.3. Threat of New Entrants
- 5.5.4. Intensity of Rivalry
- 5.5.5. Threat of Substitutes
5.6. Innovation and Technology Trends
5.7. Supply Chain and Value Chain Insights
5.8. Economic and Regulatory Impact
5.9. Market Entry Strategies

Chapter 6. Competitive Landscape

6.1. List of Market Players and their Offerings
6.2. Market Share of Key Players (2024)
- 6.2.1. Global
- 6.2.2. North America
- 6.2.3. Europe
- 6.2.4. APAC
- 6.2.5. Latin America
- 6.2.6. Middle East and Africa
6.3. Competitive Benchmarking of Key Players
6.4. Product Benchmarking of Key Players
6.5. Recent Strategic Developments by Key Players
6.6. Company Leadership Matrix

Chapter 7. Global Market

7.1. Overview
7.2. Market Revenue, by Tire Size (2019-2032)
7.3. Market Revenue, by Distribution Channel (2019-2032)
7.4. Market Revenue, by Application (2019-2032)
7.5. Market Revenue, by Material Type (2019-2032)
7.6. Market Revenue, by Vehicle Type (2019-2032)
7.7. Market Revenue, by Region (2019-2032)

Chapter 8. North America Market

8.1. Overview
8.2. Market Revenue, by Tire Size (2019-2032)
8.3. Market Revenue, by Distribution Channel (2019-2032)
8.4. Market Revenue, by Application (2019-2032)
8.5. Market Revenue, by Material Type (2019-2032)
8.6. Market Revenue, by Vehicle Type (2019-2032)
8.7. Market Revenue, by Country (2019-2032)

Chapter 9. Europe Market

9.1. Overview
9.2. Market Revenue, by Tire Size (2019-2032)
9.3. Market Revenue, by Distribution Channel (2019-2032)
9.4. Market Revenue, by Application (2019-2032)
9.5. Market Revenue, by Material Type (2019-2032)
9.6. Market Revenue, by Vehicle Type (2019-2032)
9.7. Market Revenue, by Country (2019-2032)

Chapter 10. APAC Market

10.1. Overview
10.2. Market Revenue, by Tire Size (2019-2032)
10.3. Market Revenue, by Distribution Channel (2019-2032)
10.4. Market Revenue, by Application (2019-2032)
10.5. Market Revenue, by Material Type (2019-2032)
10.6. Market Revenue, by Vehicle Type (2019-2032)
10.7. Market Revenue, by Country (2019-2032)

Chapter 11. Latin America Market

11.1. Overview
11.2. Market Revenue, by Tire Size (2019-2032)
11.3. Market Revenue, by Distribution Channel (2019-2032)
11.4. Market Revenue, by Application (2019-2032)
11.5. Market Revenue, by Material Type (2019-2032)
11.6. Market Revenue, by Vehicle Type (2019-2032)
11.7. Market Revenue, by Country (2019-2032)

Chapter 12. Middle East and Africa Market

12.1. Overview
12.2. Market Revenue, by Tire Size (2019-2032)
12.3. Market Revenue, by Distribution Channel (2019-2032)
12.4. Market Revenue, by Application (2019-2032)
12.5. Market Revenue, by Material Type (2019-2032)
12.6. Market Revenue, by Vehicle Type (2019-2032)
12.7. Market Revenue, by Country (2019-2032)

Chapter 13. U.S. Market

13.1. Overview
13.2. Economic Indicators
13.3. Demographics and Population Insights
13.4. Regional Hotspots
13.5. Growth Drivers
13.6. Challenges and Barriers
13.7. Competitive Strategies
13.8. Emerging Players
13.9. Import/Export Policies
13.10. Compliance Requirements
13.11. Emerging Investment Areas
13.12. Major Ongoing Projects
13.13. Market Size and Forecast
- 13.13.1. Market Revenue, by Tire Size (2019-2032)
- 13.13.2. Market Revenue, by Distribution Channel (2019-2032)
- 13.13.3. Market Revenue, by Application (2019-2032)
- 13.13.4. Market Revenue, by Material Type (2019-2032)
- 13.13.5. Market Revenue, by Vehicle Type (2019-2032)

Chapter 14. Canada Market

14.1. Overview
14.2. Economic Indicators
14.3. Demographics and Population Insights
14.4. Regional Hotspots
14.5. Growth Drivers
14.6. Challenges and Barriers
14.7. Competitive Strategies
14.8. Emerging Players
14.9. Import/Export Policies
14.10. Compliance Requirements
14.11. Emerging Investment Areas
14.12. Major Ongoing Projects
14.13. Market Size and Forecast
- 14.13.1. Market Revenue, by Tire Size (2019-2032)
- 14.13.2. Market Revenue, by Distribution Channel (2019-2032)
- 14.13.3. Market Revenue, by Application (2019-2032)
- 14.13.4. Market Revenue, by Material Type (2019-2032)
- 14.13.5. Market Revenue, by Vehicle Type (2019-2032)

Chapter 15. Germany Market

15.1. Overview
15.2. Economic Indicators
15.3. Demographics and Population Insights
15.4. Regional Hotspots
15.5. Growth Drivers
15.6. Challenges and Barriers
15.7. Competitive Strategies
15.8. Emerging Players
15.9. Import/Export Policies
15.10. Compliance Requirements
15.11. Emerging Investment Areas
15.12. Major Ongoing Projects
15.13. Market Size and Forecast
- 15.13.1. Market Revenue, by Tire Size (2019-2032)
- 15.13.2. Market Revenue, by Distribution Channel (2019-2032)
- 15.13.3. Market Revenue, by Application (2019-2032)
- 15.13.4. Market Revenue, by Material Type (2019-2032)
- 15.13.5. Market Revenue, by Vehicle Type (2019-2032)

Chapter 16. France Market

16.1. Overview
16.2. Economic Indicators
16.3. Demographics and Population Insights
16.4. Regional Hotspots
16.5. Growth Drivers
16.6. Challenges and Barriers
16.7. Competitive Strategies
16.8. Emerging Players
16.9. Import/Export Policies
16.10. Compliance Requirements
16.11. Emerging Investment Areas
16.12. Major Ongoing Projects
16.13. Market Size and Forecast
- 16.13.1. Market Revenue, by Tire Size (2019-2032)
- 16.13.2. Market Revenue, by Distribution Channel (2019-2032)
- 16.13.3. Market Revenue, by Application (2019-2032)
- 16.13.4. Market Revenue, by Material Type (2019-2032)
- 16.13.5. Market Revenue, by Vehicle Type (2019-2032)

Chapter 17. U.K. Market

17.1. Overview
17.2. Economic Indicators
17.3. Demographics and Population Insights
17.4. Regional Hotspots
17.5. Growth Drivers
17.6. Challenges and Barriers
17.7. Competitive Strategies
17.8. Emerging Players
17.9. Import/Export Policies
17.10. Compliance Requirements
17.11. Emerging Investment Areas
17.12. Major Ongoing Projects
17.13. Market Size and Forecast
- 17.13.1. Market Revenue, by Tire Size (2019-2032)
- 17.13.2. Market Revenue, by Distribution Channel (2019-2032)
- 17.13.3. Market Revenue, by Application (2019-2032)
- 17.13.4. Market Revenue, by Material Type (2019-2032)
- 17.13.5. Market Revenue, by Vehicle Type (2019-2032)

Chapter 18. Italy Market

18.1. Overview
18.2. Economic Indicators
18.3. Demographics and Population Insights
18.4. Regional Hotspots
18.5. Growth Drivers
18.6. Challenges and Barriers
18.7. Competitive Strategies
18.8. Emerging Players
18.9. Import/Export Policies
18.10. Compliance Requirements
18.11. Emerging Investment Areas
18.12. Major Ongoing Projects
18.13. Market Size and Forecast
- 18.13.1. Market Revenue, by Tire Size (2019-2032)
- 18.13.2. Market Revenue, by Distribution Channel (2019-2032)
- 18.13.3. Market Revenue, by Application (2019-2032)
- 18.13.4. Market Revenue, by Material Type (2019-2032)
- 18.13.5. Market Revenue, by Vehicle Type (2019-2032)

Chapter 19. Spain Market

19.1. Overview
19.2. Economic Indicators
19.3. Demographics and Population Insights
19.4. Regional Hotspots
19.5. Growth Drivers
19.6. Challenges and Barriers
19.7. Competitive Strategies
19.8. Emerging Players
19.9. Import/Export Policies
19.10. Compliance Requirements
19.11. Emerging Investment Areas
19.12. Major Ongoing Projects
19.13. Market Size and Forecast
- 19.13.1. Market Revenue, by Tire Size (2019-2032)
- 19.13.2. Market Revenue, by Distribution Channel (2019-2032)
- 19.13.3. Market Revenue, by Application (2019-2032)
- 19.13.4. Market Revenue, by Material Type (2019-2032)
- 19.13.5. Market Revenue, by Vehicle Type (2019-2032)

Chapter 20. China Market

20.1. Overview
20.2. Economic Indicators
20.3. Demographics and Population Insights
20.4. Regional Hotspots
20.5. Growth Drivers
20.6. Challenges and Barriers
20.7. Competitive Strategies
20.8. Emerging Players
20.9. Import/Export Policies
20.10. Compliance Requirements
20.11. Emerging Investment Areas
20.12. Major Ongoing Projects
20.13. Market Size and Forecast
- 20.13.1. Market Revenue, by Tire Size (2019-2032)
- 20.13.2. Market Revenue, by Distribution Channel (2019-2032)
- 20.13.3. Market Revenue, by Application (2019-2032)
- 20.13.4. Market Revenue, by Material Type (2019-2032)
- 20.13.5. Market Revenue, by Vehicle Type (2019-2032)

Chapter 21. Japan Market

21.1. Overview
21.2. Economic Indicators
21.3. Demographics and Population Insights
21.4. Regional Hotspots
21.5. Growth Drivers
21.6. Challenges and Barriers
21.7. Competitive Strategies
21.8. Emerging Players
21.9. Import/Export Policies
21.10. Compliance Requirements
21.11. Emerging Investment Areas
21.12. Major Ongoing Projects
21.13. Market Size and Forecast
- 21.13.1. Market Revenue, by Tire Size (2019-2032)
- 21.13.2. Market Revenue, by Distribution Channel (2019-2032)
- 21.13.3. Market Revenue, by Application (2019-2032)
- 21.13.4. Market Revenue, by Material Type (2019-2032)
- 21.13.5. Market Revenue, by Vehicle Type (2019-2032)

Chapter 22. South Korea Market

22.1. Overview
22.2. Economic Indicators
22.3. Demographics and Population Insights
22.4. Regional Hotspots
22.5. Growth Drivers
22.6. Challenges and Barriers
22.7. Competitive Strategies
22.8. Emerging Players
22.9. Import/Export Policies
22.10. Compliance Requirements
22.11. Emerging Investment Areas
22.12. Major Ongoing Projects
22.13. Market Size and Forecast
- 22.13.1. Market Revenue, by Tire Size (2019-2032)
- 22.13.2. Market Revenue, by Distribution Channel (2019-2032)
- 22.13.3. Market Revenue, by Application (2019-2032)
- 22.13.4. Market Revenue, by Material Type (2019-2032)
- 22.13.5. Market Revenue, by Vehicle Type (2019-2032)

Chapter 23. India Market

23.1. Overview
23.2. Economic Indicators
23.3. Demographics and Population Insights
23.4. Regional Hotspots
23.5. Growth Drivers
23.6. Challenges and Barriers
23.7. Competitive Strategies
23.8. Emerging Players
23.9. Import/Export Policies
23.10. Compliance Requirements
23.11. Emerging Investment Areas
23.12. Major Ongoing Projects
23.13. Market Size and Forecast
- 23.13.1. Market Revenue, by Tire Size (2019-2032)
- 23.13.2. Market Revenue, by Distribution Channel (2019-2032)
- 23.13.3. Market Revenue, by Application (2019-2032)
- 23.13.4. Market Revenue, by Material Type (2019-2032)
- 23.13.5. Market Revenue, by Vehicle Type (2019-2032)

Chapter 24. Australia Market

24.1. Overview
24.2. Economic Indicators
24.3. Demographics and Population Insights
24.4. Regional Hotspots
24.5. Growth Drivers
24.6. Challenges and Barriers
24.7. Competitive Strategies
24.8. Emerging Players
24.9. Import/Export Policies
24.10. Compliance Requirements
24.11. Emerging Investment Areas
24.12. Major Ongoing Projects
24.13. Market Size and Forecast
- 24.13.1. Market Revenue, by Tire Size (2019-2032)
- 24.13.2. Market Revenue, by Distribution Channel (2019-2032)
- 24.13.3. Market Revenue, by Application (2019-2032)
- 24.13.4. Market Revenue, by Material Type (2019-2032)
- 24.13.5. Market Revenue, by Vehicle Type (2019-2032)

Chapter 25. Brazil Market

25.1. Overview
25.2. Economic Indicators
25.3. Demographics and Population Insights
25.4. Regional Hotspots
25.5. Growth Drivers
25.6. Challenges and Barriers
25.7. Competitive Strategies
25.8. Emerging Players
25.9. Import/Export Policies
25.10. Compliance Requirements
25.11. Emerging Investment Areas
25.12. Major Ongoing Projects
25.13. Market Size and Forecast
- 25.13.1. Market Revenue, by Tire Size (2019-2032)
- 25.13.2. Market Revenue, by Distribution Channel (2019-2032)
- 25.13.3. Market Revenue, by Application (2019-2032)
- 25.13.4. Market Revenue, by Material Type (2019-2032)
- 25.13.5. Market Revenue, by Vehicle Type (2019-2032)

Chapter 26. Mexico Market

26.1. Overview
26.2. Economic Indicators
26.3. Demographics and Population Insights
26.4. Regional Hotspots
26.5. Growth Drivers
26.6. Challenges and Barriers
26.7. Competitive Strategies
26.8. Emerging Players
26.9. Import/Export Policies
26.10. Compliance Requirements
26.11. Emerging Investment Areas
26.12. Major Ongoing Projects
26.13. Market Size and Forecast
- 26.13.1. Market Revenue, by Tire Size (2019-2032)
- 26.13.2. Market Revenue, by Distribution Channel (2019-2032)
- 26.13.3. Market Revenue, by Application (2019-2032)
- 26.13.4. Market Revenue, by Material Type (2019-2032)
- 26.13.5. Market Revenue, by Vehicle Type (2019-2032)

Chapter 27. Saudi Arabia Market

27.1. Overview
27.2. Economic Indicators
27.3. Demographics and Population Insights
27.4. Regional Hotspots
27.5. Growth Drivers
27.6. Challenges and Barriers
27.7. Competitive Strategies
27.8. Emerging Players
27.9. Import/Export Policies
27.10. Compliance Requirements
27.11. Emerging Investment Areas
27.12. Major Ongoing Projects
27.13. Market Size and Forecast
- 27.13.1. Market Revenue, by Tire Size (2019-2032)
- 27.13.2. Market Revenue, by Distribution Channel (2019-2032)
- 27.13.3. Market Revenue, by Application (2019-2032)
- 27.13.4. Market Revenue, by Material Type (2019-2032)
- 27.13.5. Market Revenue, by Vehicle Type (2019-2032)

Chapter 28. South Africa Market

28.1. Overview
28.2. Economic Indicators
28.3. Demographics and Population Insights
28.4. Regional Hotspots
28.5. Growth Drivers
28.6. Challenges and Barriers
28.7. Competitive Strategies
28.8. Emerging Players
28.9. Import/Export Policies
28.10. Compliance Requirements
28.11. Emerging Investment Areas
28.12. Major Ongoing Projects
28.13. Market Size and Forecast
- 28.13.1. Market Revenue, by Tire Size (2019-2032)
- 28.13.2. Market Revenue, by Distribution Channel (2019-2032)
- 28.13.3. Market Revenue, by Application (2019-2032)
- 28.13.4. Market Revenue, by Material Type (2019-2032)
- 28.13.5. Market Revenue, by Vehicle Type (2019-2032)

Chapter 29. U.A.E. Market

29.1. Overview
29.2. Economic Indicators
29.3. Demographics and Population Insights
29.4. Regional Hotspots
29.5. Growth Drivers
29.6. Challenges and Barriers
29.7. Competitive Strategies
29.8. Emerging Players
29.9. Import/Export Policies
29.10. Compliance Requirements
29.11. Emerging Investment Areas
29.12. Major Ongoing Projects
29.13. Market Size and Forecast
- 29.13.1. Market Revenue, by Tire Size (2019-2032)
- 29.13.2. Market Revenue, by Distribution Channel (2019-2032)
- 29.13.3. Market Revenue, by Application (2019-2032)
- 29.13.4. Market Revenue, by Material Type (2019-2032)
- 29.13.5. Market Revenue, by Vehicle Type (2019-2032)

Chapter 30. Company Profiles

Chapter 31. Appendix

31.1. Sources and References
31.2. Related Reports

Green Tires Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)