Automotive Green Tires Global Market Report 2026

Automotive green tires are tires designed and manufactured with a focus on environmental sustainability. They typically incorporate recycled materials, reduce rolling resistance to improve fuel efficiency, and minimize the use of harmful chemicals during production. The goal of green tires is to decrease carbon emissions and environmental impact compared to traditional tire manufacturing processes.

The primary types of automotive green tires include bias tires and radial tires. Bias tires are constructed with internal ply cords laid diagonally across the tire, usually at an angle of 30-45 degrees relative to the tread centerline. Materials used include silica, low-aromatic oils, synthetic rubber, natural rubber, and others. Various technologies are employed, such as low rolling resistance (LRR) tires, self-inflating tires, and conventional tires. These tires serve different propulsion types including electric, hybrid, plug-in hybrid electric vehicles (PHEVs), fuel cell electric vehicles (FCEVs), and others. They are utilized by various end users, including individual consumers, fleet operators, and original equipment manufacturers (OEMs).

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are impacting the automotive green tires market by increasing the cost of imported silica, synthetic rubber, specialty polymers, reinforcing materials, and tire manufacturing machinery. Tire manufacturers in North America and Europe are particularly affected due to reliance on imported sustainable raw materials, while Asia-Pacific exporters face pricing pressure on green tire shipments. These tariffs are raising production costs and slowing adoption in price-sensitive segments. However, they are also encouraging local sourcing of raw materials, regional tire manufacturing expansion, and innovation in bio-based and recycled material formulations.

The automotive green tires market research report is one of a series of new reports from The Business Research Company that provides automotive green tires market statistics, including automotive green tires industry global market size, regional shares, competitors with a automotive green tires market share, detailed automotive green tires market segments, market trends and opportunities, and any further data you may need to thrive in the automotive green tires industry. This automotive green tires market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The automotive green tires market size has grown strongly in recent years. It will grow from $11.68 billion in 2025 to $12.52 billion in 2026 at a compound annual growth rate (CAGR) of 7.2%. The growth in the historic period can be attributed to fuel efficiency regulations, growth in passenger vehicle production, demand for eco-friendly products, rising oil prices, early adoption of silica-based tires.

The automotive green tires market size is expected to see strong growth in the next few years. It will grow to $16.18 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to stricter emission norms, ev adoption growth, sustainable mobility initiatives, advancements in green rubber technology, lifecycle carbon reduction focus. Major trends in the forecast period include adoption of low rolling resistance tires, increased use of sustainable raw materials, rising demand from electric vehicles, development of bio-based tire compounds, focus on extended tire lifespan.

The increasing adoption of electric vehicles is expected to drive the growth of the automotive green tires market going forward. Electric vehicles are automobiles powered wholly or partially by electricity stored in rechargeable batteries rather than internal combustion engines. The uptake of electric vehicles is accelerating due to technological advancements, rising environmental awareness, supportive government incentives, and declining costs. Automotive green tires are widely used in electric vehicles to improve driving range and reduce environmental impact, as they feature lower rolling resistance and are manufactured using eco-friendly materials. For example, in July 2023, according to the Electric Vehicle Council, an Australia-based national organization representing the electric vehicle industry, electric vehicle sales in Australia surged during the first half of 2023, exceeding total sales for the entire year 2022. By the end of June 2023, 46,624 electric vehicles had been sold, representing a 269% increase compared to the same period in 2022. This surge raised electric vehicles' share of new car sales in Australia to 8.4%, reflecting a 120.5% increase from the previous year. Therefore, the growing adoption of electric vehicles is driving the growth of the automotive green tires market.

Major companies in the automotive green tire market are focusing on the development of innovative products, such as next-generation sustainable tires, to meet increasing demand for environmentally responsible mobility solutions. Next-generation sustainable tires are designed using advanced materials and manufacturing technologies to enhance sustainability, performance, and efficiency. For instance, in March 2024, GRI Tires, a Sri Lanka-based industrial tire manufacturer, launched the GREEN XLR EARTH series and ULTIMATE GREEN XT tires with high sustainable material content. The Green XLR Earth series, designed for agricultural applications, contains 87.3% sustainable materials, while the Ultimate Green XT, intended for material handling, features 93.5% sustainable content. Notably, the Ultimate Green XT incorporates 86.4% bio-sourced and recycled materials, including a tread compound made with highly dispersible silica and no carbon black, which helps reduce abrasion loss and particle emissions into the environment.

In May 2023, Yokohama Rubber Co. Ltd., a Japan-based tire manufacturer, acquired Trelleborg Wheel Systems for an undisclosed amount. This acquisition formed part of Yokohama Rubber's strategy to expand its off-highway tire business, identified as a key future growth area under the company's Yokohama Transformation 2023 initiative. Trelleborg Wheel Systems Holding AB is a Sweden-based manufacturer specializing in off-highway tires, with a strong focus on the development and production of green tire solutions.

Major companies operating in the automotive green tires market report include Bridgestone Corporation, Continental AG, Michelin, Goodyear Tire and Rubber Company, Maxxis International Inc., Sumitomo Rubber Industries Ltd., Giti Tire Pte Ltd, Pirelli & C.S.p.A, Hankook Tire & Technology Co. Ltd., Yokohama Rubber Company, MRF Tyres, Apollo Tyres Limited, Cooper Tire & Rubber Co, Kumho Tire, Nexen Tire Corp, CEAT Limited, Nokian Tyres plc, The Triangle Group, Linglong Americas Inc, Zhongce Rubber Group

North America was the largest region in the automotive green tires market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive green tires market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the automotive green tires market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The automotive green tires market consists of sales of low-rolling-resistance tires, recycled material tires, and energy-efficient tires. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Automotive Green Tires Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses automotive green tires market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for automotive green tires ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The automotive green tires market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type: Bias Tire; Radial Tire
• 2) By Material: Silica; Low-Aromatic Oils; Synthetic Rubber; Natural Rubber; Other Materials
• 3) By Propulsion Types: Electric; Hybrid; Plug-In Hybrid Electric Vehicles (PHEVs); Fuel Cell Electric Vehicles (FCEVs); Other Propulsion Types
• 4) By End Users: Individual Consumers; Fleet Operators; Original Equipment Manufacturers (OEMs); Other End Users
• Subsegments:
• 1) By Bias Tire: Bias Ply Tires For Passenger Vehicles; Bias Ply Tires For Commercial Vehicles
• 2) By Radial Tire: Radial Tires For Passenger Cars; Radial Tires For Light Commercial Vehicles (Lcvs); Radial Tires For Heavy Commercial Vehicles (Hcvs); Radial Tires For Trucks And Buses; Radial Tires For Electric Vehicles (Evs)
• Companies Mentioned: Bridgestone Corporation; Continental AG; Michelin; Goodyear Tire and Rubber Company; Maxxis International Inc.; Sumitomo Rubber Industries Ltd.; Giti Tire Pte Ltd; Pirelli & C.S.p.A; Hankook Tire & Technology Co. Ltd.; Yokohama Rubber Company; MRF Tyres; Apollo Tyres Limited; Cooper Tire & Rubber Co; Kumho Tire; Nexen Tire Corp; CEAT Limited; Nokian Tyres plc; The Triangle Group; Linglong Americas Inc; Zhongce Rubber Group
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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