Green Tires Market

Green Tires Market Size-(2023-2028)

The Green Tires Market in 2022 was $ 56,841.3 and is predicted to reach $ 104,229.9 thousand by 2028, registering a CAGR of 10.2% during the foreseen period.

Although individual vehicles do not produce a large number of pollutants, their worldwide popularity means that the cumulative contribution of the automotive sector is extremely high. Tires are one of the crucial components of a vehicle in determining the number of pollutants emitted by the vehicle. The rolling resistance of a vehicle, that is, the friction between the tires and the surface, is crucial in this regard. The higher the rolling resistance of a vehicle, the more energy it needs to overcome friction and the more pollutants it releases.

The worldwide green tire market is mainly driven by an increase in fuel efficiency around the world. In light motor vehicles and traditional passenger cars, 7-10% of the fuel is employed to overcome rolling resistance, and in heavy trucks and commercial vehicles, fuel consumption is higher. The use of environmentally friendly tires can improve a vehicle's fuel consumption by approximately 2-4% for light vehicles and 7-10% for heavy vehicles. Rising energy costs, strict government regulations, and escalated consumer environmental awareness of fuel consumption, along with a desire to improve handling and safety, are some of the other key factors driving expansion.

Green Tires Market Drivers:

Green tires help reduce energy loss due to friction between the tires and the tread. This is called rolling resistance. In light motor vehicles and conventional passenger cars, 7-10% of the fuel is consumed to overcome rolling resistance, and in heavy trucks and commercial vehicles, fuel consumption is higher. The use of environmentally friendly tires can increase the fuel consumption of a vehicle by approximately 2-4% in light vehicles and 7-10% in heavy vehicles. In the long run, using green tires pays off, as the additional cost paid for green tires is recouped through savings in fuel costs. The main driver of the worldwide green tire market is the growing recognition of the environmental damage employed by cars, and the advances that can be made by changing the way tires are designed. The accumulated amount of pollutants emitted by vehicles is not only harmful to the environment and human health but the problem is also exacerbated by the escalating shortage of natural oil reserves. While the introduction of environmentally friendly tires is relatively a small step towards reducing the overall threat of pollution, it is a necessary step and, more importantly, an easily achievable step.

Green Tires Market Restraints:

Consumers are well aware of the benefits of using hybrid and CNG vehicles; however, there is a lack of awareness about the benefits of green tires and the role they play in reducing fuel consumption. In emerging economies like India and Indonesia, the general consumer is less employed in the benefits of green tires. This is a major limitation for the green tire market.

Opportunities in the Green Tires Market:

Although the call for environmentally friendly tires is escalating among various car manufacturers, i.e., at the original equipment (OE) level, the replacement tire market is predicted to provide many opportunities for manufacturers in the future. The call for replacement tires is predicted to increase during the foreseen period due to escalated vehicle use in the context of an increase in cab-sharing facilities around the world. The worldwide green tire market has also been boosted by the fact that governments and citizens are escalating united in their support for measures to conserve and protect the environment. Growing environmental awareness among the world's population has escalated the preference for green tires among private car owners and commercial fleet owners, while several governments have encouraged the use of green tires.

Challenges in the Green Tires Market:

The main limitation of the worldwide green tire market is the lack of technical knowledge about green tire development. While many companies have stepped up their research efforts to reduce their environmental footprint, green tires are a low-priority product for most tire manufacturers. This situation will take some time to change despite public and government support due to the popularity of regular tires.

GREEN TIRES MARKET REPORT COVERAGE:

Green Tires Market Segmentation:

Green Tires Market - By Vehicle Type:

• Passenger cars

• Light commercial vehicle

Green Tires Market - By Application:

• On-road

• Off-road

Green Tires Market - By Region:

 The Green Tires Report includes the segmentation of Regions:

•  North America 

• Europe 

• Asia Pacific 

• Latin America 

• Middle East & Africa 

APAC is predicted to be the fastest-growing market, in terms of value, during the foreseen period. This is due to the growing call for cars and the improvement in the standard of living of the region's population. The worldwide market for green tires originated in Europe, where the use of silica in tire treads laid the groundwork for the market in the 1990s. The region remains the dominant market for green tires and is among the main research centers. North America has also been quick to integrate green automotive technologies, with the region's green tire market now ranking second after Europe. Europe and North America will continue to be the two largest regional markets for green tires due to the strong presence of pre-eminent automotive giants such as Mercedes, BMW, Audi, Volkswagen, Ford, and GM. The vibrant auto industry in Asia-Pacific is predicted to drive the green tire market in countries such as Japan, China, and India in the coming years.

Impact of Covid-19 on Green Tires Market:

COVID-19 is a disease caused due to SARS-CoV-2 that is first registered in Wuhan, China. The disease has spread to every country in very little time that disrupted the global economy in an unprecedented way. Government authorities took necessary precautions to curb the transmission of the disease. The market players faced difficulties during these times as there are fewer supply chains and manufacturing units. The demand for the market had completely reduced, particularly in the first half of 2020. Key players have planned to implement different strategies to minimize the losses. This helped them to sustain in the market. It is esteemed that by 2021, the market shares will come back into their previous position. 

Recent Developments 

• Launch of the green tire standard in China. Testing of a new specification standard for green tires began in China on March 1, reports the China Rubber Industry Association.

• Kenda launches a new range of ecological tires. Kenda has launched a new touring tire designed with a strong emphasis on reducing fuel consumption.

Green Tires Market Key Players:

1. Michelin (France)
2. Bridgestone (Japan)
3. Goodyear Tire and Rubber (US)
4. Continental (Germany) 
5. Hankook (South Korea)
6. Pirelli (Italy)
7. Cheng Shin Rubber (China)
8. Kumho Tires (South Korea)
9. ZC Rubber (China)
10. Nokian Tires (Finland)
11. Apollo Tires (India)
12. Sailun Tires (China)
13. Shandong Linlong Tire (China)
14. Kenda Tires (Taiwan)
15. Giti Rubber (Singapore)
16. Cooper (US)
17. Yokohama (Japan)
18. Nexen (South Korea)
19. MRF (India)
20. Petlas (Turkey)
21. BKT (India)