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Automotive Green Tires Market Size
Automotive Green Tires Market size valued at USD 77.4 billion in 2020 and will grow at a CAGR of 11.4% from 2021 to 2027. Stringent regulations on tire labeling and emissions along with increasing sales of passenger cars and commercial vehicles will primarily drive green tire penetration in the automotive industry.
Green tires are high-performance tires that are formed using high dispersible silica. The Silica/Silane-system in tires offers excellent performance in handling, traction, and wet grip, improving driving safety. Several key characteristics of these tires include lightweight, reduced rolling resistance, CO2 emission & fuel consumption, long-life, and excellent durability, which makes them even suitable for off-road applications.
Increasing greenhouse emissions from tire manufacturing along with rising concerns on climate change and global warming will provide an opportunistic line for product demand in the sector. Application of green tires contributes to sustainable mobility as it reduces greenhouse gas emissions, rolling resistance by 30%, and fuel consumption by 5% to 7%. Moreover, a radical improvement in advanced materials and manufacturing technologies coupled with stringent regulation on tire manufacturing, such as the National Emission Standards for Hazardous Air Pollutants (NESHAP), Clean Air Act (CAA), etc., is likely to support market demand.
| Report Attributes | Details |
|---|---|
| Base Year: | 2020 |
| Market Size in 2020: | USD 77.48 Billion |
| Forecast Period: | 2021 to 2027 |
| Forecast Period 2021 to 2027 CAGR: | 11.2% |
| 2027 Value Projection: | USD 179.29 Billion |
| Historical Data for: | 2017 to 2020 |
| No. of Pages: | 175 |
| Tables, Charts & Figures: | 223 |
| Segments covered: | Vehicle, Application, End-user and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Volatile raw material prices and energy-intensive manufacturing and higher operational costs will hamper green tires market growth. Nevertheless, a positive outlook for automotive manufacturing and increasing demand for fuel-efficient tires and competencies among international manufacturers to improve tire efficiency & effectiveness will catalyze industry growth.
Automotive Green Tires Market Analysis
Passenger cars segment is expected to witness around 11% CAGR through 2027. Increasing sales of passenger cars owing to rising disposable income and mobility requirements with the frequent launch of passenger e-vehicles will drive product penetration. For instance, in December 2020, Toyota launched its ultracompact EV and the Luxgen’s launch, a fully electric vehicle by 2021 being one of the many announcements done by other major manufacturers will promote green tires demand.
The growing importance of product innovation, production capacities, and incorporation of new technologies along with the development in public road transport infrastructures will provide potential opportunities for market growth.
On-road automotive green tires market volume is projected to expand at more than 11.3% CAGR from 2021 to 2027. Increasing product demand in passenger cars and particularly light commercial vehicles is set to drive the market expansion. Rising e-commerce shipment & logistics services coupled with changing consumer lifestyles will primarily drive the demand in light commercial vehicles for weight and fuel optimization.
Increasing environmental concerns pertaining to fuel emissions and safety will also provide potential opportunities for segment growth. Furthermore, governmental regulations on on-road vehicle efficiency and emissions including Euro 6 (6/VI), BS-VI (BS6) will positively influence the automotive green tires industry growth through 2027.
In 2020, Original Equipment Manufacturers (OEMs) generated above USD 20 billion in automotive green tires market. Increasing automobile sales and the transition toward e-vehicles are among the prominent factors fueling green tire demand. OEMs deliver quick access to products through their global distribution network and ensure product quality & support services with a warranty, which signifies higher product life. Thus, long-standing relationships coupled with consumer preference for product quality, reliability, and after-sales services will strengthen the market growth.
Asia Pacific dominated the automotive green tires market with over 395 million units in 2020. The dominance is mainly strengthened by the demand from China, India, and Japan. Increasing vehicle ownership due to rising disposable income and stringent pollution norms & policies proposed by various countries is poised to fuel regional market revenue.
APAC captured about 50% share in global automotive production in 2019. China, the largest automotive manufacturer across the globe, accounted for more than one-fourth of the global automotive sales during the same period. In the last few years, the region has transformed into an automotive hub as a majority of the leading automotive producers have shifted their manufacturing bases in the region. It can be ascribed to the availability of raw materials, robust economic development, increasing disposable income of the middle-class population, cost-effective labor, favorable government initiatives, and rising private & public investments in the region.
The fast-developing e-vehicles industry in India, China, and Japan will further augment the market revenue by 2027. In 2021, Tesla Inc., an electric car manufacturing giant, announced the expansion of its electric car manufacturing in Southern India.
Automotive Green Tires Market Share
Automotive green tire manufacturers are constantly investing in product innovation, research & development, mergers & acquisitions, and geographic expansion to attain a competitive edge in the market. In July 2019, Bridgestone Corporation introduced Enliten, a newly advanced lightweight tire technology, which reduces the tire’s rolling resistance by up to 20% and also contributes to lower CO2 emissions & fuel consumption.
The key automotive green tires market participants include
- Bridgestone
- The Goodyear Tire & Rubber Company
- Michelin
- Hankook Tire
- Continental AG
- Pirelli & C. S.p.A.
- Cheng Shin Rubber Ind. Co.
- Zhongce Rubber Group Co.
- Kumho Tire
- Nokian Tyres Plc.
This market research report automotive green tires includes in-depth coverage of the industry with estimates & forecast in terms of volume in Million Units and revenue in USD Million from 2017 to 2027 for the following segments:
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Market, By Application
- Passenger car
- Commercial vehicles
- Others
Market, By Application
- On-road
- Off-road
Market, By End-user
- OEM
- Aftermarket
The above information is provided on a regional and country basis for the following:
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Spain
- Italy
- Russia
- Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
- Thailand
- Indonesia
- Latin America
- Brazil
- Mexico
- Middle East & Africa
- Saudi Arabia
- South Africa
- UAE
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