Automotive Green Tires Market Size

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.

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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.

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.