Home > Pressrelease > Automotive Green Tires Market size worth $175 bn by 2027
Automotive Green Tires Market size worth $175 bn by 2027
- Published Date: March 15, 2021
Automotive Green Tires Market size is likely to exceed USD 175 billion by 2027, according to a new research report by Global Market Insights Inc.
Rising automotive demand across the globe will be the chief factor augmenting the automotive green tires industry growth. Increasing focus on sustainability, reducing green-house emissions, and conservation of natural resources, green tires are gaining popularity among automotive manufacturers. The product offers several advantages such as reduction of CO2 emissions, optimized rolling resistance, outstanding road grip, an increase in fuel efficiency, enhanced safety, improved mileage, and very long service life. Furthermore, development in the global automotive industry, rising adoption of electric vehicles, and rising demand for eco-friendly automobiles will propel product usage.
However, the COVID-19 pandemic may hinder the automotive green tires market growth. The pandemic has resulted in supply chain disruption across the automotive industry. Majority of the countries have temporarily closed their manufacturing facilities, limited workforce, and regulations imposed on the mobility of workers & people as preventive measures to limit the adverse impact of the pandemic. It has further hampered the output of the automotive industry and negatively impacted product consumption.
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Browse key industry insights spread across 175 pages with 204 market data tables & 19 figures & charts from the report, “Automotive Green Tires Market Size By Vehicle (Passenger Car, Commercial Vehicles), By Application (On-road, Off-road), End-user (OEM, Aftermarket), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Commercial vehicle segment is forecast to grow at over 11% CAGR through 2027. The proliferating e-commerce industry in both developing and developed economies coupled with rising expenditure in residential & commercial construction across the globe will fuel material transportation, which in turn, will bolster the demand for commercial vehicles.
The off-road vehicles segment is predicted to witness steady growth in automotive green tires market from 2021 to 2027. These vehicles are specifically designed for rugged roads and off-highway applications. These vehicles provide durability, superior traction, and enhanced power output compared to their regular counterparts. Increasing sports and recreational activities globally along with their rising popularity in the construction and mining sectors will augment the growth of the off-road segment.
The aftermarket segment is set to expand at above 11.5% CAGR through 2027. Increasing necessity for maintenance and scheduled servicing requirements to enhance the lifespan of the vehicles will foster the aftermarket segment. Increasing miles driven annually, rising concerns regarding safety & maintenance, and technological advancements to enhance tire life will spur the growth.
Rising demand for luxury and eco-friendly vehicles will enable North America to hold a considerable share
North America is estimated to account for approximately 25% of the automotive green tires market share in 2027. Rising demand for luxury vehicles, SUVs, and commercial vehicles in the region will drive the regional product consumption. Moreover, increasing regulations to reduce vehicle emissions and pressure on automotive manufacturers to meet the growing fuel-economy targets is boosting product adoption.
Product innovation and R&D investments to increase the market foothold
Key participants in the automotive green tires market include Bridgestone Corporation, Michelin, The Goodyear Tire & Rubber Company, Hankook Tire, Continental AG, Pirelli & C. S.p.A., Cheng Shin Rubber Ind. Co., Zhongce Rubber Group Co., Kumho Tire, and Nokian Tyres Plc. These players primarily focus on product innovation and research & development investments for new product development, to enhance their capabilities, and proliferate their market foothold.
In 2019, Michelin, Axens, and IFPEN (IFP Energies Nouvelles) announced the construction of an industrial-scale prototype of a butadiene manufacturing plant in Bassens, France. The project is primarily focused on producing butadiene, a key raw material for tires from bioethanol, and will help the company to strengthen its position in the market.