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Automotive Green Tires Market Forecast: What Market Value Is Expected By 2030?
The automotive green tires market has experienced substantial growth in recent years. It is anticipated to expand from $11.68 billion in 2025 to $12.52 billion in 2026, progressing at a compound annual growth rate (CAGR) of 7.2%. This market’s historical growth can be attributed to fuel efficiency regulations, an increase in passenger vehicle production, the demand for eco-friendly products, rising oil prices, and the early adoption of silica-based tires.
The automotive green tires market is projected to experience substantial expansion over the upcoming years. This market is anticipated to reach $16.18 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.6%. Factors contributing to this growth during the forecast period include more stringent emission regulations, an increase in electric vehicle adoption, various sustainable mobility programs, innovations in green rubber technology, and an emphasis on reducing carbon throughout the product lifecycle. Key trends for the forecast period encompass the widespread adoption of low rolling resistance tires, a greater incorporation of sustainable raw materials, growing demand from electric vehicles, the creation of bio-based tire compounds, and a dedication to prolonging tire lifespan.
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Automotive Green Tires Market Expansion Drivers: What Is Shaping Future Growth?
The increasing adoption of electric vehicles is anticipated to drive the expansion of the automotive green tires market moving forward. Electric vehicles are defined as automobiles powered either entirely or partly by electricity stored in rechargeable batteries, rather than relying on internal combustion engines. The prevalence of electric vehicles (EVs) is on the rise due to technological advancements, environmental considerations, government incentives, and decreasing costs. Automotive green tires are essential for electric vehicles to maximize range efficiency and minimize environmental footprint, achieved through reduced rolling resistance and eco-friendly materials. For instance, in July 2023, information from the Electric Vehicle Council, an Australia-based national organization for the electric vehicle sector, revealed that electric vehicle (EV) sales in Australia soared in the first half of 2023, surpassing the total sales for the entire year 2022. By the close of June 2023, 46,624 EVs had been sold, indicating a remarkable 269% increase over the same period in 2022. This upward trend has pushed EVs’ share to 8.4% of all new car sales in Australia, a notable 120.5% rise from the previous year’s total. Therefore, the expanding adoption of electric vehicles is a key driver for the growth of the automotive green tires market.
Automotive Green Tires Market Segment Analysis And Revenue Opportunities
The automotive green tires market covered in this report is segmented –
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)
Automotive Green Tires Market Strategic Trends: What Is Defining The Next Phase Of Growth?
Leading companies within the automotive green tire market are developing cutting-edge products, such as next-generation sustainable tires, to better cater to customers with eco-friendly alternatives. These next-generation sustainable tires refer to advanced tires crafted with innovative materials and technologies to boost environmental sustainability, performance, and overall efficiency. For example, in March 2024, GRI Tires, an industrial tire manufacturer based in Sri Lanka, launched its GREEN XLR EARTH series and ULTIMATE GREEN XT tires, which feature a remarkable amount of sustainable material. The Green XLR Earth series, intended for agriculture, consists of 87.3% sustainable materials, while the Ultimate Green XT, designed for material handling, boasts 93.5% sustainable content. Notably, the Ultimate Green XT incorporates 86.4% bio-sourced and recycled materials, alongside a tread compound that utilizes highly dispersible silica and contains no carbon black, thereby decreasing abrasion loss and the release of particles into the environment.
Automotive Green Tires Market Leading Players Shaping Industry Direction
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
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Automotive Green Tires Market Regional Distribution: Which Areas Drive Market Expansion?
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.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.