A Comprehensive Insight into the Automotive Green Tires Market: Growth, Trends, and Leading Companies

By /

The global automotive green tires market is set to witness substantial growth, driven by a rising demand for eco-friendly and sustainable tire solutions. The market, valued at USD 12.63 billion in 2025, is expected to reach USD 18.35 billion by 2034, growing at a compound annual growth rate (CAGR) of 4.7% during the forecast period. The increasing need for reducing vehicular emissions, along with technological advancements in tire manufacturing, plays a key role in this growth.

Market Overview and Key Trends

The automotive green tires market is a growing sector within the tire industry, focused on producing tires that help minimize environmental impact. Various types of green tires are manufactured, including silica-based, natural rubber-based, synthetic rubber-based, and bio-based tires. These eco-friendly tire solutions are designed for a wide range of vehicles, from passenger cars to heavy-duty trucks and buses.

Download a Sample of Our Market Intelligence: https://www.towardsautomotive.com/download-sample/1382

Key Market Insights:

  1. Geographical Insights:

    • Asia Pacific leads the automotive green tires market, fueled by growing electric vehicle sales in countries like China, India, and Japan. Numerous government initiatives aimed at reducing vehicular emissions also contribute to this trend.

    • North America is projected to experience a significant CAGR during the forecast period, driven by the increasing demand for luxury vehicles and growing investments in the tire manufacturing sector.

  2. Material Type Insights:

    • Silica-based tires dominate the market, owing to their excellent performance in wet grip, abrasion resistance, and rolling resistance. Manufacturers continue to invest in advanced silica-based tire technologies to improve fuel efficiency and reduce emissions.

    • The natural rubber-based tire segment is also growing rapidly, with increasing demand for bio-based tires in electric vehicles and SUVs.

  3. Vehicle Type Insights:

    • The passenger car segment remains the largest market share holder, with increasing sales and production across major countries.

    • The light commercial vehicles segment is expected to see notable growth, particularly driven by the adoption of light commercial electric vehicles (LCEVs).

Government Initiatives Driving Market Growth

Governments worldwide are actively promoting the adoption of eco-friendly vehicles and tires through initiatives such as tax incentives, subsidies, and regulations aimed at reducing carbon emissions. These initiatives have significantly boosted the automotive green tires market, encouraging manufacturers to innovate and increase production of sustainable tire solutions.

Market Expansion and Collaborations

Collaborations between automotive brands and tire manufacturers are essential in the development of sustainable tires. Companies are also expanding their production capabilities by opening new plants to meet the growing demand for green tires.

Leading Companies in the Automotive Green Tires Market

1. Hankook Tire

  • About: Hankook Tire, a global leader in tire manufacturing, is known for its innovation in producing high-performance tires, including eco-friendly options.

  • Products: Hankook offers a wide range of tires, including sustainable tires that focus on reducing environmental impact and improving fuel efficiency.

  • Market Cap: Approximately USD 15.5 billion (as of 2024).

2. Cheng Shin Rubber Industry Co. (Maxxis)

  • About: Cheng Shin Rubber Industry, widely known as Maxxis, is a key player in the automotive green tires market, specializing in tires that deliver enhanced performance and lower environmental impact.

  • Products: The company offers a broad range of eco-friendly tires, including both passenger and commercial vehicle tires designed for reduced emissions.

  • Market Cap: Approximately USD 5.2 billion (as of 2024).

3. Nokian Tyres

  • About: Nokian Tyres, headquartered in Finland, is recognized for its commitment to sustainability and eco-friendly tire manufacturing.

  • Products: Nokian’s eco-friendly tire range includes products made from renewable and recycled materials.

  • Market Cap: Approximately USD 6.7 billion (as of 2024).

4. Michelin

  • About: Michelin, a global tire manufacturer, is at the forefront of innovation in the production of sustainable tires.

  • Products: Michelin offers a diverse range of green tires, including products that focus on energy efficiency, durability, and reduced carbon footprints.

  • Market Cap: Approximately USD 29.5 billion (as of 2024).

5. Kumho Tire

  • About: Kumho Tire, based in South Korea, is known for its high-performance tires, including sustainable and green tire solutions.

  • Products: Kumho Tire produces silica-based and bio-based tires designed for eco-friendly vehicles.

  • Market Cap: Approximately KRW 4.5 trillion (2024).

6. The Goodyear Tire & Rubber Company

  • About: Goodyear, one of the largest tire manufacturers in the world, has a strong focus on producing sustainable tire solutions.

  • Products: Goodyear’s range includes eco-friendly tires that focus on improving fuel efficiency and reducing emissions.

  • Market Cap: Approximately USD 9.5 billion (as of 2024).

7. Bridgestone

  • About: Bridgestone, a global leader in tire manufacturing, emphasizes innovation in sustainable and eco-friendly tire technology.

  • Products: The company produces green tires that improve vehicle fuel efficiency and lower carbon footprints.

  • Market Cap: Approximately USD 33 billion (as of 2024).

Invest in Our Premium Strategic Solution: https://www.towardsautomotive.com/price/1382

FAQs

  1. What are green tires?
    Green tires are tires designed to reduce environmental impact, primarily by improving fuel efficiency, lowering CO2 emissions, and using sustainable materials such as silica and bio-based rubber.

  2. Why is the demand for green tires increasing?
    The demand for green tires is increasing due to growing environmental concerns, government regulations on emissions, and the automotive industry’s shift towards sustainable solutions, particularly in electric and hybrid vehicles.

  3. Which material is most commonly used in green tires?
    Silica-based tires are the most common in the green tire market, as they offer benefits like improved rolling resistance, better fuel efficiency, and lower carbon emissions.

  4. What is the growth outlook for the automotive green tires market?
    The market is expected to grow at a CAGR of 4.7% from 2025 to 2034, driven by rising environmental awareness, government initiatives, and innovations in sustainable tire technologies.

  5. Which regions are leading the automotive green tires market?
    Asia Pacific leads the market due to increasing electric vehicle sales and supportive government policies. North America is also expected to see significant growth, particularly in luxury car markets.

Source : https://www.towardsautomotive.com/insights/automotive-green-tires-market-sizing

Access our exclusive, data-rich dashboard dedicated to the respective market built specifically for decision-makers, strategists, and industry leaders. The dashboard features comprehensive statistical data, segment-wise market breakdowns, regional performance shares, detailed company profiles, annual updates, and much more. From market sizing to competitive intelligence, this powerful tool is one-stop solution to your gateway.

Access Now: https://www.towardsautomotive.com/contact-us

Become a Valued Research Partner with Us – Schedule a meeting: https://www.towardsautomotive.com/schedule-meeting

Request a Custom Case Study Built Around Your Goals: sales@towardsautomotive.com

About Us

Towards Automotive is a leading research and consulting firm specializing in the global automotive industry. We deliver actionable insights across key segments such as electric vehicles (EVs), autonomous driving, connected cars, automotive software, aftermarket services, and more. Our expert team supports both global enterprises and start-ups with tailored research on market trends, technology, and consumer behavior. With a focus on accuracy and innovation, we empower clients to make informed decisions and stay competitive in a rapidly evolving landscape.

Stay Connected with Towards Automotive:

Get ahead of the trends – follow us for exclusive insights and industry updates:

Tumbler | Bloglovin | Medium | Hashnode | Pinterest

Scroll to Top