Automotive Green Tires Market 2025 Driven by Strategic Collaborations and Circular Economy Initiatives

Automotive Green Tires Market Size, Share and Trends, Import & Export Analysis

The automotive green tires market is projected to reach USD 18.35 billion by 2034, expanding from USD 12.63 billion in 2025, at an annual growth rate of 4.7% during the forecast period from 2025 to 2034. The increasing demand for eco-friendly tires in developing nations to reduce vehicular emission along with technological advancements in the tire manufacturing sector is playing a vital role in shaping the industrial landscape.

Moreover, the growing use of sustainable materials in tires coupled with numerous government initiatives aimed at lowering pollution has boosted the market expansion. The increasing use of bio-based rubber in tires is expected to create ample growth opportunities for the market players in the future.

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Introduction

The automotive green tires market is an integral branch of the tire industry. This industry deals in development and distribution of green tires in different parts of the world. There are several types of tires manufactured in this sector including silica-based tires, natural rubber-based tires, synthetic rubber-based tires, bio-based tires and some others. These tires are designed for different types of vehicles consisting of passenger cars, light commercial vehicles, heavy duty trucks, buses and coaches, off-road vehicles and some others. It is available in a well-established distribution channel comprising of OEMs and aftermarket. This market is expected to rise significantly with the growth of the automotive sector around the globe.

Highlights of the Automotive Green Tires Market

• Asia Pacific generated highest revenue of the automotive green tires market.
• North America is expected to rise with a significant CAGR during the forecast period.
• By material type, the silica-based tires segment led the market.
• By material type, the natural-based tires segment is expected to grow with a considerable CAGR during the forecast period.
• By vehicle type, the passenger cars segment held the largest share of the market.
• By vehicle type, the light commercial vehicles segment is expected to grow with a notable CAGR during the forecast period.

What are the Trends of the Automotive Green Tires Market in 2025?

• The major trends in this market consists of collaborations, business expansions and government initiatives.

Collaborations

• Numerous automotive brands are collaborating with tire manufacturers to develop sustainable tires for reducing vehicular emission.

Business Expansions

• Various market players are investing heavily for opening new manufacturing plants to increase the production of sustainable tires.

Government Initiatives

• Government of several countries are launching different initiatives to increase the adoption of eco-friendly vehicles.

Material Type Insights

How did the Silica-based Tires Segment Led the Automotive Green Tires Market in 2025?

The silica-based tires segment dominated the market. The growing popularity of silica-based tires due to outstanding wet grip, good abrasion resistance, excellent rolling resistance and some others has boosted the market expansion. Additionally, rapid investment by tire manufacturing companies to develop next-gen silica tires for enhancing fuel efficiency in vehicles is playing a vital role in shaping the industrial landscape. Moreover, the increasing adoption of silica-based tires in developed nations to reduce emission is expected to boost the growth of the automotive green tires market.

The natural-based tires segment is expected to rise with a considerable CAGR during the forecast period. The growing demand for eco-friendly tires from the automotive sector to reduce GHG emission has driven the market expansion. Additionally, the increasing use of bio-based tires in electric SUVs and crossover vehicles is contributing to the industry in a positive manner. Moreover, partnerships among automotive companies and tire manufacturers to develop sustainable tires is expected to propel the growth of the automotive green tires market.

Vehicle Type Insights

What Made the Passenger Cars to be the Most Dominant Segment of the Automotive Green Tires Market in 2025?

The passenger cars segment dominated the market. The growing sales and production of passenger cars in various countries such as India, China, Germany, the U.S. and some others has driven the market growth. Also, surging emphasis of people to adopt eco-friendly cars coupled with rising disposable income of the people in developed nations is contributing to the industry in a positive manner. Moreover, partnerships among tire manufacturers and automotive companies to develop high-grade sustainable tire for passenger vehicles is expected to boost the growth of the automotive green tires market.

The light commercial vehicles segment is expected to rise with a notable CAGR during the forecast period. The rising use of light commercial vehicles in various sectors including logistics and transportation, construction, agriculture, and some others has boosted the market expansion. Additionally, rapid investment by EV startups to develop powerful LCEVs is playing a prominent role in shaping the industrial landscape. Moreover, collaborations among tire companies and LCEVs manufacturers to integrate sustainable tires in light commercial vehicles is expected to propel the growth of the automotive green tires market.

Geographical Insights

Why Asia Pacific Dominated the Automotive Green Tires Market in 2025?

Asia Pacific led the automotive green tires market. The increasing sales of electric vehicles in numerous countries such as India, China, Japan, South Korea and some others has boosted the market expansion. Additionally, numerous government initiatives aimed at reducing vehicular emission coupled with opening of new tire manufacturing plants is contributing to the industry in a positive manner. Moreover, the presence of numerous market players such as Cheng Shin Rubber Industry Co., Kumho Tire, Zhongce Rubber Group Co., JK Tyre and some others is expected to boost the growth of the automotive green tires market in this region.

• In May 2025, JK Tyre launched UX Royal Green Tyres in India. These tires are manufactured using sustainable materials such as recycled polyester, recycle rubber powder, bio-attributed polymers and some others.

North America is expected to grow with a significant CAGR during the forecast period. The growing demand for luxury cars in the U.S. and Canada has boosted the market growth. Additionally, rapid investment by government for developing the tire manufacturing sector coupled with rising development in the automotive industry is playing a vital role in shaping the industrial landscape. Moreover, the presence of various market players such as Goodyear Tire & Rubber Company, Cooper Tire & Rubber Company, B.F. Goodrich, Uniroyal and some others is expected to propel the growth of the automotive green tires market in this region.

• In February 2025, Goodyear Tire & Rubber Co announced to launch a new range of sustainable tires in the U.S. These tires are designed for providing eco-friendly transportation to the people of North America.

Industry Leader Announcement

• In April 2025, Tommi Alhola, the Senior Vice President of Passenger Car Tyres, Central Europe for Nokian Tyres made an announcement stating that, “Central Europe is an important strategic growth area for Nokian Tyres. Nokian Tyres Season proof 2 is produced in our zero CO2 emission tire factory in Oradea, Romania close to the Central European consumers and customers. Furthermore, launching a tire range using up to 38% renewable, recycled and ISCC PLUS certified materials takes us significantly closer to our goal of using 50% renewable and recycled materials in our tires by 2030."

Competitive Landscape

The automotive green tires market is a highly fragmented industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Hankook Tire, Cheng Shin Rubber Ind. Co, Nokian Tyres Plc., Michelin, Kumho Tire, The Goodyear Tire & Rubber Company, Zhongce Rubber Group Co., Continental AG, Bridgestone, Pirelli S.p.A. and some others. These companies are constantly engaged in developing for eco-friendly tires and adopting numerous strategies such as partnerships, launches, business expansions, collaborations, acquisitions, joint ventures and some others to maintain their dominance in this industry.

• According to the annual report of Kumho Tire, the revenue of the company in 2023 was around 4041.4 KRW billion that increased to 4538.1 billion in 2024.

Recent Developments

• In June 2025, Prism Worldwide launched a new tire recycling technology. This new technology finds application in developing green tires.
• In April 2025, Nokian launched a new range of Seasonproof 2 all-season tire. These tires are designed for SUVs and CUVs of the European region.
• In February 2025, Continental launched a new tire manufacturing technology. This technology is designed for manufacturing a new range of eco-friendly tires.

Top Automotive Green Tires Market Players

• Hankook Tire
• Cheng Shin Rubber Ind. Co.
• Nokian Tyres Plc.
• Michelin
• Kumho Tire
• The Goodyear Tire & Rubber Company
• Zhongce Rubber Group Co.
• Continental AG
• Bridgestone
• Pirelli & C. S.p.A.

Automotive Green Tires Market Segments Covered in the Report

By Material Type

• Silica-based Tires
• Natural Rubber-based Tires
• Synthetic Rubber-based Tires
• Bio-based Tires

By Vehicle Type

• Passenger Car
• Light Commercial Vehicle
• Heavy Duty Trucks
• Buses and Coaches
• Off-road Vehicles

By Rim Size

• 13”-15”
• 16”-18”
• 19”-21”
• More than 21”

By Propulsion

• IC Engine
• Electric

By Sales Channel

• Original Equipment Manufacturers (OEMs)
• Aftermarket

By Region

• North America
• Latin America
• Western Europe
• Eastern Europe
• Asia Pacific
• The Middle East and Africa