Green Tires Market Summary

The global green tires market size was estimated at USD 138.9 million in 2024 and is projected to reach USD 272.7 million by 2030, growing at a robust compound annual growth rate (CAGR) of 12.0% from 2025 to 2030. The market is witnessing substantial growth due to rising environmental concerns, the enforcement of stringent government regulations, and the global push toward sustainable mobility. Regulatory mandates focused on reducing vehicular emissions and improving fuel economy are encouraging tire manufacturers to adopt eco-friendly production practices and develop innovative, low-impact tire technologies.

The shift toward green tires is underpinned by their eco-friendly design and the incorporation of renewable and recyclable materials, which collectively help lower carbon footprints. Green tires improve overall vehicle performance by enhancing fuel efficiency and minimizing carbon dioxide emissions. The global focus on mitigating greenhouse gas emissions and the depletion of fossil resources has driven automakers to collaborate with tire manufacturers to integrate sustainable solutions, further propelling the demand for green tires across various vehicle types.

Key Market Trends & Insights

• The passenger car segment dominated the global green tires market in 2024, accounting for the largest share of 62.4%. This dominance is attributed to rising consumer interest in eco-conscious and fuel-efficient vehicles, alongside growing awareness of environmental sustainability. The adoption of green tires in passenger cars also benefits consumers through lower fuel costs, extended tire life, and improved ride comfort.
• By application, the on-road segment held the largest revenue share in the global green tires market in 2024. Green tires for on-road use offer significant advantages, such as reduced rolling resistance, even pressure distribution, and enhanced road grip. These features not only extend the life of tires but also improve overall vehicle safety and reduce long-term operational costs.
• The off-road segment is anticipated to witness the fastest CAGR from 2025 to 2030. This growth is fueled by increasing demand for sustainable tires in industries such as construction, agriculture, and mining. These green tires are specially designed to endure rugged terrains while minimizing environmental damage, supporting industries in achieving their sustainability goals without compromising on performance.
• Geographically, the North America green tires market is expected to record notable growth throughout the forecast period. A growing number of environmentally conscious consumers in the region are seeking sustainable automotive solutions. Rising awareness about climate change and the desire to reduce ecological footprints are leading to increased adoption of green products, including eco-friendly tire options.
• The U.S. led the North American market in 2023 and is projected to maintain its dominance, supported by high vehicle ownership rates and greater emphasis on sustainability. Consumers in the country are increasingly embracing green technologies, thereby fueling demand for environmentally friendly automotive components such as green tires.
• Europe is anticipated to exhibit strong growth over the coming years. As fuel prices remain volatile and energy efficiency becomes a greater concern, consumers in Europe are showing a preference for sustainable products. Additionally, regional government policies aimed at reducing CO₂ emissions and promoting green mobility are playing a key role in accelerating the adoption of green tires.
• The Asia Pacific region held the largest share of the global green tires market in 2024, accounting for approximately 39.5% of total revenue. This leadership is due to the presence of strict environmental regulations, the growing demand for energy-efficient vehicles, and proactive initiatives by regional governments to encourage the adoption of sustainable technologies. Countries such as China, Japan, and India are making significant investments in green automotive innovations.

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Market Size & Forecast

• 2024 Market Size: USD 138.9 Million
• 2030 Projected Market Size: USD 272.7 Million
• CAGR (2025-2030): 12.0%
• Asia Pacific: Largest market in 2024

Key Companies & Market Share Insights

Some of the major players operating in the global green tires market include Goodyear Tire, MICHELIN, and Nokian Tyres plc, among others. These companies are committed to sustainability and innovation, consistently investing in R&D to create advanced, low-impact tire solutions.

• Goodyear is a prominent global tire manufacturer known for its sustainability-driven operations. The company focuses on reducing its energy consumption and greenhouse gas emissions, integrating renewable energy sources in production, and using alternative and sustainable materials to develop products like green tires. Goodyear has also announced its ambition to produce tires made entirely from sustainable materials by 2030.
• MICHELIN Group, headquartered in France, is a renowned global tire manufacturer that supplies products to over 170 countries. The company maintains a strong commitment to sustainability and innovation, producing high-performance tires for a wide range of vehicles—from automobiles and bicycles to heavy equipment and aircraft. MICHELIN’s efforts include creating eco-friendly tires and enhancing the efficiency and longevity of their products while minimizing environmental impact.

Key Players

• APOLLO TYRES LTD
• Bridgestone Corporation
• CANADIAN TIRE
• Continental AG
• GRI Tires
• JK TYRE & INDUSTRIES LTD
• MICHELIN
• MRF Tyres
• Nokian Tyres plc.
• Pirelli & C. S.p.A.
• RPG Group (CEAT tires)
• The Goodyear Tire & Rubber Company
• THE YOKOHAMA RUBBER CO., LTD.
• Toyo Tire Corporation

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Conclusion

The global green tires market is expanding rapidly as sustainability becomes central to consumer choices and industry practices. With rising environmental awareness, regulatory mandates, and technological advancements, green tires are emerging as vital components of the modern automotive ecosystem. Their ability to enhance fuel efficiency, lower emissions, and support eco-friendly driving makes them essential in the transition toward cleaner mobility. Asia Pacific leads in adoption, while North America and Europe are catching up through innovation and consumer demand. As major players invest in sustainable solutions, the green tires market is poised for robust growth and long-term environmental impact.