Green Tires Market Overview
Green Tires market size is forecast to reach US$143.2 billion by 2026,
after growing at a CAGR of 11.2% during 2021-2026. Green tires are tires
that have been modified to have a low rolling resistance by using materials
like silica. The addition of silica to the tire formulation improves the energy
efficiency of the tires while also increasing their overall safety. Green tires
help to promote sustainable mobility by improving fuel efficiency and lowering
greenhouse gas emissions in road traffic when compared with semi-aromatic
polyamides, styrene-butadiene rubbers, polycyclic aromatic hydrocarbons-based
tires. Green tire options are becoming readily accessible in the automotive
market as the tire industry moves towards more environmentally friendly products
aimed at reducing fuel consumption, which is driving the market growth of green
tires. Furthermore, strict government regulations and increased consumer
awareness of the environmental impact of fuel consumption have fueled the
growth of the green tire industry.
COVID-19 Impact
The outbreak of COVID-19 had a huge impact on the automotive
industry in 2020. Automotive production was disruptively halted as the demand
gradually shrank, contributing to a major loss in the automotive sector revenue.
For instance, according to the International Organization of Motor Vehicle
Manufacturers, global automotive production fell by 16% in 2020. According to
Toyota Motor Corporation, its global production of vehicles in 2020 was down
12.6 percent year-on-year, owing to the impact of the COVID-19 pandemic. With
the decrease in automotive production, the demand for automotive components
significantly decreased, which had a huge major impact on the green tires
market in 2020.
Report Coverage
Key Takeaways
- Europe dominates the green tires market, owing to the prevalence of strict government regulation regarding CO2 emission in Europe, which is forcing the consumers to gradually shift towards eco-friendly options.
- Green tires offer advantages such as reduced fuel consumption, reduced CO2 emissions, shorter braking distance compared to normal tires, and more. These advantages are accelerating its demand in the automobile sector.
- Furthermore, automakers are concentrating on improving vehicle fuel efficiency, resulting in high demand for fuel-efficient tires, which is propelling the green tire market.
- However, the use of traditional products instead of renewable raw materials can compromise braking performance. The market's growth is further hampered by a lack of awareness about green tires.
Figure: Europe Green Tires Market Revenue, 2020-2026 (US$ Billion)
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Green Tires Market Segment Analysis – By Size
The 10-20 inch segment held the highest share in the green tires
market in 2020. 10-20 inch tires have a thinner sidewall and expose more of the
wheel, which some drivers prefer because it gives the vehicle a more hostile
appearance. Because 10-20 inch tires have a smaller sidewall, they maintain a
higher level of rigidity on the road. Drivers of certain vehicles may notice a
slight improvement in cornering handling as a result of the added rigidity. Owing
to which the 10-20 inch green tire size is a preferred option for consumers.
Green Tires Market Segment Analysis – By Sales Channel
The aftermarket segment held the highest share in the green tires
market in 2020 up to 63% by revenue, as this segment has been witnessing
significant growth in the demand for green tires owing to the growing
preference for green tires over conventional tires, among fleet owners to
reduce the operating cost of the vehicle. The market is primarily driven by car
owners' desire to improve their vehicle's performance in terms of exhaust
sound, speed, and appearance parameters, among other things.
Green Tires Market Segment Analysis – By Application
The on-road segment held the highest share in the green tires market
in 2020, as green tires are known to offer improved mileage due to their
innovative tread design and low or ultra-low rolling resistance, which
increases vehicle range in on-road applications without increasing vehicle
costs. Furthermore, the Goodyear Tire & Rubber Company, for example,
manufactures tires for on-road applications with sidewalls designed to reduce
aerodynamic drag by yielding less rotating mass, resulting in lower fuel
consumption.
Green Tires Market Segment Analysis – By Vehicle Type
The passenger car segment held the highest share in the green tires
market in 2020 and is forecasted to grow at a CAGR of 12.4% during 2021-2026, because
automakers are increasingly focusing on reducing fuel consumption, either to
reduce CO2 emissions or to increase passenger car mileage During the forecast
period, this is expected to fuel market growth for green tires in passenger
cars. The increasing demand for fuel-efficient vehicles, as well as greater
awareness among consumers, are the factors, which are boosting the demand for
green tires in the passenger cars segment.
Green Tires Market Segment Analysis – By Geography
Europe region held the largest share in the green tires market in 2020 up to 38%. With the rise in government regulations on installing green tire and a steady rise in vehicle sales the demand for green tires are gradually increasing in the European region. For instance, The REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals by the European Parliament) regulation, limits the use of chemicals that are harmful to human health and the environment. In 2019, the European Union introduce a tire-labeling scheme intended to encourage consumers to buy greener tires for their vehicles. The European Commission expects the labeling will allow consumers to make environmentally informed choices about the tires they purchase. According to Organisation Internationale des Constructeurs d'Automobiles (OICA), the motor vehicle production in the European Union (new members) increased from 4,344,898 in 2018 to 4,371,499 in 2019, an increase of 0.6%. This growth in the European automobile sector is set to accelerate the demand for automotive components in the region, thereby driving the green tires market growth.
Green Tires Market Drivers
Increasing Automobile Production in Various Regions
It is estimated that 20-30% of a vehicle’s fuel consumption is related to tires. Green tires are often employed in automobiles as it reducess vehicle’s fuel consumption and contributes towards CO2 reduction. The production of automobiles is increasing globally. For instance, according to the Organisation Internationale des Constructeurs d'Automobiles (OICA), the production of light commercial vehicles increased from 55,896 in 2019 to 57,362 in 2020 in Taiwan, an increase of 2.6%. The production of passenger cars in Africa was 776,967 in 2018, which then rose to 787,287 in 2019, an increase of 1.3%. According to the Japan Automobile Manufacturers Association (JAMA), in 2019, the production of cars increased from 6,67,462 in October to 6,90,311 in November in Japan. It is anticipated that with a gradual increase in automobile production there will an upsurge in the demand for green tires to meet the stringent government norms in all the regions.
Fuel Efficiency of Green Tires
Green tires help to reduce the amount of energy lost as a result of
friction between the tires and the rolling surface. Rolling resistance is the
term for this. 7-10% of the fuel in light motor vehicles and conventional
passenger cars is consumed to overcome rolling resistance, while the fuel
consumption in heavy trucks and commercial vehicles is higher. Green tires can
improve a vehicle's fuel efficiency by 2-4 percent in light motor vehicles and
7-10 percent in heavy-duty vehicles. In the long run, using green tires saves
money because the extra cost of the tires is offset by fuel savings. Green tires
help to conserve a nonrenewable resource while also reducing harmful emissions,
owing to which they are considered to be fuel-efficient tires.
Green Tires Market Challenges
Lack of Awareness in Emerging Economies
Consumers are aware of the advantages of CNG and hybrid vehicles;
however, they are less aware of the advantages of green tires and the role they
play in reducing fuel consumption. In emerging economies like India and
Indonesia, the general public is less interested in the advantages of green tires.
This is a significant impediment to the market for green tires.
Green Tires Market Landscape
Technology launches,
acquisitions, and R&D activities are key strategies adopted by players in
the green tires market. Green tires market top companies are Michelin, Bridgestone, Goodyear Tire and Rubber, Continental,
Hankook, Pirelli, Cheng Shin Rubber, Kumho Tires, ZC Rubber, Nokian Tires,
Apollo tires, Sailun Tires, Shandong Linlong Tire, Kenda Tires, Giti Rubber,
Cooper, Yokohama, Nexen, MRF, Petlas, and BKT.
Acquisitions/Technology/Product Launches
- In February 2021, Bridgestone, ARLANXEO, and Solvay launched TECHSYN. TECHSYN combines chemically optimized synthetic rubber with tailormade silica.
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LIST OF TABLES
1.Global Green Tires Market By Vehicle Type Market 2023-2030 ($M)1.1 Passenger Cars Market 2023-2030 ($M) - Global Industry Research
1.2 Light Commercial Vehicles Market 2023-2030 ($M) - Global Industry Research
2.Global Green Tires Market By Vehicle Type Market 2023-2030 (Volume/Units)
2.1 Passenger Cars Market 2023-2030 (Volume/Units) - Global Industry Research
2.2 Light Commercial Vehicles Market 2023-2030 (Volume/Units) - Global Industry Research
3.North America Green Tires Market By Vehicle Type Market 2023-2030 ($M)
3.1 Passenger Cars Market 2023-2030 ($M) - Regional Industry Research
3.2 Light Commercial Vehicles Market 2023-2030 ($M) - Regional Industry Research
4.South America Green Tires Market By Vehicle Type Market 2023-2030 ($M)
4.1 Passenger Cars Market 2023-2030 ($M) - Regional Industry Research
4.2 Light Commercial Vehicles Market 2023-2030 ($M) - Regional Industry Research
5.Europe Green Tires Market By Vehicle Type Market 2023-2030 ($M)
5.1 Passenger Cars Market 2023-2030 ($M) - Regional Industry Research
5.2 Light Commercial Vehicles Market 2023-2030 ($M) - Regional Industry Research
6.APAC Green Tires Market By Vehicle Type Market 2023-2030 ($M)
6.1 Passenger Cars Market 2023-2030 ($M) - Regional Industry Research
6.2 Light Commercial Vehicles Market 2023-2030 ($M) - Regional Industry Research
7.MENA Green Tires Market By Vehicle Type Market 2023-2030 ($M)
7.1 Passenger Cars Market 2023-2030 ($M) - Regional Industry Research
7.2 Light Commercial Vehicles Market 2023-2030 ($M) - Regional Industry Research
LIST OF FIGURES
1.US Green Tires Market Revenue, 2023-2030 ($M)2.Canada Green Tires Market Revenue, 2023-2030 ($M)
3.Mexico Green Tires Market Revenue, 2023-2030 ($M)
4.Brazil Green Tires Market Revenue, 2023-2030 ($M)
5.Argentina Green Tires Market Revenue, 2023-2030 ($M)
6.Peru Green Tires Market Revenue, 2023-2030 ($M)
7.Colombia Green Tires Market Revenue, 2023-2030 ($M)
8.Chile Green Tires Market Revenue, 2023-2030 ($M)
9.Rest of South America Green Tires Market Revenue, 2023-2030 ($M)
10.UK Green Tires Market Revenue, 2023-2030 ($M)
11.Germany Green Tires Market Revenue, 2023-2030 ($M)
12.France Green Tires Market Revenue, 2023-2030 ($M)
13.Italy Green Tires Market Revenue, 2023-2030 ($M)
14.Spain Green Tires Market Revenue, 2023-2030 ($M)
15.Rest of Europe Green Tires Market Revenue, 2023-2030 ($M)
16.China Green Tires Market Revenue, 2023-2030 ($M)
17.India Green Tires Market Revenue, 2023-2030 ($M)
18.Japan Green Tires Market Revenue, 2023-2030 ($M)
19.South Korea Green Tires Market Revenue, 2023-2030 ($M)
20.South Africa Green Tires Market Revenue, 2023-2030 ($M)
21.North America Green Tires By Application
22.South America Green Tires By Application
23.Europe Green Tires By Application
24.APAC Green Tires By Application
25.MENA Green Tires By Application
26.Michelin, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.Bridgestone, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.Goodyear, Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.Continental, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.Hankook, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Pirelli, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Cheng Shin Rubber, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.Kumho, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.ZC Rubber, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Nokian, Sales /Revenue, 2015-2018 ($Mn/$Bn)