Global Green Tires Market

Green Tires Market Summary

The Global Green Tires Market Size Was Estimated at USD 129.3 Million in 2024 and is Projected to Reach USD 462.8 Million by 2035, growing at a CAGR of 12.29% from 2025 to 2035. Growing environmental consciousness, more stringent emission standards, and the rise of the electric vehicle (EV) market are the main factors propelling the market for green tires.

Key Regional and Segment-Wise Insights

• In 2024, the Asia Pacific region held the largest revenue share, accounting for 38.5% of the global market for green tires.
• In 2024, the passenger car segment held the biggest share, accounting for 61.4% based on vehicles.
• In 2024, the on-road category had the biggest revenue share by application.

Global Market Forecast and Revenue Outlook

• 2024 Market Size: USD 129.3 Million
• 2035 Projected Market Size: USD 462.8 Million
• CAGR (2025-2035): 12.29%
• Asia Pacific: Largest market in 2024

The section of tire manufacturers that focuses on producing environmentally friendly products that minimize carbon emissions and decrease fuel consumption while promoting sustainability is referred to as green tires. Tires that use environmentally-friendly elements such as silica, along with bio-oils and recycled rubber, are produced through energy-efficient manufacturing processes. The industry grows mainly because of rising fuel prices, together with growing environmental awareness among consumers and increasing requirements for fuel-efficient vehicles. The worldwide movement toward sustainable vehicle components receives additional momentum from governments implementing stricter pollution regulations, together with international efforts to achieve carbon neutrality. The growing popularity of electric vehicles (EVs) creates increased demand for low rolling resistance tires, which continues to expand the market for green tires.

Technological progress represents a major driver for the green tires market. Modern manufacturers utilize sustainable elastomers and nanotechnology-based additives as innovative materials to enhance tire performance while reducing environmental damage. Smart tire technology provides real-time monitoring capabilities that enhance both operational efficiency and safety levels. Different countries across the world implement environmental policies together with incentive programs to support sustainable automotive components and green transportation solutions. The adoption of green tires receives support from governmental policies that limit tire rolling resistance while implementing programs dedicated to fuel-efficient car promotion. The global green tire market receives advancement through U.S. and Japanese support for environmentally friendly tire standards, as well as European Union requirements for strict tire labeling.

Vehicle Insights

The passenger car segment represented the largest revenue share of the green tire market at 61.4% during 2024 because of rising consumer preference for eco-friendly and fuel-efficient vehicles. Passenger cars now primarily use green tires because of the increasing understanding of carbon emissions and the push toward sustainable transportation systems. The fast growth of electric and hybrid vehicles has increased the market demand for low rolling resistance tires, which enhance energy efficiency. The original equipment manufacturers (OEMs) progressively incorporate green tires into their products as they strive to meet fuel economy and emission standards. Green tire market leadership belongs to the passenger car sector because of increasing urban populations combined with rising vehicle ownership rates and consumer focus on eco-friendly driving.

During the forecast timeframe, the light commercial vehicles (LCVs) segment is anticipated to grow at the fastest CAGR in the green tires market. The market expansion stems from rising demand for sustainable transportation in e-commerce logistics and urban delivery services. The LCV fleet operators choose green tires because these tires offer both durability and fuel efficiency, which helps them minimize their operational costs and reduce their environmental impact.  The rising demand for tires with minimal rolling resistance stems from the increasing use of electric LCVs.  The green tire market sees LCVs as a key expansion segment because fleet operators use environmentally-friendly tire solutions due to government support, corporate sustainability initiatives, and emission regulations.

Application Insights

The on-road segment dominated the green tire market during 2024. The market segment expands because of rising demand for environmentally friendly tires, together with fuel-efficient tire options for trucks, as well as passenger, light commercial, and road-going vehicles. The market growth of green tires for highways and urban areas results from enhanced environmental regulations that work to boost fuel efficiency and decrease vehicle emission levels. The market growth receives additional support through the emergence of hybrid and electric vehicles, which gain maximum benefit from tires with minimal rolling resistance. The on-road segment stands as the leading application category for green tires because road infrastructure improvements combine with people's desire for sustainable transportation solutions.

The off-road segment of the green tires market will experience the fastest CAGR during the forecast period. The rising demand for environmentally friendly and fuel-efficient tires in sectors including mining and construction, and agriculture, where off-road vehicles operate in tough conditions, drives the expansion of the market. Off-road green tires deliver enhanced grip and durability, together with lower rolling resistance, which helps decrease both fuel consumption and carbon emissions. The advancement of eco-friendly tire technology receives an extra boost from stricter environmental regulations, together with industries adopting more environmentally friendly practices. The rapid expansion of this market is driven by new developments in tire materials, together with designs that work specifically for off-road applications.

Region Insights

The green tire market expansion within North America will experience significant growth throughout the projected timeframe because of government regulations targeting vehicle emission reduction and mounting public concern about the environment. The green tire market in this region expands due to increasing gasoline costs coupled with rising demand for fuel-efficient cars, including electric vehicles and hybrids. Consumers and fleet operators who seek affordable, environmentally-friendly options are attracted to tire technology advancements such as low rolling resistance tires made from sustainable materials. Market growth occurs because of governmental policies and financial incentives that promote eco-friendly transportation solutions. The North American market stands as a key growth area for green tire technologies because of substantial infrastructure development and expanding urbanization.

Europe Green Tires Market Trends

Throughout the forecast period, the European green tire market is anticipated to experience substantial growth because of environmental policies combined with automotive sector sustainability initiatives. The region's commitment to reducing carbon output, along with energy-efficient mobility, drives the demand for environmentally friendly tires. The expanding number of hybrid and electric vehicles on the road supports the market development. European governments actively support sustainable manufacturing methods through incentives for sustainable products like tires. The market benefits from consumers who understand both fuel efficiency and environmental consequences. Europe will establish itself as a leading growth center for green tires through ongoing technical innovations and active R&D activities throughout the forecast period.

Asia Pacific Green Tires Market Trends

The Asia Pacific region dominated the global green tire market with 38.5% of market share in 2024 due to expanding environmental awareness combined with rising vehicle numbers and rapid industrial progress. The expanding automotive industry, particularly in China, India, and Japan, drives substantial growth for this region. The expanding market results from the increasing need for eco-friendly and efficient tires, which serve electric vehicles, commercial vehicles, and passenger cars. The adoption of green tires gets a boost from regional emissions standards and government programs that promote environmentally friendly transportation. The Asia Pacific region maintains its position as the world's leading green tire market due to increasing investments in tire manufacturing facilities along with technology advancements that address local needs.

Key Green Tires Companies:

The following are the leading companies in the green tires market. These companies collectively hold the largest market share and dictate industry trends.

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

Recent Developments

• In May 2025, using 80% sustainable ingredients, JK Tyre & Industries Ltd. introduced the first environmentally friendly automobile tire in India.  All of the sustainable materials used in tire production are ISCC Plus approved.

• In May 2023, Hankook Tire and Kumho Petrochemical partnered to create environmentally friendly tires utilizing eco-solution-polymerized styrene-butadiene rubber.  This rubber increases tire wear resistance and fuel efficiency by using recycled styrene monomer.  As part of this partnership, Hankook tests and assesses its tires to ascertain their physical characteristics and performance attributes.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the green tires market based on the below-mentioned segments: 

Global Green Tires Market, By Vehicle

• Light Commercial Vehicle
• Passenger Cars
• Heavy Trucks
• Buses & Coaches

Global Green Tires Market, By Application

• On Road
• Off Road

Global Green Tires Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa