The global green tyre market attained a value of USD 116.66 Billion in 2025. The market is further expected to grow in the forecast period of 2026-2035 at a CAGR of 11.00% to reach a value of over USD 331.25 Billion by 2035.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
11%
Value in USD Billion
2026-2035
*this image is indicative*
The European market is leading the green tyres industry. Some of the factors causing dominance of this region include the shifting purchasing patterns, rising awareness about fuel efficiency, increasing vehicle production and sales, per capita increase in income, and the introduction of electric and hybrid vehicles. Germany is a significant exporting hub for automobile producers and is recognised globally for its high-quality automobile production.
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Asia Pacific is anticipated to grow in the forecast period due to increasing disposable income leading to rising demand for passenger cars in the region, thus, increasing demand for green tyres. Improving living standards of the population, stringent pollution norms and policies proposed by various countries, leading automotive producers shifting their manufacturing bases in the region are some of the factors fuelling market growth.
Green tyres refer to a new variety of environmentally friendly rubber tyres. Green tyres focus on fuel efficiency. It contains more than 200 ingredients and is available in different types of rubber, each has its own desirable characteristics. It provides a lower rolling resistance and therefore less engine power sapped in rotating the tyre as these eco-friendly tyres employ a special type of tightly bonded rubber in the tread blocks to retain more energy while driving. One can reduce a vehicle's carbon footprint. Rolling resistance of a tyre can account for reduction of a vehicle's fuel consumption and carbon dioxide emissions.
Market Breakup by Vehicle Type
Market Breakup by Application
Market Breakup by End-User
Market Breakup by Region
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Green tires help in reducing the energy lost due to friction between tires and the rolling surface. The cost of installing green tyres may be considered as an expense but in the long run, the use of green tires turns out to be cost-effective. Increasing greenhouse emissions from tire manufacturing along with rising concerns on climate change and global warming is providing lucrative opportunities for growth.
Increase in energy costs, strict government regulations, increasing urbanisation and globalisation, and increased environmental awareness regarding fuel consumption among consumers are some of the factors driving the market. Use of green tyres also helps in tackling the increasing scarcity of natural petroleum reserves and reducing the pollution globally.
The report presents a detailed analysis of the following key players in the global green tyre market, looking into their capacity, market shares, and latest developments like capacity expansions, plant turnarounds, and mergers and acquisitions:
The comprehensive report looks into the macro and micro aspects of the industry. The EMR report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.
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In 2025, the global green tyre market attained a value of nearly USD 116.66 Billion.
The market is projected to grow at a CAGR of 11.00% between 2026 and 2035.
The market is estimated to witness a healthy growth in the forecast period of 2026-2035 to reach USD 331.25 Billion by 2035.
Factors like Increase in energy costs, increasing urbanisation and globalisation, strict government regulations, and increased environmental awareness regarding fuel consumption among consumers are the major industry drivers.
Increasing greenhouse emissions from tire manufacturing along with rising concerns on climate change and global warming is the key market trend.
The major regions in the industry are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific, with Europe accounting for the largest share in the market.
Passenger cars, light commercial vehicles (LCVS), and heavy commercial cars are the major types of vehicles of green tyre in the industry.
The applications of green tyres are on-road and off-road.
OEM and aftermarket are the end-users of green tyre in the industry.
The major players in the industry are Michelin North America, Inc., Bridgestone Americas Tire Operations, LLC, Continental Reifin Deutschland GmbH, Apollo Tyres Ltd, Pirelli & C. S.p.A. - Pirelli Tyre S.p.A, and Kumho Doublestar Tyre Group, among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Vehicle Type |
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| Breakup by Application |
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| Breakup by End-User |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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| Report Price and Purchase Option | Explore our purchase options that are best suited to your resources and industry needs. |
| Delivery Format | Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option. |
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