Green Tire Market to See Huge Growth USD 54.99 billion by 2029 Amid Growing Demand for Fuel Efficient Vehicles | Exactitude Consultancy

The Green Tire Market is Being Influenced by Increased Investment in Sustainable Transportation Vehicles

PUNE, India, April 25, 2023 /PRNewswire/ -- Exactitude Consultancy, the market research and consulting wing of Ameliorate Digital Consultancy Private Limited has completed and published the final copy of the detailed research report on the Green Tire Market.

The market for green tires is expected to grow at a 9.9% CAGR between 2023 and 2029. It is expected to exceed USD 54.99 billion by 2028, up from USD 28.40 billion in 2022.

Green tires are designed with aerodynamics and lightness in mind, both of which are critical for maintaining a firm grip on the road. These tires also use a tightly bonded rubber in the tread blocks to retain more energy while driving, resulting in lower rolling resistance and, as a result, less engine power is required to rotate the tire. A tire's rolling resistance can account for up to 30% of a vehicle's fuel consumption and a quarter of its CO2 emissions. Reduced rolling resistance reduces the vehicle's carbon footprint.

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Concerns about greenhouse gas emissions and limited natural resource availability are encouraging businesses to produce more sustainable products, such as green tires. Tire manufacturers are pursuing sustainable innovations, such as renewable rubbers that outperform traditional rubber. For example, tire manufacturing company 'Continental' unveiled its green tire concept in September 2021 to manufacture sustainable green tires for passenger cars. Several manufacturers have formed strategic relationships with governments, researchers, and biotechnology companies to enhance their efforts to commercialise renewable rubber, creating ample opportunities for the green tires market.

Some major initiatives taken by major market players include –

• On 05 April 2022, Continental AG introduced tires made from recycled pet bottles. Continental is first tire manufacturing company to begin production of recycled polyester yarn derived from PET plastic bottles using an advanced process. Polyester in carcass of the tires is completely replaced by this. About 40 recycled PET bottles are used to make a set of standard passenger car tires. Bottles used in the technology are sourced solely from areas that do not have a closed recycling loop.
• On 06 January 2022, Goodyear Tire made two statements that could have a significant impact on future of transportation. The tire company revealed that it will begin testing an airless tire, as well as a tire made 70% from sustainable materials. Goodyear Tires established a goal of developing a tire made completely of sustainable materials. This new tire prototype is first big step towards that aim. Sustainable materials in the tire helps to reduce Goodyear's dependency on petroleum-based products.
• On 17 November 2021, Michelin and Bridgestone delivered a joint perspective on advancing sustainability in the tire industry. The presentation emphasized increasing use of recovered carbon black in tires as well as the environmental benefits of this more sustainable material. Two companies had laid out a strategy to promote and increase use of recovered carbon black in new tires and other rubber products. To achieve this goal, collaboration with stakeholders from all parts of the tire and rubber industry value chain will be required.
• On 02 March 2021, Michelin announced that by 2050, all of its tires will be made entirely of recycled, renewable, or bio-sourced materials. The company pledges to increase its research, development, and collaborations for greener tire solutions. The company said it would invest in its 6,000-strong global Research and Development (R&D) team, as well as forge new relationships with other companies and entrepreneurs, to meet its 2050 target. The company highlighted its BioButterfly collaboration with Axens and IFP Energies Nouvelles to create bio-sourced butadiene for synthetic rubber manufacturing.

Asia-Pacific in 2022 had the 38% market share.

The green tire market in China is expected to grow at an 11.3% CAGR between 2022 and 2032. Carbon emission regulations in China are driving up demand for green tires in the automotive industry.

The market in Asia-Pacific is expected to register a significantly rapid revenue growth rate over the forecast period due to dynamic automobile industry across the region, particularly in China, Japan, and India, which is spurring significant demand for green tires, Asia-Pacific is anticipated to post a significantly quick revenue growth rate over the course of the forecast period. Due to the brisk growth of the automotive industry and growing demand for fuel-efficient tires, there is a high demand for green tires in China. The region's well-established distribution network, rising raw material supply, and high polyester production levels are anticipated to fuel the market's expected revenue growth.           

Government Regulations Regarding Automotive Carbon Emissions Encourage Green Tire Adoption

The automobile industry significantly contributes to global CO2 emissions. According to the US Department of Energy, fuel-powered passenger vehicles use 4% to 11% of their fuel just to overcome tire rolling resistance.

Standards and requirements for automotive tires have been developed by government regulatory agencies. For example, the European Union has proposed new tire labelling based on wet grip, noise, and fuel efficiency.

Tires with low rolling resistance will help the green tire market grow.

The rolling resistance of the vehicles is critical in terms of carbon emissions. As rolling resistance increases, so does the energy required to overcome friction, resulting in increased pollutant emissions. This contributes to the overall weight reduction of the vehicle type, resulting in lower fuel consumption. Green tire development reduces rolling resistance while increasing petrol consumption. Rolling resistance increases the amount of energy required for the tires to make contact with and deform on the road surface. Furthermore, comprehensive control of the composite relationship between the tire structure, tread pattern, and rubber compound is required to reduce rolling resistance. Rolling resistance accounts for 10 to 15% of fuel consumption in passenger cars; however, rolling resistance may account for 30% of fuel consumption in heavy vehicles. As a result of rising demand for tires with improved rolling resistance, the global market for green tires is expanding.

The green tire market may be hampered by structural constraints.

Green tires are seen as a game changer in the automotive industry, but there are some structural constraints that may stymie the market. Because these tires have less rubber, they may have less grip, affecting braking, particularly on wet roads. This may increase the likelihood of skidding and, as a result, fatalities in accidents. Reduced rolling resistance requires a good tread pattern. The tires have fewer treads than other types of tires if the vehicle/fleet owner wants fast tires to be used in the vehicle fleet.

When the best tread design is compromised, the vehicle drives faster and has less grip. As a result, when choosing a tire, the vehicle driver must carefully balance the tread pattern. Furthermore, as technology evolves, manufacturers must constantly upgrade their product offerings, which frequently raises operational costs, making small and medium-sized businesses unable to afford them and, as a result, limiting sales outreach.

Report coverage & details:

Green tires Market Players

MICHELIN, Continental AG, Bridgestone Corporation, Pirelli & C. S.p.A, The Goodyear Tire & Rubber Company, Hankook Tire & Technology, The Yokohama Rubber Co. Ltd., Petlas, Kumho Tire, and MRF are key players in the green tires market. Mergers and acquisitions, joint ventures, capacity expansions, major distribution, and branding decisions made by established industry players to increase market share and regional presence. They are also engaged in ongoing R&D activities to develop new Types and are working to expand the Type portfolio. This is expected to increase competition and put new market entrants at risk.

Key Market Segments: Green tires Market

Green Tires Market By Vehicle Type, 2023-2029, (USD Billion)

• Passenger Cars
• Light Commercial Vehicles (LCVS)
• Others
• Heavy Trucks
• Buses & Coaches
• Two Wheelers

Green Tires Market By Tire Size, 2023-2029, (USD Billion)

• Below 15″
• 16″
• 17″
• 18″
• 19″
• Above 19″

Green Tires Market By Sales Channel, 2023-2029, (USD Billion)

• OEM
• Aftermarket

Green Tires Market By Application, 2023-2029, (USD Billion)

• On-Road
• Off-Road

Browse Detailed Summary of Research Report with TOC

https://exactitudeconsultancy.com/reports/15412/green-tires-market/ 

Market Dynamics:

Drivers: Rising demand for fuel-efficient tires

Green tires' primary function is to reduce fuel consumption. When a standard tire rolls on the surface, friction is created, and more friction results in increased fuel consumption. The use of green tires in vehicles reduces friction and thus fuel consumption. Its use in vehicles has the potential to increase fuel efficiency by 8%-10% in heavy vehicles and 2%-4% in light vehicles. Green tires for passenger cars are in high demand. It has also received a lot of attention in trucks and buses in recent years. Furthermore, rising gasoline and diesel prices drive demand for fuel-efficient tires, which is expected to drive market revenue growth during the forecast period.

• Stringent government regulations regarding tire labeling and emissions

Vehicle emissions are rapidly increasing, posing serious environmental threats. Vehicles contribute significantly to air pollution due to their extensive use of fossil fuels. Governments around the world are imposing various emission standards on automobile manufacturers in order to reduce the rising rate of vehicle emissions. Using green tires in vehicles reduces air pollution, which encourages people to use these tires in their vehicles.

Restraint: Lack of performance in winter season

Green tires are useless in the winter because they perform poorly in snow and ice. Green tire use is decreasing in winter-based countries. Because of their lower rolling resistance, these tires have long braking distances on snow or ice. Furthermore, as the temperature drops, the rubber in the tire stiffens and loses traction. Green tire underperformance during the winter season is expected to limit market revenue growth during the forecast period.

• Lack of awareness regarding green tires

The lack of customer awareness about the adoption of green tires limits the market's revenue growth. Customers are generally unaware of the benefits of green tires and their role in lowering fuel consumption, which is expected to drive market revenue growth during the forecast period.

• Fluctuating prices of raw materials

Green tires are made from recycled and synthetic materials. Such materials' availability and pricing can be unpredictable. The cost of raw materials has also risen dramatically in recent years. The rising cost of raw materials used to make green tires is a major source of concern for green tire manufacturers. The main components of rubber used to make green tires are silica, butyl, and silane. The price of these raw materials has risen significantly in recent years as a result of a demand-supply imbalance, which is expected to limit market revenue growth during the forecast period.

Key Question Answered

• What is the expected growth rate of the green tires market over the next 5 years?
• Who are the major players in the green tires market and what is their market share?
• What are the end-user industries driving demand for market and what is their outlook?
• What are the opportunities for growth in emerging markets such as Asia-pacific, middle east, and Africa?
• How is the economic environment affecting the green tires market, including factors such as interest rates, inflation, and exchange rates?
• What is the expected impact of government policies and regulations on the green tires market?
• What is the current and forecasted size and growth rate of the global green tires market?
• What are the key drivers of growth in the green tires market?
• Who are the major players in the market and what is their market share?

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