Automotive Light Commercial Vehicle Green Tires Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Tire Type (Radial, Bias), By Demand Category (OEM, Replacement), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 18.26 Billion
CAGR (2026-2031)	8.93%
Fastest Growing Segment	Replacement
Largest Market	Europe
Market Size (2031)	USD 30.51 Billion

Market Overview

The Global Automotive Light Commercial Vehicle Green Tires Market will grow from USD 18.26 Billion in 2025 to USD 30.51 Billion by 2031 at a 8.93% CAGR. The Global Automotive Light Commercial Vehicle Green Tires Market consists of specialized tires engineered with advanced compounds, such as silica-enriched rubber, designed to minimize rolling resistance and thereby reduce fuel consumption and carbon dioxide emissions for commercial vans and pickup trucks. The primary drivers supporting this market include stringent government environmental regulations mandating lower fleet emissions and the critical need for logistics operators to decrease operational fuel expenses. According to the U.S. Tire Manufacturers Association, in 2024, Original Equipment shipments for light truck tires were projected to increase by 14.6%, indicating strong demand for modern vehicle components that align with these efficiency standards.

However, a significant challenge impeding broader market expansion is the high production cost associated with these advanced tire technologies. The intricate manufacturing processes required to incorporate sustainable materials without compromising safety features, such as wet grip and durability, result in a higher price point compared to conventional tires. This improved performance comes at a premium that cost-sensitive fleet managers in price-competitive markets may be reluctant to pay, despite the potential for long-term savings on fuel and maintenance.

Key Market Drivers

Implementation of stringent government emission and fuel economy regulations serves as a primary catalyst for the Global Automotive Light Commercial Vehicle Green Tires Market. Legislative bodies are enforcing tighter carbon dioxide thresholds and standardized performance ratings, compelling fleet operators to adopt low rolling resistance tires that ensure compliance. This regulatory pressure drives manufacturers to innovate advanced compounds capable of meeting these rigorous efficiency tiers. According to Continental AG, March 2025, in the '2024 Annual Report', the company successfully reduced the rolling resistance of its latest commercial tire generation by 10% specifically to align with the stringent requirements of the EU tire label Class A.

Rapid electrification of light commercial vehicle fleets further accelerates market growth, as electric delivery vans necessitate specialized green tires to handle increased battery weight while maximizing range. Electric powertrains deliver instant torque that accelerates wear on conventional rubber, prompting the development of durable, energy-efficient tires engineered for these platforms. This transition is highlighted by the surging global uptake of zero-emission logistics vehicles. According to the International Energy Agency, May 2025, in the 'Global EV Outlook 2025', global sales of electric light commercial vehicles increased by more than 40% in 2024, underscoring the expanding addressable market for EV-optimized components. To support this eco-friendly shift, according to Michelin, in 2025, the manufacturer increased the proportion of recycled or renewable materials in its tires to 31%.

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Key Market Challenges

The high production costs associated with advanced tire technologies present a fundamental barrier to the expansion of the light commercial vehicle green tires market. Manufacturing these specialized tires requires the integration of silica-enriched rubber and complex bonding processes to ensure safety standards like wet grip are maintained while reducing rolling resistance. These intricate production requirements inevitably result in a higher retail price point compared to standard tires. For fleet managers operating with strict budget constraints, the premium pricing of green tires often outweighs the theoretical benefit of long-term fuel savings, leading them to favor lower-cost conventional alternatives during procurement cycles.

This price sensitivity is particularly impactful in the replacement tire segment, where immediate operational expenses drive purchasing decisions. According to the U.S. Tire Manufacturers Association, in 2024, replacement shipments for light truck tires were projected to reach 36.1 million units. This significant volume represents a large consumer base that is highly susceptible to price fluctuations. When faced with the higher upfront capital required for green tires, operators in this substantial market segment frequently opt for standard options to maintain liquidity, directly stalling the broader market penetration of eco-friendly tire solutions.

Key Market Trends

Integration of IoT-Enabled Smart Sensors for Fleet Management is rapidly transforming the sector by shifting the value proposition from passive rubber components to active, data-driven maintenance solutions. Operators of light commercial vehicle fleets, particularly in high-frequency last-mile delivery, are increasingly deploying tires equipped with embedded sensors to monitor real-time pressure and temperature. This digitalization allows for predictive maintenance that minimizes downtime and optimizes fuel efficiency, a critical factor given the tight margins in logistics. According to Continental AG, February 2025, in the 'AI and Cutting-Edge Sensors for Tyre Management' report, while tires account for only 2% of a fleet's procurement costs, they influence nearly 50% of total driving expenses, including fuel and maintenance, necessitating advanced monitoring to control operational expenditures.

Simultaneously, the Adoption of Recycled Carbon Black in Tire Manufacturing is gaining momentum as a key trend to close the production loop and reduce the industry's reliance on virgin petrochemicals. Manufacturers are investing heavily in advanced pyrolysis infrastructure to recover high-quality raw materials from end-of-life tires, thereby securing a sustainable supply chain for next-generation green LCV tires. This transition supports circular economy goals by converting waste into valuable inputs without compromising the durability or safety required for commercial applications. According to Bridgestone Corporation, January 2025, in the 'Bridgestone to Build a Pilot Demonstration Plant for Precise Pyrolysis of End-of-Life Tires' press release, the company detailed plans for a new facility capable of recycling approximately 7,500 tons of used tires annually into tire-derived oil and recovered carbon black starting in 2027.

Segmental Insights

The Replacement segment is emerging as the fastest-growing category within the Global Automotive Light Commercial Vehicle Green Tires Market. This rapid expansion is primarily driven by the intensive operational patterns of commercial fleets, where high mileage results in frequent tire wear and shorter replacement cycles compared to passenger vehicles. Fleet operators are increasingly transitioning to low-rolling-resistance tires during maintenance to optimize fuel efficiency and reduce total cost of ownership. Furthermore, transparent standards such as the European Union’s tire labelling regulation allow buyers to verify performance ratings, accelerating the adoption of eco-friendly solutions in the aftermarket.

Regional Insights

Europe holds the leading position in the global automotive light commercial vehicle green tires market, largely due to strict environmental mandates enforced by the European Union. The region benefits from the EU Tire Labeling Regulation, which requires clear classification of tire fuel efficiency and rolling resistance. This transparency directs fleet managers toward energy-efficient options to reduce operational costs and meet sustainability goals. Additionally, the European Commission sets firm carbon emission standards for commercial vehicles, necessitating the use of green tires to improve fuel economy. These regulatory factors create a strong market for sustainable tire solutions in Europe.

Recent Developments

• In June 2025, Hankook Tire introduced the iON HT, a premium highway-terrain tire engineered specifically for the growing market of electric light-duty trucks and vans. Unveiled at the Electrify Expo, the tire incorporated the company's specialized iON technology to address the unique challenges of electric commercial vehicles, such as higher weight and instant torque. The iON HT offered ultra-low rolling resistance to maximize battery range and featured a high-load capacity construction to support heavy battery packs. Additionally, the tire was designed with a focus on extending tread life, offering an 80,000-mile limited treadwear warranty to support the operational needs of sustainable commercial fleets.
• In March 2025, Michelin launched the Agilis HD All-Season tire, a new product in its light truck portfolio aimed at improving sustainability and reducing the total cost of ownership for fleet operators. Designed for class 3 to 6 commercial work trucks, the tire featured a dual-tread compounding technology that provided up to 21% better rolling resistance compared to previous generations, directly translating to fuel savings and reduced emissions. The company backed the tire with a mileage guarantee, citing a 20% increase in tread life. This launch underscored Michelin’s focus on urban and regional logistics applications where durability and eco-friendly performance are increasingly critical for business efficiency.
• In October 2024, The Yokohama Rubber Co., Ltd. commenced the supply of its BluEarth-Van RY55 tires as original equipment for Honda Motor Co.’s new commercial-use electric mini-vehicle, the N-VAN e:. This collaboration highlighted the tire manufacturer's commitment to the green light commercial vehicle market, as the BluEarth-Van RY55 was developed with a focus on fuel efficiency and wear resistance. To accommodate the distinct characteristics of the electric van, such as its heavy battery load and high torque, the supplied tires featured optimized tread rubber and a specialized profile. These adjustments ensured low rolling resistance and high handling stability, contributing to the vehicle's practical range and environmental performance in urban delivery settings.
• In May 2024, Bridgestone launched the Duravis Van Winter ENLITEN, a new premium winter tire designed specifically for light commercial vehicles and van fleets. This product utilized the company's proprietary ENLITEN technology to deliver significant sustainability benefits, including a 13% reduction in rolling resistance compared to its predecessor, which enhanced fuel efficiency and lowered carbon emissions. The tire was engineered to be fully EV-ready, meeting the specific performance demands of electric vans such as higher torque and heavier loads. Independent testing by TÜV SÜD confirmed that the tire achieved best-in-class braking and traction performance in snowy and icy conditions, ensuring safety and operational continuity for logistics operators during winter months.

Key Market Players

• Bridgestone Corporation
• Continental AG
• Michelin Group
• Apollo Tyres Limited
• Yokohama Tire Corporation
• Goodyear Tire & Rubber Company
• Pirelli & C. Spa
• Toyo Tire Corporation
• MRF Limited
• CEAT Limited

By Tire Type	By Demand Category	By Region
Radial Bias	OEM Replacement	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Light Commercial Vehicle Green Tires Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Light Commercial Vehicle Green Tires Market, By Tire Type:

• Radial
• Bias

• Automotive Light Commercial Vehicle Green Tires Market, By Demand Category:

• OEM
• Replacement

• Automotive Light Commercial Vehicle Green Tires Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE