Automotive OTR 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 8.11 Billion
CAGR (2026-2031)	10.21%
Fastest Growing Segment	Replacement
Largest Market	Europe
Market Size (2031)	USD 14.53 Billion

Market Overview

The Global Automotive OTR Green Tires Market will grow from USD 8.11 Billion in 2025 to USD 14.53 Billion by 2031 at a 10.21% CAGR. Global Automotive Off-the-Road (OTR) Green Tires are specialized heavy-duty tires engineered for mining, construction, and agricultural machinery using sustainable materials and advanced tread designs to minimize rolling resistance and carbon emissions. The primary drivers propelling this market include stringent environmental regulations necessitating lower carbon footprints in industrial operations and the escalating need for fuel efficiency to reduce steep operational costs. Additionally, corporate sustainability mandates are accelerating the adoption of these eco-friendly alternatives. According to the European Tyre and Rubber Manufacturers' Association (ETRMA), in 2024, sales of replacement agricultural tires, a critical OTR segment, increased by 5% to 716,000 units, reflecting resilient demand for advanced machinery components.

However, market expansion is impeded by the high initial manufacturing and procurement costs associated with green tire technologies. The complex processes required to integrate bio-based materials without compromising durability in harsh environments often result in premium pricing that can deter cost-sensitive fleet operators. This financial barrier, often compounded by volatility in raw material supply chains, presents a significant challenge to widespread immediate adoption across the cost-conscious construction and mining sectors.

Key Market Drivers

The implementation of stringent environmental regulations and emission standards is forcing a fundamental shift in the OTR tire sector toward sustainable material integration. Regulatory bodies worldwide are imposing stricter carbon caps on mining and construction operations, compelling manufacturers to replace petrochemical feedstocks with bio-based and recycled alternatives. This legislative pressure is driving measurable changes in production inputs to ensure compliance and market viability. According to Continental, November 2024, in the 'Recycled Plastic Bottles Increase the Share of Sustainable Materials in Continental Tires' press release, the share of renewable and recycled materials in their tire production averaged 26% in 2024. Such regulatory-driven innovations are critical for fleet operators aiming to meet corporate decarbonization targets while maintaining heavy-duty equipment performance.

Simultaneously, the growing electrification of OTR fleets is necessitating the development of specialized range-extending tires designed to handle the unique demands of battery-electric machinery. These heavy-duty vehicles require tires with reinforced structures to support increased weight and advanced tread compounds to minimize rolling resistance, thereby conserving battery life and reducing operational costs. To support this technological transition, manufacturers are upgrading production capabilities. According to Bridgestone Corporation, August 2024, in the 'Bridgestone Announces Japanese Yen 25 Billion Strategic Investment' press release, the company committed ¥25 billion to upgrade its Kitakyushu Plant to enhance the production of high-durability 'MasterCore' tires. Underscoring the significant capital shifts within this market, according to The Yokohama Rubber Co., Ltd., in 2024, the company agreed to acquire Goodyear’s OTR tire business for US$905 million, highlighting the aggressive consolidation fueling these technological advancements.

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Key Market Challenges

The high initial manufacturing and procurement costs associated with green tire technologies stand as a substantial barrier to market expansion. Producing these tires requires integrating expensive bio-based materials and employing complex engineering processes to ensure they endure the rigorous demands of mining and construction environments. These elevated production requirements inevitably result in a premium price point compared to conventional heavy-duty tires. Consequently, cost-sensitive fleet operators, who often prioritize immediate capital preservation over long-term efficiencies, are reluctant to authorize the additional upfront expenditure, thereby stalling the widespread adoption of these sustainable alternatives.

This price resistance is particularly acute when the broader industrial machinery sector faces economic pressure, leading to conservative procurement strategies. The impact of such financial caution on the supply chain is evident in recent industry output figures. According to the Japan Automobile Tyre Manufacturers Association (JATMA), in 2024, the production volume of specialized tires, which encompasses off-the-road and industrial categories, declined by 2.9% year-on-year to approximately 4.38 million units. This contraction in the output of specialized tires highlights a market environment constrained by cost considerations, which directly limits the penetration of premium-priced green OTR technologies.

Key Market Trends

The integration of Internet of Things (IoT) technologies into heavy-duty tires is transforming the market by enabling real-time condition monitoring and predictive maintenance. Fleet operators in mining and construction are increasingly deploying sensors that track critical metrics such as internal pressure, temperature, and tread wear to prevent catastrophic failures and optimize asset utilization. This shift from reactive repairs to data-driven management significantly reduces downtime and operational costs while extending the service life of expensive OTR assets. Validating this rapid adoption, according to Transense Technologies, July 2024, in their 'Year End Trading Update', the number of installed Bridgestone iTrack units generating royalty income increased by 25% compared to the prior financial year, underscoring the growing reliance on digital tire management solutions in the sector.

Simultaneously, the market is witnessing a robust shift toward high-tech retreading and remanufacturing processes as a core sustainability strategy. To mitigate the environmental impact of discarding massive OTR casings, service providers are utilizing advanced rubber compounds and robotic tread application technologies to restore worn tires to like-new performance levels. This approach not only diverts waste from landfills but also drastically lowers the consumption of petrochemical resources required for new tire production. Highlighting the tangible environmental benefits of this practice, according to Kal Tire, September 2024, in the 'Treading Carefully: Industry Looks to Improve Sustainability of Mining Tires' report, choosing four 26.5R25 premium retreads instead of new tires saves more than 8,100 kilograms of carbon emissions and 740 liters of oil, driving fleet operators toward these circular economy solutions.

Segmental Insights

The Replacement segment is currently identified as the fastest growing category within the Global Automotive OTR Green Tires Market. This expansion is primarily driven by the severe operating conditions in mining and construction sectors, which expose tires to abrasive terrains and heavy loads, necessitating frequent turnover. As fleet operators manage these inevitable maintenance cycles, they are increasingly adopting eco-friendly tires to comply with stricter environmental regulations regarding emissions and fuel efficiency. This strategic shift allows companies to modernize existing fleets with sustainable components while minimizing long-term operational costs.

Regional Insights

Europe maintains a dominant position in the Global Automotive OTR Green Tires Market, primarily driven by stringent regulatory frameworks and a strong regional commitment to environmental sustainability. The European Commission has implemented ambitious directives under the European Green Deal, mandating significant reductions in carbon emissions for heavy machinery and industrial vehicles. This regulatory pressure compels fleet operators in the mining, construction, and agricultural sectors to adopt green tires that offer reduced rolling resistance and improved fuel efficiency. Furthermore, the region’s emphasis on the circular economy actively encourages manufacturers to utilize renewable materials and advanced retreading technologies, solidifying Europe’s leadership in this specialized sector.

Recent Developments

• In November 2024, Balkrishna Industries Ltd. (BKT) launched four new agricultural tire solutions at the EIMA International trade show, reinforcing its commitment to sustainable farming practices. The release included the Agrimax Procrop and Agrimax Spargo SB, which utilize Very High Flexion (VF) technology to support heavier loads at reduced inflation pressures. This design minimizes soil compaction, preserving land health while enhancing traction and operational efficiency. The company highlighted that these products were engineered to balance high performance with reduced environmental impact, addressing the evolving needs of modern eco-conscious agriculture.
• In October 2024, the French tire manufacturer introduced the mining industry's first energy-efficient tire, the XDR 4 SPEED ENERGY, during MINExpo International. This new product features an optimized, flexible tread and a specialized energy-saving rubber compound designed to lower rolling resistance significantly. The innovation enables mining operators to reduce fuel consumption and decrease carbon dioxide emissions for rigid dump trucks operating on various terrains. The company stated that this development aligns with its broader sustainability goals to decarbonize mining operations and improve energy efficiency across its off-the-road tire portfolio.
• In August 2024, Bridgestone Corporation announced a ¥25 billion strategic investment to upgrade equipment at its Kitakyushu Plant, a key global production hub for off-the-road (OTR) tires used in mining and construction. This initiative, part of the company's mid-term business plan, aims to enhance the production of its flagship MasterCore tires while improving the facility's eco-friendliness, safety, and productivity. The investment underscores the manufacturer's focus on delivering sustainable mining solutions by ensuring a stable supply of high-durability tires that contribute to resource productivity and operational efficiency at mining sites worldwide.
• In July 2024, Continental AG finalized a long-term purchase agreement with a recycling specialist to procure high-quality recovered carbon black derived from end-of-life tires. The company is currently utilizing this sustainable material in the production of solid forklift tires at its manufacturing facility in Korbach, Germany. By integrating recovered carbon black into its industrial tire compounds, the manufacturer aims to reduce its reliance on fossil-based raw materials and lower carbon emissions. This collaboration represents a significant step towards the company's goal of achieving a circular economy and increasing the use of renewable and recycled materials in its products.

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 OTR Green Tires Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive OTR Green Tires Market, By Tire Type:

• Radial
• Bias

• Automotive OTR Green Tires Market, By Demand Category:

• OEM
• Replacement

• Automotive OTR 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