Automotive Passenger Cars 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 38.18 Billion
CAGR (2026-2031)	9.87%
Fastest Growing Segment	Replacement
Largest Market	Europe
Market Size (2031)	USD 67.16 Billion

Market Overview

The Global Automotive Passenger Cars Green Tires Market will grow from USD 38.18 Billion in 2025 to USD 67.16 Billion by 2031 at a 9.87% CAGR. The Global Automotive Passenger Cars Green Tires Market encompasses eco-friendly tires engineered with low rolling resistance and sustainable materials, such as silica and bio-based oils, to improve fuel efficiency and reduce carbon emissions. The primary drivers supporting this market’s growth include stringent government regulations mandating lower vehicle emissions and the accelerating transition toward electric mobility, which necessitates energy-efficient tires to extend driving range. According to the China Association of Automobile Manufacturers, in 2024, sales of New Energy Vehicles reached approximately 12.87 million units, underscoring the critical demand for efficiency-focused automotive components that directly supports the expansion of the green tire sector.

However, a significant challenge impeding broader market expansion is the high cost associated with advanced raw materials and complex manufacturing processes. The integration of specialized compounds like silane and high-dispersible silica requires precise temperature control and expensive technology, elevating the final product price compared to conventional tires. This cost disparity creates a barrier to adoption in price-sensitive consumer segments, forcing manufacturers to constantly balance superior performance properties with economic viability.

Key Market Drivers

The implementation of stringent government emission and fuel economy standards serves as a primary catalyst for the Global Automotive Passenger Cars Green Tires Market. Regulatory bodies worldwide are enacting aggressive targets to curtail greenhouse gas emissions, compelling original equipment manufacturers (OEMs) to optimize every vehicle component for energy efficiency. Low rolling resistance tires are essential in this equation, as they significantly reduce the energy required to move the vehicle, directly improving fuel economy. According to the National Highway Traffic Safety Administration (NHTSA), June 2024, in the 'Corporate Average Fuel Economy Standards for Passenger Cars and Light Trucks for Model Years 2027-2031', the finalized rules require an industry fleet-wide average of approximately 50.4 miles per gallon by 2031. This regulatory pressure forces automakers to standardize green tires across their fleets to remain compliant and avoid substantial penalties.

Concurrently, the rapid expansion of the electric and hybrid passenger vehicle market is fundamentally reshaping tire requirements. Electric vehicles (EVs) demand specialized green tires that can handle heavier battery weights while minimizing rolling resistance to maximize driving range, a critical factor for consumer acceptance. Furthermore, the silent nature of electric engines necessitates tires with advanced noise-canceling tread designs. According to the International Energy Agency (IEA), April 2024, in the 'Global EV Outlook 2024', global sales of electric cars were projected to reach approximately 17 million units in 2024. To meet the sustainability expectations of this growing segment, manufacturers are also intensifying the integration of eco-friendly materials. According to Continental, in 2024, the company set an ambition to increase the proportion of renewable and recycled materials in its tires to more than 40 percent by 2030, illustrating the sector's strategic pivot toward sustainable production.

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Key Market Challenges

The high cost associated with advanced raw materials and complex manufacturing processes constitutes a formidable barrier to the broader expansion of the Global Automotive Passenger Cars Green Tires Market. Producing these eco-friendly tires requires integrating premium inputs such as high-dispersible silica and silane coupling agents, which necessitate energy-intensive mixing procedures and precise temperature regulation. These intricate production requirements significantly elevate operational expenses compared to standard tire manufacturing, resulting in a higher final retail price. This price disparity deters cost-conscious consumers who prioritize upfront affordability over long-term fuel savings, thereby limiting market penetration in mass-market vehicle segments.

This economic pressure is further exacerbated by fluctuations in the availability of sustainable raw materials, which are essential for maintaining the eco-friendly profile of these products. According to the Association of Natural Rubber Producing Countries, in November 2024, global natural rubber demand reached 13.9 million tons, surpassing the production volume of 12.7 million tons for the same period. This supply deficit creates upward pressure on input costs for manufacturers sourcing sustainable rubber, directly hampering their ability to offer competitively priced green tire solutions while maintaining viable profit margins.

Key Market Trends

The Adoption of Bio-Based and Sustainably Sourced Raw Materials is decoupling tire production from petrochemical dependence. Manufacturers are aggressively replacing fossil-fuel-derived rubber and carbon black with renewable alternatives such as dandelion latex, rice husk ash silica, and plant-based oils. This transition significantly lowers the embodied carbon of the final product and integrates circularity through the use of recycled inputs like polyethylene terephthalate (PET) and reclaimed steel. Underscoring this material evolution, According to Continental, June 2025, in a corporate sustainability update, the company reported that the share of renewable and recycled materials across its entire tire production portfolio averaged 26 percent in 2024, signaling a robust industry-wide pivot toward eco-friendly component integration.

The Advancement of Non-Pneumatic and Airless Tire Solutions represents a critical technological leap designed to eliminate energy losses associated with improper inflation. Unlike traditional pneumatic tires, these airless structures utilize intricate thermoplastic spoke designs to support the vehicle's weight, ensuring consistent rolling resistance and optimal fuel efficiency throughout the tire's lifespan. Furthermore, this technology negates the risk of punctures and blowouts, significantly extending service life and reducing the volume of tires discarded prematurely due to damage. Highlighting the progress in this domain, According to Bridgestone, April 2025, in a press release regarding the 'Tire Technology International Awards', its specialized non-pneumatic tire concept utilizing proprietary 'AirFree' technology was recognized as the 'Tire Concept of the Year', validating the commercial potential of airless architectures in sustainable mobility applications.

Segmental Insights

The Replacement segment is expected to be the fastest-growing category in the Global Automotive Passenger Cars Green Tires Market, primarily due to the rising average age of vehicle fleets worldwide. As passenger cars remain in service for longer periods, the necessity for tire renewals increases, thereby driving substantial demand within the aftermarket. Furthermore, strict labeling mandates from authorities like the European Commission encourage consumers to prioritize low-rolling-resistance tires during maintenance to enhance fuel efficiency. This growing consumer preference for sustainable and cost-effective solutions significantly accelerates the adoption of green tires in the replacement sector.

Regional Insights

Europe maintains a leading position in the Global Automotive Passenger Cars Green Tires Market driven by stringent environmental policies established by the European Union. The European Commission enforces strict carbon dioxide emission targets that necessitate the use of fuel-saving technologies by automotive manufacturers. Additionally, the EU Tire Labeling Regulation mandates the clear display of rolling resistance and fuel efficiency ratings on consumer products. These requirements ensure high market penetration for energy-efficient tires, as manufacturers must align with these mandatory standards to operate successfully within the region.

Recent Developments

• In September 2024, Bridgestone EMEA announced that its Potenza Sport A tire was selected as original equipment for the new Audi e-tron GT family. This bespoke ultra-high-performance tire was the company's first mass-produced product to contain 55% recycled and renewable materials, following ISCC PLUS certification. The tire's composition includes renewable materials like natural rubber and bio-attributed polymers, as well as recycled content such as ground rubber and recovered carbon black. The collaboration aimed to deliver a tire that meets the high-performance demands of the electric vehicle while contributing to sustainability goals through reduced rolling resistance.
• In July 2024, Pirelli entered into a strategic collaboration with Jaguar Land Rover to supply Forest Stewardship Council (FSC)-certified tires for the automaker's luxury vehicle portfolio. This partnership represented a first in the automotive industry, with the car manufacturer committing to use tires made with FSC-certified natural rubber at scale. The initiative was set to debut with the new Range Rover Electric model. The agreement involved the supply of over 250,000 certified tires annually, ensuring that the natural rubber used is traceable and sourced from responsibly managed plantations that preserve biological diversity and benefit local communities.
• In June 2024, Hankook Tire & Technology launched the iON GT, a summer tire developed specifically for battery-powered city cars and sedans, at The Tire Cologne trade fair in Germany. This new product features a high proportion of recycled and renewable materials, earning it ISCC PLUS certification. The tire incorporates bio-based silica, sustainable PET textile cord derived from plastic waste, and bio-circular synthetic rubber. The company announced that the iON GT achieved a triple A rating on the EU tire label for rolling resistance, wet grip, and noise, demonstrating that sustainability does not compromise performance in electric vehicle applications.
• In January 2024, The Goodyear Tire & Rubber Company unveiled the ElectricDrive 2, a new all-season tire designed specifically for electric vehicles, at the Consumer Electronics Show. This product launch marked a significant advancement in the company's sustainability efforts, as the tire is composed of at least 50% sustainable materials by weight. The composition includes soybean oil, rice husk ash silica, and sustainably sourced natural rubber. The tire also features SoundComfort Technology to reduce interior vehicle noise, addressing a key preference among EV owners. It was announced that the tire would be available in North America starting in May 2024.

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

• Automotive Passenger Cars Green Tires Market, By Tire Type:

• Radial
• Bias

• Automotive Passenger Cars Green Tires Market, By Demand Category:

• OEM
• Replacement

• Automotive Passenger Cars 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