Automotive Two Wheeler 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 22.58 Billion
CAGR (2026-2031)	7.34%
Fastest Growing Segment	Replacement
Largest Market	Europe
Market Size (2031)	USD 34.54 Billion

Market Overview

The Global Automotive Two Wheeler Green Tires Market will grow from USD 22.58 Billion in 2025 to USD 34.54 Billion by 2031 at a 7.34% CAGR. Automotive two-wheeler green tires are specialized components engineered using eco-friendly materials such as dispersed silica and bio-based oils to minimize rolling resistance and enhance fuel efficiency. These tires are designed to lower carbon emissions while maintaining optimal grip and safety standards for motorcycles and scooters. The market is primarily propelled by stringent environmental regulations aiming to reduce vehicular pollution and a growing consumer preference for sustainable mobility solutions. According to the European Tyre and Rubber Manufacturers’ Association, in 2024, the replacement motorcycle and scooter tire segment in Europe grew by 4% to nearly 9.03 million units, reflecting a robust demand trajectory that supports the broader adoption of efficient tire technologies.

Despite the positive momentum, the market faces a significant challenge regarding the high manufacturing costs associated with sustainable raw materials. Producing tires that balance low rolling resistance with high durability requires complex processing techniques and expensive inputs, which elevates the final product price compared to conventional options. This price disparity often deters price-sensitive consumers in emerging economies, potentially impeding the universal expansion of the green tire sector.

Key Market Drivers

The rapid proliferation of the electric two-wheeler market is a primary driver propelling the adoption of green tires globally. Electric motorcycles and scooters require tires with significantly lower rolling resistance to maximize battery range and handle instant torque delivery, which necessitates the use of advanced silica compounds and tread designs. This transition to electrified mobility is reshaping tire development, as manufacturers prioritize energy-efficient solutions to complement the growing fleet of clean vehicles. According to the International Energy Agency (IEA), April 2025, in the 'Global EV Outlook 2025', global sales of electric two- and three-wheelers reached approximately 10 million units in 2024, maintaining a substantial sales share of around 15%. This volume underscores the critical need for specialized tires that optimize efficiency for battery-powered transport.

Simultaneously, the increasing integration of sustainable and bio-based raw materials is fundamentally transforming the sector, driven by corporate sustainability goals and strict environmental compliance. Tire producers are aggressively replacing fossil-fuel-based components with renewable alternatives, such as rice husk ash silica and recycled polyester, to lower the lifecycle carbon footprint of their products. According to Continental AG, July 2025, in a corporate sustainability update, the company's tires manufactured in 2024 contained an average of 26% renewable or recycled materials, reflecting this industry-wide pivot toward circular economy principles. This shift is supported by a buoyant overall market; according to the European Association of Motorcycle Manufacturers (ACEM), February 2025, motorcycle registrations in Europe's five largest markets rose by 10.1% in 2024, creating a widening install base for these eco-friendly tire technologies.

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Key Market Challenges

The high manufacturing costs associated with sustainable raw materials represent a significant challenge hampering the growth of the Global Automotive Two Wheeler Green Tires Market. Producing these specialized components requires premium inputs, such as dispersed silica and functionalized bio-based oils, alongside complex compounding technologies to ensure they meet performance safety standards. These sophisticated material requirements inherently inflate production expenditures relative to conventional tires, compelling manufacturers to set higher retail prices to maintain commercial viability. Consequently, this substantial price disparity renders green tires less attractive to the mass market, particularly in regions where affordability is the primary purchasing criterion.

This economic barrier severely restricts market penetration in emerging economies, which traditionally account for the bulk of global two-wheeler demand. In these price-sensitive markets, the additional cost of eco-friendly technology often outweighs environmental considerations, preventing widespread adoption. For instance, according to the Society of Indian Automobile Manufacturers, in 2024, domestic two-wheeler sales in India reached approximately 19.5 million units. This magnitude of consumption underscores the vast addressable volume that remains largely inaccessible to the green tire sector due to its inability to align pricing with the purchasing power of consumers in these dominant markets.

Key Market Trends

The emergence of smart tire technologies is becoming a defining trend for performance optimization and environmental efficiency within the two-wheeler sector. Manufacturers are embedding sensor-based systems directly into the tire architecture to monitor real-time parameters such as pressure and temperature, which are critical factors influencing rolling resistance and energy consumption. This digitization enables proactive maintenance that ensures tires operate at optimal inflation levels, thereby extending tread life and reducing carbon emissions associated with premature replacement. According to JK Tyre & Industries, November 2025, in a statement detailing the launch of their embedded smart tire technology, the integration of these monitoring systems is projected to deliver fuel efficiency improvements of up to 5%, highlighting the capability of connected mobility solutions to enhance the sustainability profile of modern vehicles.

Simultaneously, the market is witnessing a decisive shift toward the incorporation of recovered carbon black and recycled materials, moving the industry closer to closed-loop manufacturing cycles. Tire producers are re-engineering compound formulations to utilize pyrolysis products from end-of-life tires, effectively reducing reliance on virgin fossil-based resources while maintaining the structural integrity required for safety. This transition is quantified by the aggressive material sourcing achievements reported by leading manufacturers. According to Apollo Tyres, July 2025, in the 'Sustainability Report 2024-25', the company achieved a sustainable raw material input of 36.24% in the fiscal year 2025, integrating a significant volume of recycled and renewable inputs to substantiate their commitment to circular economy principles.

Segmental Insights

The Replacement segment is projected to register the fastest growth in the Global Automotive Two Wheeler Green Tires Market due to the recurring need for maintenance across the extensive existing fleet of motorcycles and scooters. As owners replace worn tires, there is a rising preference for products that offer improved fuel efficiency and reduced emissions. This demand is further accelerated by initiatives from institutions such as the European Union regarding tire labeling, which encourage consumers to select environmentally friendly options during aftermarket purchase decisions.

Regional Insights

Europe holds the leading position in the Global Automotive Two Wheeler Green Tires Market due to comprehensive environmental mandates enforced by the European Union. Stringent emission targets, specifically the Euro 5 standards for motorcycles, necessitate the adoption of low-rolling-resistance tires to enhance fuel economy and lower exhaust emissions. This regulatory environment encourages manufacturers to utilize silica-based compounds that reduce energy loss. Consequently, the high demand for compliant and energy-efficient mobility solutions, including electric two-wheelers, ensures that Europe remains the primary hub for green tire adoption.

Recent Developments

• In September 2025, a German automotive technology company announced a significant breakthrough in sustainable manufacturing by integrating synthetic rubber made from used cooking oil into its tire production. This innovation was part of the company's broader sustainability strategy to increase the share of renewable and recycled materials in its products to over 40% by 2030. By utilizing ISCC PLUS certified mass balance materials, the manufacturer aimed to reduce reliance on fossil-based resources and enhance the circular economy within the global tire industry.
• In January 2025, a prominent Indian tire manufacturer showcased its specialized electric scooter tires, the Apollo WAV, at the Bharat Mobility Global Expo. These tires were specifically optimized for the electric two-wheeler market, featuring a lightweight design and low rolling resistance to maximize battery range and energy efficiency. The product launch highlighted the company's strategic focus on the green mobility sector, addressing the unique requirements of electric vehicles such as high torque delivery and the need for reduced energy consumption.
• In October 2024, a major Japanese tire corporation announced the launch of the BATTLAX SPORT TOURING T33, a next-generation motorcycle tire scheduled for commercial release in early 2025. The company engineered this new product to achieve a 47% improvement in mileage compared to its predecessor, a development that directly supports sustainability by extending the tire's lifespan and reducing waste. This advancement was achieved through a newly designed compound and tread pattern, which also maintained reliable handling and wet weather performance for long-distance touring motorcycles.
• In March 2024, a leading French tire manufacturer introduced a new range of racing tires for the MotoE World Championship, explicitly designed to support the sustainability goals of electric motorcycle racing. These innovative front and rear tires were composed of 49% and 53% renewable or recycled materials respectively, incorporating sustainable components such as orange peel, rice husk ash, and recycled steel. The company developed these tires to deliver high performance and safety for electric racing bikes while significantly reducing the environmental impact of their production processes.

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

• Automotive Two Wheeler Green Tires Market, By Tire Type:

• Radial
• Bias

• Automotive Two Wheeler Green Tires Market, By Demand Category:

• OEM
• Replacement

• Automotive Two Wheeler 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