Tire Recycling Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Process (Pyrolysis, Shredding, Refurbishing), By Product (Crumbed Rubber, Tire Derived Fuel, Refurbished Commercial Vehicle Tires, Others), By Application (Manufacturing, Construction, Rubber Products, Automotive, Others), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 7.67 Billion
CAGR (2026-2031)	3.69%
Fastest Growing Segment	Pyrolysis
Largest Market	North America
Market Size (2031)	USD 9.53 Billion

Market Overview

The Global Tire Recycling Market will grow from USD 7.67 Billion in 2025 to USD 9.53 Billion by 2031 at a 3.69% CAGR. The Global Tire Recycling Market consists of the collection, processing, and material recovery of end-of-life tires (ELTs) to produce value-added outputs such as rubber powder, steel, and tire-derived fuel. The market is primarily supported by rigorous environmental regulations that enforce landfill bans, coupled with an escalating demand for sustainable raw materials in the automotive and construction sectors. Furthermore, the global push toward circular economy models acts as a fundamental driver, compelling manufacturers to integrate reclaimed rubber into new production cycles to reduce reliance on volatile virgin resources. These structural drivers ensure a consistent expansion trajectory, distinct from temporary technological adoption trends.

Despite this growth potential, the market faces a significant impediment regarding the logistical complexity and high operational costs associated with the reverse supply chain. The retrieval of dispersed waste tires often incurs transportation expenses that threaten the profitability of recovery operations, particularly in regions with underdeveloped infrastructure. This challenge is exacerbated by the sheer volume of material entering the market that requires eventual processing. According to the U.S. Tire Manufacturers Association (USTMA), in 2024, total tire shipments in the U.S. alone were projected to reach 338.9 million units, indicating the massive scale of feedstock that the recycling industry must effectively manage to maintain equilibrium.

Key Market Drivers

Stringent environmental regulations and Extended Producer Responsibility (EPR) mandates are fundamentally reshaping the market by enforcing a structural shift from simple disposal to value-added resource recovery. Governments worldwide are implementing rigorous landfill bans and disposal fees, compelling manufacturers to assume financial and physical liability for their products post-consumption. This regulatory pressure effectively incentivizes the development of robust collection infrastructures and drives higher material utilization rates as stakeholders strive for compliance. According to the U.S. Tire Manufacturers Association, October 2024, in the '2023 End-of-Life Tire Management Report', 79% of end-of-life tires were consumed by end-use markets, demonstrating how these policy frameworks are successfully diverting massive volumes of waste into productive applications.

Simultaneously, advancements in pyrolysis and devulcanization technologies are elevating the market's potential by enabling the production of high-quality recovered carbon black and pyrolysis oil. Unlike traditional mechanical shredding, these sophisticated thermal processes allow for the reintroduction of recycled materials directly into new tire manufacturing, thereby closing the loop in the automotive supply chain. Major industry players are responding with significant capital commitments to scale these operations. According to Michelin, February 2024, in a press release regarding its joint venture with Enviro, the companies finalized the investment for a new recycling plant in Sweden with the capacity to recycle approximately 35,000 tons of used tires annually. These technological capacities are critical to addressing the sheer scale of global waste generation; according to Contec S.A., in 2024, an estimated one billion end-of-life tires are discarded yearly worldwide, underscoring the urgent necessity for advanced processing solutions.

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Key Market Challenges

The logistical complexity and high operational costs inherent in the reverse supply chain present a substantial barrier to the expansion of the Global Tire Recycling Market. Unlike forward logistics, which benefit from centralized manufacturing, the collection of end-of-life tires involves retrieving dispersed waste from thousands of diverse locations. This fragmentation disrupts economies of scale, driving up transportation expenses to levels that often exceed the resale value of the recovered material. Consequently, high overheads erode profit margins, frequently making collection economically unfeasible in regions lacking proximity to processing hubs or dense infrastructure.

This economic imbalance directly restricts the reliable flow of feedstock necessary for industrial-scale recycling operations. When transport costs prohibit effective retrieval, vast quantities of potential raw material are left unrecovered, stagnating market throughput and creating environmental liabilities. The persistence of this inefficiency is evident in recent industry inventory data. According to the U.S. Tire Manufacturers Association (USTMA), in 2024, approximately 48 million end-of-life tires remained in stockpiles across the United States. This accumulation highlights how logistical friction and prohibitive costs continue to prevent the full integration of available waste into the recycling value chain.

Key Market Trends

The growing application of rubber-modified asphalt (RMA) in road construction is establishing a critical, sustainable end-market for ground tire rubber, effectively diversifying demand beyond traditional tire-derived fuel. This trend is driven by the infrastructure sector's need for high-performance materials that extend pavement lifespan and reduce maintenance frequency, rather than solely by waste diversion mandates. State and federal transportation agencies are increasingly validating RMA specifications, recognizing its ability to mitigate road noise and resist cracking under thermal stress. According to the U.S. Tire Manufacturers Association, October 2024, in the '2023 End-of-Life Tire Management Report', the consumption of end-of-life tires in rubber-modified asphalt applications increased by 17% between 2021 and 2023, utilizing a total of 165,000 tons of material.

Simultaneously, the adoption of AI and robotics in scrap tire sorting is revolutionizing processing capabilities by replacing hazardous manual separation with high-precision automated systems. These technologies utilize advanced computer vision to identify specific tire types, brands, and wear levels, ensuring that feedstock meets the rigorous purity standards required for chemical recycling processes like pyrolysis. This automation addresses the industry's labor shortages while significantly enhancing throughput and sorting accuracy for bulky waste streams. According to ZenRobotics, February 2024, in a press release regarding the launch of its fourth-generation waste sorting technology, the upgraded Heavy Picker robot achieves an efficiency increase of 60% to 100% compared to previous systems, allowing for faster and more accurate separation of heavy materials such as tires.

Segmental Insights

The pyrolysis segment is emerging as the fastest-growing category within the global tire recycling market due to its ability to recover commercially viable materials from end-of-life tires. This thermal decomposition process efficiently yields fuel oil, steel, and recovered carbon black, directly addressing the rising industrial demand for sustainable raw materials. The expansion is further accelerated by stringent waste management mandates from entities such as the European Union, which prioritize circular economy models over landfill disposal. Consequently, stakeholders are increasingly adopting pyrolysis to comply with environmental standards while securing alternative energy and material sources.

Regional Insights

North America maintains a leading position in the Global Tire Recycling Market, driven by comprehensive waste management frameworks and high recovery rates. The region benefits from established supply chains and the active involvement of bodies like the U.S. Tire Manufacturers Association, which promotes the expansion of sustainable end-use markets. Strong demand for tire-derived fuel and ground rubber in civil engineering projects further supports industry stability. Consequently, the alignment of strict regulatory enforcement with industrial processing capabilities ensures North America remains the primary region for tire recycling activities.

Recent Developments

• In January 2025, Bridgestone Corporation announced its plan to construct a pilot demonstration plant for the precise pyrolysis of end-of-life tires at its manufacturing site in Seki City, Japan. This strategic project was designed to verify and optimize the technology required to recover high-quality tire-derived oil and carbon black effectively. The company aimed to integrate these recycled materials back into the production of new tires, thereby promoting a horizontal recycling business model. Scheduled to commence operations in 2027, the initiative highlighted Bridgestone's commitment to advancing chemical recycling technologies and achieving its long-term sustainability goals of carbon neutrality and a circular economy.
• In September 2024, Pyrum Innovations AG reported the successful industrial-scale operation of its expanded tire recycling facility in Dillingen, Germany. The company confirmed that its new pyrolysis reactors, TAD 2 and TAD 3, had completed their start-up phase and were functioning effectively to convert end-of-life tires into valuable raw materials. This operational breakthrough allowed the company to significantly increase its processing capacity and begin delivering tire-derived oil to its partner, BASF. The successful commissioning of these lines represented a major step forward in the company's rollout plan, validating their unique thermal decomposition technology for creating a closed-loop cycle for rubber waste.
• In May 2024, the U.S. Tire Manufacturers Association, in partnership with the Tire Industry Association, announced the formation of the Tire Recycling Foundation. This new collaborative initiative was established to secure funding and allocate grants for critical research, education, and demonstration projects within the tire recycling supply chain. The foundation set an ambitious target to achieve 100% circularity for end-of-life tires by developing sustainable markets and closing knowledge gaps. A primary focus of the organization was to accelerate the adoption of rubber-modified asphalt, highlighting its performance and environmental benefits as a key solution for tire-derived materials in infrastructure projects.
• In February 2024, a joint venture comprising the tire manufacturer Michelin, Antin Infrastructure Partners, and Scandinavian Enviro Systems announced the final investment decision to construct a dedicated end-of-life tire recycling plant in Uddevalla, Sweden. This strategic collaboration aimed to establish the world's first large-scale tire recycling group, utilizing proprietary pyrolysis technology to recover valuable raw materials such as carbon black and oil. The facility was designed to process approximately 35,000 tons of used tires annually, with the goal of replacing virgin fossil-based materials in new tire production. The partners secured multi-year contracts for the supply of end-of-life tires, marking a significant milestone in industrializing the circular economy for the tire sector.

Key Market Players

• Re-Match A/S
• Continental AG
• Champlin Tire Recycling Inc.
• Wastefront AS
• Bridgestone Corporation
• Liberty Tire Recycling, LLC
• Genan Holding A/S
• Apollo Tyres Ltd

By Process	By Product	By Application	By Region
Pyrolysis Shredding Refurbishing	Crumbed Rubber Tire Derived Fuel Refurbished Commercial Vehicle Tires Others	Manufacturing Construction Rubber Products Automotive Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Tire Recycling Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Tire Recycling Market, By Process:

• Pyrolysis
• Shredding
• Refurbishing

• Tire Recycling Market, By Product:

• Crumbed Rubber
• Tire Derived Fuel
• Refurbished Commercial Vehicle Tires
• Others

• Tire Recycling Market, By Application:

• Manufacturing
• Construction
• Rubber Products
• Automotive
• Others

• Tire Recycling 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