Tyre Recycling Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented Product (Rubber, Tire-derived Fuel, Tire-derived Aggregate, Carbon Black, Steel Wires), By Application(Automotive, Construction, Manufacturing, Rubber & Plastics, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 7.66 Billion
CAGR (2026-2031)	3.63%
Fastest Growing Segment	Rubber
Largest Market	Asia Pacific
Market Size (2031)	USD 9.49 Billion

Market Overview

The Global Tyre Recycling Market will grow from USD 7.66 Billion in 2025 to USD 9.49 Billion by 2031 at a 3.63% CAGR. The Global Tyre Recycling Market focuses on the industrial collection and reprocessing of end-of-life tyres (ELTs) into reusable raw materials, such as rubber granulate, steel, and textile fibers, or for use in energy recovery. The primary drivers sustaining this market include stringent environmental regulations enforced by governments worldwide to minimize landfill usage and illegal dumping, thereby mandating responsible waste management. Additionally, the accelerating global shift toward a circular economy model supports growth, as industries increasingly seek sustainable, secondary raw materials to reduce reliance on virgin resources and lower their overall carbon footprint.

However, a significant challenge hindering market expansion is the high operational cost associated with the reverse logistics required to collect and transport waste tyres from widely dispersed sources to processing facilities. These logistical inefficiencies often erode profit margins and discourage investment in recycling infrastructure, particularly in developing regions. To highlight the magnitude of the material volume requiring management, according to the European Tyre and Rubber Manufacturers' Association, in 2024, a total of 3.9 million tonnes of end-of-life tyres were generated across the European region.

Key Market Drivers

Rapid Technological Advancements in Pyrolysis and Devulcanization Processes are fundamentally reshaping the Global Tyre Recycling Market by enabling the recovery of high-value raw materials such as recovered carbon black and pyrolysis oil. Unlike traditional mechanical shredding which produces lower-value crumb rubber, these advanced thermal processes decompose tyres at the molecular level, creating a circular supply chain that appeals to automotive and chemical industries seeking sustainable feedstock. This shift towards high-quality material recovery is attracting significant infrastructure investment. According to Michelin, February 2024, in the 'Michelin joins Antin and Enviro to announce the construction of first end of life tire-recycling plant' press release, the consortium finalized the investment for a facility in Uddevalla, Sweden, designed to recycle approximately 35,000 tonnes of end-of-life tyres annually. Such projects highlight how technology is moving the industry beyond simple disposal toward high-value regeneration.

Implementation of Stringent Environmental Regulations and Landfill Bans serves as a second critical driver, compelling nations to establish robust collection and utilization frameworks. Governments are increasingly enforcing Extended Producer Responsibility (EPR) models that hold manufacturers accountable for post-consumer management, thereby driving high recovery rates and preventing illegal dumping. This regulatory pressure effectively creates a stable supply of feedstock for recyclers and incentivizes the development of diverse end-use markets. According to the U.S. Tire Manufacturers Association, October 2024, in the '16th End-of-Life Tire Management Report', these management efforts resulted in 79% of U.S. end-of-life tyres being consumed by end-use markets in 2023. Highlighting the success of strict compliance measures in mature markets, according to the Japan Automobile Tyre Manufacturers Association, in 2024, the beneficial next use rate of used tyres in Japan reached 99.6%.

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Key Market Challenges

The high operational cost associated with reverse logistics constitutes a primary obstacle to the expansion of the tyre recycling market. Collecting end-of-life tyres requires retrieving bulky, low-density waste from highly fragmented sources, such as independent garages and remote dealerships. This results in an inefficient volume-to-weight ratio during transport, effectively driving up fuel and labor expenses per tonne while limiting the amount of material that can be hauled in a single trip. Consequently, the expenditure required to aggregate these materials frequently exceeds the commercial value of the recovered rubber, eroding profit margins and discouraging the establishment of processing facilities in geographically dispersed areas.

This economic inefficiency directly hampers market growth by preventing the full capture of available feedstock. The logistics expenses often render the collection of tyres from outlying regions financially unviable, leaving valuable resources unrecovered. To illustrate the scale of the collection effort currently sustaining the market, according to the U.S. Tire Manufacturers Association, in 2024, it was reported that 79% of end-of-life tires were consumed by end-use markets. The inability to capture the remaining percentage is largely driven by the prohibitive costs of retrieving tyres from locations where the transportation expenses outweigh the potential revenue.

Key Market Trends

The Expansion of Rubber-Modified Asphalt in Road Infrastructure Projects is emerging as a critical market trend, driven by the need for high-volume, sustainable end-use applications that offer superior performance over traditional materials. Unlike low-value landscaping mulch or simple disposal, this application utilizes ground rubber to enhance pavement durability and reduce road noise, creating a substantial and recurring demand sink for scrap tyres. This growth in infrastructure utilization is substantiated by recent industry data showing a marked increase in material uptake. According to the U.S. Tire Manufacturers Association, October 2024, in the '16th End-of-Life Tire Management Report', the consumption of end-of-life tyres in rubber-modified asphalt increased by 17% between 2021 and 2023, utilizing a total of 165,000 tons of material.

Simultaneously, the Integration of Closed-Loop Tyre-to-Tyre Recycling Ecosystems is moving from concept to reality, supported by substantial capital deployment for infrastructure that can meet automotive-grade specifications. Rather than downcycling rubber into low-end products, this trend focuses on creating a circular supply of recovered carbon black and renewable fuels specifically for re-introduction into new tyre production. Highlighting this shift toward industrial-scale circularity, according to ESG Today, May 2024, in the 'Circular Economy Technology Provider Circtec Raises $163 Million to Build Large-Scale Tire Recycling Plant' article, Circtec secured €150 million to construct a facility in the Netherlands designed to recycle approximately 5% of the annual end-of-life tyre generation in Europe.

Segmental Insights

The Rubber segment is anticipated to witness the most rapid expansion in the Global Tyre Recycling Market, driven by the increasing adoption of circular economy principles across the automotive and construction industries. This growth is fueled by the versatility of reclaimed rubber in producing value-added goods like rubberized asphalt and molded products, offering a cost-effective alternative to virgin raw materials. Additionally, sustainability initiatives promoted by institutions such as the European Tyre Recycling Association encourage the commercial application of derived materials. Consequently, these factors collectively accelerate the demand for recycled rubber solutions globally.

Regional Insights

Asia Pacific holds a dominant position in the Global Tyre Recycling Market, driven by an expanding automotive sector and rising vehicle ownership rates across emerging economies. This region generates significant volumes of end-of-life tires, necessitating effective waste management strategies to mitigate environmental impact. The market growth is further supported by stringent regulatory frameworks aimed at sustainability. For instance, the implementation of Extended Producer Responsibility guidelines by the Ministry of Environment, Forest and Climate Change in India compels manufacturers to ensure responsible disposal, thereby accelerating regional recycling activities and infrastructure development.

Recent Developments

• In May 2025, Liberty Tire Recycling received a prestigious industry award for its impactful collaboration with Walmart to advance circular economy practices for scrap tires. The partnership involved the collection of end-of-life tires from the retailer's auto care centers and their transformation into recycled consumer goods, such as rubber mulch and garden edging, which were subsequently sold in the retailer's stores. This initiative successfully demonstrated a closed-loop system capable of diverting millions of tires from landfills. The recognition highlighted the effectiveness of integrating large-scale retail operations with tire recycling processes to create sustainable, market-viable products for consumers.
• In September 2024, Bridgestone, Grupo BB&G, and Versalis entered into a strategic partnership to develop a closed-loop ecosystem for recycling end-of-life tires. The collaboration focused on leveraging BB&G's thermomechanical pyrolysis process to convert waste tires into tire pyrolysis oil on a commercial scale. Versalis agreed to integrate this oil into its production capability to manufacture circular elastomers, which Bridgestone then utilized to produce new tires with a higher content of recycled materials. This agreement combined expertise from the tire, recycling, and chemical sectors to create a scalable, sustainable supply chain that directly addressed the industry's material circularity goals.
• In May 2024, Circtec secured €150 million in new funding to construct a large-scale end-of-life tire pyrolysis recycling facility in Delfzijl, the Netherlands. The equity investment was led by Novo Holdings and A.P. Moller Holding, aiming to accelerate the deployment of the company's proprietary recycling technology. Once operational, the plant was projected to manage approximately 5% of the scrap tires generated in Europe each year. This capital injection facilitated the company's strategy to produce high-grade renewable fuels and circular chemicals, which significantly reduce the greenhouse gas emissions associated with conventional tire waste disposal and chemical production methods.
• In February 2024, Michelin, Antin Infrastructure Partners, and Scandinavian Enviro Systems announced the final investment decision for the construction of their first end-of-life tire recycling plant in Uddevalla, Sweden. This joint venture was formed to establish a series of recycling facilities across Europe, utilizing specialized pyrolysis technology to recover valuable raw materials such as carbon black and oil from used tires. The facility was designed with an initial capacity to process approximately 35,000 tons of tires annually. This collaboration underscored the companies' shared commitment to scaling up circular economy solutions and replacing virgin resources with recycled alternatives in the tire manufacturing industry.

Key Market Players

• Davis Rubber Company Inc.
• TIRE DISPOSAL & RECYCLING LLC
• Tyre Recycling Solution SA
• Liberty Tire Recycling LLC
• Genan Holding A/S
• ResourceCo Pty Ltd.
• GRP LTD
• Lehigh Technologies, Inc.

By Application	By Region
Automotive Construction Manufacturing Rubber & Plastics Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Tyre Recycling Market, By Application:

• Automotive
• Construction
• Manufacturing
• Rubber & Plastics
• Others

• Tyre 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