This study intends to unfurl the multiple facets of global green tires market. The insights offered in the report aid in market growth examination during the forecast period.
Growing Stringency of Government Regulations to Promote Growth of Green Tires Market
Rising concerns regarding carbon emissions from automobiles have pushed government authorities to put in place stringent regulations to reduce environmental problems. Automobiles are prolific contributors towards air pollution due to extensive use of fossil fuels. In vehicles, tires are one of the major components that determine the quantity of pollutants that the vehicle emits. Considering this issue, governments of various countries have imposed strict emission norms for the automotive sector as an effort towards reducing the emission rate from vehicles. For instance, in Europe all tires that are sold are subject to mandatory labelling. European Commission has put into practice the Tire Energy Label which offers explicit details apropos to the ecological and safety characteristics of tires. These characteristics are based on crucial standards such as fuel efficiency, wet surface breaking, and noise level. With such labels embossed on vehicle tires, customers can take wise decisions and contribute towards reducing air pollution. Such stringent regulations are expected to augur well for the green tires market on the global front in the coming years.
Rising Need for Low Rolling Resistance in Vehicles to Bolster the Growth of Green Tires Market
Rolling resistance plays a vital role in contributing towards carbon emissions. With increasing rolling resistance, the energy demand to overcome friction also simultaneously grows thus leading to high emission rate of pollutants. Green tires have better wet grip and low rolling resistance as compared to conventional tires. This helps in reducing the net weight of the automobile, in turn utilizing less fuel. That said, the adoption of green tires in vehicles can enhance the consumption or facilitate optimum consumption of gasoline by reducing rolling resistance. Moreover, rising fuel costs, especially post Ukraine – Russia war, has triggered the demand for fuel efficient vehicles. This in turn has positively influenced the use of green technology in the automotive tires industry. In addition, good wet grip of green tires facilitates the reduction of breaking distance by several meters thus enhancing the safety quotient while driving. In this backdrop, the increasing demand for low rolling resistance continues to drive the growth of the green tires market.
Asia Pacific Poised to Account for a Significant Volume Share in the Green Tires Market
Geographically, Asia Pacific region is expected to showcase high growth potential in the green tires market. Moreover, presence of major players in the region owing to favourable business environment, availability of cheap land and labour and increasing customer pool has influenced the green tires market growth. Growing automotive sector remains the crucial factor contributing towards the sales of green tires. Increasing number of vehicle sales in the region parallelly encouraging the manufacturing of automobiles has complemented the growth of the green tires market. For instance, according to China Association of Automobile Manufacturers (CAAM), auto sales in the China grew by more than 29% in 2022 representing 2.4 million units as compared to 2021.
In addition, government initiatives to promote use of electric vehicles have also driven the demand for green tires. In China, according to CAAM, sales of pure electric vehicles, hydrogen fuel cell vehicles and plug-in hybrid vehicles grew by 120% in 2022. Similarly, the demand for green tires is expected to surge in India backed by increasing vehicle registrations and automobile manufacturing. Another factor pushing the growth of the green tires market in the region is the stable increase in GDP per capita resulting in high disposable income and strong opportunities in the aftermarket. In addition, Asia Pacific offers a broad market space for green tire business due to enormous production of polyester products, well established distribution networks and availability of raw materials. Several lucrative opportunities prevail across the emerging nations in the region portraying an optimistic scenario for the green tires market.
Likewise, in Europe the green tires market is expected to gain momentum owing to stringent government regulations apropos to emissions. The EU aims in reducing carbon emissions by promoting environment friendly vehicle components. In addition, European Commission is focused on formulating post 2020 emission standards for commercial and passenger vehicles. This factor is expected to promote the use of eco friendly tires in the aftermarket and OEM space in Europe. That said, green tires market in Europe is projected to grow at a significant rate in the forthcoming years.
Green Tires Market: Competitive Scenario
New product launches, collaborations and partnerships have been witnessed in the green tires market. Companies have been investing in such growth strategies to strengthen their position in the global green tires market. For instance, in 2022, Bridgestone Corporation, and Mercedes-Benz entered into a partnership, according to which Bridgestone will provide efficient eco friendly tires to Mercedes. In June 2022, VanContact Ultra Tires were launched by Continental AG that feature low rolling resistance and can be used for commercial and passenger vehicles. In May 2022, tire manufacturer Goodyear announced that it has replaced all petroleum based materials that are used in tires for commercial vehicles with soybean oil based counterparts to develop sustainable, eco-friendly tires.
A few of the major players in the global green tires market include Continental AG, Toyo Tire Corporation, Michelin Group, Goodyear Tire, Bridgestone Corporation, Pirelli & C S.p.A., Hankook Tire and Technology Co. Ltd., and The Yokohama Rubber Co. Ltd.
The Global Green Tires Market is Segmented as Below:
By Tire Size
By Vehicle Type
By Sales Channel
Key Elements Included In The Study: Global Green Tires Market
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