Dublin, Jan. 23, 2026 (GLOBE NEWSWIRE) — The “Passenger Car Green Tire Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031” has been added to ResearchAndMarkets.com’s offering.
The Global Passenger Car Green Tire Market is projected to expand from USD 143.59 Billion in 2025 to USD 189.47 Billion by 2031, achieving a CAGR of 4.73%.
These tires rely on advanced engineering using specialized polymers and silica to lower rolling resistance, thereby improving fuel economy. The market’s upward trajectory is largely fueled by strict government mandates aimed at lowering carbon emissions and the burgeoning popularity of electric vehicles, which depend on these tires to extend battery range. Furthermore, fluctuating fuel costs are pushing consumers toward these cost-efficient technologies, establishing a steady demand driver separate from temporary market fads.
Conversely, the sophisticated manufacturing processes and expensive raw materials required create significant cost barriers, hindering widespread uptake in regions sensitive to price. Despite these financial obstacles, the industry rests on a solid base of consistent vehicle manufacturing volumes. Data from the European Automobile Manufacturers Association indicates that global car production reached 75.5 million units in 2024. This massive production scale highlights the significant potential for integrating green tires as manufacturers increasingly focus on sustainability to satisfy environmental regulations.
Market Drivers
The rapid uptake of electric and hybrid vehicles, which demand specialized high-efficiency tires, is a primary catalyst reshaping the Global Passenger Car Green Tire Market. Due to the unique torque and weight profiles of these vehicles, advanced tires are required to ensure safety and durability while maintaining low rolling resistance.
This shift is supported by the fast-growing global electric fleet, creating a surge in demand for components that maximize battery range. As per the International Energy Agency’s ‘Global EV Outlook 2025’ released in May 2025, worldwide electric car sales were anticipated to surpass 20 million units in 2025. This strong sales performance generates an immediate, scalable need for green tires, which are critical for optimizing the performance of electrified platforms.
Simultaneously, innovations in silica-reinforced technologies and bio-based materials are driving market expansion by allowing manufacturers to achieve stringent sustainability targets. Leading companies are progressively incorporating renewable inputs, such as recycled polymers and rice husk silica, to improve tire performance while reducing the environmental impact of production.
For instance, Michelin reported in its ‘2024 Sustainability Report’ in June 2025 that it had raised the share of renewable or recycled materials in its tires to 31 percent. Such material advancements are vital for industry growth, which is further bolstered by rebounding replacement demand in major regions; the European Tyre and Rubber Manufacturers’ Association noted in May 2025 that European consumer replacement tire sales rose by 3 percent in the first quarter of 2025 year-over-year.
Market Challenges
High raw material costs and intricate manufacturing requirements present a significant obstacle to the Global Passenger Car Green Tire Market. Green tires depend on specialized polymers and advanced silica compounds, which are considerably more costly to acquire and process than materials used in standard tires. This expensive production structure necessitates higher retail pricing, which discourages adoption in markets where price sensitivity is high. Consumers in these regions often favor immediate affordability over long-term fuel savings, resulting in a preference for cheaper, conventional alternatives. As a result, this price gap limits sales volumes in developing economies and hinders mass market penetration where disposable income is limited.
This economic difficulty is exacerbated by ongoing supply chain disparities that sustain high input costs. When the production of essential raw materials fails to keep pace with demand, the ensuing scarcity elevates prices, making it challenging for tire manufacturers to execute cost-reduction measures. According to the Association of Natural Rubber Producing Countries, global natural rubber consumption was expected to significantly exceed production in 2024, leading to a supply deficit of roughly 1.2 million tons. This persistent shortage places upward pressure on manufacturing costs, thereby impeding the industry’s capacity to provide competitively priced green tire options to a wider consumer demographic.
Market Trends
The incorporation of smart sensors and IoT technology for real-time efficiency tracking is evolving tires from passive items into intelligent data sources capable of predictive analytics. This movement goes beyond basic pressure monitoring to involve advanced embedded RFID tags and sensors that relay vital telemetry regarding tread wear, load, and temperature to fleet management systems.
Such connectivity is becoming essential for maximizing the safety and uptime of autonomous and shared vehicle fleets. In August 2024, Michelin stated in a press release about its digital infrastructure strategy that it had successfully embedded passive RFID technology into roughly 50 million tires globally. This digitalization permits accurate lifecycle tracking, ensuring tires are used to their full potential before being slated for recycling or retreading.
Concurrently, the adoption of end-of-life tire recycling and circular economy principles is becoming a structural priority to close the loop on industry materials. Distinct from simple material substitution, this trend emphasizes the use of advanced pyrolysis technologies to transform scrapped tires into valuable oil and recovered carbon black (rCB), which are then fed back into the manufacturing cycle.
This strategy substantially reduces dependence on fossil-fuel-based virgin carbon black while mitigating the environmental impact of tire waste. Highlighting this shift, Hankook Tire announced in October 2024 via a press release concerning its ‘Tire-to-Tire Circular Economy Model’ that it had started mass production of tires using ISCC PLUS certified carbon black produced from end-of-life tire pyrolysis oil. These developments confirm the commercial viability of circular manufacturing, establishing a sustainable supply chain that is robust against fluctuating raw material prices.
Key Players Profiled in the Passenger Car Green Tire Market:
- 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
Report Scope: In this report, the Global Passenger Car Green Tire Market has been segmented into the following categories:
Passenger Car Green Tire Market, by Vehicle Type:
Passenger Car Green Tire Market, by Application:
Passenger Car Green Tire Market, by Demand Category:
Passenger Car Green Tire Market, by Region:
- North America
- Europe
- Asia-Pacific
- South America
- Middle East & Africa
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 181 |
| Forecast Period | 2025 – 2031 |
| Estimated Market Value (USD) in 2025 | $143.59 Billion |
| Forecasted Market Value (USD) by 2031 | $189.47 Billion |
| Compound Annual Growth Rate | 4.7% |
| Regions Covered | Global |
For more information about this report visit https://www.researchandmarkets.com/r/a5nn2z
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- Passenger Car Green Tire Market
