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The automotive green tires market size is estimated to grow at a CAGR of 13.82% between 2022 and 2027. The automotive green tires market size is forecast to increase by USD 100.25 billion. The growth of the market depends on several factors, including high affordability and low maintenance cost, different benefits of using green tires, and government norms and mandates acting as market enablers for green tires.
This automotive green tires market report extensively covers market segmentation by application (passenger vehicles and commercial vehicles), type (radial tire and bias tire), and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The high affordability and low maintenance cost of automotive green tires are notably driving the market growth, although high-cost pressures on tire vendors for competitive pricing may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The high affordability and low maintenance cost of automotive green tires are notably driving the automotive green tires market growth. Low initial cost, affordability, and low maintenance costs are some of the major drivers of the automotive green tires market. These factors are driving the penetration of eco-friendly automotive tires in the global automotive market. Vendors operating in the global eco-friendly automotive tire market offer eco-friendly tires for each vehicle segment.
Bridgestone, for example, offers its line of Ecopia tires for USD 40 to USD 60 per tire, depending on the vehicle model. Similarly, Michelin offers a range of Energy Saver tires that cost between USD 45 and USD 70 per tire, depending on the vehicle model. Therefore, the performance benefits, fuel-saving benefits, and reasonable pricing of eco-friendly automotive tires offer excellent cost-effectiveness. Moreover, such tires give rise to factors such as low running costs and very low maintenance costs, which are expected to drive the growth of the market during the forecast period.
Developments in the field of automotive green tires are a key trend influencing the automotive green tires market growth. Growing concerns about pollution from automobile tires are driving developments in the field of environmentally friendly automobile tires. Stringent emission standards are driving the development of innovative tire designs made from advanced, energy-efficient materials. Additionally, the affected markets are increasingly adopting the technologically sound processes required to design, develop and manufacture such tires.
Major automakers continue to invest in research and development of new environmentally friendly tire designs, which is reflected in new concept designs. The Goodyear Tire & Rubber Company recently introduced a new concept to support cleaner and more comfortable urban mobility. The Oxygene tire concept includes a structure that allows for the growth and maintenance of living moss on the sidewall of the tire. This structure allows the tire tread design to absorb and circulate moisture and water from the road surface, synthesizing the photosynthetic process. Such developments will thus help drive the growth of the market during the forecast period.
The high-cost pressures on tire vendors for competitive pricing are challenging the automotive green tires market growth. The global automotive industry is in competition with an increasing number of technological innovations. These innovations, advancements, and the integration of automotive electronics into automobiles have made automobiles more technologically advanced, safer, and more energy efficient. These factors are increasing the competition in the global automotive market. The emergence of new automotive OEMs, increased purchasing power, and increased product launches are making competition even more intense. These factors have gradually increased the cost pressure on various players operating in the automotive value chain, and the same is evident in the global automotive green tires market which acts as a major constraint on the market.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Green Tires Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bridgestone Corp: The company is involved in manufacturing and selling different types of passenger vehicles and motorcycle tires.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the passenger vehicles segment will be significant during the forecast period. Increasing demand among vehicle owners for fuel-efficient, low rolling resistance, and high-performance tires are the main drivers of the passenger cars segment. In addition, increasing passenger car sales in emerging and developing countries such as China, Japan, South Korea, India, and Southeast Asian countries will serve as market enablers for this segment.
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The passenger vehicles segment was valued at USD 57.01 billion in 2017 and continued to grow until 2021. Low-interest rates on auto loans around the world have pushed people to buy more expensive passenger cars. Globally, passenger cars are anticipated to be the most important vehicle segment in the global green vehicle tires market during the forecast period. Moreover, increasing consumer awareness of using eco-friendly tires will drive the adoption rate of eco-friendly automotive tires in the passenger car segment. The market is witnessing diverse market dynamics in the form of ever-changing drivers, trends, and challenges with changing market conditions, consumer preferences, and technological innovations.
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Europe is estimated to contribute 32% to the growth of the global automotive green tires market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In Europe, Western European countries such as Germany, the United Kingdom, France, Italy, and Spain dominate the market in terms of both the mounting rate and volume of green car tires. Eastern European economies also contribute significantly to the market in the region. However, the penetration rate is higher in Western countries. The European Union is home to some of the world's leading car manufacturers such as Daimler, BMW, AUDI, Volkswagen Group, and Renault. These automakers offer green tires for their vehicles. Germany, Spain, and France are the three largest countries in the automotive green tires Market in the European region. These countries lead the region in terms of production volume and account for around 45% of European automobile production. Additionally, these countries have a high adoption and penetration rate of advanced automotive systems in the areas of powertrain, safety, comfort, convenience, and exhaust systems. In addition, high demand and sales of automobiles are driving the penetration of eco-friendly automobile tires in these regions.
Despite the booming automotive industry, the COVID-19 pandemic has had a significant impact on the global automotive tire market in 2020. Automakers from around the world halted their manufacturing operations following the lockdown implementations. The outbreak has had a significant impact on passenger car and commercial vehicle sales. However, the resumption of car manufacturing services started in 2021 due to the lifting of lockdowns globally, thanks to the vaccination campaigns. This led to a rapid increase in sales of auto parts, including green car tires.
The automotive green tires market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global automotive green tires market as part of the global tires and rubber market within the global auto components market. The parent global tires and rubber market includes products and companies involved in developing tires for various types of vehicles and rubbers for tire manufacturing. Technavio calculates the global tires and rubber market based on the total revenue generated by manufacturers of automobiles, commercial vehicles, off-highway, heavy trucks, and motorcycle tires.
Automotive Green Tires Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.82% |
Market growth 2023-2027 |
USD 100.25 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
13.14 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 32% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bridgestone Corp., DOUBLE STAR TIRE, Emerald Resilient Tyre Manufacturers Pvt. Ltd., Giti Tire, GRI Tires, Hankook Tire and Technology Co. Ltd., Maxxis International, Michelin Group, NEXEN TIRE Co. Ltd., Nokian Tyres Plc, Pirelli Tyre Spa, RPG Enterprises, Sailun Group Co. Ltd., Schaeffler AG, The Goodyear Tire and Rubber Co., Triangle Tyre Co. Ltd., Yokohama Tire Corp., Apollo Tyres Ltd., Balkrishna Industries Ltd., and Zhongce Rubber Group Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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