Sustainable Tire Materials Market Trend, Share, Growth, Size and Forecast 2030

Sustainable Tire Materials Industry Prospective:

The global sustainable tire materials market size was worth around USD 35.5 million in 2022 and is predicted to grow to around USD 307.8 million by 2030 with a compound annual growth rate (CAGR) of roughly 31% between 2023 and 2030.   

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Sustainable Tire Materials Market: Overview

"Sustainable tire material" refers to recycled, renewable, or bio-based materials that support sustainable tire manufacturing processes by consuming fewer resources and emitting fewer greenhouse gases. Sustainable tire materials may reduce tire production's negative environmental effects, facilitate end-of-life disposal, and promote a more sustainable future. Natural rubber, recycled rubber, carbon black that isn't harmful to the environment, silica, recycled thread, vegetable oils, and eco-friendly chemicals are all components of sustainable tires. New sustainable tire materials are still being developed via extensive study. The sustainable tire materials market growth is driven by various factors including rising environmental concerns, growing government regulations, reduced dependency on petrochemicals, and increasing investment in R&D.

Key Insights

• As per the analysis shared by our research analyst, the global Sustainable Tire Materials market is estimated to grow annually at a CAGR of around 31% over the forecast period (2023-2030).
• In terms of revenue, the global Sustainable Tire Materials market size was valued at around USD 35.5 million in 2022 and is projected to reach USD 307.8 million, by 2030.
• The growing automotive industry is expected to drive sustainable tire materials market growth during the forecast period.
• Based on the vehicle type, the passenger vehicle segment is expected to dominate the market during the forecast period.
• Based on the structure, the radial segment is expected to capture the largest market share over the forecast period.
• Based on the sales channel, the OEM segment is expected to dominate the market over the forecast period.
• Based on region, the Asia Pacific is expected to dominate the market over the forecast period.

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Sustainable Tire Materials Market: Growth Drivers

An increase in sales of EVs drives market growth

Even though global auto sales were down last year, the number of electric car sales climbed by around 55.5% in 2022 compared to 2021, leading to 10 million for the first time. The International Energy Agency (IEA) estimates that as a result, one in every seven passenger cars purchased globally in 2022 will be an EV. The demand for these automotive green tires through the OEM sales channel is increasing in conjunction with rising auto sales, particularly for electric vehicles. This is what is driving the market for sustainable tire materials. OEMs assure product quality and support services with a warranty, which indicates longer product life. They also provide easy access to products through their global distribution network boosting the rise of revenue in the process.

Sustainable Tire Materials Market: Restraints

Fluctuations in the price of raw materials hinder market growth

Purchasing tires made of environmentally friendly materials can result in long-term cost savings from lower fuel usage. Natural rubber is a widely utilized sustainable resource for making tires, although its price might change depending on several variables. Price variations for tires can be significantly affected by problems with the natural rubber market's supply chain. According to a study titled "Impacts of Sustainable Tire Technology: Case Study of Environmental and Customer Perspectives," sustainable tires with a higher proportion of sustainable tire materials offer improved durability and produce lifecycle waste that is equal to the price of two conventional tires. However, additional elements including the availability of raw materials, import and export taxes, manufacturing prices, and labor costs in the location of production all have an impact on the price of tires made with sustainable materials. During the projected period, it is predicted that the cost of environmentally friendly tires will decline. Thus, this might be impacting the sustainable tire materials market expansion.

Sustainable Tire Materials Market: Opportunities

The growing investment by the key players offers a lucrative opportunity for market growth

The growing investment by the key players is expected to offer a lucrative opportunity for sustainable tire materials industry growth over the forecast period. For instance, in January 2023, the first unit of circular highly dispersible silica (HDS), manufactured from bio-based sodium silicate obtained from rice husk ash, will be introduced by Solvay at its Livorno facility in Italy. As it gives rice husk a second life in a regional value chain, this novel silicate technique offers a circular solution. It will enable Solvay to reduce CO2 emissions per ton of silica by 50% when combined with renewable energy integration at the facility. As a result, the Livorno location will have the lowest CO2 footprint of any silica manufacturing facility in Europe. The beginning of production is anticipated by the end of 2024. The Group will progressively replace its current Zeosil® portfolio with circular HDS to offer tires with a circular solution that will help increase the usage of sustainable raw materials while lowering the CO2 footprint of the tire industry. The feed and food sectors as well as the demands of the home and personal care industries will be catered to by this new generation of precipitated silica. Thereby, driving the revenue growth.

Sustainable Tire Materials Market: Challenges

Availability of raw material and high cost poses a major challenge to market growth

It can be difficult and could cause supply chain bottlenecks to source sustainable raw materials from plantations that are ethically run, such as natural rubber. Furthermore, compared to conventional tire materials, sustainable tire materials are frequently more expensive. Price-conscious buyers may be discouraged from purchasing eco-friendly tires due to this cost increase. Thus, this poses a major challenge to market growth.

Sustainable Tire Materials Market: Segmentation

The global Sustainable Tire Materials industry is segmented based on type of material, propulsion type, vehicle type, structure, sales channel, and region.

Based on the type of material, the global market is bifurcated into rubber, sustainable carbon black, silica, and others.

Based on the propulsion type, the global Sustainable Tire Materials industry is bifurcated into ICEs and EVs.

Based on the vehicle type, the global Sustainable Tire Materials market is bifurcated into passenger vehicles and commercial vehicles. The passenger vehicle segment is expected to dominate the market during the forecast period. The segment is driven by the increased use of and understanding of the advantages of sustainable tire materials. Compared to commercial vehicles, the demand for both ICE and EV passenger vehicles is anticipated to expand significantly. The market for sustainable tire materials is anticipated to increase as a result of the growing demand for effective, environmentally friendly, and connected automobiles during the projected period. Vehicle owners may choose aftermarket sustainable tires due to the growing popularity of sustainable tires.

Based on the structure, the global Sustainable Tire Materials industry is bifurcated into radial and biased. The radial segment is expected to capture the largest market share over the forecast period. Radial tires are the favored choice for the majority of modern passenger and commercial vehicles when compared to bias tires. This is mainly because of the many benefits they provide, which make them the most popular option in the sector. Due to their flexible sidewalls, radial tires excel in delivering a comfortable and smooth driving experience by efficiently absorbing road irregularities and reducing vibrations. In terms of truck tires, radial tires are without a doubt the best option.

Based on the sales channel, the global Sustainable Tire Materials market is bifurcated into OEMs and Aftermarket. The OEMs segment is expected to dominate the market over the forecast period. This is mostly due to consumers' lack of knowledge about the aftermarket's selection of eco-friendly tires. Although sustainable tire materials are already being sold through OEM and aftermarket channels, the OEM market currently consumes more of them. Sustainable tire adoption is accelerating at the factory level as a result of governments, tire manufacturers, and vehicle manufacturers implementing carbon emission objectives.

Sustainable Tire Materials Market: Report Scope

Sustainable Tire Materials Market: Regional Analysis

Asia Pacific is expected to dominate the market over the forecast period

The Asia Pacific is expected to dominate the global sustainable tire materials market over the forecast period. The market growth in the region is attributed to the increasing automotive sector. For instance, according to the China Association of Automobile Manufacturers (CAAM), China sold 4.3 million trucks and about 505,000 buses in 2021. Sales of buses increased by 13% as compared to the prior year. A staggering 30% of new cars sold in the country in 2022 will be electric, with 22% of those being battery-electric cars. In addition, China wants 40 percent of its new car sales to be electric by 2030, which means there will be a huge increase in the number of vehicles that require charging stations. Due to a growth in EV sales, the nation intends to build enough charging infrastructure to accommodate more than 20 million EVs. Thus, the aforementioned stats support the market growth in the region.

Sustainable Tire Materials Market: Competitive Analysis

The global Sustainable Tire Materials market is dominated by players like:

• PPG Industries Inc.
• Evonik Industries AG
• LDC-KOREA CO. LTD.
• Genan Holding A/S
• SNR Reclamations Pvt. Ltd.
• GRP LTD.
• Black Bear Carbon B.V.
• CONTEC
• Solvay
• Lehigh Technologies
• Michelin
• The Goodyear Tire & Rubber Company
• Nokian Tyres plc
• Bridgestone Corporation and Continental AG

The global Sustainable Tire Materials market is segmented as follows:

By Type of Material

• Rubber
• Sustainable Carbon Black
• Silica
• Others

By Propulsion Type

• ICEs
• EV

By Vehicle Type

• Passenger Vehicles
• Commercial Vehicles

By Structure

• Radial
• Bias

By Sales Channel

• OEMs
• Aftermarket

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa