Sustainable Tire Market Report Scope & Overview:

The Sustainable Tire market size was valued at USD 125.40 million in 2024 and is expected to reach USD 867.49 million by 2032, growing at a CAGR of 27.36% over the forecast period of 2025-2032.

The sustainable tire market is growing with emerging environmental policies and increasing demand for eco-friendly mobility solutions. Green sourcing is being promoted by automakers and customers, thus bolstering the sustainable tire market and promoting the sustainable tires industry trends. Highlights include Bridgestone looking to open its pyrolysis recycling plant by 2027 and Michelin’s ResiCare, which has already delivered more than 100 million formaldehyde-free tires. These are examples of good, strong trends of sustainable tire markets that fit the circular economy concept. The U.S. Environmental Protection Agency lists a 40% tire recycling rate, which underpins sustainable tire market research while also demonstrating the potential for growth in sustainable tire market share. The EPA has also earmarked more than $3.7 million to the Scrap Tire Research and Education Foundation to use in support of environmental claims. These advancements underline the emergent sustainable tire market scale and consolidate the position of the state-run innovation in the construction of the sustainable tire market structure.

Market Dynamics:

Drivers:

• Government-backed infrastructure grants drive recycled rubber applications in public construction projects

The Michigan Department of Environment, Great Lakes and Energy provided more than $2 million in 2024 to help use recycled rubber in infrastructure projects such as epoxy concrete bridge decks and public roads. These grants demonstrate the efficacy of tire-derived products and support widespread use. With the demonstration by public agencies that a demand for recycled rubber tires exist and use long-term cost-effective recycled rubber, sustainable tires companies will gain greater acceptance of, and thus boost the growth of the sustainable tire market and the long-term development of the market share of sustainable tire.

• Coalition-led tire recycling achieves record reuse rates in the circular economy

In 2023, 79% of end-of-life tires were recycled, compared to 71% in 2021, according to the U.S. Tire Manufacturers Association. Applications of ground rubber increased 29% since 2019, a growth that is being driven by infrastructure support in the Bipartisan Infrastructure Law. This provides additional proof of the economic and environmental benefits of circular tire solutions. Public and private sectors are aligned, accelerating sustainable tire market growth with broader recovery material uses, increase in sustainable tire market size, and indicating robust circular economy integration in sustainable tire market trends.

Restraints:

• Fragmented global standards restrict international adoption of recycled tire content and labeling

The USA has a strong record of announcing tire recycling rates, but there are no unified standards for the certification of recycled content in regions such as South East Asia and in parts of Europe. Such regulatory partitions prevent sustainable tires companies from doing business outside their borders. Lack of global agreement on labeling, documentation and safety standards is preventing more sustainable tires from seizing a larger share of the market in developed economies. The lack of international collaboration is a barrier to analyze the sustainable tire market and to extend the successful local projects of the sustainable tire market worldwide.

Segmentation Analysis:

By Material Type

Rubber dominated the sustainable tire market in 2024 with a 56.4% market share, driven by its proven durability and cost-efficiency. Rubber is preferred because it is compatible with existing tire production and recycling processes. Natural rubber continues to be the essential ingredient in eco-efficient tires for commercial vehicles, the U.S. Tire Manufacturers Association says. Players in the sustainable tires market continue to be in the forefront in the innovation landscape with the introduction of new blends of recycled and bio-based rubber compounds that drive the sustainable tires market, in a bid to meet the emission targets of varying range of vehicle types.

Sustainable carbon black is the fastest-growing segment with a projected CAGR of 28.44% from 2025 to 2032, due to increasing demand for low-emission and recyclable materials. These technologies, such as Bridgestone’s pyrolysis-based carbon black recovery efforts and collaborations with recycling innovators like Delta-Energy, will continue to drive this trend. These innovations allow sustainable tires providers to decrease reliance on oil-based inputs and support circular manufacturing processes, driving sustainability tire industry trends and growing sustainable tire market overall size.

By Propulsion Type

Internal combustion engine vehicles held a 72.4% market share in 2024, dominating the propulsion-type segment due to their massive global presence and established tire compatibility. Since the majority of the vehicle fleet is gasoline- or diesel-powered, OEMs are still working on sustainable tire solutions that offer a compromise between eco performance and price. State mandated tire recycling for ICE vehicles, like California’s Waste Tire Program, adds growth to the sustainable tire market share in conventional mobility solutions.

Electric vehicles are the fastest growing propulsion segment with a CAGR of 27.53% from 2025 to 2032, supported by government EV incentives and sustainable tire R&D efforts. Companies like Michelin and Continental have developed EV-specific tire lines using bio-based materials, aligning with federal decarbonization targets. This accelerates sustainable tire market growth by aligning product development with EV trends, elevating sustainable tire market analysis and positioning EV tires as a priority for innovation in the coming decade.

By Vehicle Type

Commercial vehicles led the sustainable tire market in 2024 with a 52.8% market share, fueled by high-volume use and fleet mandates for low-carbon operations. Organizations like the U.S. Department of Transportation encourage sustainable procurement for commercial fleets, including retreaded and recycled-content tires. Sustainable tires companies cater to these demands by offering longer-lasting, fuel-efficient solutions that lower fleet emissions and operating costs, thereby strengthening sustainable tire market share across logistics and public transport sectors.

Passenger vehicles are the fastest growing segment with a projected CAGR of 27.59% between 2025 and 2032, as consumers prioritize eco-friendly options. OEMs are introducing sustainable tire variants in new models, while aftermarket suppliers respond with accessible green alternatives. Initiatives like Goodyear’s soybean oil-based tread compounds further highlight innovation tailored to personal mobility. These trends support sustainable tire market growth and boost sustainable tire market size by capturing expanding consumer demand in the personal transport space.

By Structure

Radial tires accounted for 71.3% of the sustainable tire market in 2024, dominating due to their superior fuel efficiency, longer lifespan, and alignment with global sustainability goals. Radial designs are widely accepted by OEMs and mandated in many international safety standards, ensuring broad deployment. U.S. EPA’s recycling frameworks for radial tires and their widespread retreading viability further consolidate their leadership, supporting sustainable tire market trends in both OEM and aftermarket channels.

Bias tires are expected to grow at the fastest rate with a CAGR of 27.52% during 2025–2032, primarily in developing regions where cost and ruggedness are key. Governments in Asia and Africa are encouraging localized recycling and use of cost-efficient tire structures, where bias tires remain prevalent. Sustainable tires companies are innovating with eco-friendly compounds for off-road and utility vehicles, driving sustainable tire market growth by expanding reach into rural and industrial sectors underserved by radial technologies.

By Sales Channel

OEM held the largest share in 2024 at 60.7%, as automakers increasingly integrate sustainable tires into factory-fitted models to meet emission goals. Regulatory frameworks like the European Union’s Sustainable Product Policy and partnerships such as Pirelli’s FSC-certified tires for electric fleets show how sustainable tires companies are aligning with OEM needs. This boosts sustainable tire market share and enhances sustainable tire market analysis by embedding sustainability into the vehicle production process.

Aftermarket is the fastest growing sales channel with an estimated CAGR of 27.48% between 2025 and 2032, supported by rising consumer awareness and government-backed recycling grants. The U.S. EPA’s funding to organizations like the Scrap Tire Research and Education Foundation supports aftermarket education and product development. As eco-conscious drivers replace tires with sustainable alternatives, this channel contributes to sustainable tire market size and strengthens sustainable tire market trends across urban and suburban use cases.

Regional Analysis:

Asia Pacific dominated the sustainable tire market with a 38.6% share in 2024, fueled by strong automotive output, rapid industrialization, and proactive sustainability regulations. The demand is driven by countries like China, India and Japan through policies such as the China Ministry of Ecology and Environment recycling mandates and India Automotive Mission Plan 2026. China leads the area, due to its nation-wide tire labelling regulations and production of bio-based and recycled-content tires by major companies including Michelin and Bridgestone, reasserting its position as market leader for sustainable tire market share and trends.

North America was the second dominating region in 2024 with a 26.9% market share and is expected to grow at the highest CAGR of 8.79% from 2025 to 2032, driven by strong regulatory frameworks and infrastructure-focused sustainability programs. The U.S. EPA encourages tire recycling as part of its Sustainable Materials Management initiative, and crumb rubber is included in federal road projects under the Bipartisan Infrastructure Law. These trends are prone to spur sustainable tire market demand and propel regional manufacturers expand production of green tire replacements in the region.

The U.S. dominates the North America region with a market size of USD 17.82 million and is projected to reach a value of USD 127.28 million by 2032, with a market share of about 66%. The dominance is due to well-established recycling systems and government grants for sustainable tire development. In 2024, Michigan’s Department of Environment, Great Lakes, and Energy awarded $2 million in scrap tire market development grants. Additionally, the U.S. Tire Manufacturers Association reported that nearly 80% of scrap tires are reused or recycled. These efforts support circular economy goals and reinforce the country's leadership in sustainable tire market share and innovation.

Key Players:

The major sustainable tire market competitors include Bridgestone Corporation, Michelin, Goodyear Tire & Rubber Company, Continental AG, Pirelli & C. S.p.A., Hankook Tire & Technology Co., Ltd., Yokohama Rubber Co., Ltd., Sumitomo Rubber Industries, Ltd., Toyo Tire Corporation, and Kumho Tire Co., Inc.

Recent Developments:

• In May 2025, JK Tyre launched India’s first ISCC Plus-certified sustainable car tyre using 80% renewable and recycled materials, promoting eco-innovation and circular economy in manufacturing.

• In December 2024, Apollo Tyres explored bio-based and recycled rubber alternatives to reduce costs and environmental impact, targeting 40% sustainable material usage by 2030.