Sustainable Tire Technology Market - Strategic Insights and Forecasts (2025-2030)

Description

Sustainable Tire Technology Market Size:

The Sustainable Tire Technology Market is anticipated to expand at a high CAGR over the forecast period (2025-2030).

The global tire market is experiencing a structural realignment to sustainability resulting in the combination of decree regulation requirements and a paradigm change in the automotive OEM procurement requirements. The quest of vehicle manufacturers to achieve carbon neutrality throughout their entire value chains has shifted the needs of sustainable tire technology to a niche and high-end product to a mandatory feature of the new vehicle platform especially in the electric vehicle (EV) market. The defining feature of this transition is the substitution of older petroleum-derived elastomers and carbon black with biobased polymers, recycled rubber, and other compounds with high silica content that not only cut the carbon footprint of the manufacturing process but also lead to a decrease in the rolling resistance when in use.

The market environment in 2025 is also being complicated by global trade policies and the geopolitical tensions. High reciprocal tariffs and anti-dumping duties applied by the leading economies, especially the United States and the European Union, are compelling a rearrangement of global supply chains. The issue of near-shoring and regional circular economics is gaining more and more focus on manufacturers to avoid the risks of fluctuating shipping rates and trade tariffs. Therefore, the potential to procure sustainable raw materials nearby and depict clear and certified supply chain has become one of the main competitive advantages of global tire manufacturers.

Sustainable Tire Technology Market Analysis

• Growth Drivers

The demand in the sustainable tire technology market is mainly driven by the introduction of non-exhaust emissions regulations, namely, the Euro 7 regulations by the EU, which legally restrict tire abrasion particles, which is the first regulation of these kind. This policy change poses a direct demand on tire manufacturers to make an innovation in polymer science that will help them shed off microplastics without affecting the safety. Moreover, the high growth of the world electric vehicles is increasing the need of high-load sustainable tires that are specialized. Since EVs need tires with lower rolling resistance to achieve maximum battery range and tires with greater durability to cope with instantaneous torque, OEMs are specifying sustainable high silica tires as original equipment, directly driving the market in high-performance sustainable materials.

• Challenges and Opportunities

The major challenge which restricts the instant implementation of sustainable tire technology is the scarcity of high-purity recycled and bio-based feedstocks in the commercial market. The uneven character of international requirements in recycling practices frequently does not allow the sourcing of predictable amounts of recovered carbon black and tire pyrolysis oil in various jurisdictions. These headwinds however offer a significant opportunity of vertical integration. By installing proprietary chemical recycling facilities (e.g., the pyrolysis units ordered in 2025), tire manufacturers will be able to stabilize their chain of supply and shield themselves against the shocks of the price of raw materials based on petroleum. Moreover, Vehicle-to-Everything (V2X) connectivity in smart tires can be developed, which provides a chance to check the wear in real-time and prolong the life of sustainable tires as well as increase the value proposition of fleet operators.

• Raw Material and Pricing Analysis

It is now seen that pricing of sustainable tires is determined by high capital cost of processing of bio-based materials and tariff increment of 2024/2025 on critical mineral inputs. The tariff of 301 on natural graphite and other vital minerals to 25 percent has increased the cost of producing the items by manufacturers who used imported specialized fillers. As a result, a clear pricing premium is observed on tires that use 40 per cent or more sustainable content versus conventional products. But these prices are starting to be compensated by the stabilizing price of natural rubber, scaling of recycled PET (Polyethylene Terephthalate) yarns by owners of proprietary operations such as ContiRe.Tex. In a move to control margins, manufacturers are moving to a system of mass balance pricing where manufacturers can add sustainable feedstocks into existing production lines at a cost lower than that of acquiring new equipment.

• Supply Chain Analysis

The global sustainable tire supply chain is quickly diverging into regional centres to escape the 150 percent tariffs on Chinese-made products and high cost of trans-Pacific supply chain. Mexico and Southeast Asian countries such as Thailand and Vietnam production facilities have emerged as focal points as companies look to the strategy of China Plus One. The industry is currently experiencing a focused movement towards localization of the recovery of carbon black and bio-silica production next to the vehicle assembly facility in 2025. The action lowers the carbon intensity of the supply chain per se, one of the crucial metrics of ESG reporting. Transportation of hazardous pyrolysis oils is still logistically complex, although the creation of localized circular economy loops is decreasing this dependence and enhancing the strength of the overall supply chain.

• Government Regulations

Sustainable Tire Technology Market Segment Analysis

• By Material: Sustainable Carbon Black

Sustainable carbon black segment is the quickest expanding category of materials in 2025 and this mainly happened because of the pressure exerted by the industry to decrease the use of furnace black based on heavy petroleum oils. The recipe is that the demand is fueled by the immediate necessity to have high-performance fillers that sustain the structural integrity of tires, their UV resistance, and reduce the carbon footprint of the manufacturing procedure. Later in 2024 and 2025, manufacturers have upsized the utilization of recycled carbon black (rCB) acquired by the highly exact pyrolysis of used tires. This resource can be used as an alternative to the circle as well as to hedge against the unpredictability of the world oil prices. OEM-imposed requirements of achieving a scope 3 level of emission reduction also contribute to the increased demand, as tire manufacturers have to replace at least 10 to 20 percent of virgin carbon black with rCB in normal passenger and commercial vehicle tires lineups.

• By Propulsion Type: Electric Vehicles (EVs)

The EV segment represents the most significant driver of demand for advanced sustainable tire technology in 2025. Electric vehicles impose unique mechanical stresses on tires, including increased weight from battery packs and higher torque loads, which typically lead to faster tread wear. Consequently, there is a specialized demand for sustainable tires that utilize bio-based elastomers and high-dispersion silica to achieve the dual goals of extreme durability and ultra-low rolling resistance. Lowering rolling resistance is vital for EV manufacturers to enhance vehicle range, a key consumer selling point. Furthermore, as EVs eliminate tailpipe emissions, the relative environmental impact of tire wear particles becomes more prominent, driving EV OEMs to specify tires that meet the strictest abrasion standards of the Euro 7 regulation.

Sustainable Tire Technology Market Geographical Analysis

• US Market Analysis

The U.S. market is currently defined by aggressive trade protections and a shift toward domestic circularity. The 2024 and 2025 escalation of tariffs on Chinese-origin tires (reaching effective rates of 150%) has drastically reduced imports, creating a supply vacuum that domestic manufacturers are filling with sustainable, "Made in America" products. Demand is particularly high for retreaded commercial tires, supported by federal infrastructure grants that incentivize the use of recycled rubber in public works. The U.S. market also prioritizes high-performance radial tires for the light truck and SUV segments, where sustainable materials must meet rigorous safety standards under NHTSA oversight.

• Brazil Market Analysis

Brazil’s demand for sustainable tire technology is anchored in its position as a major producer of natural rubber and its "New Industry Brazil" policy. The market is increasingly adopting bio-based polymers derived from local agricultural by-products, such as sugar cane ethanol. In 2025, there is a growing demand for sustainable tires in the agricultural sector, where high-torque tractors require OTR (Off-The-Road) tires that can withstand harsh tropical conditions without rapid degradation. Brazil is also leveraging its local lithium and critical mineral wealth to build a domestic EV supply chain, further pulling demand for eco-friendly tire components.

• Germany Market Analysis

As the automotive heart of Europe, Germany leads the demand for sustainable tires that comply with the Euro 7 abrasion limits. German consumers and manufacturers like Continental are at the forefront of the "circular economy" movement, with a high adoption rate of tires containing recycled PET and rice husk ash silica. The 2025 market environment is characterized by a strong preference for "A-rated" tires on the EU tire label, which signifies superior fuel efficiency and wet grip. Demand is also driven by the German government’s strict waste management laws, which mandate high recovery rates for end-of-life tires.

• South Africa Market Analysis

The South African market is increasingly focused on sustainable tires for the mining and commercial transport sectors. With the 2024/2025 implementation of tax incentives for EV and green technology manufacturing, there is a push to localize the assembly of sustainable tires. The demand is driven by the need for cost-effective, durable solutions in remote mining locations where traditional tire maintenance is logistically challenging. South African operators are particularly interested in retreading technologies and "cool-running" sustainable compounds that extend tire life in high-temperature environments.

• China Market Analysis

Despite facing high outward tariffs from the West, China remains the world’s largest producer and consumer of tires. The domestic market is shifting toward sustainability to meet the requirements of its rapidly growing EV industry. Chinese manufacturers are investing heavily in bio-based rubber and sustainable carbon black to remain competitive in non-tariffed markets like Southeast Asia and the Middle East. Demand within China is supported by national "Green Manufacturing" initiatives, which provide subsidies for factories that adopt energy-efficient tire curing processes and circular material feedstocks.

Sustainable Tire Technology Market Competitive Environment and Analysis

• Michelin: Headquartered in France, Michelin has positioned itself as a leader in low-abrasion technology. In 2024 and 2025, the company has heavily promoted its "All-Sustainable" strategy, aiming for 40% sustainable materials by 2030. Michelin’s competitive advantage lies in its proprietary material science, which according to 2025 ADAC studies, allows its tires to emit 26% fewer particles than the market average. Their strategy focuses on "eco-design," as seen in the e.Primacy line, which incorporates life-cycle assessments directly into the engineering phase.
• Bridgestone Corporation: Bridgestone is leveraging its "E8 Commitment" to drive demand for circularity. In early 2025, the company announced the construction of a pilot precise pyrolysis plant in Japan to produce tire-derived oil and recovered carbon black at scale. Bridgestone’s strategic positioning is centered on the "EVERTIRE INITIATIVE," which focuses on horizontal recycling—turning old tires back into new tires. This vertical integration allows Bridgestone to offer OEMs a closed-loop sustainability solution that is increasingly required for new vehicle contracts.
• Continental AG: Continental has aggressively scaled its use of alternative raw materials in 2025, including silica from rice husk ash and polyester from recycled PET bottles (ContiRe.Tex). The company’s strategy involves a rapid increase in sustainable material share, targeting a 3% increase in 2025 alone. Continental’s "COKOON" adhesive technology, which eliminates formaldehyde in tire construction, is a key product differentiator that appeals to health-conscious and environmentally aware commercial partners.

Sustainable Tire Technology Market Developments

• April 2025: Bridgestone Americas debuted the industry’s first 70% recycled and renewable demonstration commercial tire at WasteExpo. The tire, based on the M870 design, utilizes ISCC PLUS certified circular synthetic rubber and recovered carbon black, marking a significant milestone in commercial vehicle tire sustainability.
• January 2025: Bridgestone Corporation announced plans to construct a pilot demonstration plant for precise pyrolysis in Seki City, Japan. The facility is designed to convert 7,500 tons of end-of-life tires annually into high-quality tire-derived oil and carbon black, with construction set to begin in late 2025.

Sustainable Tire Technology Market Segmentation

Sustainable Tire Technology MARKET BY material

• Natural Rubber
• Recycled Rubber & Materials
• Bio-based Polymers & Elastomers
• Sustainable Carbon Black
• Advanced Fillers & Additives

Sustainable Tire Technology MARKET BY product

• Radial Tires
• Bias Tires
• Tubeless Tires
• Retreaded

Sustainable Tire Technology MARKET BY vehicle type

• Passenger Vehicles
• Commercial Vehicles
• Two-Wheelers
• Off-The-Road (OTR) Vehicles

Sustainable Tire Technology MARKET BY propulsion type

• Internal Combustion Engine (ICE) Vehicles
• Electric Vehicles (EVs)
• Hybrid Vehicles

Sustainable Tire Technology MARKET BY distribution channel

• OEM
• Aftermarket

By Geography

• North America
  • United States
  • Canada
  • Mexico
• South America
  • Brazil
  • Argentina
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Spain
  • Others
• The Middle East and Africa
  • Saudi Arabia
  • UAE
  • Israel
  • Others
• Asia Pacific
  • China
  • India
  • South Korea
  • Taiwan
  • Thailand
  • Indonesia
  • Japan
  • Others

Table Of Contents

1. EXECUTIVE SUMMARY 

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE 

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. Technological Outlook

5. Sustainable Tire Technology MARKET BY material

5.1. Introduction

5.2. Natural Rubber

5.3. Recycled Rubber & Materials

5.4. Bio-based Polymers & Elastomers

5.5. Sustainable Carbon Black

5.6. Advanced Fillers & Additives

6. Sustainable Tire Technology MARKET BY product

6.1. Introduction

6.2. Radial Tires

6.3. Bias Tires

6.4. Tubeless Tires

6.5. Retreaded

7. Sustainable Tire Technology MARKET BY vehicle type

7.1. Introduction

7.2. Passenger Vehicles

7.3. Commercial Vehicles

7.4. Two-Wheelers

7.5. Off-The-Road (OTR) Vehicles

8. Sustainable Tire Technology MARKET BY propulsion type

8.1. Introduction

8.2. Internal Combustion Engine (ICE) Vehicles

8.3. Electric Vehicles (EVs)

8.4. Hybrid Vehicles

9. Sustainable Tire Technology MARKET BY distribution channel

9.1. Introduction

9.2. OEM

9.3. Aftermarket

10. Sustainable Tire Technology MARKET BY GEOGRAPHY

10.1. Introduction

10.2. North America

10.2.1. By Material

10.2.2. By Product

10.2.3. By Vehicle Type

10.2.4. By Propulsion Type

10.2.5. By Distribution Channel

10.2.6. By Country

10.2.6.1. USA

10.2.6.2. Canada

10.2.6.3. Mexico

10.3. South America

10.3.1. By Material

10.3.2. By Product

10.3.3. By Vehicle Type

10.3.4. By Propulsion Type

10.3.5. By Distribution Channel

10.3.6. By Country

10.3.6.1. Brazil

10.3.6.2. Argentina

10.3.6.3. Others

10.4. Europe

10.4.1. By Material

10.4.2. By Product

10.4.3. By Vehicle Type

10.4.4. By Propulsion Type

10.4.5. By Distribution Channel

10.4.6. By Country

10.4.6.1. Germany

10.4.6.2. France

10.4.6.3. United Kingdom

10.4.6.4. Spain

10.4.6.5. Others

10.5. Middle East and Africa

10.5.1. By Material

10.5.2. By Product

10.5.3. By Vehicle Type

10.5.4. By Propulsion Type

10.5.5. By Distribution Channel

10.5.6. By Country

10.5.6.1. Israel

10.5.6.2. Saudi Arabia

10.5.6.3. Others

10.6. Asia Pacific

10.6.1. By Material

10.6.2. By Product

10.6.3. By Vehicle Type

10.6.4. By Propulsion Type

10.6.5. By Distribution Channel

10.6.6. By Country

10.6.6.1. China

10.6.6.2. Japan

10.6.6.3. South Korea

10.6.6.4. India

10.6.6.5. Others

11. COMPETITIVE ENVIRONMENT AND ANALYSIS

11.1. Major Players and Strategy Analysis

11.2. Market Share Analysis

11.3. Mergers, Acquisitions, Agreements, and Collaborations

11.4. Competitive Dashboard

12. COMPANY PROFILES

12.1. Michelin

12.2. Bridgestone Corporation

12.3. Continental AG

12.4. The Goodyear Tire & Rubber Company

12.5. Pirelli & C. S.p.A.

12.6. Hankook Tire

12.7. Kumho Tire

12.8. Nokian Tyres plc

12.9. Giti Tire

12.10. Apollo Tyres

13. APPENDIX

13.1. Currency

13.2. Assumptions

13.3. Base and Forecast Years Timeline

13.4. Key benefits for the stakeholders

13.5. Research Methodology 

13.6. Abbreviations 

LIST OF FIGURES

LIST OF TABLES

Companies Profiled

Michelin

Bridgestone Corporation

Continental AG

The Goodyear Tire & Rubber Company

Pirelli & C. S.p.A.

Hankook Tire

Kumho Tire

Nokian Tyres plc

Giti Tire

Apollo Tyres

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