The sustainable tire materials market is expected to grow significantly in the coming years owing to the increasing environmental impact awareness and sustainability targets from the countryβs governments and tire manufacturing companies. Sustainable tire material manufacturers are still optimizing their products, focusing on increasing the sustainable tire material proportion in the tire. Research and development activities are at a good pace, and manufacturers are developing new, innovative, more sustainable products in the sustainable tire materials market. The market is at its early stage and may see many key development activities during the forecast period 2023-2032.
The global sustainable tire materials market is projected to reach $533.9 million by 2032 from $34.9 million in 2022, growing at a CAGR of 32.88% during the forecast period 2023-2032.
Advancements in manufacturing technologies, increasing awareness about the benefits of using sustainable tire materials, and stringent environmental regulations from countries worldwide are expected to push the global sustainable tire materials market significantly in the forecast period. The growth in the global automotive industry may have a positive impact on the sustainable tire materials market notable growth. As the global population continues to grow, industrialization has experienced significant expansion. Alongside this industrial progress, the importance of logistics services has also grown. In light of these developments, the adoption of sustainable tires in logistics plays a vital role in promoting environment-friendly transportation practices.
Internal combustion engine vehicles currently dominate the sustainable tire materials market in comparison to electric vehicles for various reasons. The large fleet size of internal combustion engine vehicles and the frequent tire replacements in that market segment contribute to their predominant position. In line with sustainability goals aiming to reduce carbon emissions, vehicle manufacturers are increasingly adopting tires with lower environmental impact. However, as the forecast period advances and the fleet size of electric vehicles grows, it is expected that electric vehicles might experience an increase in revenue.
Passenger Vehicles Segment Expected to Dominate the Sustainable Tire Materials Market (by Vehicle Type)
The passenger vehicle segment is projected to grow significantly in the forecast period (2023-2032), driven by the increasing adoption of sustainable tire materials and the growing awareness of their benefits. The demand for both ICE and EV passenger vehicles is expected to experience significant growth compared to commercial vehicles. This growth can be attributed to the rising demand for efficient, environment-friendly, and connected vehicles in the forecast period, which is expected to consequently boost the sustainable tire materials market. The increasing popularity of sustainable tires is also likely to influence vehicle owners to opt for aftermarket sustainable tires. Although the aftermarket market share for commercial vehicles is higher due to the higher wear and tear of tires, the large fleet of passenger vehicles is anticipated to lead aftermarket passenger vehicle tire sales dominating the tire replacement market for sustainable tires.
Radial Segment Anticipated to Lead the Sustainable Tire Materials Market (by Tire Structure)
Radial tires are the preferred choice for the majority of modern passenger vehicles and commercial vehicles when compared to bias tires. This is because radial tires provide numerous advantages over bias tires, making them the more commonly used type in the industry. Radial tires provide a more comfortable and smooth driving experience due to their flexible sidewalls, which help absorb road imperfections and reduce vibrations. When it comes to passenger vehicles, radial tires are undoubtedly the ideal choice. While there are a few manufacturers offering bias ply truck tires in the modern market, opting for radial tires provides advantages regardless of driving conditions and preferences. Radial sustainable tires are anticipated to dominate in the forecast period owing to the significant demand from ICE and EV passenger vehicles.
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Europe Expected to Dominate the Sustainable Tire Materials Market (by Region)
Europe currently holds the largest market share in the sustainable tire materials market, and it is expected to maintain its leading position until 2032. Europeβs dominance can be attributed to its significant production and consumption of natural rubber and recycled rubber for tire manufacturing. The country's robust presence in the sustainable tire materials market is driven by its strong production capabilities and demand. Notable sustainable tire manufacturers such as Continental AG, MICHELIN, and Pirelli & C. S.p.A. are actively increasing their production of sustainable tires in the region to meet the growing demand. North America, on the other hand, is the second-largest region in the sustainable tire materials market. Additionally, stringent environmental regulations and ambitious targets for achieving a net-zero carbon economy by 2050 play a significant role in driving the growth of the sustainable tire materials market in Europe. These factors contribute to the region's position as a key player in the industry.
Competitive Landscape
To gain market share, major sustainable tire materials companies are making various kinds of strategic moves. Some key highlights from BIS Research with respect to manufacturers of the sustainable tire materials market are as follows:
- The Goodyear Tire & Rubber Company, Evonik Industries AG, Solvay, and PPG Industries, Inc. are some of the leading players globally.
- Lehigh Technologies, Genan Holding A/S, and CONTEC are some of the emerging private companies.
- Partnerships, collaborations, and joint ventures have been the most preferred strategies in the market.
- Apart from partnerships, collaborations, and joint ventures, expanding businesses and new product launches are the other strategies being implemented.
- Most of the players have tie-ups with various tire manufacturers.
