Automotive Medium & Heavy Commercial Vehicle Green Tires Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Tire Type (Radial, Bias), By Demand Category (OEM, Replacement), By Region, By Competition, 2018-2028
Published Date: April - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 10 billion |
| CAGR (2023-2028) | 8.6% |
| Fastest Growing Segment | Replacement |
| Largest Market | Europe |
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Market Overview
Global Automotive Medium & Heavy Commercial Vehicle Green Tires Market worth USD 10 Billion in 2022 is expected to forecast huge growth during the forecast period at a CAGR of 8.6% from 2022 to 2028.
The Global Automotive Medium & Heavy Commercial Vehicle (M&HCV) Green Tires Market is going through a deep transformation due to environmental awareness, technological innovation, and economic realism. Green tyres, which have been developed to cut down rolling resistance and save fuel, lead this transformation. Environmental standards and reduction in emissions by governments around the world are forcing the auto industry to adopt greener solutions. Green tyres perfectly complement these efforts with the result being decreased carbon emissions and fuel savings, hence they become a significant factor in helping to achieve these challenging goals. In addition, the financial benefits of green tires are compelling their use. Fleet operators, who own large fleets of M&HCVs, are increasingly using green tires to maximize operating expenses. Not only do these tires enhance fuel economy but also have longer tread life, leading to considerable savings in the long run. Additionally, environmentally aware consumers are looking for sustainable transport options, and hence manufacturers are offering green tires in a range of price points.
Key Market Drivers
Environmental Regulations and Emission Reduction Targets
One of the most significant drivers propelling the Global Automotive M&HCV Green Tires Market is the stringent environmental regulations and emission reduction targets imposed by governments and international bodies worldwide. Governments are increasingly recognizing the role of vehicle emissions in air pollution and climate change, and they are taking decisive steps to address these issues.
Green tires, characterized by their ability to reduce rolling resistance and improve fuel efficiency, align perfectly with the objectives of these regulations. By enhancing fuel efficiency, green tires contribute to lower CO2 emissions and reduced fuel consumption, which are critical factors in meeting emission reduction targets. As environmental regulations continue to evolve and become more stringent, the demand for green tires in the M&HCV market is expected to grow significantly. Manufacturers, in response to these regulations, are actively investing in research and development to develop green tire technologies that meet both performance and sustainability requirements.
Cost Savings for Fleet Operators
Fleet operators represent a substantial portion of the Global Automotive M&HCV Green Tires Market, and one of the key drivers for their adoption of green tires is the potential for significant cost savings. Fleet operators manage large numbers of M&HCVs, and small improvements in fuel efficiency and tire lifespan can translate into substantial financial benefits.
Green tires, by reducing rolling resistance, improve the fuel efficiency of M&HCVs. For fleet operators, this translates into lower fuel consumption and reduced operating costs. Even a minor improvement in fuel efficiency can lead to substantial savings over the course of a year, especially when multiplied across a fleet of vehicles. Moreover, green tires tend to have longer tread life compared to conventional tires due to their reduced rolling resistance. This means that they need to be replaced less frequently, resulting in lower maintenance costs for fleet operators. Reduced downtime for tire replacements also enhances operational efficiency and minimizes disruptions in logistics and transportation services.
Efficiency is a critical consideration for fleet operators. Green tires not only contribute to lower fuel costs but also improve the overall operational efficiency of M&HCV fleets. With improved fuel economy and longer-lasting tires, fleet operators can meet delivery schedules more reliably, reduce maintenance-related downtime, and optimize the utilization of their vehicles. As fleet operators increasingly recognize the economic benefits of green tires, their adoption is expected to grow substantially. The potential for cost savings, coupled with the environmental benefits, makes green tires an attractive choice for fleet managers seeking to enhance their bottom line while reducing their carbon footprint.
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Eco-Conscious Consumer Demand
Consumer preferences are playing a significant role in driving the adoption of green tires in the Global Automotive M&HCV Green Tires Market. Today's consumers are increasingly environmentally conscious, and their purchasing decisions are often influenced by eco-friendly considerations. Medium and heavy commercial vehicles are commonly used for industrial purposes, including transporting goods and materials. Consequently, businesses and consumers are eager to reduce their carbon footprint and contribute to a cleaner environment. Green tires, designed to deliver improved fuel efficiency, lower CO2 emissions, and overall eco-friendly performance, align perfectly with these aspirations.
Furthermore, the increasing availability of green tires across various price ranges ensures that eco-friendly options are accessible to a broader consumer base. Historically, green tires were associated with premium or high-end segments, but they are now offered in mid-range and budget categories as well. This democratization of green tire options empowers consumers with varying budgets to make environmentally responsible choices. Moreover, environmental awareness and sustainability have become essential elements of brand reputation for automakers and tire manufacturers. Companies that prioritize eco-friendly products and practices are perceived as socially responsible and forward-thinking, appealing to consumers who seek products aligned with their values.
Fuel Efficiency and Operational Cost Considerations
Fuel efficiency and operational cost considerations are fundamental drivers of green tire adoption in the Global Automotive M&HCV Green Tires Market. Medium and heavy commercial vehicles, often used for logistics, transportation, and industrial applications, are subject to intense cost pressures, making fuel efficiency a critical factor in operational sustainability. Green tires, with their ability to reduce rolling resistance, improve fuel efficiency significantly. This leads to lower fuel consumption, which is a direct cost-saving measure for M&HCV operators. Even a modest improvement in fuel efficiency can result in substantial annual savings when multiplied across a fleet of vehicles.
Key Market Challenges
Cost Considerations and Price Sensitivity
One of the primary challenges hindering the widespread adoption of green tires in the Global Automotive M&HCV Green Tires Market is the cost differential between green tires and conventional ones. Green tires, engineered to reduce rolling resistance and enhance fuel efficiency, often come with a higher upfront purchase price. This price premium can be a significant deterrent for fleet operators and M&HCV manufacturers, who often operate within tight budget constraints. M&HCVs are known for their substantial tire requirements, as they are designed to carry heavy loads over long distances. Consequently, the cost of equipping an entire fleet of M&HCVs with green tires can be a considerable financial burden. Fleet operators often prioritize minimizing operational costs, making it challenging to justify the higher initial investment in green tires, despite their potential long-term savings in fuel expenses.
Furthermore, M&HCV manufacturers may hesitate to incorporate green tires as standard equipment in their vehicles due to concerns about price sensitivity among potential buyers. Customers who purchase these vehicles are typically keen on optimizing their return on investment, and they may resist any increase in the purchase price.
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Limited Availability and Variety
Global Automotive M&HCV Green Tires Market is being hampered by limited availability and variety of green tire products. Previously, green tires were commonly available for only small vehicles, and the number of green tires with varying capacity of larger M&HCVs has traditionally remained limited. This uniformity is a challenge to fleet operators and M&HCV manufacturers in terms of finding green tire solutions that address the particular needs of heavy-duty commercial vehicles. The diversity of M&HCV usage creates specific needs in terms of tire size, load capacity, tread design, and longevity. These differences call for a wide variety of tires to meet different types of M&HCVs, road surfaces, and usage patterns. Then again, the very limited range of green tires is not enough to offer a realistic number of alternatives for M&HCV owners who require solutions that cater specifically to their application. Additionally, M&HCVs traverse tough conditions as well, involving rough terrain, harsh weather conditions, and intercity hauls. Green tires for such intensive applications are more limited in nature, which sparks doubts regarding how adaptable and reliable green tires could be under such conditions.
Performance Trade-Offs and Durability Concerns
Perceived trade-off among eco-friendliness and tire performance is an important challenge the Global Automotive M&HCV Green Tires Market is going through. The fear of compromised performance characteristics including traction, handling, and endurance by some fleet managers and operators of M&HCV prevents them from considering green tires. Green tires are designed to have lower rolling resistance, which mainly comes through modification in tread design and tire material. Although this design is advantageously fuel efficient and environmentally friendly, it is likely to pose issues of tire performance in unfavorable conditions. M&HCVs usually experience tough situations such as off-road usage, heavy-duty transportation, and lengthy roadways. Under these conditions, tire performance is the foremost concern and any perceived compromise in performance is likely to act as a strong disincentive in embracing green tires. Fleet managers cannot compromise on traction and durability since they are necessary for the efficiency and safety of their operations. Moreover, educational campaigns and awareness are important in making M&HCV operators aware of the benefits of green tires, including the capability of providing fuel efficiency and performance. Offering visibility into tire specifications, test results, and actual performance data can reduce anxiety and bring more confidence to green tire technology.
Lack of Awareness and Education
One of the main issues in the Global Automotive M&HCV Green Tires Market is a lack of awareness and education about green tire technology. Most M&HCV operators, fleet managers, and even end-users are not adequately informed of the advantages of green tires, their mechanics, or their fuel-saving and carbon-emission-reducing capability. This results in a default choice of traditional tires, especially among M&HCV operators who are used to well-established tire brands and models. If decision-makers are not familiar with the benefits of green tires, they might be reluctant to switch, even if the benefits of doing so might include significant fuel savings and environmental benefits. In addition, regulatory policies like tire labeling regulations can go a long way in informing consumers and fleet operators. These standards mandate tire manufacturers to give details of fuel efficiency, wet grip, and noise, enabling customers to make better-informed decisions. Training programs for fleet managers and M&HCV operators should also be organized to bring out the long-term cost advantage of green tires and their sustainability contribution.
Infrastructure Compatibility and Maintenance Challenges
The compatibility of green tires with current infrastructure and maintenance systems is a pragmatic issue in the implementation of green tires in the M&HCV industry. Fleet operators and M&HCV manufacturers may have existing maintenance practices, equipment, and tire management systems optimized for traditional tires. Green tires, with their specific properties and needs for optimal performance, can require modifications to maintenance practices and equipment. These changes can be implemented through initial investments in technology and training, which can act as a hindrance to the use of green tires.
Key Market Trends
Growing Adoption of Smart and Connected Tires
One of the most significant trends in the Global Automotive M&HCV Green Tires Market is the growing adoption of smart and connected tires. With the automotive sector adopting digital transformation, tires are turning into a core component of the connected vehicle ecosystem. Smart tire technology uses sensors located within the tire to collect real-time information on tire pressure, temperature, tread wear, and road conditions. For commercial vehicles in the medium and heavy segments, the advantages of smart and connected tires are numerous. Such tires offer real-time tire condition monitoring so that fleet managers can act early on issues like underinflation, which causes added rolling resistance and decreased fuel efficiency. Smart tires also help save lives and fuel through early alerts regarding impending tire failure or blowouts, preventing accidents and lost production time.
Along with maintenance and safety advantages, smart tires improve the management of a fleet. Smart tires give precious information regarding tire performance, which can be evaluated to make the best use of routes, load allocation, and maintenance schedules of the vehicles. It helps the operators make informed decisions and gain the most mileage from their green tires while reducing operating expenses and maximizing fuel economy. In addition, the interconnectedness of smart tires makes it possible to remotely monitor and diagnose them, which means proactive maintenance and fewer unscheduled downtime periods. Fleet operators can be notified and alerted about tire problems in real-time and be able to take instant action to avoid high-cost breakdowns.
Increasing Emphasis on Sustainable Tire Materials and Manufacturing Methods
Another trend that is playing a key role in the Global Automotive M&HCV Green Tires Market is the increased focus on sustainable tire production and manufacturing materials. This has become a prime priority for tire makers, both because consumers are increasingly demanding eco-friendly products and because there is a regulatory push for lessening tire making's carbon footprint. Additionally, there is pressure to create greener processes by which tires can be manufactured. The tire industry is seeking cleaner and more efficient manufacturing processes, including cutting energy use in vulcanization processes and reducing waste generation. Manufacturing sustainable practices fit into the overall objective of lowering the environmental impact of the supply chain from raw material extraction through tire disposal.
Besides sustainable materials and manufacturing processes, tire manufacturers are also emphasizing making tires more recyclable and reusable. There is an attempt to produce tires that can be recycled or retread more easily, thus lessening the amount of waste tires in landfills and supporting a circular economy. This direction towards sustainable manufacturing processes and materials for tires is totally supported by the environmentally friendly nature of green tires. As regulatory and consumer pressure for sustainability keeps growing, tire makers are likely to further incorporate environmentally friendly practices into their business, making green tires an increasingly desirable option for M&HCV operators looking to minimize their carbon footprint.
Improvements in Tire Tread Design for Better Performance
Improvements in tire tread design are a major trend in the Global Automotive M&HCV Green Tires Market. Tire tread is one of the most important factors in the performance of a tire, influencing such things as traction, handling, wet grip, and rolling resistance. With manufacturers looking to find a balance between better fuel efficiency and increased performance, tire tread design advancements are leading the way. The addition of three-dimensional siping and biting edges to tread patterns improves wet traction and snow grip, which is one of the performance issues related to green tires. Silica-based polymers and other advanced polymer blends are also employed to formulate tread compounds that do not compromise their performance attributes even as rolling resistance is reduced to a minimum. These tread design improvements not only improve the overall performance of green tires but also add to safety and driver confidence. Medium and heavy commercial vehicles tend to run under difficult conditions, such as rain, snow, and rough road surfaces. Green tires with improved tread patterns and compounds provide consistent and dependable performance, which makes them a choice for M&HCV operators.
Greater Availability of Retreaded Green Tires
One of the most notable trends in the Global Automotive M&HCV Green Tires Market is the growing supply of retreaded green tires. Retreading is the process of putting new treads on old tire casings, offering an economical and environmentally friendly option for acquiring tires compared to buying completely new tires. The trend is especially important in the M&HCV industry, as tires are exposed to heavy use and wear.
Not only does retreading prolong the life of tires but it also aligns itself with sustainability objectives by conserving waste. The retreaded green tires serve the dual purposes of enhanced fuel efficiency and lower environmental footprint. Retreading entails putting a new green tire tread on a well-inspected and fixed casing, protecting the tire from loss of its environmentally friendly characteristics.
Operators and owners of M&HCVs are finding more and more economic benefits from using retreaded green tires. Not only are these tires cheaper than brand-new green tires, but they provide the same level of fuel efficiency. Retreaded green tires make it possible for operators to get the maximum out of their current tire casings and also reap the benefits of savings on fuel as well as lowered carbon emissions.
Additionally, the retreading business is constantly changing, embracing new technologies and materials to improve the quality and longevity of retreaded tires. Consequently, retreaded green tires have emerged as a cost-effective and dependable option for M&HCV operators who want to minimize their operational costs and environmental impact. This trend will continue to pick up speed as sustainability becomes an important factor in fleet management, and as retreaded green tires become increasingly prevalent at and accepted in the marketplace.
Segmental Insights
Demand Category Analysis
The market is divided into two subgroupsOEM and aftermarket, depending on the sales channel. A growing number of environmental and safety concerns have caused the OEM segment to command a significant volume and value share of the global market. To combat the rising level of vehicle emissions and lower fuel consumption, OEM firms are investing in research to develop innovative, environmentally friendly, lightweight, and long-lasting tires. For instance, in 2019, Sumitomo Rubber Industries Ltd. and Kansai University created a cutting-edge technology that can generate electrical energy while a vehicle's tires are rotating. In order to produce energy from tire rotation, the tires make use of the buildup of static electricity, commonly known as friction charging.
The aftermarket sector, which already commands a sizeable portion of the worldwide market, is predicted to grow even more in the years to come. The primary elements that are anticipated to drive the aftermarket industry are the rising propensity of existing vehicle owners and automobile manufacturers towards a clean, green environment as well as the requirement for high fuel efficiency. Additionally, the use of renewable raw materials in tire manufacturing and technical advancements are supporting the aftermarket green tire market.
Regional Insights
Due to increasingly strict government laws designed to cut carbon emissions and encourage environmentally friendly vehicles and vehicle parts, Europe currently dominates worldwide industry. In 1990, silane and silica were used to make tire treads, which helped to establish the market and give rise to green tire. Due to their assistance in lowering rolling resistance, these tires are also known as energy tires in Europe. Therefore, the market for green tires has drawn the attention of everyone in this region, including all the tire manufacturers and suppliers in Europe. The main automakers' choice of automobile components suppliers helps them adhere to the region's high emission requirements (EURO VI).
Tires play a significant role in fuel efficiency and emissions reduction. Additionally, major tire producers and automakers are collaborating to create the next generation of environmentally friendly tires. Additionally, the European Commission is developing post-2020 carbon dioxide emission standards for cars and trucks, which are anticipated to encourage the use of eco-friendly tires in this region's OEM and aftermarket markets. For instance, Michelin and General Motors collaborated to create a revolutionary wheel prototype in 2019 that is intended to replace current pneumatic tires and wheels. The Michelin UPTIS renewable materials decrease the quantity of scrap tires, which lowers the total amount of energy and raw materials required to produce tires.
Automakers in North America are quickly incorporating green car technologies. In addition, the market is expanding due to the rising number of infrastructure projects and the demand for replacement tires. Additionally, the growth of vehicle fleets for agricultural and construction uses will continue to drive up demand in the upcoming years.
In addition, the market in nations like China, Japan, and India is anticipated to grow in the approaching years due to the dynamic automotive industry in the Asia Pacific region. Due to the region's extensive capacity for producing polyester goods, accessibility of raw materials, and well-established distribution network, the market for green tires is more expansive there.
Recent Developments
- Thelaunch of Falken e.ZIEX's new line of replacement tires for the fleet ofelectric vehicles across Europe was announced by Sumitomo Rubber Industries inMarch 2023.
- InJanuary 2023, Goodyear announced the release of its automobile green tire,which will be utilized for electric vehicles and is 90% sustainable material.Soybean oil and polyester made from recycled plastic bottles make up the tirecomposition.
- ToyotaMotor Corporation received the TOYO Tire Corporation's Nano energy tire modelJ67 as an original equipment (OE) tire for the Toyota Sienta in September 2022.The business provided 185/65 R15 88S size J67 green tires with remarkablefuel-saving qualities due to their low rolling resistance.
- May2022 saw the launch of Bridgestone Corporation's R192E all-position radialtire, which was created especially for electric urban transit. The R192E tireincreases daily ranges with its extremely low rolling resistance and excellentload capacity.
- May2022At Tire Cologne 2022, ZC Rubber just introduced its Westlake and Goodrideflagship line of ultra-high-performance passenger car tires for the Europeanmarket. The improved tire profile based on the updated design configuration ofZC rubber in the tire range also provides a 5% decrease in overall rolling resistance.The tires also contribute to better handling and grip performance in slickconditions.
- InNorth America in March 2022, Pirelli debuted its new line of aftermarket tiresfor electric vehicles. The tires, designed expressly for this use, provide a 15%reduction in rolling resistance.
- TheYokohama Tire Corporation announced in February 2022 the introduction of tiresmade of sustainable materials for Supercars. The business would make recyclablethermo-reversible rubber and synthetic rubber from biomass.
Key Market Players
- Bridgestone Corporation
- Continental AG
- Michelin Group
- Apollo Tyres Limited
- Yokohama Tire Corporation
- Goodyear Tire & Rubber Company
- Pirelli & C. Spa
- Toyo Tire Corporation
- MRF Limited
- CEAT Limited
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