Automotive Two Wheeler 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 18 billion |
| CAGR (2023-2028) | 8.1% |
| Fastest Growing Segment | Replacement |
| Largest Market | Europe |
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Market Overview
Global Automotive Two Wheeler Green Tires Market has worth USD 18 Billion in 2022 and is expected to forecast impressive growth during the forecast period with a CAGR of 8.1% during 2028.
Global Automotive Two-Wheeler Green Tires Market has been witnessing tremendous growth and change over the last few years. This segment of the market is being led by the mounting focus on sustainability, environmental consciousness, and regulatory needs to curtail carbon emissions. Green tires, or low rolling resistance tires, or eco-friendly tires, have been the major solution in solving these issues. Among the major drivers of this market is the increasing global awareness of environmental concerns. Governments, regulators, and consumers alike are now becoming more concerned with lowering the environmental impact of transport. Green tires, with reduced rolling resistance, enable cars to be more fuel-efficient, which means less carbon emission. More stringent emission requirements and sustainable objectives have also driven the pace in the acceptance of green tires. Advances in technology have been at the forefront in influencing this market. Automotive companies have invested in new materials, novel tread patterns, and intelligent tire technology to find a compromise between performance and environmental friendliness. These technologies have resulted in green tires that not only lower rolling resistance but also offer great grip and handling.
Key Market Drivers
Environmental Concerns and Regulations
One of the primary drivers behind the growth of the automotive two-Wheeler green tires market is the increasing awareness of environmental concerns. With the global push for sustainability and reducing carbon footprints, the automotive industry is under pressure to adopt more eco-friendly practices. Green tires play a crucial role in achieving this goal. Green tires are designed to have lower rolling resistance compared to traditional tires. This lower rolling resistance reduces fuel consumption and, consequently, greenhouse gas emissions. As governments around the world tighten emissions regulations, manufacturers and consumers are incentivized to switch to green tires to reduce their carbon footprint. Governments and regulatory bodies are implementing stringent emission standards for vehicles, pushing manufacturers to adopt technologies that reduce emissions. Green tires are a cost-effective way for manufacturers to meet these standards without compromising vehicle performance.
In some regions, governments offer incentives and subsidies to promote the use of green technologies, including green tires. This encourages consumers to opt for environmentally friendly tire options, further driving market growth.
Fuel Efficiency and Cost Savings
Another significant driver of the global automotive two-Wheeler green tires market is the potential for substantial fuel savings and cost reduction associated with these tires. Green tires are engineered to minimize rolling resistance, which means they require less energy to roll. As a result, vehicles equipped with green tires experience improved fuel efficiency. This is particularly appealing to consumers seeking ways to reduce their fuel expenses, which can be a substantial portion of the overall cost of vehicle ownership. While green tires may have a slightly higher upfront cost compared to traditional tires, they often offer long-term cost savings. The reduced fuel consumption can offset the initial investment, making green tires a financially attractive option over the life of the tires. Many green tires are designed with advanced tread compounds that offer extended tread life. This means consumers need to replace their tires less frequently, further contributing to cost savings.
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Technological Advancements
Continuous technological advancements in tire manufacturing have played a pivotal role in driving the adoption of green tires. Tire manufacturers are constantly researching and developing innovative materials that reduce rolling resistance while maintaining durability and grip. Advanced materials such as silica-based compounds and nanotechnology have been integrated into green tire production. Green tires often feature an aerodynamic tread design that minimizes air resistance. This design not only reduces rolling resistance but also contributes to better vehicle handling and stability. The integration of smart tire technology, such as tire pressure monitoring systems (TPMS) and tire temperature sensors, enhances the overall performance of green tires. These systems help optimize tire pressure, further reducing rolling resistance and improving fuel efficiency.
Consumer Awareness and Demand
Consumer awareness of the environmental impact of their choices is growing, and this is driving demand for green tires. A rising number of consumers are making environmentally conscious choices in their purchasing decisions. This includes opting for vehicles and tires that have a reduced environmental footprint. Green tires cater to this demographic of eco-conscious consumers. As consumer demand for green tires has grown, tire manufacturers have expanded their product offerings in this category. This increased availability makes it easier for consumers to access green tire options, further driving adoption. Satisfied users of green tires often share their experiences and benefits, which can influence others to make the switch. Positive word-of-mouth marketing has contributed to the expansion of the green tire market.
Rising Urbanization and Congestion
The global trend of urbanization, coupled with increasing traffic congestion in cities, has created a need for more efficient and sustainable transportation solutions, including green tires. Urban areas are experiencing growing traffic congestion and air pollution problems. Green tires can help address these challenges by reducing emissions and improving fuel efficiency, making them an attractive option for urban commuters. In many densely populated cities, two-Wheelers are a popular mode of transportation due to their maneuverability and ability to navigate through traffic. As the popularity of two-Wheelers increases, so does the demand for green tires designed for these vehicles. Some governments are actively promoting the use of two-Wheelers as a means to reduce congestion and emissions. This has a direct impact on the demand for green tires for two-Wheelers.
Key Market Challenges
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Consumer Perceptions and Education
One of the primary challenges faced by the green tires market is the limited awareness and understanding among consumers regarding the benefits of green tires. Many consumers are unaware of the environmental and cost-saving advantages offered by these tires. As a result, they may not actively seek out or prioritize green tires when purchasing new tires for their two-Wheelers. Green tires often come with a slightly higher initial purchase cost compared to traditional tires. This price difference can deter cost-conscious consumers from choosing green tires, even though the long-term savings in fuel costs and extended tire life often outweigh the higher upfront expense. Overcoming this perception and educating consumers about the potential cost savings is a significant challenge for the market. Some consumers associate green tires with reduced performance in terms of grip, handling, and overall ride comfort. While modern green tires are engineered to deliver comparable or even superior performance to traditional tires, these misconceptions can deter potential buyers. Effective communication and education are crucial in dispelling these myths. The marketing and branding of green tires can also pose a challenge. Manufacturers and retailers need to effectively convey the benefits of green tires in their marketing campaigns. However, the terminology used to describe these tires, such as "low rolling resistance" or "eco-friendly," may not always resonate with consumers. Finding compelling ways to communicate the advantages of green tires is a continuous challenge.
Limited Product Variety and Availability
While the global automotive two-Wheeler green tires market has seen growth, the variety and availability of green tire options, especially for two-Wheelers, remain somewhat limited compared to traditional tires. This can be a challenge for consumers with specific requirements, such as those riding off-road or on unconventional terrains, as they may have fewer green tire options to choose from. Ensuring that green tires are compatible with a wide range of two-Wheeler models, including motorcycles and scooters, can be a challenge for tire manufacturers. The diverse designs and specifications of two-Wheelers make it essential to produce a range of green tires that cater to different vehicle types and sizes. Some regions experience extreme seasonal variations in weather conditions, requiring different types of tires for winter and summer use. Developing green tires that perform optimally in both hot and cold climates can be a challenge. Ensuring the availability of green tires suitable for all seasons is essential to meet consumer needs.
Technological Hurdles
Green tires are designed to have low rolling resistance to improve fuel efficiency. However, achieving this balance between rolling resistance reduction and maintaining adequate traction, handling, and braking performance can be technically challenging. Manufacturers must invest in research and development to continually improve the technology behind green tires. Some green tire compounds that reduce rolling resistance may have a shorter tread life compared to traditional tires. Ensuring that green tires offer satisfactory durability and tread wear can be a hurdle. Consumers expect their tires to last, and any perception of reduced lifespan can deter them from choosing green tires. Green tires, especially those with specific tread designs aimed at reducing rolling resistance, can sometimes produce more road noise compared to traditional tires. Manufacturers must find innovative ways to minimize noise levels while maintaining the desired performance characteristics of green tires.
Regulatory and Compliance Challenges
The global automotive industry operates in diverse regulatory environments with different standards and requirements for tires. Meeting these various regulations can be complex for tire manufacturers, as they must navigate a patchwork of rules related to safety, labeling, emissions, and performance. Complying with these regulations adds to the cost and complexity of developing and marketing green tires. Green tires often require specific labeling and certification to distinguish them from traditional tires. Ensuring that tires meet the necessary standards and acquire the appropriate certifications can be a time-consuming and costly process. Emission standards for vehicles are continually evolving and becoming more stringent. While green tires can help reduce vehicle emissions, tire manufacturers must adapt to these changing standards and invest in research to keep pace with regulatory requirements.
Competition and Market Penetration
The green tire market faces fierce competition from traditional tire manufacturers. Established brands that have been in the market for decades have a significant market share and brand recognition. Convincing consumers to switch from well-known traditional tire brands to green tires can be a challenging task. To compete with traditional tires, green tire manufacturers may face pricing pressure, which can affect their profitability. Consumers often make tire purchasing decisions based on price, and manufacturers must find ways to maintain competitive pricing while offering the benefits of green tires. While the adoption of green tires is growing in developed regions with strict environmental regulations, it can be more challenging to penetrate markets in developing regions where cost considerations often take precedence over environmental concerns. Overcoming these market dynamics and promoting green tires in regions with less stringent emissions standards is a hurdle.
Key Market Trends
Rising Environmental Consciousness and Sustainability Efforts
One of the most salient and longest-running trends in the worldwide automotive two-Wheeler green tires market is the rising environmental consciousness and the need for sustainability. Consumers are becoming more and more concerned about their carbon footprint, and this is spurring demand for environmentally friendly products, such as green tires. Green tires are built to offer lower rolling resistance, which in turn means lower fuel use and less carbon dioxide emissions. With the pressure on climate change and air quality everywhere, consumers and governments alike are looking for alternatives to lower greenhouse gas emissions. Green tires fit the bill and have been identified as a means to counter the ecological footprint of two-Wheelers. Most governments across the globe are adopting stricter emissions regulations and offering incentives for the use of environmentally friendly technologies. These include tax incentives, subsidies, and emissions-based incentives that promote consumers to opt for green tires for their two-Wheelers. With mounting regulatory pressures, the demand for green tires is expected to increase even more. Companies and businesses are also making efforts to minimize their environmental impact. This comprises fleets of two-Wheelers for delivery and commuting purposes. Businesses are increasingly turning to green tires as part of their sustainability strategies, driving market growth.
Innovations in Green Tire Technology
The green tire industry is witnessing ongoing innovations in technology to enhance performance, efficiency, and sustainability. Manufacturers are investing in research and development to discover and incorporate innovative materials into green tire manufacturing. These materials, including silica-based compounds, bio-based materials, and nanotechnology, make the tire more environmentally friendly without compromising durability and grip. Green tires tend to be equipped with sophisticated tread designs that not only lower rolling resistance but also enhance handling and grip. These designs find a balance between performance and fuel efficiency, making green tires more desirable to consumers. The incorporation of intelligent tire technology is an expanding pattern in the world of automobiles. Sensors and surveillance systems for offering real-time feedback on tire pressure, temperature, and wear are being integrated into eco-friendly tires. These technologies enhance safety, maximize tire performance, and help ensure lower fuel consumption. Automobile tire producers are becoming more inclined toward greener manufacturing methods, including lowered energy consumption, recycling materials, and waste reduction. These practices align with the broader trend of sustainability and resonate with environmentally conscious consumers.
Growing Popularity of Electric Two-Wheelers
The global shift toward electric two-Wheelers, including electric motorcycles and scooters, is driving a specific trend in the green tires market. Electric two-Wheelers have unique performance characteristics compared to traditional internal combustion engine vehicles. Green tires for electric two-Wheelers are specifically designed to support the weight distribution and torque profile of electric motors. Green tires play a part in the overall efficiency and range of electric vehicles. Electric two-Wheelers are quiet in operation, and reducing road noise becomes even more important. Green tires for electric two-Wheelers tend to minimize noise levels to improve the riding experience. Original Equipment Manufacturers (OEMs) of electric two-Wheelers are now making collaborations with manufacturers of tires in order to make custom green tires designed for their products. The increasing trend accelerates the infusion of green tires in the electric two-Wheeler industry.
Online Tire Sales
The means of buying tires by consumers is changing, as the sale of tires online has increased significantly. Expansion in online marketplaces and e-commerce websites has become a convenient source for consumers to compare, shop, and even research tires. This phenomenon largely affects the channel of sales and distribution of green tires. Web-based platforms have made it a matter of clicks for consumers to get recommendations as well as feedback from users online. Happy green tire users write about their success stories online and inspire others to go for environmental-friendly tire varieties. Direct-to-consumer models have been adopted by some tire companies, in which they sell the products themselves directly to consumers online. This model eliminates middlemen and could result in competitive prices for green tires. Mobile tire changing services are gaining popularity, in which consumers can get their tires changed or upgraded without going to a physical tire store. This further encourages online buying of tires, including green tires.
Customization and Aesthetics
Though the major concern of green tires is performance and sustainability, there is a trend in the market towards customization and aesthetics. There are some green tire makers that provide color options for the sidewalls of their tires. This gives consumers the opportunity to customize their two-Wheelers and show their personal style while still selecting eco-friendly tires. Manufacturers are trying out distinctive tread patterns that not only enhance performance but also introduce an aesthetic element. Such tread patterns can make the tire look better, adding to the visual appeal of two-Wheelers. As customers try to personalize their two-Wheelers with aftermarket rims, green tire manufacturers are trying to make their tires compatible with a variety of rim styles and sizes. To meet the demands of consumers who want both performance and sustainability, the green tire market is now moving into premium segments. They provide cutting-edge technology, appearance, and greater eco-friendliness, attracting a segment of consumers who are concerned about both performance and environmental footprint.
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
- Bridgestonehas used its lightweight ENLITEN technology into the tire design to boosteconomy. This ground-breaking technology helps lower rolling resistance, whichboosts energy efficiency and reduces tire weight by 20%.
- Acooperative R&D initiative was started by ENEOS Corporation and BridgestoneCorporation in February 2022. By combining the cutting-edge rubber and polymermaterial design technologies Bridgestone has developed through its tire andrubber business with the crude oil refining technologies and fundamental basicchemical product manufacturing technologies of ENEOS, both companies areanticipated to jointly develop chemical recycling technologies for used tires.
- 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.
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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