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

Market Overview

Global Automotive Two Wheeler Green Tires Market has valued at USD 18 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 8.1% through 2028. The Global Automotive Two-Wheeler Green Tires Market has been experiencing significant growth and transformation in recent years. This market segment is driven by the increasing emphasis on sustainability, environmental awareness, and regulatory pressures to reduce carbon emissions. Green tires, also known as eco-friendly or low rolling resistance tires, have emerged as a key solution in addressing these challenges. One of the primary drivers of this market is the rising global concern over environmental issues. Governments, regulatory bodies, and consumers are increasingly aware of the need to reduce the environmental footprint of transportation. Green tires, with their lower rolling resistance, help vehicles achieve better fuel efficiency, which translates to reduced carbon emissions. Stricter emission standards and sustainability goals have further accelerated the adoption of green tires. Technological advancements have played a pivotal role in shaping this market. Tire manufacturers have invested in innovative materials, advanced tread designs, and smart tire technologies to strike a balance between performance and eco-friendliness. These innovations have led to green tires that not only reduce rolling resistance but also provide excellent 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.

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.

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Key Market Challenges

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

Increasing Environmental Awareness and Sustainability Initiatives

One of the most prominent and enduring trends in the global automotive two-Wheeler green tires market is the growing awareness of environmental issues and the push for sustainability. Consumers are increasingly concerned about their carbon footprint, and this awareness is driving demand for eco-friendly products, including green tires. Green tires are designed to have lower rolling resistance, which translates to reduced fuel consumption and fewer carbon emissions. With global concerns about climate change and air quality, consumers and governments are actively seeking ways to reduce greenhouse gas emissions. Green tires align with this goal and are seen as an effective way to mitigate the environmental impact of two-Wheelers. Many governments worldwide are implementing stricter emissions standards and providing incentives for the adoption of eco-friendly technologies. This includes tax benefits, subsidies, and emissions-based incentives that encourage consumers to choose green tires for their two-Wheelers. As regulatory pressures increase, the demand for green tires is likely to grow further. Corporations and businesses are also taking steps to reduce their environmental footprint. This includes fleets of two-Wheelers used for delivery services and commuting. Companies are increasingly opting for green tires as part of their sustainability initiatives, contributing to market growth.

Advancements in Green Tire Technology

The green tire market is experiencing continuous advancements in technology aimed at improving performance, efficiency, and sustainability. Tire manufacturers are investing in research and development to identify and integrate innovative materials into green tire production. These materials, such as silica-based compounds, bio-based materials, and nanotechnology, enhance the tire's eco-friendliness while maintaining durability and grip. Green tires often feature advanced tread designs that not only reduce rolling resistance but also improve handling and grip. These designs help strike a balance between performance and fuel efficiency, making green tires more attractive to consumers. The integration of smart tire technology is a growing trend in the automotive industry. Sensors and monitoring systems that provide real-time data on tire pressure, temperature, and wear are being incorporated into green tires. These technologies improve safety, optimize tire performance, and contribute to reduced fuel consumption. Tire manufacturers are increasingly adopting sustainable manufacturing practices, such as reducing energy consumption, using recycled materials, and minimizing waste. 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 designed for electric two-Wheelers are engineered to accommodate the weight distribution and torque characteristics of electric motors. These tires contribute to the overall efficiency and range of electric vehicles. Electric two-Wheelers are known for their quiet operation, and minimizing road noise becomes even more critical. Green tires designed for electric two-Wheelers often focus on reducing noise levels to enhance the riding experience. Original equipment manufacturers (OEMs) of electric two-Wheelers are increasingly collaborating with tire manufacturers to develop specialized green tires tailored to their vehicles. This trend enhances the integration of green tires into the electric two-Wheeler market.

Growth of Online Tire Retail

The way consumers purchase tires is evolving, with a notable increase in online tire retail. The growth of e-commerce platforms and online marketplaces has made it easier for consumers to research, compare, and purchase tires online. This trend has a significant impact on the distribution and sales channels for green tires. Online platforms allow consumers to access user reviews and recommendations easily. Satisfied users of green tires often share their positive experiences online, influencing others to choose eco-friendly tire options. Some tire manufacturers have adopted direct-to-consumer models, selling their products directly to customers through their websites. This approach eliminates intermediaries and can lead to competitive pricing for green tires. Mobile tire installation services are becoming increasingly popular, allowing consumers to have their tires replaced or upgraded without visiting a physical tire shop. This convenience further promotes online tire purchases, including green tires.

Customization and Aesthetics

While the primary focus of green tires is on performance and sustainability, there is a growing trend toward customization and aesthetics in the market. Some green tire manufacturers offer color options for the sidewalls of their tires. This customization allows consumers to personalize their two-Wheelers and express their individual style while still choosing eco-friendly tires. Manufacturers are experimenting with unique tread patterns that not only improve performance but also add an element of aesthetics. These tread designs can enhance the overall look of the tire, contributing to the visual appeal of two-Wheelers. As consumers seek to customize their two-Wheelers with aftermarket rims, green tire manufacturers are working to ensure that their tires are compatible with a wide range of rim styles and sizes. In response to consumer demand for both performance and sustainability, the green tire market is expanding into premium segments. These tires offer advanced technology, aesthetics, and enhanced eco-friendliness, appealing to a segment of consumers who prioritize both performance and environmental impact.

Segmental Insights

Demand Category Analysis

The market is divided into two subgroups: OEM 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.

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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

• Bridgestone has used its lightweight ENLITEN technology into the tire design to boost economy. This ground-breaking technology helps lower rolling resistance, which boosts energy efficiency and reduces tire weight by 20%.
• A cooperative R&D initiative was started by ENEOS Corporation and Bridgestone Corporation in February 2022. By combining the cutting-edge rubber and polymer material design technologies Bridgestone has developed through its tire and rubber business with the crude oil refining technologies and fundamental basic chemical product manufacturing technologies of ENEOS, both companies are anticipated to jointly develop chemical recycling technologies for used tires.
• In January 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 tire composition.

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

Report Scope:

In this report, the Global Automotive Two Wheeler Green Tires Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Two Wheeler Green Tires Market, By Tire Type:

o   Radial

o   Bias

• Automotive Two Wheeler Green Tires Market, By Demand Category:

o   OEM

o   Replacement

• Automotive Two Wheeler Green Tires Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe & CIS

§  France

§  Russia

§  United Kingdom

§  Italy

§  Germany

§  Spain

§  Belgium

o   Asia-Pacific

§  China

§  India

§  Japan

§  Indonesia

§  Thailand

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Automotive Two Wheeler Green Tires Market.

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Company Information

• Detailed analysis and profiling of additional market players (up to five).

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