Forecast Period
|
2026-2030
|
Market Size (2024)
|
USD 1.71 Billion
|
CAGR (2025-2030)
|
10.64%
|
Fastest Growing Segment
|
OEM
|
Largest Market
|
Germany
|
Market Size (2030)
|
USD 3.15 Billion
|
Market
Overview:
Europe & CIS Green Tire
Market was valued at USD 1.71 Billion in 2024 and is expected to reach USD 3.15
Billion by 2030 with a CAGR of 10.64% during the forecast period. The Europe & CIS green tire market is experiencing notable traction
driven by stringent emission regulations, rising consumer demand for fuel
efficiency, and automaker focus on sustainability across vehicle platforms.
Growth is supported by increasing integration of silica-based compounds and
advanced tread designs that reduce rolling resistance and enhance fuel economy
without compromising performance. This shift aligns with broader automotive
electrification trends, where low-resistance tires improve vehicle range.
Technological advancements in sustainable raw materials, such as bio-based
rubbers and recycled content, present significant opportunities for
manufacturers to differentiate and meet environmental standards. Consumer
preference for eco-conscious products is accelerating the adoption of green
tires across both replacement and OEM segments. For instance, as of 2024,
Continental incorporated an average of 26% renewable and recycled materials
into its tire production, with expectations to increase this share by 2–3
percentage points in 2025. The growth is driven by the integration of sustainable
components such as synthetic rubber from renewable or circular oil, recycled
PET-based polyester, recycled steel, and silica derived from rice husk ash.
Continental targets surpassing 40% sustainable material content by 2030, while
maintaining safety and performance standards, as part of its broader commitment
to sustainable mobility.
Market Drivers
Rising Stringency in Emission
and Fuel Efficiency Regulations
Government-mandated fuel economy
and carbon emission regulations are significantly influencing the growth of
green tires. Regulatory bodies are pushing automakers and component
manufacturers to reduce carbon footprints across the mobility value chain. Green
tires, which are designed with low rolling resistance, directly contribute to
improved fuel efficiency and reduced CO₂ emissions. Compliance with these mandates has become essential,
prompting OEMs to integrate green tires into new vehicle platforms. Beyond
legal requirements, carbon taxation and fuel economy standards further
incentivize fleets and consumers to choose tires that contribute to fuel
savings. Green tires also aid in achieving targets under broader mobility
decarbonization goals. Tire makers are leveraging sustainable materials and
innovative compound mixes to meet these evolving regulatory thresholds. The
pressure to comply is no longer limited to vehicle manufacturers; tire
producers now play a key role in meeting national and industry-wide
sustainability benchmarks. For instance, Starting January 1, 2025, the EU
will enforce new CO₂ emission standards under
Regulations (EU) 2023/851 and 2019/631, setting fleet-wide targets of 95 g CO₂/km for new passenger cars and 147 g CO₂/km for vans. By 2035, only zero-emission vehicles will be permitted for
sale, with noncompliant manufacturers facing penalties of €95 per g/km per
vehicle. To meet these targets, automakers must increase electric vehicle sales
to at least 25% and may utilize mechanisms such as super-credits for ZLEVs,
eco-innovation credits, and manufacturer pooling—each governed by strict
compliance and antitrust rules.
Increased Focus on Fuel Economy
by Fleet Operators and Consumers
Rising fuel costs and growing
operating efficiency concerns have made fuel economy a key consideration for
both fleet operators and individual consumers. Green tires, through their low
rolling resistance and optimized tread patterns, offer measurable fuel savings
over their lifecycle. Fleets running high-mileage operations such as logistics
or taxi services see significant value in minimizing fuel expenditure, leading
to higher adoption rates of green tire solutions. On the consumer side,
awareness of the long-term cost benefits of green tires is improving,
especially as digital platforms provide transparent comparisons on lifetime
cost of ownership. As fuel consumption becomes a more visible and quantifiable
cost element, decision-makers are actively shifting toward tire options that
promise fuel savings without performance trade-offs. The integration of sensors
and telematics in fleet management is further helping track tire-related
efficiency metrics, which supports the shift toward green tire procurement.
Surge in Electric and Hybrid
Vehicle Adoption
The shift toward electric and
hybrid vehicles is playing a pivotal role in expanding the green tire market. For
instance, up to May 2025 year‑to‑date, new car registrations in the EU slipped by 0.6%, while
battery-electric vehicles captured 15.4% of the total market up from 12.1% in
the same period of 2024. Electric vehicles (EVs) and hybrids require tires that reduce energy
consumption, maintain low noise levels, and offer high load-bearing capacity
due to battery weight. Green tires, with their low rolling resistance and
optimized rubber compounds, meet these demands effectively. Since EVs magnify
the impact of tire resistance on driving range, manufacturers are prioritizing
tire designs that enhance range efficiency. As electric mobility expands across
passenger and light commercial segments, tire producers are reengineering
products specifically for electric drivetrains. Tire innovation for EVs
includes using advanced materials, lightweight construction, and enhanced
aerodynamics, all core attributes of green tires. These technical requirements
are aligning green tire development with the long-term trajectory of the
automotive industry.

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Key
Market Challenges
High Production Costs of
Eco-Friendly Materials
The cost of manufacturing green
tires remains significantly higher than conventional alternatives due to the
use of premium raw materials such as silica, natural rubber blends, and
bio-based polymers. These materials are often more expensive to procure and
process, leading to elevated input costs. Sustainable production techniques,
while environmentally beneficial, may involve advanced technologies and process
modifications that increase overhead. Smaller manufacturers face greater
pressure due to limited economies of scale, making it difficult to offer green
tires at competitive price points. Cost-sensitive consumers and
budget-conscious fleet operators may hesitate to adopt green tires despite
long-term savings, particularly when upfront costs remain high.
Limited Availability of
Sustainable Raw Material Supply Chains
One of the major bottlenecks in
green tire production is the insufficient availability of reliable and scalable
sustainable raw material supply chains. Bio-based rubbers, natural fibers, and
recycled content materials required for eco-friendly tires are not yet
available in volumes that can support mass production. This supply-demand
imbalance creates procurement challenges for manufacturers aiming to scale
their green tire portfolios. Furthermore, the sustainability of some raw
material sources is under scrutiny, with issues such as land use,
deforestation, and traceability affecting the credibility of the supply chain.
The absence of standardized certifications and transparency in sourcing
practices also makes it difficult for manufacturers to ensure compliance with
international environmental standards. Logistics and transportation costs
associated with sourcing niche materials further complicate the supply chain,
especially when compared to well-established petroleum-based alternatives.
Key Market Trends
Adoption of Silica-Based and
Smart Compound Technologies
Silica-based tread compounds
have emerged as a cornerstone of green tire innovation, replacing traditional
carbon black to lower rolling resistance and improve wet traction. The use of
advanced compound technologies allows manufacturers to achieve a balance
between energy efficiency and safety performance, which had previously been
difficult. Smart compound technologies, including nano-fillers and advanced
polymers, are enhancing tire durability and optimizing weight-to-strength
ratios. These compounds allow for better heat dispersion, improved flexibility,
and prolonged tread life, all while supporting environmental performance
targets. The increased adoption of these technologies signifies a shift from
traditional tire engineering toward precision chemical design. As consumers and
OEMs demand tires that are both eco-friendly and high-performing, the use of
smart compounds offers a competitive edge.
Integration of Digital Platforms
and Tire-as-a-Service Models
Digital transformation in the
tire industry is enabling innovative service-based models that complement the
green tire value proposition. Tire-as-a-Service (TaaS) offerings, where
customers pay based on usage rather than ownership, are gaining traction among
commercial fleets and corporate mobility providers. These models include
digital tracking of tread wear, fuel efficiency, and environmental impact,
aligning perfectly with the sustainability goals of green tires. Digital
platforms also support predictive maintenance, ensuring optimal performance and
timely replacement, which maximizes the lifecycle benefits of green tires.
E-commerce portals and mobile applications are making it easier for consumers
to access green tire options, compare environmental ratings, and receive
personalized recommendations. These interfaces often feature embedded carbon
footprint calculators, reinforcing environmentally conscious purchasing
behavior.
Collaboration Across Mobility
Ecosystem for Sustainable Design
Cross-industry collaboration
between automakers, tire manufacturers, material scientists, and mobility
infrastructure providers is shaping the future of sustainable tire design. This
collaborative ecosystem is enabling the co-creation of tires that meet next-generation
mobility requirements while delivering environmental benefits. Joint
development projects focus on harmonizing tire specifications with the needs of
electric drivetrains, autonomous systems, and intelligent transportation
networks. Design synergies include optimizing noise reduction, rolling
resistance, and smart tire functionality to enhance vehicle-level efficiency
and environmental performance. Partnerships also involve upstream stakeholders
in sustainable rubber sourcing and recycling innovations. These collaborations
are instrumental in accelerating product development cycles, ensuring
scalability, and aligning with industry-wide carbon neutrality targets.
Certification bodies and regulatory frameworks are increasingly promoting such
synergies by recognizing joint innovation in eco-labeling schemes and
performance benchmarking.
Segmental Insights
Vehicle Type Insights
In 2024, the passenger cars
segment dominated the Europe & CIS green tire market by vehicle type. This
dominance was driven by rising consumer demand for fuel-efficient and
environmentally sustainable mobility solutions. As fuel prices fluctuated and
awareness of carbon emissions grew, individual vehicle owners increasingly
prioritized green tires for their lower rolling resistance and enhanced fuel
economy. Automotive manufacturers also began integrating green tires into
original equipment for new passenger vehicles to meet stricter emission
regulations and sustainability commitments. Urban commuters and long-distance
drivers alike benefitted from the longer tread life and improved grip of green
tires, leading to wider adoption across compact cars, sedans, and crossover
utility vehicles. For instance, in 2024, new passenger vehicle registrations
across Europe (EU, EFTA, and the UK) reached nearly 13 million units,
reflecting continued market recovery and sustained consumer interest. The
European Union recorded over 10.6 million new car registrations, while the
United Kingdom contributed close to two million units. In EFTA countries, new
car sales totaled over 378,000 vehicles.

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Country
Insights
In 2024, Germany led the Europe
& CIS green tire market due to its strong automotive sector and consumer
focus on sustainability. Strict emission norms and national climate goals
encouraged both OEMs and consumers to adopt energy-efficient tire technologies.
High vehicle ownership and mileage drove replacement demand, while eco-labels
and policy support boosted green tire uptake in both personal and fleet
segments.
France saw significant growth in
green tire adoption driven by fuel efficiency regulations and rising use of
electric and hybrid vehicles. Government efforts to promote sustainable
mobility made green tires more attractive, especially in urban settings. Retailers
expanded eco-friendly tire options, helping passenger and light commercial
users transition to more sustainable choices.
The UK experienced rising green
tire demand supported by emissions targets and a shift toward eco-conscious
vehicle maintenance. Digital tire platforms with sustainability ratings
influenced consumer decisions. Fleet electrification and emphasis on long-term
cost savings encouraged the use of low-resistance tires, particularly among
hybrid and urban vehicle owners.
Recent
Developments
- In 2025, Kumho Tyre UK debuted
at the Road Transport Expo, showcasing five commercial tire models focused on
safety, durability, and fuel efficiency. Highlights included advanced tread
technologies and low rolling resistance compounds designed for fleet performance
and sustainability.
- In 2025, Goodyear sold the
Dunlop tyre brand to Sumitomo Rubber for $701 million. Goodyear will continue
producing and distributing select Dunlop tyres in Europe through the end of
2025 under a licensing deal.
- Zeon Corp. has expanded its
Singapore plant by adding a new SSBR production line, boosting total capacity
to 125 ktpa. The move supports growing demand for high-performance,
fuel-efficient, and eco-friendly tires.
- In 2025, South Korea’s second‑largest tire manufacturer is reportedly evaluating sites in Poland,
Serbia, and Portugal for its debut European production facility. The move marks
a strategic expansion into Europe, aiming to bolster local supply chain
resilience.
Key
Market Players
- Compagnie Générale des Établissements Michelin
- Bridgestone Europe NV/SA
- Continental AG
- Goodyear Dunlop Tires Europe B.V.
- Pirelli & C. S.p.A.
- Nokian Tyres PLC
- Hankook Reifen Deutschland GmbH
- Yokohama Europe Gmbh
- Apollo Vredestein B.V.
- Cooper Tire & Rubber Company Europe Limited
By Demand
Category
|
By Vehicle
Type
|
By
Country
|
|
- Passenger
Cars
- Commercial
Vehicle
|
- Germany
- Russia
- France
- Spain
- Italy
- United
Kingdom
- Poland
- Rest
of Europe & CIS
|
Report
Scope:
In this
report, the Europe & CIS Green Tire Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Europe & CIS Green Tire Market, By Demand Category:
o
OEM
o
Replacement
- Europe & CIS Green Tire Market, By Vehicle Type:
o
Passenger
Cars
o
Commercial
Vehicle
- Europe & CIS Green Tire Market, By Country:
o
Germany
o
Russia
o
France
o
Spain
o
Italy
o
United
Kingdom
o
Poland
o
Rest of
Europe & CIS
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies presents in the Europe & CIS Green Tire
Market.
Available
Customizations:
Europe
& CIS Green Tire Market report with the given market data, TechSci Research offers customizations according to the company’s specific needs.
The following customization options are available for the report:
Company
Information
- Detailed analysis
and profiling of additional market players (up to five).
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& CIS Green Tire Market is an upcoming report to be released soon. If you
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