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Report Description

Report Description

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 CO 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 CO emission standards under Regulations (EU) 2023/851 and 2019/631, setting fleet-wide targets of 95 g CO/km for new passenger cars and 147 g CO/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 yeartodate, 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.

Europe Green Tire Market

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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.

Europe Green Tire Market

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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 secondlargest 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

  • OEM
  • Replacement
  • 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).

Europe & CIS Green Tire Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at sales@techsciresearch.com

Table of content

Table of content

1. Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2. Research Methodology

2.1.  Methodology Landscape

2.2.  Objective of the Study

2.3.  Baseline Methodology

2.4.  Formulation of the Scope

2.5.  Assumptions and Limitations

2.6.  Sources of Research

2.7.  Approach for the Market Study

2.8.  Methodology Followed for Calculation of Market Size & Market Shares

2.9.  Forecasting Methodology

3. Executive Summary

3.1.  Overview of the Market

3.2.  Overview of Key Market Segmentations

3.3.  Overview of Key Market Players

3.4.  Overview of Key Countries

4. Europe & CIS Green Tire Market Outlook

4.1.  Market Size & Forecast

4.1.1.  By Value

4.2.  Market Share & Forecast

4.2.1.  By Demand Category Market Share Analysis (OEM, Replacement)

4.2.2.  By Vehicle Type Market Share Analysis (Passenger Cars, Commercial Vehicle)

4.2.3.  By Country

4.2.4.  By Company (2024)

4.3.  Market Map

5. Germany Green Tire Market Outlook

5.1.  Market Size & Forecast 

5.1.1. By Value

5.2.  Market Share & Forecast

5.2.1. By Demand Category Market Share Analysis

5.2.2. By Vehicle Type Market Share Analysis

6. Russia Green Tire Market Outlook

6.1.  Market Size & Forecast 

6.1.1. By Value

6.2.  Market Share & Forecast

6.2.1. By Demand Category Market Share Analysis

6.2.2. By Vehicle Type Market Share Analysis

7. France Green Tire Market Outlook

7.1.  Market Size & Forecast 

7.1.1. By Value

7.2.  Market Share & Forecast

7.2.1. By Demand Category Market Share Analysis

7.2.2. By Vehicle Type Market Share Analysis

8. Spain Green Tire Market Outlook

8.1.  Market Size & Forecast 

8.1.1. By Value

8.2.  Market Share & Forecast

8.2.1. By Demand Category Market Share Analysis

8.2.2. By Vehicle Type Market Share Analysis

9. Italy Green Tire Market Outlook

9.1.  Market Size & Forecast 

9.1.1. By Value

9.2.  Market Share & Forecast

9.2.1. By Demand Category Market Share Analysis

9.2.2. By Vehicle Type Market Share Analysis

10. United Kingdom Green Tire Market Outlook

10.1.  Market Size & Forecast    

10.1.1. By Value

10.2.  Market Share & Forecast

10.2.1. By Demand Category Market Share Analysis

10.2.2. By Vehicle Type Market Share Analysis

11. Poland Green Tire Market Outlook

11.1.  Market Size & Forecast    

11.1.1. By Value

11.2.  Market Share & Forecast

11.2.1. By Demand Category Market Share Analysis

11.2.2. By Vehicle Type Market Share Analysis

12. Market Dynamics

12.1.  Drivers

12.2.  Challenges

13. Key Market Disruptions

13.1.  Conflicts

13.2.  Pandemic

13.3.  Trade Barriers

14. Market Trends & Developments

15. Porter's Five Forces Analysis

16. Policy & Regulatory Landscape

17. Competitive Landscape

17.1.  Company Profiles

17.1.1. Compagnie Générale des Établissements Michelin

17.1.1.1.   Business Overview

17.1.1.2.   Company Snapshot

17.1.1.3.   Products & Services

17.1.1.4.   Financials (As Per Availability)

17.1.1.5.   Key Market Focus & Geographical Presence

17.1.1.6.   Recent Developments

17.1.1.7.   Key Management Personnel

17.1.2. Bridgestone Europe NV/SA

17.1.3.  Continental AG

17.1.4. Goodyear Dunlop Tires Europe B.V.

17.1.5. Pirelli & C. S.p.A.

17.1.6. Nokian Tyres PLC

17.1.7. Hankook Reifen Deutschland GmbH

17.1.8. Yokohama Europe Gmbh

17.1.9. Apollo Vredestein B.V.

17.1.10. Cooper Tire & Rubber Company Europe Limited

18. Strategic Recommendations

19. About Us & Disclaimer

Figures and Tables

Frequently asked questions

Frequently asked questions

The market size of the Europe & CIS Green Tire Market was estimated to USD 1.71 Billion in 2024.

Major drivers include stringent emission regulations, growing demand for fuel-efficient vehicles, rising electric vehicle adoption, increased environmental awareness, and advancements in sustainable tire materials and low rolling resistance technologies.

Key trends include rising use of silica-based and smart compound technologies, integration of digital tire-as-a-service platforms, and collaborative innovation across the mobility ecosystem for eco-friendly tire design and lifecycle optimization.

Major challenges include high production costs for eco-friendly materials, limited scalable supply chains for sustainable inputs, consumer price sensitivity, and balancing performance standards with environmental benefits in mass-market applications.

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