Forecast Period
|
2026-2030
|
Market Size (2024)
|
USD 7.6 Billion
|
Market Size (2030)
|
USD 9.5 Billion
|
CAGR (2025-2030)
|
3.6%
|
Fastest Growing Segment
|
Pyrolysis
|
Largest Market
|
North America
|
Market Overview
The Global
Tire Recycling Market was
valued at USD 7.6 billion in 2024 and is expected to reach USD 9.5 billion by
2030 with a CAGR of 3.6% through 2030.
Tire recycling is the process of converting used tires into reusable materials or products, reducing the environmental impact of discarded tires. Tires, which are primarily made from rubber, steel, and fabric, can be difficult to decompose naturally, making proper disposal a significant environmental concern. Through recycling, old tires are processed to extract valuable components like steel, rubber, and fibers. These materials can then be repurposed for various applications, including the production of rubberized asphalt for road construction, synthetic turf, or as a raw material in manufacturing new products like playground surfaces and mats. Additionally, tire recycling helps prevent the accumulation of tires in landfills, reducing waste and promoting a circular economy by reusing materials that would otherwise take up space and contribute to pollution.
Key Market Drivers
Environmental Regulations and Sustainability
Initiatives
The global tire recycling market is significantly
driven by the increasing emphasis on environmental regulations and
sustainability initiatives. Governments across the world are implementing
stricter environmental regulations to manage the disposal and recycling of
waste, including tires. For example, many countries have introduced Extended
Producer Responsibility (EPR) policies, which require tire manufacturers to
take responsibility for the entire lifecycle of their products, including
post-consumer waste. These regulations compel manufacturers to create or
partner with recycling systems to manage end-of-life tires, ensuring they are
properly disposed of or recycled instead of being sent to landfills or
incinerated.
Tires are considered a significant environmental
hazard due to their size, non-biodegradability, and ability to harbor
mosquitoes and other pests when improperly disposed of. Consequently,
governments worldwide are enforcing regulations that mandate the recycling of
tires, thereby reducing the environmental impact. For instance, in the United
States, the Environmental Protection Agency (EPA) has implemented laws to
regulate tire disposal and promote tire recycling efforts. Similarly, the
European Union has established stringent regulations for tire waste management
and has outlined targets for the recycling and reuse of tire-derived materials
under the EU Waste Framework Directive.
Additionally, many countries are targeting
zero-waste goals and aiming to achieve a circular economy by maximizing the
reuse of materials. The tire recycling industry plays a crucial role in this by
converting discarded tires into valuable products such as crumb rubber,
reclaimed rubber, and tire-derived fuel (TDF). The growing interest in a
circular economy encourages tire recycling because it reduces the need for
virgin resources and mitigates the environmental damage caused by raw material
extraction. Governments and regulatory bodies are also promoting green
technologies in tire recycling, fostering the development of more efficient and
environmentally friendly processes like pyrolysis and devulcanization.
The increasing awareness about sustainability,
coupled with the pressures from regulatory frameworks, pushes businesses to
adopt more eco-friendly practices. Recycling tires not only meets regulatory
requirements but also enhances the corporate image, especially as consumers
become more conscious of environmental issues. Manufacturers, particularly in
the automotive and construction sectors, are increasingly prioritizing
sustainable supply chains, making tire recycling a vital component of their
environmental strategies. As the global focus on sustainability grows, tire
recycling will continue to be driven by these regulations, which serve to
reduce waste, minimize environmental pollution, and promote the reuse of
valuable resources. Approximately 1.5 billion tires are discarded globally each year. Of these, only about 75% are currently being recycled or repurposed, with the rest often ending up in landfills or being illegally dumped. In response, various regions, particularly in Europe and North America, are investing in infrastructure and technologies to increase tire recycling rates and minimize waste.
Technological Advancements and Innovation in
Recycling Processes
Technological advancements in tire recycling
processes play a pivotal role in driving the growth of the global tire
recycling market. Traditional methods of tire disposal, such as landfilling and
incineration, are not only inefficient but also harmful to the environment.
However, the development of innovative and more effective recycling
technologies has enabled the industry to overcome these challenges and unlock
new avenues for utilizing waste tires. As the demand for sustainable materials
increases across industries, advanced tire recycling technologies have become
crucial in converting waste tires into valuable secondary raw materials.
One such advancement is pyrolysis, a process that
involves heating tires in an oxygen-free environment to break them down into
valuable products such as oil, gas, carbon black, and steel. Pyrolysis
technology has gained significant traction because it helps in recovering
multiple high-value materials from tires. The oil produced can be used as a
fuel or further refined into chemicals, while the carbon black can be reused in
the production of new tires or other rubber products. This technology also
reduces harmful emissions compared to traditional incineration methods, making
it a more eco-friendly option.
Another significant technological development is
cryogenic grinding, a process that involves cooling tires to extremely low
temperatures, making them brittle enough to be ground into fine powders. This
method is used primarily to produce crumb rubber, which can be used in various
applications, including asphalt paving, playground surfaces, and sports fields.
The ability to produce high-quality crumb rubber has expanded the market for
recycled tire products and opened up opportunities for integrating tire-derived
materials into high-demand industries.
Devulcanization technology, which removes the
sulfur cross-links from rubber to make it more flexible and easier to recycle,
is another breakthrough that has gained momentum in the tire recycling market.
It helps in reprocessing tires into usable rubber material that can be reused
in manufacturing new tires or rubber products. Innovations in chemical and
mechanical devulcanization techniques continue to improve recycling efficiency
and broaden the scope of tire material reuse.
Moreover, automation and digitalization are also
playing an increasing role in enhancing tire recycling operations. Automation
technologies improve the precision and efficiency of sorting and processing
waste tires, while data analytics and machine learning can help optimize
recycling processes by predicting demand for specific tire-derived products and
streamlining operations. These advancements contribute to reducing costs and
improving the profitability of tire recycling plants.
With continued investments in research and
development, the tire recycling industry is expected to see further innovations
in recycling technologies. These technologies not only improve the economic
viability of recycling but also reduce environmental impact, making the
industry more sustainable. As recycling methods become more efficient,
cost-effective, and scalable, the market for tire recycling will continue to
expand, creating new opportunities in both developed and emerging markets.
Download Free Sample Report
Key Market Challenges
High Capital and Operational Costs
One of the major challenges faced by the global
tire recycling market is the high capital investment and operational costs
associated with setting up and maintaining recycling facilities. Tire recycling
processes, particularly advanced technologies such as pyrolysis, cryogenic
grinding, and devulcanization, require significant investment in specialized
equipment, infrastructure, and ongoing maintenance. These technologies, while
efficient and eco-friendly, involve substantial upfront capital expenditure that
can be a barrier to entry for new companies or small-scale recyclers.
The complexity of tire recycling technology adds
another layer of financial challenge. For instance, pyrolysis plants require
intricate systems to ensure controlled heating and gas capture, making these
facilities costly to build and operate. Similarly, cryogenic grinding
facilities demand specialized equipment capable of maintaining extremely low
temperatures, which requires high energy consumption and ongoing maintenance.
Even though these technologies can provide valuable products like oil, carbon
black, and crumb rubber, the initial costs often deter many players from
entering the market.
Beyond capital investment, the operational costs of
tire recycling facilities are also substantial. Energy consumption is a key
factor driving costs, as the recycling processes often require high energy
inputs. For example, pyrolysis and devulcanization processes are
energy-intensive, and fluctuating energy prices can significantly impact the
overall profitability of recycling operations. Additionally, labor costs,
maintenance of machinery, waste management, and compliance with environmental
regulations add to the operational expenses, making it challenging for
recyclers to remain competitive while maintaining profitability.
Another economic challenge arises from the volatile
supply of scrap tires, which can impact the overall cost structure of
recycling. The availability of scrap tires varies by region and depends on
factors such as vehicle fleet size, tire replacement rates, and collection and
disposal systems. In areas where tire collection is inefficient or there is a
low rate of recycling, it becomes difficult for recyclers to maintain
consistent input volumes, further affecting their operational efficiency and
cost-effectiveness.
These high capital and operational costs can hinder
the growth of the tire recycling industry, particularly in developing regions
where recycling infrastructure is limited. For many businesses, balancing
investment in technology with the demand for recycled products and ensuring
cost-effective operations remains a significant challenge.
Inconsistent Regulations and Limited Market Demand
for Recycled Products
Another significant challenge facing the global
tire recycling market is the inconsistent regulatory environment and the
limited market demand for recycled tire products. While many regions have
introduced policies to encourage tire recycling, the level of regulatory
support varies greatly from country to country, creating uncertainty for
businesses operating in the sector. In some regions, governments have
established clear frameworks and regulations that promote tire recycling
through financial incentives, such as subsidies or tax breaks. In contrast,
other countries lack comprehensive regulations, leading to a patchwork of
standards that can confuse industry players and hinder market growth.
For example, while the European Union has stringent
tire waste management laws and clear guidelines on recycling rates, many
developing countries still lack strong regulatory frameworks or enforcement
mechanisms. This inconsistency in tire recycling regulations can create
challenges for recyclers who need to navigate a complex legal landscape. The
absence of standardized regulations can also result in varying levels of
recycling efficiency, with some regions lagging behind in establishing
effective tire recycling systems, making it difficult for global recyclers to
maintain consistency in operations.
Furthermore, in certain markets, market demand for
recycled tire products remains limited, which stifles the growth of the
industry. While some recycled tire materials, such as crumb rubber, are widely
used in applications like asphalt and playground surfaces, other products, such
as tire-derived fuel (TDF) or carbon black, face lower levels of market
acceptance. The use of tire-derived fuel, for example, can be controversial due
to concerns about its environmental impact compared to cleaner energy alternatives.
Additionally, the demand for crumb rubber can fluctuate depending on the
construction industry's needs, and in times of economic downturn, demand for
road paving materials may decline, affecting the entire tire recycling supply
chain.
Another barrier to increasing market demand is the
lack of awareness and misconceptions surrounding the quality and safety of
recycled tire products. For instance, some sectors, particularly in
construction or manufacturing, may be reluctant to use recycled rubber due to
concerns about the material's durability or performance compared to virgin
rubber. Overcoming these misconceptions and demonstrating the effectiveness of
recycled materials requires extensive research, marketing, and collaboration
between recyclers and end-users.
The tire recycling market also faces competition
from other waste management and material recycling industries, which may offer
more established or higher-margin products. For example, recycled plastic or
metal has a more established market demand, leaving tire recycling to compete
for market share in industries that may have more attractive financial
prospects.
Overall, inconsistent regulations and limited
demand for recycled tire products hinder the market’s growth, especially for
businesses looking to expand their operations globally. Overcoming these
challenges will require enhanced regulatory coordination, public awareness
campaigns, and the development of new markets for recycled tire materials.
Key Market Trends
Increasing Integration of Advanced Technologies in
Tire Recycling
One of the key market trends in the global tire
recycling industry is the growing integration of advanced technologies that
enhance recycling efficiency and the range of products that can be derived from
waste tires. As the demand for sustainable materials increases and
environmental concerns around tire waste rise, tire recyclers are turning to
cutting-edge technologies to improve the quality and quantity of recycled
products. This trend is being driven by the need to find eco-friendly solutions
for handling tire waste while maximizing the value extracted from scrap tires.
A prime example of this trend is the increasing
adoption of pyrolysis technology, which involves heating tires in the absence
of oxygen to break them down into valuable products such as oil, carbon black,
gas, and steel. Pyrolysis offers a highly efficient method for tire recycling
as it recovers multiple high-value products that can be used in various
industries. The oil produced can be used as an alternative fuel or refined into
chemicals, while the carbon black can be reused in the production of new tires
or other rubber products. Pyrolysis technology has seen significant
advancements, with improved efficiency and lower emissions, making it an
attractive option for recyclers and industries aiming to reduce their carbon
footprint.
In addition to pyrolysis, cryogenic grinding and
devulcanization technologies are becoming increasingly popular. Cryogenic
grinding, which involves cooling tires to extremely low temperatures to make
them brittle, allows for the production of high-quality crumb rubber that can
be used in asphalt, playground surfaces, and sports fields. Similarly,
devulcanization, a process that removes sulfur cross-links in rubber, enables
tire materials to be reused in the manufacturing of new tires or other rubber
products. These innovations not only improve the overall efficiency of
recycling processes but also expand the range of applications for recycled tire
materials.
Technological advancements also extend to
automation and digitalization within recycling plants. Automated systems can
enhance sorting, processing, and the quality control of recycled tire
materials, reducing labor costs and increasing operational efficiency. The
integration of machine learning and data analytics further optimizes recycling
operations by forecasting demand and improving supply chain management, leading
to more profitable and sustainable recycling practices. As these technologies
become more accessible and cost-effective, the tire recycling market is
expected to continue evolving, offering a wider variety of applications for
recycled tire products and boosting the overall market size.
Expansion of Global Recycling Infrastructure and
Market Reach
A significant trend in the tire recycling market is
the expansion of global recycling infrastructure and market reach, driven by
the increasing recognition of the economic and environmental value of tire
recycling. As the volume of tire waste grows due to rising vehicle ownership,
particularly in emerging markets, there is a pressing need for expanded
recycling facilities and systems to manage this waste. This trend is
particularly pronounced in regions such as Asia-Pacific, Latin America, and
Africa, where tire recycling infrastructure has traditionally been
underdeveloped.
In response to these challenges, both private and
public sector investments are increasing in tire recycling infrastructure.
Governments in regions such as Asia, Africa, and Latin America are implementing
policies to incentivize recycling operations, which include providing
subsidies, tax benefits, and creating tire collection systems. For example,
countries like China and India have introduced national policies to encourage
tire recycling and reduce the environmental impact of tire waste. This is
contributing to the establishment of new recycling plants, improving the
availability of recycling services, and making it easier for recyclers to
process tire waste.
Simultaneously, the market for recycled tire
products is expanding as new applications for these products are discovered.
The demand for crumb rubber, used in the production of rubberized asphalt,
playground surfaces, and sports turf, is growing due to its environmental
benefits and performance advantages over traditional materials. The
construction industry, in particular, is increasingly adopting recycled tire
materials in road construction and repair, as recycled rubber-modified asphalt
can improve road durability, reduce noise, and provide better skid resistance.
The use of tire-derived fuel (TDF) is also growing in industries like cement
production, where it serves as a low-cost alternative to traditional fuels like
coal.
In parallel with regional expansion, tire recycling
businesses are seeking to increase their market reach by entering new
geographical regions and forming partnerships with industries that can benefit
from recycled tire products. This expansion is also supported by the growing
trend toward circular economy models, where businesses are looking to close the
loop by integrating recycled materials into their supply chains. For example,
automotive companies are increasingly exploring ways to incorporate recycled
tire materials into new tires, and construction companies are using crumb
rubber in various building materials.
The expansion of tire recycling infrastructure,
coupled with the growing demand for recycled tire products, is helping to drive
the global tire recycling market toward greater scale and efficiency. This
trend will continue to gain momentum as technological advancements reduce
recycling costs, regulatory pressures increase, and market acceptance of
recycled products broadens. As more regions develop comprehensive tire
recycling systems and the market for recycled tire products grows, the global
tire recycling industry is poised for substantial growth in the coming years.
Segmental Insights
Application Insights
Manufacturing dominated the Tire Recycling market in 2024 and maintain its dominance throughout the forecast
period, due to the growing demand for recycled materials in various industries.
The automotive, construction, and infrastructure sectors are key contributors
to this trend, as they increasingly turn to recycled tire products like crumb
rubber, tire-derived fuel (TDF), and carbon black. In the automotive sector,
the demand for recycled rubber is rising as manufacturers seek more sustainable
solutions in tire production. Similarly, the construction industry is using
recycled tire materials in road construction and repair, benefiting from
improved durability, noise reduction, and skid resistance provided by
rubber-modified asphalt.
Additionally, the need for
sustainable manufacturing practices is driving the adoption of tire recycling
technologies. Recycled tire materials offer cost-effective alternatives to
virgin materials, helping manufacturers reduce their environmental footprint
and production costs. The increasing emphasis on the circular economy and
regulatory pressures for sustainable waste management further support the
expansion of tire recycling within the manufacturing sector. As companies look
to integrate recycled materials into their supply chains and adopt eco-friendly
solutions, tire recycling offers a viable option to meet both environmental and
economic goals. Given these factors, the manufacturing segment is poised to
remain a dominant force in the tire recycling market, with growth driven by
technological advancements and increasing demand for sustainable materials.
Download Free Sample Report
Regional Insights
North America dominated the Tire Recycling market
in 2024 and maintain its leadership throughout the forecast period, due to a
combination of stringent environmental regulations, advanced recycling
technologies, and strong market demand for recycled tire products. The United
States and Canada have well-established regulatory frameworks that promote tire
recycling, including policies like Extended Producer Responsibility (EPR),
which requires manufacturers to manage the disposal of end-of-life tires. These
regulations ensure a consistent supply of tire waste for recycling and support
the development of efficient recycling infrastructures.
Moreover, North America benefits from a robust
manufacturing base that increasingly adopts recycled tire materials,
particularly in the automotive, construction, and asphalt industries. The
demand for crumb rubber in asphalt and tire-derived fuel (TDF) in energy
production has been growing steadily, contributing to the expansion of the
recycling market. Technological advancements in recycling processes, such as
pyrolysis and cryogenic grinding, have further enhanced the efficiency and
profitability of tire recycling operations in the region. Additionally, the
growing emphasis on sustainability and circular economy principles in North
American industries drives the adoption of recycled materials, further
strengthening the region's leadership in the global tire recycling market. As a
result, North America is poised to maintain its dominance throughout the
forecast period.
Recent Developments
- In January 2025, Epsilon Carbon Private Ltd. (ECPL), a leading Indian carbon black producer, inaugurated an integrated carbon black manufacturing facility in Bellary, Karnataka, located in southern India. Alongside this development, the company unveiled Terrablack, a new product line designed to revolutionize the carbon black industry with sustainability at its core. As part of its ongoing sustainability efforts, Epsilon Carbon is also advancing plans for a fully integrated tire recycling plant in Karnataka, slated to begin operations by FY26. This facility will have the capacity to recycle 30,000 tonnes of tires annually, producing 9,500 tonnes of recycled carbon black (rCB) and 12,000 tonnes of tire-derived oil (TDO), further strengthening the company’s commitment to environmental responsibility.
- In August 2024, the Mitsubishi Chemical Group (MCG Group) announced the commencement of studies to explore the chemical recycling of end-of-life tires (ELTs) using the coke ovens at its Kagawa Plant in Sakaide City, Kagawa Prefecture. The group aims to start producing and marketing sustainable carbon black derived from ELTs by March 2026.
- In January 2025, Tokai Carbon Co., Ltd., Bridgestone Corporation, Kyushu University, and Okayama University launched a collaborative technology development project focused on the secondary processing of recycled carbon black (rCB) extracted from polymer products, such as end-of-life tires. The project aims to transform these materials into Eco Carbon Black (eCB), which will offer rubber reinforcement properties comparable to those of virgin carbon black (vCB) traditionally derived from petroleum and coal. Through this initiative, the project partners are working towards advancing recycling technologies, with the ultimate goal of supporting the realization of a circular economy and carbon neutrality.
Key Market
Players
- Re-Match A/S
- Continental
AG
- Champlin
Tire Recycling Inc.
- Wastefront
AS
- Bridgestone
Corporation
- Liberty
Tire Recycling, LLC
- Genan
Holding A/S
- Apollo
Tyres Ltd
|
|
|
|
- Pyrolysis
- Shredding
- Refurbishing
|
- Crumbed
Rubber
- Tire Derived
Fuel
- Refurbished Commercial
Vehicle Tires
- Others
|
- Manufacturing
- Construction
- Rubber
Products
- Automotive
- Others
|
- North
America
- Europe
- Asia
Pacific
- South
America
- Middle East
& Africa
|
Report Scope:
In this report, the Global Tire Recycling Market
has been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Tire Recycling Market, By Process:
o Pyrolysis
o Shredding
o Refurbishing
- Tire Recycling Market, By Product:
o Crumbed Rubber
o Tire Derived Fuel
o Refurbished Commercial
Vehicle Tires
o Others
- Tire Recycling Market, By Application:
o Manufacturing
o Construction
o Rubber Products
o Automotive
o Others
- Tire Recycling Market, By
Region:
o North America
§
United
States
§
Canada
§
Mexico
o Europe
§
Germany
§
France
§
United
Kingdom
§
Italy
§
Spain
§
Belgium
o Asia Pacific
§
China
§
India
§
Japan
§
South
Korea
§
Australia
§
Indonesia
§
Vietnam
o South America
§
Brazil
§
Colombia
§
Argentina
§
Chile
o Middle East & Africa
§
Saudi
Arabia
§
UAE
§
South
Africa
§
Turkey
§
Israel
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Global Tire Recycling Market.
Available Customizations:
Global Tire Recycling Market report with the
given market data, TechSci Research offers customizations according to a
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).
Global Tire Recycling 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