Tyre Recycling Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented Product (Rubber, Tire-derived Fuel, Tire-derived Aggregate, Carbon Black, Steel Wires), By Application(Automotive, Construction, Manufacturing, Rubber & Plastics, Others), By Region and Competition, 2020-2030F

Market Overview

Global Tyre Recycling Market was valued at USD 7.60 Billion in 2024 and is expected to reach USD 9.50 Billion by 2030 with a CAGR of 3.60% during the forecast period. The global tire recycling market has witnessed significant growth in recent years, driven by increasing environmental concerns, stringent government regulations, and growing awareness about sustainable waste management. The improper disposal of end-of-life tires (ELTs) has led to serious environmental hazards, such as landfill overflows and fire risks, prompting authorities and industries to adopt advanced recycling solutions. As the demand for eco-friendly and cost-effective alternatives rises, the tire recycling market is poised for further expansion.

The global tire recycling market is fueled by several key factors, including the rising number of discarded tires worldwide, the increasing adoption of circular economy principles, and technological advancements in recycling processes. Governments across the world are implementing strict policies to curb tire waste and encourage recycling. For example, the European Union has banned tire landfilling, while the U.S. and China have introduced regulations to boost tire-derived products.

Another critical factor driving market growth is the increasing use of recycled tire materials in various applications, such as rubberized asphalt, playground surfaces, sports fields, and automotive components. The demand for sustainable raw materials in construction and manufacturing industries has led to greater adoption of tire-derived aggregates and crumb rubber. Furthermore, tire pyrolysis, which converts waste tires into valuable products like fuel oil, carbon black, and steel, is gaining traction as an environmentally friendly alternative to traditional disposal methods.

Key Market Drivers

Increasing Demand for Recycled Materials

The global tyre recycling market is experiencing significant growth, driven by the increasing demand for recycled materials across various industries. With sustainability becoming a major focus for businesses and governments, the need to repurpose end-of-life tires (ELTs) into valuable secondary raw materials has intensified. Recycled rubber from tires is widely used in manufacturing applications such as asphalt modification, rubberized flooring, automotive parts, and construction materials. This rising demand for sustainable and cost-effective alternatives to virgin raw materials is pushing companies to invest in tire recycling technologies and infrastructure.

Stringent environmental regulations and waste management policies have accelerated the shift toward tire recycling. Many countries have implemented extended producer responsibility (EPR) programs, mandating manufacturers to ensure proper disposal and recycling of their products. Additionally, landfill bans and restrictions on open burning of waste tires are further driving the need for efficient recycling solutions. Industries such as construction, automotive, and sports surfaces are increasingly incorporating recycled tire-derived products, such as rubber mulch, crumb rubber, and reclaimed rubber, into their production processes, fostering market expansion.

The economic benefits of tire recycling are another key factor fueling its global market growth. Recycled tire materials offer cost savings compared to virgin rubber and synthetic alternatives, making them attractive to manufacturers seeking to optimize production expenses. Furthermore, advancements in pyrolysis and devulcanization technologies have improved the efficiency and profitability of tire recycling, leading to increased adoption worldwide. As consumer awareness of environmental sustainability continues to rise, the demand for eco-friendly products is expected to further propel the tire recycling market in the coming years.

Growing Demand from the Automotive Industry

The global tyre recycling market is witnessing significant growth, largely driven by the continuous expansion of the automotive industry. As vehicle production and ownership rates surge worldwide, the demand for sustainable waste management solutions, particularly for end-of-life tires (ELTs), has increased. Governments, regulatory bodies, and industry players are investing in innovative recycling technologies to mitigate environmental concerns associated with discarded tires.

The automotive industry has been expanding at an unprecedented pace, driven by rising disposable incomes, urbanization, and increased transportation needs. Since tires have a finite lifespan, the increased number of vehicles directly contributes to the generation of tire waste, necessitating efficient recycling methods. The replacement cycle for tires further amplifies this challenge. Commercial vehicles, passenger cars, and off-road vehicles require frequent tire replacements due to wear and tear, adding to the burden of tire waste management. The automotive aftermarket sector, particularly the demand for replacement tires, plays a crucial role in shaping the tire recycling market dynamics.

Governments and environmental agencies across the globe are enforcing stringent regulations to curb tire waste accumulation and promote circular economy initiatives. Many countries have implemented Extended Producer Responsibility (EPR) programs, mandating tire manufacturers to manage the collection and recycling of used tires. Additionally, landfill bans on tires and financial incentives for recycling facilities are accelerating the adoption of sustainable tire disposal methods. The European Union, for instance, has strict policies under the End-of-Life Vehicles (ELV) Directive and the Waste Framework Directive, compelling automakers and tire manufacturers to prioritize recycling. Similarly, North America has seen a surge in tire recycling regulations, with states like California enforcing tire recycling fees to support sustainable waste management.

The growing need for sustainable solutions has spurred technological advancements in the tire recycling industry. Traditional methods such as mechanical shredding and pyrolysis are being enhanced to improve efficiency and environmental sustainability. Pyrolysis, in particular, has gained traction as it enables the extraction of valuable by-products like carbon black, fuel oil, and steel wire from recycled tires. Innovations in devulcanization technology are also revolutionizing the sector by enabling the production of high-quality reclaimed rubber, which can be reintegrated into new tire manufacturing processes. These technological developments are reducing dependence on raw materials and promoting resource efficiency within the automotive supply chain.

The tyre recycling market is becoming increasingly attractive for investors and businesses due to its economic and environmental benefits. The rise of sustainable construction practices, wherein recycled rubber is used in asphalt, playgrounds, and industrial applications, has expanded the market scope. Additionally, the demand for recycled rubber in manufacturing new tires, footwear, and automotive components is creating lucrative growth opportunities. Leading tire manufacturers are collaborating with recycling companies to establish closed-loop systems that incorporate recycled materials into new product lines. The emergence of circular economy business models is expected to strengthen industry sustainability while reducing carbon footprints.

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Key Market Challenges

High Collection and Processing Costs

One of the primary challenges in the global tire recycling market is the high cost associated with collecting and processing end-of-life tires (ELTs). The logistics of transporting bulky and heavy tires from various locations to recycling facilities involve significant expenses. Additionally, advanced processing techniques, such as cryogenic grinding or pyrolysis, require substantial capital investment, making it difficult for small and mid-sized recyclers to sustain operations.

Competition from Alternative Waste Management Solutions

Tire recycling competes with other waste management approaches, such as tire retreading and waste-to-energy solutions. Retreading extends the life of used tires and reduces overall waste generation, but it also decreases the number of tires available for recycling. Similarly, incineration of waste tires for energy production is often seen as a more cost-effective solution, particularly in regions where energy demand is high. These alternatives divert potential feedstock from recyclers, impacting overall market dynamics.

Key Market Trends

Increasing Government Regulations and Sustainability Initiatives

One of the key drivers of the tyre recycling market is the tightening of government regulations and policies aimed at reducing waste and promoting circular economy practices. Countries across North America, Europe, and Asia-Pacific have implemented stringent environmental policies mandating responsible tire disposal. Extended Producer Responsibility (EPR) programs are gaining momentum, requiring manufacturers to take responsibility for the end-of-life management of their products. Additionally, many governments are promoting incentives for tire-derived products (TDPs), further boosting market growth.

Technological Advancements in Tire Recycling

The global tyre recycling market has witnessed significant technological innovations in recent years, transforming how end-of-life tires (ELTs) are processed into valuable secondary products. Traditional disposal methods, such as landfilling and incineration, have given way to advanced recycling techniques that improve efficiency, maximize material recovery, and reduce environmental impact. Several key technological advancements, including mechanical shredding, cryogenic grinding, and pyrolysis, are driving the evolution of tire recycling.

Mechanical shredding is one of the most widely used methods for processing waste tires. In this technique, ELTs are shredded into smaller pieces using industrial-grade shredders, followed by further granulation to produce fine rubber particles. The process efficiently separates rubber from steel and textile reinforcements, allowing each component to be repurposed. The resulting crumb rubber is used in asphalt modification, playground surfaces, sports fields, and even new rubber products. Advances in shredding and granulation equipment have improved processing speed, energy efficiency, and particle size control, enhancing the quality of recycled materials.

Cryogenic grinding is a cutting-edge technique that utilizes liquid nitrogen to freeze rubber from waste tires to extremely low temperatures. This process makes the rubber brittle, allowing it to be easily crushed into fine powder with minimal degradation. Cryogenic rubber powder has superior elasticity and uniform particle size, making it suitable for applications in rubberized asphalt, industrial seals, and high-performance rubber products. Compared to traditional grinding methods, cryogenic grinding results in higher purity and performance of recycled rubber, increasing its commercial viability. According to industry studies, the elevated inflation rates and rising raw material costs observed throughout 2022 and 2023 have posed significant challenges to the automotive sector, affecting consumer purchasing power and increasing production costs for manufacturers, thereby impacting profitability. The persistent global inflation and consumer concerns regarding economic stability have resulted in fluctuating demand for automobiles across various markets.

One of the most challenging aspects of tire recycling is overcoming the vulcanization process, which gives rubber its durability but makes it difficult to reuse. Devulcanization technology addresses this issue by breaking sulfur bonds in vulcanized rubber, allowing it to be reprocessed into new products. Advanced devulcanization techniques using chemicals, mechanical processes, or microwaves have improved the quality and flexibility of reclaimed rubber, enabling its reuse in new tires, automotive parts, and industrial applications.

Modern tire recycling facilities are increasingly integrating artificial intelligence (AI) and automation to enhance efficiency and material recovery. Optical sorting systems, X-ray technology, and near-infrared (NIR) sensors are being deployed to separate different materials with high precision. These technologies help in identifying contaminants, improving purity levels, and optimizing the recycling process, reducing the need for manual labor and improving overall operational efficiency.

To reduce the environmental footprint of tire recycling, green chemistry solutions and energy-efficient processing techniques are being developed. Innovations in water-based separation methods, bio-based additives, and low-emission pyrolysis reactors are helping minimize pollution and energy consumption. Additionally, research into biodegradable alternatives and hybrid recycling methods aims to further improve sustainability in the tire recycling industry.

Segmental Insights

Product Insights

Based on product, rubber has emerged as the fastest-growing segment in the Global Tire Recycling Market in 2024,ue to several key factors, including increasing demand for sustainable materials, advancements in recycling technologies, and regulatory pressures promoting circular economy practices. As industries worldwide seek eco-friendly alternatives to virgin rubber, recycled rubber has gained traction in multiple applications, including construction, automotive, sports surfaces, and industrial manufacturing. The versatility of recycled rubber in producing products like rubberized asphalt, playground surfaces, and molded rubber goods has significantly contributed to its rapid growth.

Additionally, technological advancements in tire recycling processes, such as pyrolysis and devulcanization, have improved the efficiency of rubber recovery, making it more cost-effective and environmentally viable. These innovations allow for higher-quality rubber to be extracted from used tires, enhancing its usability in various industrial sectors. The adoption of these advanced methods has encouraged greater investment in tire recycling facilities, further driving the expansion of the rubber segment. Moreover, stringent environmental regulations and policies promoting the reduction of tire waste in landfills have pushed companies to adopt sustainable practices, increasing the demand for recycled rubber. Governments across North America, Europe, and Asia-Pacific have introduced initiatives supporting tire recycling, including incentives for businesses utilizing recycled rubber in manufacturing. The growing emphasis on reducing carbon footprints and conserving natural resources has reinforced the preference for recycled rubber over virgin materials.  

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Regional Insights

Based on Region, Asia Pacific has emerged as the dominating region in the Global Tire Recycling Market in 2024, due to several key factors, including rapid industrialization, rising environmental awareness, and stringent government regulations aimed at managing tire waste. The region's massive automotive industry has led to an overwhelming volume of end-of-life tires (ELTs), necessitating efficient recycling solutions. Countries such as China, India, Japan, and South Korea have been at the forefront of tire recycling efforts, implementing policies to encourage circular economy initiatives and sustainable waste management practices. As a result, Asia Pacific has witnessed significant investments in innovative recycling technologies, such as pyrolysis and devulcanization, to repurpose used tires into valuable materials like reclaimed rubber, tire-derived fuel (TDF), and rubberized asphalt.

China's strict environmental policies, including its ban on waste imports and increasing domestic recycling initiatives, have boosted the tire recycling sector. The Chinese government has also mandated higher usage of recycled rubber in new tire production, driving demand for sustainable rubber alternatives. According to industry studies, China emerged as the world's leading automobile manufacturer in 2023, producing over 26.1 million units. This figure was more than three times Japan's output, which ranked second globally. Despite trailing China in production volume, Japan’s Toyota maintained its position as the world's best-selling automotive brand in 2023.

Similarly, India's booming automotive sector and government-backed programs like the Extended Producer Responsibility (EPR) framework have pushed for enhanced tire recycling facilities. The rising number of public-private partnerships and foreign investments in tire recycling plants has further cemented Asia Pacific's leadership in the market. Additionally, growing infrastructure projects across the region have increased demand for recycled rubber in applications such as road construction and sports surfaces, accelerating the adoption of tire-derived materials. The automobile industry accounts for approximately 6% of India’s national GDP, with total exports reaching 4.5 million units across all categories in the 2023-24 fiscal year. This includes 672,105 passenger vehicles and 3.45 million two-wheelers. Global automotive manufacturers, such as Škoda Auto Volkswagen India, which exports 30% of its production, and Maruti Suzuki, with annual exports of approximately 280,000 units, highlight this growing trend.

Recent Development

• In February 2025, ResourceCo, a leader in resource recovery, will launch Australia’s first dedicated off-the-road (OTR) mining tire recycling facility through its tyre recycling division, Tyrecycle. Located in the Pilbara region of Western Australia—a key mining hub that plays a vital role in the national economy—this facility addresses the challenge of managing approximately 50,000 tonnes of used OTR mining tires in the region. Currently, a significant portion of Australia's 130,000 tonnes of used OTR tires remains buried on-site at mining operations.
• In November 2024, Proparco, a French development finance institution, extended a €15 million (Rs 134 crore) line of credit to GRP Ltd, an India-based tyre recycling company. According to an official statement, this funding will support GRP Ltd’s expansion initiatives and enhance its environmental, social, and governance (ESG) strategy, reinforcing its commitment to decarbonizing the tyre industry.
• In May 2024, the U.S. Tire Manufacturers Association (USTMA) and the Tire Industry Association (TIA) established the Tire Recycling Foundation to enhance tire recycling initiatives across the United States. The foundation aims to achieve a 100% recycling rate for end-of-life tires by funding research and projects that address critical gaps in the tire recycling supply chain.
• In February 2024, Michelin entered into a joint venture with Antin and Enviro to develop tire recycling facilities across Europe. The first plant, currently under construction in Uddevalla, Sweden, is scheduled to commence operations in 2025. Once operational, it will process approximately 35,000 tons of used tires annually while generating around 40 local green jobs.

Key Market Players

• Davis Rubber Company Inc.
• TIRE DISPOSAL & RECYCLING LLC
• Tyre Recycling Solution SA
• Liberty Tire Recycling LLC
• Genan Holding A/S
• ResourceCo Pty Ltd.
• GRP LTD
• Lehigh Technologies, Inc.

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:

• Tyre Recycling Market, By Product:

o   Rubber

o   Tire-derived Fuel

o   Tire-derived Aggregate

o   Carbon Black

o   Steel Wires

• Tyre Recycling Market, By Application:

o   Automotive

o   Construction

o   Manufacturing

o   Rubber & Plastics

o   Others

• Tyre Recycling Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Tire Recycling Market.

Available Customizations:

Global Tyre 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).