[106 Pages Report] Green tires are tires adjusted for low rolling resistance, using materials such as silica. Rolling resistance is the energy dissipated from the friction of the tire rolling on a given surface. The addition of silica to the tire formulation results in the tires being more energy-efficient as well as increasing the overall safety of the green tires.

The market size of green tires in 2016 was USD 56,742.3 thousand units and is expected to reach USD 104,229.4 thousand units by 2022, registering a CAGR of 10.7% during the forecast period.

On-road to be the largest application of green tires during the forecast period

The demand for on-road vehicles such as passenger cars and LCVs is on the rise and expected to boost the green tires market in the on-road application segment.

Passenger cars to be the largest vehicle type for green tires

The increasing demand for fuel-efficient vehicles, as well as greater awareness among consumers, are the factors, which are boosting the demand for green tires in the passenger cars segment.

APAC to be the fastest-growing green tires market during the forecast period.

APAC is projected to be the fastest-growing market, in terms of value, during the forecast period. This is due to the increasing demand for passenger cars and improving living standards of the population in the region.

Market Dynamics

Driver Increase in fuel efficiency

Green tires help in reducing the energy lost due to friction between tires and the rolling surface. This is called rolling resistance. In light motor vehicle and conventional passenger cars, 7-10% of the fuel is consumed to overcome the rolling resistance, and in heavy trucks and commercial vehicles, the fuel consumption is higher. The use of green tires can increase the fuel economy of a vehicle by around 2-4% in light motor vehicles and 7-10% in heavy-duty vehicles. In the long run, the use of green tires turns out cost-effective, as the extra cost paid for the green tires is recovered by savings made on fuel expenses.

Restraint: Lack of awareness in emerging economies

The consumers are well-aware about the benefits of using CNG and hybrid vehicles; however, there is a lack of awareness regarding the benefits of green tires and the role it plays in reducing fuel consumption. In emerging economies such as India and Indonesia, the general consumer is less focused on the benefits offered by green tires. This acts as a significant restraint for the green tires market.

Opportunities Green replacement tires

Though the demand for green tires is increasing among various automotive manufacturers, i.e., at Original Equipment (OE) level, the replacement tires market is expected to provide a lot of opportunities for manufacturers in the future. The demand for replacement tires is likely to rise during the forecast period due to the higher vehicle utilization at the backdrop of an increase in cab sharing facility across the globe.

Scope of the report

Report Metric Details Market size available for years 2015�2022 Base year considered 2016 Forecast period 2017�2022 Forecast units USD million and thousand units Segments covered Vehicle type, Application, and Region. Geographies covered North America, Europe, APAC, the Middle East & Africa, and South America Companies covered Michelin (France), Bridgestone (Japan), Goodyear Tire and Rubber (US), Continental (Germany), Hankook (South Korea), Pirelli (Italy), Cheng Shin Rubber (China), Kumho Tires (South Korea), ZC Rubber (China), Nokian Tires (Finland) Apollo tires (India), Sailun Tires (China), Shandong Linlong Tire (China), Kenda Tires (Taiwan), Giti Rubber (Singapore), Cooper (US), Yokohama (Japan), Nexen (South Korea), MRF (India), Petlas (Turkey), BKT (India)

This research report categorizes the green tires market based on vehicle type, application, and region.

Green Tires Market, Based on Vehicle Type:

Passenger Cars

LCVs

Others

Green Tires Market, Based on Application:

On-Road

Off-Road

Green Tires Market, Based on Region:

North America

Asia Pacific

Europe

South America

Middle East & Africa

Key Market Players

Michelin (France), Bridgestone (Japan), Goodyear Tire and Rubber (US), Continental (Germany), Hankook (South Korea)

Recent Developments

In October 2017, Bridgestone committed to invest 266 million euros into three key European production sites, used to expand plant production capacity, purchase cutting-edge equipment, and optimize existing production lines.

In October 2017, Hankook opened its first manufacturing facility in Tennessee, US. The facility manufactures 5.5 million units and caters the North American demand. This facility supplies high-quality tires to tire dealers and consumers,

In February 2017, Hankook acquired JAX Tyres (Australia). This acquisition will help the company expand its customer relationships as well as enhance its competitiveness in the B2C retail sector. It is also expected to help the company become a top-tier company.

Critical questions the report answers:

Where will all these developments take the green tires market in the long term?

What are the upcoming trends for the green tires market?

Which segment in the green tires market provides the most opportunity for growth?

Who are the leading vendors operating in the market?

What are the opportunities for new market entrants in the green tires market?

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