Green tire market seen nearly doubling to $80.6 billion by 2031

Allied Market Research says the global green tire market will rise from $35.4 billion in 2021 to $80.6 billion by 2031, powered by demand for fuel efficiency and lower rolling resistance. The report also points to growth in passenger cars, aftermarket sales and 18-inch tires, while warning that cost and awareness barriers could slow adoption. Why it matters: - Green tires can cut fuel use by lowering rolling resistance, which matters for drivers, fleet operators and automakers facing high fuel costs. - The market’s projected jump to $80.6 billion by 2031 signals more demand for efficiency-focused and lower-emission tire technology. - Fuel savings from green tires can be material in commercial use, where tire rolling resistance can account for a larger share of fuel consumption. What happened: - Allied Market Research published a report on the global green tire market covering 2021 to 2031. - The market was valued at $35.4 billion in 2021 and is projected to reach $80.6 billion by 2031. - The forecast calls for 8.7% compound annual growth from 2022 to 2031. - The report was released June 12, 2026. The details: - The report covers green tires by type, application, tire size and sales channel. - On-road tires and passenger cars are projected to be the fastest-growing segments. - The 18-inch tire segment is projected to dominate growth by tire size. - The aftermarket segment is projected to lead by sales channel. - The report links market growth to rising international trade, demand for low rolling resistance and new vehicle technologies. - Government regulation, higher fuel-efficiency targets and efforts to reduce rolling resistance are also listed as growth drivers. - The report says limited awareness, structural limitations and higher costs could slow adoption. - Green tires are described as a lower-rolling-resistance alternative to conventional tires. - Utility vehicles can save up to 10% in fuel by using green tires. - Around 20% to 30% of a passenger car’s total fuel use comes from tire rolling resistance, according to the report. - For heavy goods vehicles, the share can be as much as 40%, according to the report. - The report names MICHELIN, Continental AG, Bridgestone, Pirelli, Goodyear, Hankook Tire & Technology, Yokohama Rubber, Petlas, Kumho Tire and MRF as leading players. - A sample report is available here . - Purchase options are available here . - An inquiry form is available here . Between the lines: - The report frames green tires as a practical response to both consumer pressure and logistics-sector cost pain. - The growth outlook suggests tire makers can compete on efficiency, not just durability and price. - The COVID-19 section shows the market still carries exposure to vehicle production slowdowns and OEM demand swings. - The report cites 2020 disruptions at Nissan, Ford, Hankook Tire and Kumho Tire as examples of pandemic pressure on manufacturing and demand. What’s next: - The report expects adoption to accelerate as automakers and suppliers push fuel-saving technologies. - Growth will likely depend on whether manufacturers can reduce cost barriers and expand awareness of green tire benefits. - Future demand should track vehicle production, fleet economics and regulation tied to emissions and fuel efficiency. The bottom line: - Green tires are moving from niche efficiency play to a broader automotive growth market, but price and awareness remain the biggest hurdles.