Green Tires Market Analysis

In-depth Analysis of Green Tires Market Industry Landscape

Governments worldwide are taking steps to introduce rules and programs for labeling tires. The goal is to enhance vehicle efficiency, reduce the negative impact of regular tires on the environment, and increase awareness about green tires. In 2010, Japan began a voluntary tire labeling system for passenger cars. Similarly, South Korea launched a voluntary program for tire labeling in November 2011, later making it mandatory in November 2012. In November 2016, South Korea took a step further by implementing mandatory tire labeling regulations. The European Parliament and the European Council introduced REGULATION (EC) No. 1222/2009, proposing tire labeling for fuel efficiency and other crucial parameters. The aim is to enhance safety, promote fuel efficiency, decrease noise, and empower consumers to make informed purchasing decisions.

Many developed countries have put forward regulations on tire performance. However, developing countries are currently lagging in government initiatives. Nevertheless, there is an expectation that government efforts regarding tire labeling will increase in the coming years. This anticipation is fueled by rising fuel prices and growing awareness of fuel efficiency and environmental concerns. As a result, the impact of government regulations on tire labeling on the demand for green tires is predicted to shift from moderate to high during the forecast period.

In recent years, the cost of crude oil has significantly risen, and the availability of oil is diminishing. Ongoing conflicts in the Middle East have further reduced oil supplies from producing countries, leading to a surge in oil prices. According to the Organization of the Petroleum Exporting Countries (OPEC), in the 4th quarter of 2017, the spot prices for crude oil per barrel increased by 45.60% compared to 2016.

The increase in oil prices has led to a growing demand for fuel-efficient tires. As people look for ways to cut costs and reduce their impact on the environment, fuel-efficient tires have become more attractive. These tires, often referred to as green tires, are designed to have low rolling resistance, which decreases fuel consumption. With the rising awareness of environmental issues and the importance of fuel efficiency, the demand for fuel-efficient tires is expected to continue growing.