Global Tire Recycling Market Grows at a Staggering CAGR of 7.2%

Introduction

The global tire recycling industry is substantially expanding, propelled by heightened environmental awareness, rigorous regulations, and the growing implementation of circular economy ideas. The market tackles the environmental issues associated with end-of-life tires using methods such as shredding, pyrolysis, and devulcanization, transforming trash into valuable goods, including crumb rubber, tire-derived gasoline, and asphalt. Primary factors include increasing car ownership, significant tire waste, and governmental regulations such as Extended Producer Responsibility (EPR) frameworks.

Moreover, innovations in recycling techniques, such as devulcanization and pyrolysis, improve material recovery and sustainability. North America and Europe are at the forefront thanks to their strong infrastructure, whilst the Asia-Pacific region is experiencing significant growth due to industrial development. The market's expansion signifies a worldwide transition towards sustainable waste management, bolstered by public-private partnerships and increasing demand for economical, recycled materials across many sectors.

Market Dynamics

Rigorous environmental regulations and circular economy initiatives drive market growth

Strict environmental restrictions and circular economy initiatives are key factors propelling the tire recycling industry. Global governments implement regulations to minimise landfill waste and encourage sustainable tire disposal, utilising frameworks such as Extended Producer Responsibility (EPR) to hold manufacturers accountable for managing end-of-life tires.

• The U.S. Tire Manufacturers Association announced in October 2024 that 79% of waste tires are reused, indicating regulatory effectiveness.
• In June 2024, Michigan's Department of Environment distributed funds for more than 70 lane kilometres of roadways utilising recycled tire materials, demonstrating public investment.

The EU Circular Economy Action Plan in Europe enhances the demand for recycled rubber within the construction and automotive industries. The restrictions and increasing consumer awareness of the environmental effects of tire waste promote the implementation of recycling technology, ensuring compliance and stimulating market expansion across various locations.

Increasing need for recycled tire products in infrastructure creates tremendous opportunities

The increased need for recycled tire products in infrastructure creates a substantial opportunity for the tire recycling sector. Recycled materials such as crumb rubber and rubberised asphalt are progressively utilised in road construction, playground surfaces, and sound barriers, improving durability and sustainability. The market is anticipated to expand alongside the growth of building applications. Organisations are engaged in this sector.

• In March 2024, Genan inaugurated a facility in Houston that processes 100,000 tons of tires per year, yielding high-purity rubber for infrastructure projects.

These projects correspond with international sustainability objectives, bolstered by efforts such as the EU's Circular Bio-based Europe program. The increasing utilisation of recycled tire materials in infrastructure provides economic and environmental advantages, propelling industry expansion and scalability.

Regional Analysis

North America accounts for a 40% share of the worldwide tire recycling market, propelled by sophisticated infrastructure and governmental backing. The region prioritises sustainability and effective waste management, facilitating the repurposing of used tires for secondary applications, including road construction and moulded rubber products. An established tire collection and processing network facilitates a reliable supply and recycling stream. Public-private partnerships and regulatory assistance promote innovation in advanced recycling techniques, including pyrolysis and devulcanization. The need for recycled rubber materials in the building and automotive sectors bolsters the industry. As emphasis on green infrastructure and circular economy objectives increases, North America continues to be the most developed and preeminent region in the worldwide tire recycling sector.

Key Highlights

• The global tire recycling market was valued at USD 9.4 billion in 2024 and is projected to grow from USD 10.1 billion in 2025 to USD 17.9 billion in 2033, exhibiting a CAGR of 7.2% during the forecast period (2025–2033).
• By Component, the market is segmented into solutions and services. The solution segment, encompassing equipment like shredders, pyrolysis reactors, and devulcanization systems, dominates the tire recycling market due to its critical role in processing end-of-life tires.
• By Process, the market is segmented into mechanical shredding, pyrolysis, refurbishing, chemical recycling, and others. Refurbishing, including retreading and reconditioning, holds the largest market share, accounting for 47% of revenue in 2024.
• By Application, the market is segmented into construction, automotive, manufacturing, energy, and others.The automotive segment dominates, holding a 40% market share in 2024, driven by recycled rubber in new tires, mats, and vibration-damping components.
• Based on region, the global market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. North America dominates the global market.

Competitive Players

1. Liberty Tire Recycling
2. Genan Holding A/S
3. Michelin Group
4. Bridgestone Corporation
5. Continental AG
6. Goodyear Tire & Rubber Company
7. Apollo Tyres Ltd.
8. Shandong Linglong Tire
9. Sailun Group
10. Hankook Tire
11. Lehigh Technologies, Inc.
12. Tire Disposal & Recycling Inc.
13. Champlin Tire Recycling
14. Green Distillation Technologies
15. Scandinavian Enviro Systems

Recent Developments

• In September 2024, Evonik introduced a devulcanization technology enabling up to four times more recycled rubber in new tire production. This innovation enhances material quality, supporting automotive and construction applications, and aligns with sustainability regulations in Europe and North America.
• In November 2024, Contec completed its third and fourth pyrolysis lines in Poland, tripling production capacity to 60,000 tons annually. This expansion strengthens Contec’s supply of pyrolysis oil and carbon black, catering to the growing demand for sustainable materials in Asia-Pacific and Europe.

Segmentation

1. By Component
   1. Solution
   2. Services
2. By Process
   1. Mechanical Shredding:
   2. Pyrolysis
   3. Refurbishing
   4. Chemical Recycling
   5. Others
3. By Application
   1. Construction
   2. Automotive
   3. Manufacturing
   4. Energy
   5. Others