Tire Recycling Market Size, Share & Trends Analysis Report By Component (Solution, Services), By Process (Mechanical Shredding, Pyrolysis, Refurbishing, Chemical Recycling, Others), By Application (Construction, Automotive, Manufacturing, Energy, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Tire Recycling Market Size

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).

The global tire recycling market is experiencing significant growth, driven by increasing environmental concerns, stringent regulations, and the rising adoption of circular economy principles. The market addresses the environmental challenges posed by end-of-life tires through processes like shredding, pyrolysis, and devulcanization, converting waste into valuable products such as crumb rubber, tire-derived fuel, and asphalt. Key drivers include growing vehicle ownership, which generates substantial tire waste, and government mandates like Extended Producer Responsibility (EPR) frameworks.

Furthermore, technological advancements in recycling methods, such as devulcanization and pyrolysis, enhance material recovery and sustainability. North America and Europe are leading due to robust infrastructure, while Asia-Pacific is growing rapidly due to industrial expansion. The market’s growth reflects a global shift toward sustainable waste management, supported by public-private initiatives and rising demand for cost-effective, recycled materials across industries.

Latest Market Trend

Advancements in pyrolysis and devulcanization technologies

A prominent trend in the tire recycling market is the advancement of pyrolysis and devulcanization technologies, which enhance the efficiency and sustainability of tire recycling. Pyrolysis, a thermal decomposition process, breaks down tires into valuable byproducts like pyrolysis oil, carbon black, and gas. Devulcanization reverses rubber vulcanisation, enabling high-quality recycled rubber for new tire production.

• For instance, in September 2024, Evonik introduced a devulcanization technology allowing up to four times more recycled rubber in new tires.
• Similarly, Contec S.A. completed its third and fourth pyrolysis lines in November 2024, tripling production capacity.

These advancements reduce reliance on virgin materials, align with sustainability goals, and meet rising demand in the automotive and construction sectors, making pyrolysis and devulcanization critical to the market’s evolution.

Tire Recycling Market Growth Factor

Stringent environmental regulations and circular economy initiatives

Stringent environmental regulations and circular economy initiatives are primary drivers of the tire recycling market. Governments worldwide enforce policies to reduce landfill waste and promote sustainable tire disposal, with frameworks like EPR holding producers accountable for end-of-life tire management.

• For example, the U.S. Tire Manufacturers Association reported in October 2024 that 79% of discarded tires are repurposed, reflecting regulatory success.
• In June 2024, Michigan’s Department of Environment allocated grants for over 70 lane miles of roads using scrap tire materials, showcasing public investment.

Europe’s EU Circular Economy Action Plan further drives demand for recycled rubber in the construction and automotive sectors. These regulations, combined with rising consumer awareness of tire waste’s environmental impact, encourage the adoption of recycling technologies, ensuring compliance and fostering market growth across regions.

Market Restraint

High initial investment and operational costs

High initial investment and operational costs significantly restrain the tire recycling market. Establishing recycling facilities requires substantial capital for advanced equipment, such as pyrolysis reactors and devulcanization systems, often costing millions of dollars. The market faces challenges from fluctuating raw material and energy prices, which impact profitability. Maintaining compliance with environmental regulations adds operational expenses, particularly in regions with stringent standards like Europe.

Furthermore, inconsistent tire collection rates further disrupt supply chains, increasing costs. These financial barriers hinder scalability, especially in Africa and parts of Asia-Pacific, where infrastructure is underdeveloped. Overcoming these challenges requires cost-effective technologies and government subsidies to make tire recycling viable for smaller players and emerging markets.

Market Opportunity

Growing demand for recycled tire products in infrastructure

The growing demand for recycled tire products in infrastructure presents a significant opportunity for the tire recycling market. Recycled materials like crumb rubber and rubberised asphalt are increasingly used in road construction, playground surfaces, and sound barriers, enhancing durability and sustainability. The market is projected to grow as construction applications grow. Companies are working in this field.

• For example, in March 2024, Genan opened a Houston facility processing 100,000 tons of tires annually, producing high-purity rubber for infrastructure projects.

These projects align with global sustainability goals, supported by initiatives like the EU’s Circular Bio-based Europe program. The rising adoption of recycled tire products in infrastructure offers economic and environmental benefits, driving market growth and scalability.

Regional Analysis

North America holds a 40% share of the global tire recycling market in 2025, driven by advanced infrastructure and regulatory support. The region emphasises sustainability and efficient waste management, making it easier to repurpose used tires for secondary applications such as road construction and moulded rubber products. A well-established tire collection and processing network supports a consistent supply and recycling flow. Public-private partnerships and regulatory support also encourage innovation in advanced recycling methods, such as pyrolysis and devulcanization. The demand for recycled rubber materials in the construction and automotive industries further strengthens the market. With a growing focus on green infrastructure and circular economy goals, North America remains the most mature and dominant region in the global market.

• The United States has a highly developed tire recycling market, supported by established infrastructure and clear regulatory frameworks. The country benefits from strong coordination between government bodies and private recycling firms, allowing efficient collection, sorting, and repurposing of scrap tires. Recycled tire materials are widely used in construction, landscaping, and industrial applications, making integrating sustainable materials into everyday infrastructure easier. With increasing environmental awareness and a push for green initiatives, the U.S. is a global leader in promoting tire recycling at both the state and federal levels.
• Canada's tire recycling industry is gaining momentum thanks to supportive environmental policies and rising demand for eco-friendly construction materials. Provincial programs help organise tire collection and processing, ensuring waste tires are redirected from landfills and into valuable reuse pathways. The country’s cold climate also drives demand for durable road surfacing materials, such as rubberised asphalt, which uses recycled tires. Canada's construction and sports sectors continue to benefit from crumb rubber applications, while new investments are being made into pyrolysis and clean recycling technologies. Public funding and private sector innovation support a sustainable future for tire recycling in Canada.

Asia-Pacific Tire Recycling Market Trends

Asia-Pacific is the fastest-growing region, with a projected CAGR of 8.0% through 2033, driven by rapid industrialisation and vehicle production in China and India. As tire waste grows, governments are stepping in to address environmental concerns and illegal dumping, which boosts formal recycling efforts. The region’s large-scale manufacturing capabilities and cost-effective labour contribute to increased recycling capacity and technology development. Infrastructure projects and automotive expansion drive demand for recycled tire products, such as rubberised asphalt and tire-derived fuels. Supportive policies and growing awareness about sustainable practices create a fertile ground for investment and innovation, making Asia-Pacific the fastest-growing region in this market.

• China is a leading Asian market for tire recycling due to its massive tire production and growing environmental awareness. The country is implementing stricter laws to prevent illegal dumping and promote sustainable disposal practices. Urbanisation and industrial expansion create vast quantities of tire waste, prompting government and private investment in recycling infrastructure. Applications such as tire-derived fuel and rubberised roads are gaining popularity, helping to close the loop on tire waste. As China modernises its waste management systems and invests in cleaner technologies, its tire recycling market is expected to remain a regional powerhouse, focusing on efficiency and sustainability.
• India’s tire recycling industry is expanding rapidly, fueled by growth in vehicle ownership and rising awareness about environmental conservation. As more vehicles hit the roads, the volume of used tires increases, creating both a challenge and an opportunity for recycling. Government initiatives promote the development of modern recycling plants and the use of recycled rubber in infrastructure, particularly in road construction. Tire recycling also supports small and mid-sized enterprises that process scrap for various uses, including footwear, mats, and rubberised products. With supportive policies and growing demand for green building materials, India is positioned for steady growth in tire recycling.

Europe Tire Recycling Market Trends

Europe holds a significant market share, growing at a CAGR of 7.0% through 2033, driven by its circular economy focus and stringent regulations. The European Union’s focus on a circular economy encourages using recycled materials across industries, including automotive and construction. Countries in this region have well-established collection and processing systems, often backed by extended producer responsibility (EPR) policies that hold manufacturers accountable for end-of-life tires. There's also a growing market for high-value recycled rubber used in road construction and sports infrastructure. Innovation in recycling technologies and public investment in green practices further drive growth. With strong policy backing and an environmentally conscious market, Europe continues to grow steadily in the global tire recycling sector.

• Germany is at the forefront of tire recycling in Europe, driven by its strong environmental policies and automotive industry. The country has a robust recycling system that prioritises tire recovery for use in road construction, moulded goods, and rubber-based components. Government support encourages advancements in tire recycling technologies, such as chemical devulcanization and thermal processing, which improve recycling efficiency. The automotive sector plays a key role, using recycled materials in retreaded tires and eco-friendly vehicle components. With a firm commitment to the circular economy, Germany continues to push for higher recycling rates and innovation in sustainable material use.
• The United Kingdom’s tire recycling sector is driven by its commitment to reducing landfill waste and promoting circular economy principles. Regulatory pressure encourages manufacturers and recyclers to adopt sustainable practices, increasing tire collection and reprocessing. Recycled rubber is used in road paving, sports fields, and insulation materials, supporting the country’s broader green infrastructure goals. Collaboration between government bodies and industry players fosters innovation in tire reuse and recovery methods. With continuous public and private investments in recycling technologies, the U.K. maintains a strong position in the European tire recycling landscape.

Component Insights

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. The demand for advanced machinery is driven by rising tire waste and stringent environmental regulations. For instance, Contec S.A. completed its third and fourth pyrolysis lines in November 2024, tripling capacity. Growth is supported by the global increase in vehicle ownership, generating 1.5 billion tires annually, necessitating robust equipment. North America and Asia-Pacific lead in adopting high-capacity shredders and pyrolysis systems, driven by sustainability goals and circular economy initiatives, ensuring the segment’s dominance in scaling efficient recycling processes.

Process Insights

Refurbishing, including retreading and reconditioning, holds the largest market share, accounting for 47% of revenue in 2024. This process extends tire lifespan, reducing waste and production costs, particularly for commercial fleets. The U.S. Tire Manufacturers Association noted in 2024 that 79% of discarded tires are repurposed, with retreading prominent in heavy vehicle sectors. Companies like Michelin expand refurbishing through initiatives like TREC, to create closed-loop systems. The growth is fueled by regulatory pressures, such as Europe’s EPR frameworks, and rising demand for eco-friendly solutions in the automotive industry, particularly in Asia-Pacific, where vehicle production surged by 0.5 million units from 2021 to 2022.

Application Insights

The automotive segment dominates, holding a 40% market share in 2024, driven by recycled rubber in new tires, mats, and vibration-damping components. The automotive industry’s shift toward sustainability fuels the market's growth. Global vehicle production reached 67.2 million units in 2022, increasing tire waste and demand for recycled materials. In March 2024, Hankook Tire launched the ION tire with 45% recycled materials, showcasing innovation. Regulatory mandates, like the EU’s Circular Economy Action Plan, and consumer demand for greener products drive adoption. The segment’s growth is further supported by advancements in vulcanisation, enabling high-quality recycled rubber comparable to virgin materials, ensuring its dominance in automotive applications.

Company Market Share

The global tire recycling market is competitive, with key players focusing on technological innovation, strategic partnerships, and capacity expansion. Companies invest in advanced processes like pyrolysis and devulcanization to meet regulatory and sustainability demands. Mergers and acquisitions enhance market presence, while R&D drives high-value applications in automotive and construction. These firms leverage global supply chains, collaborate with governments, and integrate circular economy principles to address rising tire waste, ensuring market growth.

Michelin Group: Michelin Group is a leading player in the market, leveraging its expertise in tire manufacturing to develop innovative recycling solutions. Its TREC initiative promotes closed-loop systems, converting end-of-life tires into raw materials for new tires and construction products. Michelin’s focus on sustainability, strategic partnerships, and R&D drives growth, aligning with global circular economy goals.

Recent News

• In February 2024, Michelin partnered with Antin and Enviro to build tire recycling plants across Europe, with the first plant in Uddevalla, Sweden, set to be operational in 2025, recycling 35,000 tons annually. This strengthens Michelin’s leadership in sustainable tire recycling.

Recent Developments

• 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.
• 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.