Tire Recycling Market: Global Outlook, Growth Drivers, and Future Opportunities

Introduction

The global automotive sector continues to expand at a rapid pace, bringing with it a surge in tire consumption worldwide. Every year, more than 1 billion used tires are discarded globally, posing a serious environmental and economic challenge. Disposing of tires in landfills or through incineration is unsustainable, not only because of their non-biodegradable nature but also due to the potential risks of fires, toxic emissions, and soil contamination.

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).

This growth is supported by a combination of factors:

• Increasing tire production and replacement rates.

• Rising pressure from regulatory bodies to curb tire waste.

• Growing demand for recycled tire materials in infrastructure and energy.

• Technological breakthroughs improving recycling efficiency.

Tire recycling has emerged as a sustainable solution that helps transform waste tires into useful raw materials. Through methods such as shredding, pyrolysis, devulcanization, and refurbishing, used tires can be converted into crumb rubber, rubberized asphalt, recovered carbon black, pyrolysis oil, and steel, finding applications across construction, manufacturing, automotive, and energy sectors.

As governments tighten environmental regulations and industries adopt circular economy practices, the global tire recycling market is set on a steady growth trajectory, creating value from waste while reducing ecological footprints.

Key Market Drivers

1. Environmental Awareness and Regulations

Waste tires pose long-term risks if dumped in landfills, as they occupy massive space and degrade very slowly. Environmental regulations worldwide such as Extended Producer Responsibility (EPR) policies mandate that tire manufacturers take responsibility for end-of-life tire disposal. These regulations are creating a robust demand for recycling facilities.

2. Growing Use of Recycled Products in Construction

Crumb rubber, obtained by grinding used tires, is increasingly used in road construction, asphalt modification, playground surfaces, sports fields, and noise barriers. Rubberized asphalt not only improves road durability but also enhances skid resistance and reduces road noise, making it a preferred choice for infrastructure projects.

3. Technological Advancements

Innovations such as pyrolysis (breaking down tires into oil, carbon black, and gas) and devulcanization (restoring the elasticity of rubber) are revolutionizing tire recycling. These advanced methods enhance material recovery and allow higher-quality reuse in new tire production.

4. Circular Economy and Sustainability Goals

Companies are shifting from a linear “produce-use-dispose” model to a circular “produce-use-recycle” model. Tire recycling aligns with global sustainability and carbon reduction targets, making it a critical element of the green economy.

Market Segmentation

By Component

• Solutions (equipment & machinery): Shredders, pyrolysis plants, and devulcanization systems dominate the market.

• Services: Collection, logistics, and operational support.

By Process

• Refurbishing (Retreading & Reconditioning) – Accounts for nearly half of the global market revenue, as retreaded tires are cost-effective and eco-friendly.

• Mechanical Shredding – Produces crumb rubber and tire-derived fuel (TDF).

• Pyrolysis – Converts tires into pyrolytic oil, recovered carbon black, and steel.

• Chemical Recycling & Devulcanization – Emerging processes that enhance material reusability.

By Application

• Automotive – Largest segment (~40% market share in 2024), utilizing recycled rubber in new tires, mats, insulation, and vibration-dampening products.

• Construction – Roads, sports surfaces, playgrounds, and soundproofing materials.

• Manufacturing & Industrial – Rubber products, flooring, roofing, and molded components.

• Energy – Tire-derived fuel (TDF) for cement kilns, power plants, and industrial boilers.

Regional Insights

North America

• Currently the largest market, holding around 40% global share.

• Strong regulatory frameworks and a mature recycling infrastructure drive growth.

• The U.S. leads in tire-derived fuel and rubberized asphalt adoption.

Europe

• Driven by stringent environmental policies and circular economy directives.

• Countries like Germany, the UK, and France have established advanced recycling facilities.

Asia-Pacific

• Fastest-growing region due to rapid industrialization and rising vehicle ownership.

• China and India are experiencing major challenges with tire waste but also emerging as hubs for tire recycling investments.

Middle East & Africa

• Early-stage market, but growing urbanization and oil-rich economies are increasing demand for rubberized infrastructure.

Latin America

• Countries like Brazil and Mexico are adopting recycling practices supported by government incentives and private sector investments.

Competitive Landscape

The tire recycling market is highly competitive, with global and regional players focusing on advanced technologies, expansion, and partnerships.

Key Players Include:

• Liberty Tire Recycling

• Genan Holding A/S

• Michelin Group

• Bridgestone Corporation

• Continental AG

• Goodyear Tire & Rubber Company

• Apollo Tyres Ltd.

• Lehigh Technologies, Inc.

• Green Distillation Technologies

• Scandinavian Enviro Systems

Strategies adopted by players:

• Expanding capacity through new plants and production lines.

• Investing in green technologies such as pyrolysis and devulcanization.

• Collaborating with construction and automotive industries for large-scale applications of recycled rubber.

Recent Industry Developments

• In 2024, Evonik introduced a new devulcanization technology that allows significantly higher recycled content in new tire production. This breakthrough is expected to transform sustainable tire manufacturing.

• Also in 2024, Contec expanded its pyrolysis facility in Poland, adding two new production lines with a capacity of 60,000 tons per year, increasing the supply of pyrolytic oil and recovered carbon black to European and Asian markets.

Opportunities Ahead

1. Infrastructure Growth – Rising demand for rubberized asphalt in smart city and highway projects.

2. Energy Recovery – Expanding use of tire-derived fuels (TDF) as an alternative energy source.

3. Eco-Friendly Materials – Growth of green building and construction sectors boosting demand for sustainable rubber products.

4. Emerging Markets – Asia, Latin America, and Africa represent untapped opportunities with rising vehicle ownership and infrastructure development.

5. Innovation & Digitalization – Smart recycling plants with AI and IoT integration for real-time monitoring and efficiency improvements.

Conclusion

The global tire recycling market is undergoing a transformation, expanding from USD 9.4 billion in 2024 to nearly USD 18 billion by 2033. With strong regulatory backing, sustainability targets, and rapid technological advancements, the industry is evolving into a cornerstone of the global circular economy.

From powering industries with tire-derived fuel to paving eco-friendly roads and producing new tires with recycled materials, tire recycling is proving to be a win-win for both the environment and the economy. The future will be shaped by innovations in recycling technologies, large-scale adoption in infrastructure, and growing demand in emerging markets, ensuring that waste tires are no longer seen as environmental burdens but as valuable resources.